(The Center Square) – In June, the Washington State Economic and Revenue Forecast Council’s revenue forecast anticipated that state coffers would run dry by 2027 despite record revenue levels and following the largest tax increase in state history. Additionally, the state is also facing a potential $1 billion in tort claim liability through the next four years. So far, we really haven't seen a lot of impact from the tariffs in terms of prices.”Another factor that could alter the state’s economy and its revenue levels are Federal Reserve interest rates. “When inflation was very high, back in 2022, the way to the Federal Reserve responded to that was to raise interest rates,” Reich said. Inflation has come down, and interest rates have come down a little bit, but they're still elevated.