Washington state revenue forecast drops by more than $1 billion over next two biennia

Concerns about the nation’s banking system are on top of worries about historically high inflation

Brett Davis
The Center Square Washington

On Monday afternoon Dr. Stephen Lerch, chief economist at the Washington State Economic and Revenue Forecast Council, said he anticipates revenue falling $483 million for the upcoming 2023-25 biennium and $541 million for the 2025-27 biennium, for a decrease of more than $1 billion over the next two biennia.

Lerch noted during the virtual revenue forecast that the recent turmoil in the banking sector – the collapse of Silicon Valley Bank in California and Signature Bank in New York – happened after Washington’s revenue forecast process started. The impact of the demise of those two banks is not reflected in the forecast, he said.

“It’s still unclear, you know, what the ultimate impact of those two banks failing will be,” Lerch said, “but clearly, you know, that is a downside risk that it could become worse.”

Concerns about the nation’s banking system are on top of worries about his