Underscoring the strength of Washington’s tax revenue recovery – not quite the same thing as full economic recovery – is a new report cited by the Washington Research Council.
Pew has now released new data that shows that Washington’s tax revenue growth from the pre-Great Recession peak through the second quarter of 2020 was 36.3%. That’s the second highest growth in the nation, behind North Dakota. (Through calendar year 2019, Washington’s revenue growth ranked fourth highest.)
Additionally, Pew reports that Washington’s inflation-adjusted tax revenues for fiscal year 2020 grew by 3.8% over FY 2019. That’s the second highest revenue growth (behind Idaho) and Washington is one of just seven states in which revenues grew.
Extraordinary revenue growth, and one of the reasons that, combined with a robust rainy day fund and federal assistance, Washington does not have a budget shortfall.