Emily Makings

Bill would require businesses receiving tax preferences to pay for child care

HB 2322, which is scheduled to be heard by the House Finance Committee tomorrow, aims “to increase employer-provided child care for employees.” Under the bill, any business that receives a business & occupation (B&O) tax preference (the state’s terminology for exemptions, exclusions, deductions, deferrals, credits, and preferential tax rates) that is created, expanded, or extended […]

Proposed substitute REET and transfer tax bill would redirect REET revenues to housing accounts and would not meaningfully reduce taxes

Yesterday the House Finance Committee heard a proposed substitute to HB 2276, which would increase a real estate excise tax (REET) threshold and add a new 1% real estate transfer tax. As I wrote last week, the bill as introduced was ambiguous about whether the transfer tax applied to the portion of the selling price […]

Ecology’s carbon emission allowance auction revenue forecast, and an accounting of how the money is being spent

The state’s current forecast of carbon emission allowance auction proceeds estimates that revenues will be $1.092 billion higher than expected when the 2023–25 biennial budget was enacted last year. Gov. Inslee’s supplemental budget proposals would appropriate $915.2 million of that. Revenues The climate commitment act (CCA) was enacted in 2021. The first carbon emission allowance […]

Only 7% of proposed real estate transfer tax revenue would go to housing accounts

Yesterday a bill was introduced that would create a new real estate transfer tax, which would be levied on top of the real estate excise tax for properties that sell for over $3.025 million. HB 2276 is scheduled to be heard in the House Finance Committee on Jan. 18. This is a new tack in […]

Previewing state fiscal policy for 2024

The good news heading into the legislative session on Monday is that the state is not facing an operating budget shortfall. Enacted 2023–25 appropriations from funds subject to the outlook (NGFO) are $69.804 billion. Gov. Inslee’s supplemental operating budget proposal estimates that the maintenance level for the operating budget has increased by $870.4 million, meaning […]

Gov. Inslee’s transportation budget proposal would add funding for fish passage barrier removal, but transportation funding challenges loom

Gov. Inslee’s proposed supplemental transportation budget would increase 2023–25 appropriations from all funds by $1.580 billion (11.6%). Of that, $1.035 billion is considered maintenance level and $544.9 million is new policy. (Of the total change, $418.0 million is from federal funds.) Generally, the maintenance level is the cost of continuing current services, adjusted for inflation […]

In Gov. Inslee’s capital budget proposal, capital gains tax revenues would largely supplant current capital funding for schools

Gov. Inslee’s 2024 supplemental capital budget proposal would increase capital appropriations by $1.321 billion (15.3%). Revised 2023–25 capital appropriations would total $9.982 billion. About 80% of the increase comes from new revenues from the capital gains tax and carbon allowance auction proceeds. Any capital gains tax revenues that exceed $500 million in a year are […]

New policies in the governor’s operating budget proposal would increase appropriations by $1.085 billion

Gov. Inslee’s supplemental operating budget proposal would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $1.955 billion. Of that increase, $870.4 million is maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) and $1.085 billion is new policy. The chart below shows how the new policy spending would […]

Gov. Inslee’s 2024 supplemental operating budget proposal would increase appropriations by 2.8%

[Updated 12/14] Gov. Inslee has proposed a 2024 supplemental operating budget that would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $1.955 billion (2.8%). Revised 2023–25 NGFO appropriations would be $71.760 billion, which would be 15.5% above actual spending in 2021–23. The proposal would not increase revenues, but it would use reserve […]

Higher education capital budget requests come mainly from UW and the community and technical college system

The community and technical college system (CTCS) and five of the six public four-year higher education institutions have made capital budget requests for the 2024 supplemental. (Washington State University has not requested anything for the capital budget.) Altogether, the higher education institutions are requesting $199.7 million in 2023–25 and $288.2 million in future years. Of […]