WRC

New brief: State and Local Spending on Housing and Homelessness Has Increased Significantly

Federal pandemic relief significantly boosted state spending on housing programs; as the federal funding has been drawn down, the state has added more funding from state sources. Similarly, even as overall spending by local governments has increased in recent years, the share dedicated to housing and homelessness services has increased. From 2014 to 2024 (adjusted […]

New brief: Band-Aid Budget Redux

The Legislature has passed a supplemental operating budget that would increase 2025–27 appropriations from funds subject to the outlook (NGFO) by $2.348 billion (3.0%) compared to the enacted 2025–27 biennial budget. Revised 2025–27 appropriations would be $80.206 billion, which is 11.4% higher than actual 2023–25 spending. Since the biennial budget was adopted last year, the […]

New brief: Comparing the Senate- and House-Passed 2026 Supplemental Operating Budgets

Despite a maintenance level budget shortfall, the operating budgets passed by the Senate and House would both increase net new policy spending. They would balance the budget in 2025–27 using one-time funds, and each proposal assumes that revenues from a new income tax will be collected beginning in 2029. Read the report here.

New brief: Washington Businesses Paid 50% of State and Local Taxes in 2024

From 2000 to 2024, business and occupation tax collections increased by 269.5%. Businesses also pay sales taxes, property taxes, and many other state and local taxes. A new report from the Council on State Taxation finds that businesses paid 50.0% of all state and local taxes in Washington in fiscal year 2024. Washington businesses paid […]

New brief: With New Revenue Package, the Transportation Budget Balances Through 2027–29

To address transportation budget revenue and cost challenges, the Legislature increased transportation taxes and fees. New revenues include the first gas tax increase since 2015 and increases to the retail sales and use taxes owed on several transportation-related transactions. Additionally, beginning in 2027–29, 0.1% of state sales and use tax collections is dedicated to the […]

New report: Historically Large Tax Package Rushed Through at the End of Session

The 2025–27 operating budget relies on a tax package that is estimated to increase revenues to funds subject to the outlook (NGFO) by $9.0 billion over four years. It includes business and occupation (B&O) tax increases (ESHB 2081 and ESSB 5794), the expansion of the sales tax to more services (ESSB 5814), capital gains and […]

New brief: The Band-Aid Budget: $9 Billion in New Taxes and $7 Billion in Savings, But No Lasting Solutions

Despite an estimated four-year $8.6 billion maintenance level shortfall—the difference between the cost to continue current services into the next biennium and expected resources—the Legislature increased appropriations from funds subject to the outlook (NGFO) for 2025–27 by a net of $5.913 billion. NGFO appropriations for the upcoming 2025–27 biennium total $77.858 billion, an increase of […]

New brief: Comparing Operating Budget Proposals

Three operating budget proposals find about $3 billion in savings, but the Senate Ways and Means and House Appropriations Committee Chairs would increase net new policy spending. Additionally, the proposals from the Senate and House Chairs would each increase revenues by more than is necessary to fund even their proposed spending levels. Read the report […]

New brief: Legislators Can Close the Budget Shortfall Without Raising Taxes

There are myriad ways to solve the budget problem without increasing taxes. Solving the problem will require cutting the 2025–27 maintenance level by about $4.7 billion (6.1%). (Since 2021, the state has adopted $13.874 billion in net new policy spending.) Gov. Ferguson and former Gov. Inslee have proposed billions of dollars in savings ideas over […]

New brief: The Business Tax Burden in Washington is Above the National Average

State business and occupation (B&O) tax collections are up 258% since 2000. But businesses also pay sales, property, and many other state and local taxes. Indeed, businesses paid 49.7% of total state and local taxes in Washington in fiscal year 2022, according to a report from the Council on State Taxation. (Nationally, businesses paid an […]