New brief: SJR 8201: Investment Flexibility for Long-Term Care Funds
SJR 8201 would amend the state constitution to allow money in the long-term services and supports (LTSS) trust account to be invested as authorized by law. Effectively, the amendment would allow the funds to be invested in a broader range of vehicles, including stocks. Currently, the funds may only be invested in fixed-income securities. Over […]
New brief: With New Revenue Package, the Transportation Budget Balances Through 2027–29
To address transportation budget revenue and cost challenges, the Legislature increased transportation taxes and fees. New revenues include the first gas tax increase since 2015 and increases to the retail sales and use taxes owed on several transportation-related transactions. Additionally, beginning in 2027–29, 0.1% of state sales and use tax collections is dedicated to the […]
New report: Historically Large Tax Package Rushed Through at the End of Session
The 2025–27 operating budget relies on a tax package that is estimated to increase revenues to funds subject to the outlook (NGFO) by $9.0 billion over four years. It includes business and occupation (B&O) tax increases (ESHB 2081 and ESSB 5794), the expansion of the sales tax to more services (ESSB 5814), capital gains and […]
New brief: The Band-Aid Budget: $9 Billion in New Taxes and $7 Billion in Savings, But No Lasting Solutions
Despite an estimated four-year $8.6 billion maintenance level shortfall—the difference between the cost to continue current services into the next biennium and expected resources—the Legislature increased appropriations from funds subject to the outlook (NGFO) for 2025–27 by a net of $5.913 billion. NGFO appropriations for the upcoming 2025–27 biennium total $77.858 billion, an increase of […]
New brief: The Business Tax Burden in Washington is Above the National Average
State business and occupation (B&O) tax collections are up 258% since 2000. But businesses also pay sales, property, and many other state and local taxes. Indeed, businesses paid 49.7% of total state and local taxes in Washington in fiscal year 2022, according to a report from the Council on State Taxation. (Nationally, businesses paid an […]
New brief: Anatomy of the Projected State Budget Shortfall
We estimate that Washington is facing a $5.1 billion budget shortfall for 2025–27. However, this is not a revenue shortfall. Biennial revenues have not declined. Instead, spending growth has outpaced revenue growth. Indeed, legislators have regularly appropriated more than they expect to collect from forecasted revenues—especially in 2023–25. Enacted appropriations for 2023–25 exceed revenues expected […]
New brief: Washington Faces an Estimated $5.1 Billion Shortfall
The cost of maintaining current services in the upcoming 2025–27 operating budget is expected to be higher than currently-forecasted revenues for funds subject to the outlook (NGFO). Including the September revenue forecast, a preliminary estimate of the maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) for the biennium, and the […]
New brief: I-2117: Repealing the Climate Commitment Act
Initiative 2117 would repeal the Climate Commitment Act (CCA). The CCA was enacted in 2021 with the goal of reducing carbon dioxide emissions in the state to 5% of 1990 levels by 2050. The average price of carbon emission allowances at 2023 auctions was $54.74, more than twice the $22.78 anticipated in the 2021 fiscal […]
New brief: I-2109: Repealing the State Capital Gains Tax
Initiative 2109 would repeal the state capital gains tax statute. The Office of Financial Management estimates that repealing the capital gains tax would reduce state revenues by $424 million in FY 2025, by $820 million in the 2025–27 biennium, and by $919 million in the 2027–29 biennium. The reductions would only affect the education legacy […]
New brief: I-2124: Making the State’s Long-Term Care Program Optional
If approved by voters, Initiative 2124 would make the long-term services and supports trust (LTSST) program optional for all workers. The Office of Financial Management believes that revenues to the LTSST account would decrease as workers choose to opt out of the program, but it does not estimate how many opt outs there would be. […]
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