The 2020 revenue rollercoaster has returned to where it started, and the current budget balances without increasing taxes or using the rainy day fund

By: Emily Makings
12:09 pm
March 17, 2021

State revenues from funds subject to the outlook (NGFO) are now back to what was expected in Feb. 2020—the forecast on which the current budget was based. Kriss wrote about today’s revenue forecast here.

Compared to Feb. 2020, revenues are now expected to be down $355.47 million for 2019–21, up $297.67 million for 2021–23, and up $62.7 million for 2023–25. Over the three biennia, revenues are up $4.97 million.

The charts below show how the revenue forecasts over the past year have changed, on a biennial and fiscal year basis.

Additionally, this news further improves the budget outlook. As Washington’s revenues have rebounded since the June forecast, we’ve shown that Washington no longer has a budget shortfall (see, for example, this policy brief). Now, the current budget balances over four years without increasing taxes or tapping the rainy day fund—and the estimated unrestricted ending fund balance in 2021–23 is a substantial $2.999 billion.

Categories: Budget , Economy , Tax Policy.
Tags: 2019-21 , 2021-23