gov jay inslee

A fresh round of federal aid will soon be flowing to Washington businesses and individuals hit hard by the COVID pandemic.

On Friday, Gov. Jay Inslee signed into law a $2.2 billion relief package funded with money approved by Congress in December.

As he prepares to begin a third term in office, Washington Gov. Jay Inslee is proposing a new tax on health care premiums to fund post-pandemic public health. He’s also once again urging the Legislature to pass a capital gains tax.

The tax measures are contained in Inslee’s two-year, $57.6 billion operating budget proposal released Thursday in advance of the 2021 Legislative session. Separately, the Democratic governor also released proposed capital construction and transportation budgets.

Austin Jenkins / Northwest News Network

As the state of Washington grapples with the economic fallout from the COVID-19 pandemic, lawmakers are bracing for a bleak revenue forecast on June 17 that could portend a $10 billion drop in state tax collections over the next three years.

Already, a preliminary forecast in May predicted state revenues would crater by $7 billion over that same time period. The official forecast is likely to be worse. The state’s current two-year budget is approximately $53 billion.

“We know that we are faced with a big problem over the next few years,” said David Schumacher, the governor’s budget director, in a recent call with reporters.