Washington Revenue Forecast Adds $22 Million to Current Biennium as Leaders Confront Persistent Deficit Ahead of 2027 Session

OLYMPIA, Wash. — Washington state fiscal analysts released an updated economic projection on September 25 that adds a slight $22 million to state tax collections for the current budget cycle, offering minimal relief to state lawmakers confronting persistent multi-billion-dollar structural shortfalls.

Chapman-See, who serves as the chief financial adviser to Governor Bob Ferguson, cautioned that the updated figures should not be interpreted as an easing of budgetary constraints.

Softening Business Tax Receipts and Transportation Revenue Reductions Beneath the positive headline adjustments, internal components of the state tax apparatus displayed unmistakable signs of economic friction.

Conversely, legislative fiscal conservatives warned that state spending has grown at an unsustainable trajectory over the past decade.

Municipal leaders in Bremerton, Port Orchard, and Poulsbo depend on state partnership grants to fund street resurfacing, stormwater management, and indigent defense services mandated by state court rules.

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The Washington State Economic and Revenue Forecast Council adopted its September 2026 forecast, adding $22 million to the current budget but leaving a projected deficit for fiscal year 2028.

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