Washington State’s Economist Revises Revenue Forecast Upward
Posted by Ben Shuey on June 24, 2021
Washington state’s chief economist forecasts a major uptick in economic recovery and the growth of anticipated tax revenues in the state between now and June 2025. The news came during yesterday’s meeting of the Washington State Economic and Revenue Forecast Council as part of Dr. Stephen Lerch’s official quarterly forecast. The update highlighted a number of positive indicators and shows the state should anticipate $3.6 billion more in tax revenues between now and June 2025 over what was projected in the first quarter of this year.
Legislators base the state spending on these quarterly forecasts, although since the Legislature is adjourned until January the new information will not necessarily come into play until the development of a 2022 supplemental budget. These figures do not include federal stimulus dollars coming into state or local governments.
Most notably, incoming sales tax collections continue outpacing previous projections, personal income is growing faster than expected, car purchases have grown significantly despite supply-chain issues, and housing permits continue to rise and have reached a 42-year high.