Revenue projections for Washington state are slightly higher than expected, and while it doesn’t hurt lawmakers header to a third legislative session as they work to craft a two-year state budget, it isn’t likely to help much.
Numbers released by the Office of Financial Management at Tuesday’s Economic and Revenue Forecast Council meeting show the state’s revenue collections through the middle of 2019 are expected to increase by about $159 million, including $80 million more than originally forecast for the upcoming 2017-19 budget, and $79 million more for the current two-year budget through the end of June.
Among the factors driving the slight bump in overall state revenue were steady employment figures and an expectation of gradually rising mortgage rates. The Real Estate Excise tax is collecting more than economists expected in March, and some other taxes, including the state sales tax, are up nearly $38 million. Marijuana taxes should bring in an extra $4 million for the biennium that will end on June 30th and an extra $5 million for the 2017-19 biennium. The projected overall state budget for 2017-19 is expected to be $41.7 billion.
The spending plan must be in place by midnight June 30th to avoid a partial government shutdown starting July 1st. The Legislature finishes its second 30-day special session Wednesday and Governor Jay Inslee is expected to call a third one to start immediately.
