Updated budget outlook suggests improvement in the state’s bottom line

The Washington Research Council assesses the latest state budget outlook produced by the Economic and Revenue Forecast Council. 

According to the official outlook, the 2021–23 operating budget balances over four years, with an unrestricted ending fund balance of $83 million in 2023–25. Including the rainy day fund, total reserves at the end of 2023–25 are estimated to be $1.205 billion.

WRC senior analyst Emily Makings reports some of the highlights from the preliminary economic review, which we wrote about here, including better than anticipated employment and personal income projections. Also, she writes,

  • Revenue collections have so far come in $345.3 million above the March forecast. (The next collections report will be June 15.)

As we wrote previously, it all suggests an uptick in the next official revenue forecast and, therefore, another improvement in the state’s bottom line.