Emily Makings

S&P Global no longer considers Washington’s credit rating outlook to be “positive”

Washington has been getting very high marks from the credit rating agencies in recent years, in part due to Washington’s constitutionally-required rainy day fund and four-year balanced budget requirement. This is important because it means Washington can sell bonds at lower interest rates, lowering the cost of borrowing and helping to limit the share of […]

Washington has the nation’s sixth least competitive taxes

According to the Tax Foundation’s 2026 State Tax Competitiveness Index, Washington’s tax climate ranks 45th overall. (In the Tax Foundation’s index, one is the best rank and 50 is the worst.) This ranking reflects state tax systems as of July 1, 2025, so it does not yet incorporate many of the tax changes made by […]

How can we evaluate budget tradeoffs if we don’t know what we’re spending on specific programs?

The solution to the budget problem this year included about $7 billion in savings items over the outlook period. The savings items include some real program reductions, but they also include shifts to other funds or user fees and general efficiency savings, for example. Given the unsustainable nature of the enacted budget and the subsequent […]

Agency budget requests would deepen the already-expected budget shortfall

It was clear from the get-go that the 2025–27 operating budget was not sustainable. Even before the state revenue forecast was revised downward in June and September, the Office of Financial Management (OFM) told agencies, “We will very likely continue to face a challenging state budget environment in the coming year.” Consequently, OFM asked them […]

OSPI submits comparatively modest request for 2026 supplemental budget

The Office of Superintendent of Public Instruction (OSPI) is requesting a $138.5 million (0.4%) increase in general fund–state (GFS) appropriations for the 2026 supplemental. (The proposal would cost $343.7 million in 2027–29.) Though modest compared to the amount of enacted GFS appropriations for K–12 in 2025–27 ($31.050 billion), the request includes some major new spending. […]

New brief: SJR 8201: Investment Flexibility for Long-Term Care Funds

SJR 8201 would amend the state constitution to allow money in the long-term services and supports (LTSS) trust account to be invested as authorized by law. Effectively, the amendment would allow the funds to be invested in a broader range of vehicles, including stocks. Currently, the funds may only be invested in fixed-income securities. Over […]

Despite downward revision, transportation revenues are still expected to exceed revenues assumed in budget

According to the September transportation revenue forecast, transportation revenues are expected to total $8.115 billion in 2023–25, $8.909 billion in 2025–27, and $10.853 billion in 2027–29. Over this three-biennia period, the revenue forecast is $144 million lower than forecasted in June. However, the September forecast is still $136 million higher than expected in the enacted […]

DOR issues final interim guidance statement related to ESSB 5814

Earlier today, the Department of Revenue (DOR) published the last interim guidance statement (IGS) for ESSB 5814. The bill expands the sales tax to more services and goes into effect Oct. 1. (See our report on the tax package for more details.) The final IGS covers custom software and the customization of prewritten software. As […]

HCA budget request does not provide a good estimate of the cost of continuing current services or of addressing the impacts of H.R. 1

The enacted 2025–27 operating budget appropriates $8.924 billion from the general fund–state (GFS) for the Health Care Authority (HCA). For the 2026 supplemental budget, HCA is requesting an additional $201.0 million (2.3%) from the GFS for the biennium. The additional spending would cost $267.9 million in 2027–29. Most of this GFS impact comes from two […]

Paid family and medical leave premium rate is projected to increase to 1.13% in 2026; solvency issues loom

The paid family and medical leave (PFML) premium rate is projected to increase to 1.13% in 2026. (The actual rate will be based on the account balance on Sept. 30, so this is not yet final.) Further, a presentation by the PFML actuary to the PFML advisory committee yesterday shows that the financial outlook for […]