OLYMPIA — Washington state’s budget picture just got a lot tighter. The latest revenue forecast shows tax collections dropping more than half a billion dollars since June. That includes a $412 million hit to the current two-year budget.

Lawmakers had already passed $4.3 billion in new taxes earlier this year and approved a $77.8 billion budget to fund schools, healthcare, and social services. But now, revenues are expected to fall short at about $74.3 billion.

Chief economist Dave Reich delivered the forecast to the state’s Economic and Revenue Forecast Council, warning of a tough 2025 session ahead. A slowing housing market, weak sales tax revenue, and fewer construction projects are all dragging down the numbers.

Democratic budget writer June Robinson called the outlook “all bad news,

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