Blog

Estimated reserves decline in the official budget outlook

Yesterday the Economic and Revenue Forecast Council (ERFC) approved an official budget outlook based on the 2024 supplemental operating budget. The unrestricted ending balance in funds subject to the outlook (NGFO) is significantly smaller for both the current and next biennium than had been estimated when the budget was passed by the Legislature. This means […]

State Supreme Court avoids involvement in problem of competency evaluation delays

Today the state Supreme Court dismissed a request from the Spokane County prosecutor that the Court issue a writ of mandamus directing the Secretary of the Department of Social and Health Services (DSHS) to “timely provide competency services in criminal proceedings.” According to the Court, the DSHS secretary is not a “state officer” under the […]

Gov. Inslee’s budget vetoes didn’t significantly change appropriations

Gov. Inslee vetoed some sections of the 2024 supplemental operating and transportation budgets. (He did not veto any sections of the capital budget.) The vetoes have only a modest impact on appropriations. According to the state’s fiscal data (updated today), the enacted budgets (reflecting the governor’s vetoes) appropriate just a few million less than the […]

Seattle’s payroll expense tax is expected to become the city’s largest tax source this year

Seattle’s Office of Economic and Revenue Forecasts (OERF) presented the April 2024 revenue forecast on Monday. (The presentation is here and the full forecast is here.) The OERF estimates that payroll expense tax (PET) revenues will increase from $315.2 million in 2023 to $394.7 million in 2024. The PET is a highly volatile tax source—it […]

Washington will join 15 other states with an auto-enrollment retirement program

This year the Legislature passed, and the governor signed, ESSB 6069. The legislation establishes “Washington Saves,” an “automatic enrollment individual retirement savings account program.” Under the program, employees will be allowed to contribute to an IRA that is facilitated by the state through automatic payroll deductions. For employees of covered employers, enrollment will be automatic, […]

Federal pandemic relief continues to augment state spending (and how the state is using flexible relief funds)

Beginning in 2019–21, Washington’s operating budget has been augmented by federal pandemic relief funds. Chart 1 shows spending from funds subject to the outlook (NGFO) along with federal relief funds (for both the Great Recession and the pandemic recession). The 2023–25 amount shows biennial appropriations as revised by the 2024 supplemental (as passed by the […]

The Washington student loan program design is still not complete, and the Legislature continues to repurpose its funding

The historically large 2022 supplemental operating budget included $150.0 million in seed money for a new, low-interest student loan program. The program was established by E2SHB 1736 (also enacted in 2022), but the bill left the details to be worked out by the Washington Student Achievement Council (WSAC). In early 2023, a WSAC report raised […]

How the state budgets prepare for the possibility that the climate commitment act will be repealed (as revenues in the latest carbon auction came in low)

Climate commitment act (CCA) funds (proceeds from the carbon emission allowance auctions) are appropriated in the operating, capital, and transportation budgets. The supplemental budgets passed by the Legislature this year appropriate CCA funds assuming the current revenue forecast, but they delay a large share of those appropriations so that they will be effective only if […]

Operating budget provisos include studies and work groups on tax policy, education, housing, human services, and public safety

Earlier today we published our overview of the operating budget as passed by the Legislature. (The governor has not yet signed the budget.) As always, the budget is rife with provisos that are too small to make the overview but may provide some hints as to what the Legislature might want to work on next […]

New brief: The Supplemental Operating Budget Increases Spending 3.1% and Drains the Shadow Reserve Account

The Legislature has passed a supplemental operating budget that would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $2.143 billion (3.1%). Including the supplemental, revised 2023–25 appropriations are 15.8% higher than actual 2021–23 spending. (The long-term average biennial growth is 9.8%.) Since the biennial budget was adopted last year, the NGFO revenue […]