New report: Gov. Inslee's 2017-19 Operating Budget Proposal Would Significantly Increase Spending and Taxes

In a new report, we provide an overview of Gov. Inslee's proposed operating budget for the next biennium. Briefly:

  • Economic growth means that NGFS+ revenues for 2017-19 are expected to increase by $2.579 billion over 2015-17.
  • Gov. Inslee proposes increasing revenues by another $4.369 billion.
  • The B&O tax rate on services would be increased from 1.5 to 2.5 percent ($2.276 billion).
  • A carbon tax would be imposed ($1.069 billion).
  • A capital gains tax would be imposed ($821.0 million).
  • Five tax exemptions would be repealed ($308.3 million).
  • The proposal would transfer $118.4 million to the general fund from other funds.
  • It would also transfer $252.6 million from the public works assistance account.
  • $407 million would be transferred from the rainy day fund.
  • Maintenance level spending is $3.481 billion higher than 2015-17 appropriations.
  • The proposal would increase spending by $4.762 billion on top of that.
  • Gov. Inslee would respond to the McCleary decision by spending $2.746 billion on K-12 salaries and training.
  • Resident undergraduate tuition would be frozen at SY 2016-17 levels.
  • Children's Administration and the Department of Early Learning would be transferred to a new agency, the Department of Children, Youth and Families.
  • Community mental health and substance use disorder programs would be transferred from DSHS to HCA.
  • Collective bargaining agreements with public employees would be funded.
  • The four-year balanced budget requirement would be suspended.

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