New Brief: The Drag of Unfunded Commitments
During the current legislative session, legislators must close a significant remaining 2011-13 budget shortfall. When in a situation like this, it is tempting to suspend programs rather than eliminate them, in the hopes that the economy will improve in the next biennium. Indeed, legislators have deferred spending on various programs, in this biennium and previously. […]
December 30 , 2011 - Emily Makings
The Comprehensive Annual Financial Report and Workers' Comp Audit
The State Auditor’s Office has released its 2011 Comprehensive Annual Financial Report (CAFR) Summary. Total government expenses declined 7.42 percent from 2010, with the largest reductions coming from workers’ compensation (-71.44 percent) and unemployment insurance (-21.97 percent). Unemployment compensation activity reported operating income of $171 million in fiscal year 2011 versus a loss of $985 […]
December 12 , 2011 - Emily Makings
Legislative 2012 Supplemental Budget Proposal
The legislature released a proposed 2012 supplemental budget today (PSSB 5883 or PSHB 2058). As we discussed in our brief on the governor’s proposed supplemental, the state has about a $2 billion problem to solve. Legislators don’t propose getting anywhere near that figure during the special session. Instead, they would begin by cutting the problem […]
December 05 , 2011 - Emily Makings
New Brief: Governor's 2012 Supplemental Budget Proposal
In a new brief, we detail Governor Gregoire’s proposed 2012 supplemental budget. Not only does the governor propose a long list of spending cuts and fund transfers, she also recommends a number of revenue raisers — including, of course, an increase in the sales tax. Should voters and the legislature agree to increase taxes, the […]
December 01 , 2011 - Emily Makings
2012 Workers' Comp and UI Taxes
Today the Department of Labor and Industries (L&I) and the Employment Security Department announced the workers’ compensation and unemployment insurance tax rates for 2012. For workers’ compensation, there will be no overall increase in premiums. The L&I press release states: In September, the agency proposed a 2.5 percent increase. The decision to hold overall rates […]
December 01 , 2011 - Emily Makings
WA One of Four States with Current Year Budget Shortfall
Today the National Conference of State Legislatures (NCSL) released a Fall 2011 State Budget Update: Better revenue performance is driving the improvement in state finances. Collections in most states have stabilized or are growing, and the general revenue outlook for the remainder of the fiscal year reflects confidence in continued modest growth. However, recent global […]
November 23 , 2011 - Emily Makings
A Preliminary Look at the Governor's 2012 Supplemental
On Monday, Governor Gregoire released her proposed 2012 supplemental budget for 2011-13. This follows alternatives for reductions that she laid out in October (and which I wrote about here). The Budget Highlights document explains the problem: When Governor Gregoire and the Legislature approved the 2011–13 budget last spring, the state was projected to end the […]
November 14 , 2011 - Emily Makings
Judicial Branch Spending
Last week, the Chief Justice of the Washington Supreme Court, Barbara Madsen, wrote an article in the News Tribune on the impact of budget cuts on the state’s judicial system. She writes, In a September 2010 survey on funding impacts, Pierce County courts reported cutting several weeks of jury trials. That resulted in a growing […]
November 09 , 2011 - Emily Makings
More on the Governor's Budget Reduction Alternatives
About two weeks ago, Governor Gregoire released a list of budget reduction alternatives — both her preliminary choices for cuts ($1.65 billion) and additional alternatives ($3.84 billion). (She will officially propose a 2012 supplemental budget later this month.) She also includes additions to the reserve of $390 million (from delaying the June 30, 2013 apportionment […]
November 08 , 2011 - Emily Makings
Thrive Washington: Setting Priorities, Marking Progress
The last of nine Thrive Washington papers is now available: Setting Priorities, Marking Progress. Thrive Washington is a research series developed by the Washington Roundtable and the Washington Research Council. Other papers focused on fiscal policy, business costs, competitive sourcing, health care, government restructuring, regulatory reform, and economic development. The final paper reviews progress made by […]