Economy Education Politics Capital gains tax surge eases but doesn't solve WA budget woes
A windfall of capital gains tax payments is providing temporary relief for Washington’s budget, but other collections are down, and lawmakers still expect to face financial difficulties next year.
A revenue forecast released Friday shows Washington hauled in $1.5 billion from the capital gains tax. Those collections are roughly twice what was expected in February. They offset a $423 million drop from other tax sources since the forecast adopted by the Economic and Revenue Forecast Council four months ago.
Legislative members on the council welcomed the news, saying it pretty much wipes out a projected $878 million deficit in the 2028 fiscal year.
But, they cautioned, a shortfall is expected in the next two-year budget as costs for state-funded programs and services rise faster than tax revenues and the economic landscape is unsettled.
https://washingtonstatestandard.com/2026/06/26/__trashed-2/