Washington Revenue Forecast Rises $827M as Budget Finalized

Lawmakers prepare supplemental budget with increased revenue projections

Published on Feb. 18, 2026

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Washington state budget writers received positive news as revenue collections are predicted to increase $827 million in the current two-year budget compared to previous expectations. This 1.1% increase reflects early proceeds from tax increases approved last year, putting total revenue expectations at $75.3 billion. Democratic lawmakers are expected to release their supplemental budget proposals this weekend as they work to finalize the state's spending plan.

Why it matters

The increased revenue forecast provides some relief as lawmakers work to address a projected $2.3 billion budget shortfall. However, the governor's office cautions that costs to maintain current state services and caseloads for essential programs are still rising, presenting ongoing budget challenges.

The details

The revenue increase comes from a forecast by the state's Economic and Revenue Forecast Council. It reflects a 1.1% rise in projected collections for the current biennium, up $438 million from the numbers used to craft the original state budget last spring. Democratic budget writers say the news makes their job 'a little easier' as they finalize a supplemental spending plan, though they still have 'a lot of moving parts' to resolve.

  • The legislative session is scheduled to adjourn on March 12, 2026.
  • Lawmakers are expected to release their supplemental budget proposals on Sunday, February 16, 2026.

The players

Sen. June Robinson

The Democrats' chief Senate budget writer.

Gov. Bob Ferguson

The Democratic governor of Washington who proposed tapping the state's rainy-day fund, cutting $800 million in spending, and shifting carbon auction revenue to pay for tax credits as part of his budget framework.

K.D. Chapman-See

The governor's budget director, who stated that despite the good news, 'We are still in a challenging period as costs to maintain current state service levels are increasing, as are caseloads for essential programs families rely on.'

John Braun

The Republican Minority Leader in the state Senate, who said the new revenue projection 'more than obviates the need' for an income tax provision in the Democrats' budget proposal.

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What they’re saying

“It makes our week a little easier.”

— Sen. June Robinson, Chief Senate budget writer (dailyfly.com)

“We are still in a challenging period as costs to maintain current state service levels are increasing, as are caseloads for essential programs families rely on.”

— K.D. Chapman-See, Governor's budget director (dailyfly.com)

“I look forward to continuing to work with the legislature to deliver a responsible, balanced budget.”

— Gov. Bob Ferguson (Social media)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This improved revenue forecast provides some relief as lawmakers work to finalize the state's supplemental budget, but significant challenges remain in addressing rising costs and caseloads for essential programs. The budget process will continue to be closely watched as Democrats and Republicans negotiate the final details.