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 […]
March 27 , 2025 - WRC
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 […]
March 10 , 2025 - WRC
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 […]
November 04 , 2024 - WRC
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 […]
October 23 , 2024 - WRC
New brief: Anatomy of the Projected State Budget Shortfall
We estimate that Washington is facing a $5.1 billion budget shortfall for 2025–27. However, this is not a revenue shortfall. Biennial revenues have not declined. Instead, spending growth has outpaced revenue growth. Indeed, legislators have regularly appropriated more than they expect to collect from forecasted revenues—especially in 2023–25. Enacted appropriations for 2023–25 exceed revenues expected […]
October 21 , 2024 - WRC
New brief: Washington Faces an Estimated $5.1 Billion Shortfall
The cost of maintaining current services in the upcoming 2025–27 operating budget is expected to be higher than currently-forecasted revenues for funds subject to the outlook (NGFO). Including the September revenue forecast, a preliminary estimate of the maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) for the biennium, and the […]
October 08 , 2024 - WRC
New brief: I-2117: Repealing the Climate Commitment Act
Initiative 2117 would repeal the Climate Commitment Act (CCA). The CCA was enacted in 2021 with the goal of reducing carbon dioxide emissions in the state to 5% of 1990 levels by 2050. The average price of carbon emission allowances at 2023 auctions was $54.74, more than twice the $22.78 anticipated in the 2021 fiscal […]
September 26 , 2024 - WRC
New brief: I-2109: Repealing the State Capital Gains Tax
Initiative 2109 would repeal the state capital gains tax statute. The Office of Financial Management estimates that repealing the capital gains tax would reduce state revenues by $424 million in FY 2025, by $820 million in the 2025–27 biennium, and by $919 million in the 2027–29 biennium. The reductions would only affect the education legacy […]
September 19 , 2024 - WRC
New brief: I-2124: Making the State’s Long-Term Care Program Optional
If approved by voters, Initiative 2124 would make the long-term services and supports trust (LTSST) program optional for all workers. The Office of Financial Management believes that revenues to the LTSST account would decrease as workers choose to opt out of the program, but it does not estimate how many opt outs there would be. […]
July 09 , 2024 - WRC
New report: Where Does All the Money Go: Spending Carbon Emission Allowance Auction Proceeds in the Shadow of I-2117
Washington has collected $2.149 billion to date from carbon emission allowance auctions. That’s $1.484 billion more than was expected when the Climate Commitment Act (CCA) was enacted in 2021, as the actual auction prices were higher than anticipated. The windfall, combined with the possibility that the CCA will be repealed in November if voters approve […]