Month: October 2022

Collective bargaining agreements with state and non-state employees would increase general fund–state spending by $2.893 billion over four years

The state negotiates collective bargaining agreements (CBAs) with general government employees, community college employees, certain law enforcement employees, and ferry employees. It also negotiates CBAs with certain non-state employees, and it negotiates with K–12 school employees over health care benefits. At a work session of the Joint Committee on Employment Relations last week, the Office […]

Social Security contribution base will increase by 9.0% next year, increasing the wages subject to Washington’s paid family and medical leave premiums

Yesterday the Social Security Administration announced that the amount of wages subject to the Social Security tax will increase from $147,000 in 2022 to $160,200 in 2023. The 9.0% increase in the contribution base is the largest since 1983. In Washington, paid family and medical leave (PFML) premiums are assessed on wages up to the […]

For 2023–25, the Department of Commerce asks to nearly double the substantial GFS budget step-up it received this biennium

The Department of Commerce, like the Department of Health, received extraordinary amounts of federal relief over the past few biennia related to the pandemic. For example, Commerce is the state agency responsible for distributing pandemic rental and business assistance. General fund–state (GFS) appropriations for Commerce in 2021–23 increased by 249.3% over 2019–21. Now, Commerce is […]

Department of Health asks for a 325.5% increase to its general fund–state budget

Given the COVID-19 pandemic, the Department of Health (DOH) has been the recipient of an unusually large amount of federal funds in 2019–21 and 2021–23. (In the chart below, federal funds are included as part of “all funds.”) Meanwhile, general fund–state (GFS) spending for DOH increased by 23.1% in 2019–21 and 35.7% in 2021–23. The […]

Should the working families tax credit be treated as an appropriation or a revenue reduction?

The Department of Revenue (DOR) is one of just 10 agencies that have requested smaller general fund–state (GFS) budgets for 2023–25 than 2021–23. It is asking for a GFS budget reduction of $290.4 million (by far the largest reduction among the agencies). This is due to DOR’s request for a technical correction to the accounting […]

The full cost of the Fair Start for Kids Act begins to come into focus

[Updated 10/12/22] The Department of Children, Youth, and Families (DCYF) has proposed a 2023–25 budget that would increase its general fund–state (GFS) spending by $1.270 billion (57.3%). The increase represents 8.1% of total GFS requests made by agencies. Only public schools and the Department of Social and Health Services requested larger increases in GFS spending—and […]

Agency budget requests for 2023–25 would increase spending substantially

Most state agencies have now submitted their 2023–25 operating budget requests to the Office of Financial Management (OFM). If the requests were adopted as is by the Legislature, they would increase general fund–state (GFS) spending by 28.5% over 2021–23. (For context, the Economic and Revenue Forecast Council estimates that GFS revenues will increase by 3.4% […]

Milliman: Current statutory maximum for paid family and medical leave premiums is “too low”

Financial problems with the state’s paid family and medical leave (PFML) program surfaced at the beginning of this year. (For more information, read our analysis of the situation, including background information and a review of legislative changes this year.) Consequently, the Legislature required the Office of Financial Management (OFM) to contract with an entity for […]

Document recording surcharges are not yielding the revenues expected for housing programs

Washington has four document recording surcharges that are used to fund homelessness programs. Today the Department of Commerce told the House Appropriations Committee that revenues from these fees are falling short of estimates. (Commerce’s presentation to the committee is available here.) Indeed, Commerce’s 2023–25 budget request includes a placeholder at maintenance level that would address […]

New brief: Washington’s Business Taxes Continue to Exceed National Average

Washington state’s businesses bore much of the tax burden for fiscal year 2020, delivering nearly half of state and local tax revenue. Nationally, Washington’s business taxes were the 9th highest per employee, the 32nd largest as a share of economic activity, and the 17th greatest as a share of total state and local tax revenue. […]