Blog

A new regulatory reform initiative

On Wednesday, Gov. Ferguson signed an executive order that requires agencies to review existing rules and statutes to find requirements that could be simplified or eliminated. The review will also look for ways to reduce administrative burdens, streamline permitting, and improve coordination. Recommendations will be due by July 4, 2027, and annual reports on regulatory […]

Washington has the nation’s fourth least competitive taxes

The Tax Foundation’s 2027 State Tax Competitiveness Index ranks Washington’s tax structure 47th overall. (In the index, one is the best rank and 50 is the worst.) This edition of the index is based on state tax structures as of July 1, 2026. Thus, the index now reflects many (but not all) of the tax […]

How will the Legislature solve the PFML problem?

As I wrote last month, the paid family and medical leave (PFML) program premium rate will increase to 1.2% in 2027. Nevertheless, the program is facing “a sustained deficit,” as the annual actuarial report (released Nov. 1) shows. Meanwhile, a report on program solvency, which was required by the 2026 supplemental budget, has also been […]

The fiscal consequences of spending more than the state collects in revenues

The Seattle Times ran a nice editorial yesterday on the state’s fiscal problems. According to the paper, state Treasurer Pellicciotti sees two distinct paths lawmakers could soon take that will determine the course of the state’s financial health for years to come. The first is to continue funding a budget that lacks the tax revenues […]

Public records and transparency

Our work at the Research Council relies on access to public data (and TVW!). In my experience, some agencies are more helpful than others. For example, the Office of Financial Management, Economic and Revenue Forecast Council, and Legislative Evaluation and Accountability Program Committee have consistently provided data in a timely manner. I am extremely grateful […]

Outlook underestimates liability costs by almost $1 billion

The state’s self-insurance liability account (SILA) is funded by state agencies, and their premiums are based on a biennial actuarial study of agency liabilities. The actuarial reports are issued in the summer of even years, based on program data as of the end of the prior calendar year. Via a public records request, I obtained […]

New brief: A Margin Tax Would Make Washington’s Tax Structure Only Marginally More Competitive

A draft bill is being circulated that would replace Washington’s business and occupation (B&O) tax with a margin tax. Like the B&O tax, a margin tax is a type of gross receipts tax. Unlike the B&O tax, the draft margin tax would allow the taxpayer to deduct the greater of (a) 30% of the taxpayer’s […]

WEIA revenues continuing to supplant other funds for higher education

The workforce education investment account (WEIA) is a fund subject to the outlook, and revenues in the account are dedicated to higher education and workforce development. Revenues come from the advanced computing surcharge and a portion of other business and occupation taxes on service and other activities. Originally, expenditures from the account were required “to […]

More on income taxes and migration

There is a proposal in Vermont to impose an income tax surcharge on incomes over $250,000. In a post about the proposal, Robert McClelland, an economist with the Urban-Brookings Tax Policy Center, writes, “recent research suggests taxpayers may be more mobile in response to higher taxes than was previously thought. High-income taxpayers with a lot […]

Judicial agencies are requesting a 29.4% overall spending increase, mainly for the Office of Public Defense

Judicial agencies have now submitted their requests for the 2027–29 operating budget. They include some major new spending proposals, and they offer no savings options. The judicial agencies are the Supreme Court, the Court of Appeals, the Commission on Judicial Conduct, the Administrative Office of the Courts, the Office of Public Defense, and the Office […]