From lobbyist Jim Hedrick:

"The state quarterly revenue forecast was released today (September 26, 2023). State general fund revenue has been increased for the current 2023-25 biennium by $663 million and increased for the 2025-27 biennium by $437 million. Before the books close on the 2021-23 biennium, state general fund revenue is increased by $265 million. 

Growth in Washington State revenue collections has slowed as inflation continues to trend down but remains a barrier to stronger consumer spending. The real estate market is still strong but has flattened dramatically. The seasonally adjusted taxable real estate sales for August 2023 are 31% below from August 2022.

Positives for the state economy are the Washington unemployment rate for August remains at a historic all-time low of 3.6%. The Federal Reserve is expected to raise the federal funds interest rate to a range of 5.5% to 5.7% in November but decreases in interest rates are expected to start in the 2^ndquarter of 2024. There is no consideration in this forecast given to the effects of a looming federal government shutdown that may occur starting October 1.

The next state quarterly revenue forecast is scheduled for November 20 which will inform spending levels in the Governor’s supplemental budget that will be released on or about December 20."