OLYMPIA — Washington’s state tax collections are roaring back, with an estimated additional $3.2 billion projected through 2023 as parts of the economy brighten and people get vaccinated amid the COVID-19 pandemic. That’s a big chunk of money for a state with a $53.3 billion, two-year state budget that funds schools, parks, prisons and other programs.

Washington’s economy continues to improve, with the latest state revenue forecast showing that lawmakers will have more than $3 billion more to work with as they prepare to unveil budget plans next week, plus money the state will receive from the latest federal stimulus package.

The Revised March 2021 Economic Forecast is now available online.

Washington State is ranked #1 overall

We expect a 1.3% increase in Washington employment this year which is down from the 3.5% increase in the November forecast. We expect above average growth through the remainder of the forecast as the economy recovers from this deep recession. We expect employment growth to average 2.2% per year in 2022 through 2025 compared to the 1.7% average rate expected in November. Our forecast for nominal personal income growth this year is 3.9%, up from a 1.1% decline in the November forecast.