Emily Makings

State liability account shortfall grows

Jim Brunner of the Seattle Times reports that the Office of Financial Management (OFM) has authorized the state’s self-insurance liability account (SILA) “to be in a temporary cash deficiency of up to $1.7 billion” in 2025–27. At this time last year, the state had authorized a temporary cash deficiency in the account of up to […]

Transportation revenue forecast is down again

According to the Transportation Economic and Revenue Forecast Council, transportation revenues are forecasted to total $8.705 billion in 2025–27, $10.617 billion in 2027–29, and $10.004 billion in 2029–31. Over the three-biennia period, this is $434.6 million less than expected in the February 2026 forecast. The 2026 supplemental transportation budget had balanced through 2029–31. Today’s reduction […]

Budget-related lawsuits piling up

The Washington State Standard reports that two assisted living organizations are suing the state over the way the Legislature reduced assisted living facility rates this year. The 2026 supplemental operating budget (Sec. 938) delays a scheduled rate rebase from FY 2027 to FY 2028. This is estimated to reduce spending from funds subject to the […]

June caseload forecast reduces total caseload estimates for 2025–27

On Thursday, the Caseload Forecast Council presented the June caseload forecast. The caseload forecast feeds into the estimated maintenance level (the cost of continuing current and planned services, adjusted for enrollment and inflation). There will be another caseload forecast in November, which will inform the governor’s proposed 2027–29 budget, and another in February 2027, which […]

Average annual wage is up 4.9%, triggering increases to various state benefits and the UI taxable wage base

According to the Employment Security Department (ESD), the state average annual wage was $99,810 in 2025. That’s an increase of 4.9% over 2024. ESD reports that earnings increased by 4.7%, but covered employment declined by 0.2%. The state average annual wage is used to calculate state unemployment insurance (UI) taxes and benefits, paid family and […]

OFM: “There will be significant budget shortfalls next biennium”

On Friday, the Office of Financial Management (OFM) sent budget instructions for 2027–29 to agencies. In the instructions, OFM director K.D. Chapman-See writes, “To be direct, there will be significant budget shortfalls next biennium in both operating and transportation budgets. I want to be clear that we do not yet know precisely how significant the […]

Could the general fund–state end FY 2026 in the red?

According to a monthly report released last week by the Office of the State Treasurer, the ending balance in the general fund–state (GFS) was -$3.419 billion at the end of March. Although ebbs and flows in the ending balance over the course of a year are normal, this is an unusually large shortfall. Typically, GFS […]

State spending has increased substantially

Andrew Villeneuve of the Northwest Progressive Institute argues that Washington’s budget “has been shrinking.” His analysis is premised on the opinion that state government should grow as fast as the economy. Additionally, the subtitle to Villeneuve’s post claims, “In relative terms — the only terms worth using for comparisons — the state budget has gotten […]

Who pays the advanced computing surcharge?

The workforce education investment account (WEIA), created in 2019 and overhauled in 2020, is a fund subject to the outlook. Revenues may be used for “higher education programs, higher education operations, higher education compensation, state-funded student aid programs, and workforce development including career connected learning.” Certain business and occupation (B&O) tax dollars fund the WEIA. […]

The budget problem and the income tax

In the Seattle Times today, Paul Roberts writes about the downward revisions to Washington’s credit outlook. The credit rating agencies cited the recent trend of spending outpacing revenues and the use of reserves to balance the budget. According to the Times, Democratic state lawmakers, who control the state budget process, say they’re more than aware […]