Emily Makings

Will the operating budget repeal or reduce an already appropriated extra pension payment?

As part of the 2021–23 biennial budget, the Legislature appropriated $800.0 million from the general fund–state (GFS) to make an extra payment toward the unfunded actuarial accrued liability (UAAL) of the Teachers’ Retirement System (TRS) Plan 1. The payment is scheduled for June 30, 2023. In 2021, the Legislature had also transferred the balance of […]

Is the Washington future fund proposal still in play?

On Friday (fiscal committee cutoff day), the House Appropriations Committee held a public hearing on HJR 4204. Later in the meeting, the committee passed the resolution. (HJR 4204 was requested by the state treasurer; its companion, SJR 8205, was not heard by Ways & Means.) HJR 4204 would amend the state constitution to allow the […]

Report on state student loan program raises questions about its sustainability

Last week I wrote about HB 1823, which would remove sustainability requirements from the yet-to-be-implemented Washington student loan program. (See that post for details about the 2022 legislation and how HB 1823 would change it.) Instead of specifying program details, the 2022 legislation required the Washington Student Achievement Council (WSAC) to “design a student loan […]

Notes from the February caseload forecast: ECEAP, ABD, and Medicaid

The state operating budget is not developed from scratch. The starting point for a new budget is the maintenance level of the last budget. The maintenance level (ML) is the cost of current services, adjusted for inflation and caseload changes (the number of people who are expected to use entitlement programs). The Caseload Forecast Council […]

A history of legislative diversions from the public works assistance account

SJR 8201, which was approved Feb. 16 by the Senate Ways & Means Committee, would amend the state constitution to establish a public works revolving trust account. (Ways & Means also approved the implementing legislation, SSB 5303.) Under the proposed constitutional amendment, when local governments repay their public works loans, the funds would be deposited […]

HB 1823 would remove actuarial, sustainability requirements from the yet-to-be-implemented Washington student loan program

HB 1823, which will be heard by the House Appropriations Committee tomorrow, would remove actuarial and sustainability requirements from the not-yet-implemented Washington student loan program. Last year, the Legislature enacted E2SHB 1736, establishing the Washington student loan program. (The program is codified as RCW 28B.93.) The bill left the details of the program to be […]

The current wealth tax proposal would apply to financial assets over $250 million, down from $1 billion in the 2021 version

The wealth tax bills proposed in the Legislature this year (HB 1473 and SB 5486) are very similar to the 2021 proposals (which Kriss described here). A major difference is a dramatic increase in the amount of financial assets that would be subject to the tax. HB 1473 (which was heard by the House Finance […]

Estate tax bill would double the maximum rate to fund “progressive policies,” but the funding would dry up by 2035

The current rates for Washington’s estate tax range from 10% to 20%. That top rate is tied with Hawaii for the highest state estate tax rate in the country. (The exclusion amount in Washington is just $2.2 million, compared to $5.5 million in Hawaii.) HB 1795, which was heard by the House Finance Committee this […]

Should school salary inflationary adjustments be based on estimates of future or past inflation?

HB 1732 and SB 5650 would both specify an inflationary adjustment for school employees for school year (SY) 2023–24 of 3.8%. Additionally, under current law, the inflationary adjustment is the implicit price deflator (IPD) for the fiscal year (FY). Under the bills, beginning in SY 2024–25, the adjustment would be based on IPD for the […]

HB 1628 would increase the maximum REET rate to fund affordable housing—but how much would go to which accounts?

Until 2020, the real estate excise tax (REET) was a flat 1.28% tax on the selling price of real estate. In 2019, the Legislature graduated the rate, which reduced the rate for some taxpayers and increased it for others. (We wrote about the change in this policy brief.) Under current law, the maximum rate is […]