The Washington State Economic and Revenue Forecast Council (ERFC) released its September 2026 revenue forecast on Friday, September 25. Overall, revenue projections were revised upward for the 2025-27, 2027-29 and 2029-31 biennia. However, revenues for certain accounts were revised downward. More background on state revenue forecasts, including acronym definitions, can be accessed on our website.
Compared to the June forecast, total revenue (the sum of GF-S, WEIA, ELTA, and OPA) increased by $22 million for the 2025-27 biennium (+0.03%), $430 million for the 2027-29 biennium (+0.51%), and $2.38 billion for the 2029-31 biennium (+2.59%). These increases are due to higher-than-expected collections of Revenue Act taxes, which include retail sales and use, business and occupation, public utility, penalties, and non-cigarette tobacco product taxes. Collections of other revenue sources were lower than expected. Other positive changes include increased economic activity and an upward revision in Washington’s personal income growth, employment growth, and housing permits. Washington exports have also increased.
However, the impacts of the Iran war and other geopolitical conflicts, trade policy and changes to federal government spending, employment and services continue to pose a risk to the national and Washington economies. The ERFC highlighted high interest rates and a declining equity market as additional pressures. Additionally, Seattle-area consumer price and core inflation remain elevated.
In June, the ERFC expressed concern around reduced economic activity, lower real estate excise tax collections, and lower than expected housing construction. The ERFC nonetheless projected increases in revenue due to non-economic factors such as new legislation from the 2026 supplemental legislative session. The September 2026 forecast is a mixed picture, as certain accounts are down despite an overall increase. Additionally, the increase in employment is modest and is expected to continue to be slow.
General Fund-State Revenue
Below is the total projected General Fund-State (GF-S) revenue for each biennium:
- $69.97 billion for the 2025-27 biennium, 0.07% below the previous forecast.
$77.40 billion for the 2027-29 biennium, 0.68% above the previous forecast.
$88.15 billion for the 2029-31 biennium, 2.86% above the previous forecast.
Below is the total projected GF-S revenue for accounts from which the University receives dedicated funding:
- Revenue dedicated to the Workforce Education Investment Account (WEIA) decreased by $70 million for the 2025-27 biennium, $26 million for the 2027-29 biennium, and $92.2 million for the 2029-31. Forecasted WEIA revenue is now $1.76 billion for the 2025-27 biennium, $2.09 billion for the 2025-27 biennium, and $2.16 billion for the 2029-31 biennium.
- Revenue for the Education Legacy Trust Account (ELTA) for the 2025-27 biennium is projected to be $123 million higher than forecasted in June. However, forecasted revenue decreased by $79 million in the 2027-29 biennium and by $80.3 billion in 2029-31. Forecasted ELTA revenue is now $4.19 billion for the 2025-27 biennium, $2.77 billion for the 2027-29 biennium, and $3.04 billion for the 2029-31 biennium.
The next revenue forecast will be released in November and will inform the development of Governor Ferguson’s 2027-29 biennial budget proposals to the Legislature. Stay tuned for updates regarding the next state legislative session, which will begin in January 2027.