November 30 , 2022 - Emily Makings

PFML task force votes on final rate structure recommendations

Today the Legislative Task Force on Paid Family and Medical Leave Insurance Premiums voted to recommend changes to the paid family and medical leave (PFML) program rate structure. At the end of last week’s meeting of the task force, it didn’t sound like members would be prepared to vote today. But they apparently had productive […]

November 30 , 2022 - Emily Makings

Capital gains taxes in the November revenue forecast

In March, a Superior Court judge ruled that the state capital gains tax is unconstitutional. (Despite that, the Legislature chose to include capital gains revenues in the operating budget, as we explained here.) The state Supreme Court will hear the case on Jan. 26, but a decision could come after capital gains taxes are due […]

November 30 , 2022 - Emily Makings

November revenue forecast improves the balance sheet, but how will inflation impact state costs?

The November revenue forecast increased the estimates of revenues from funds subject to the outlook (NGFO) compared to the September revenue forecast, as Kriss reported. Compared to the Feb. 2022 forecast, on which the current operating budget is based, NGFO revenues are now expected to be up $3.078 billion over 2021–23 and 2023–25. The 2023–25 […]

November 29 , 2022 - Emily Makings

Task force on paid family and medical leave premiums considers proposals to change the rate structure

The Legislative Task Force on Paid Family and Medical Leave Insurance Premiums met last Tuesday to discuss five proposed recommendations for changes to the paid family and medical leave (PFML) premium rate structure. Premium rates would be above 0.6% in all scenarios through at least 2027. Changes are necessary because the program has run deficits […]

November 22 , 2022 - Jack Clark

Washington slips in business tax climate ranking after the introduction of the capital gains tax

Last month, the Tax Foundation released its 2023 State Business Tax Climate Index, in which Washington slipped dramatically to No. 28 from No. 15 the year prior. The State Business Tax Climate Index compares state tax structures. Here is how the index ranks Washington: Washington had the largest drop in overall tax structure ranking by a wide margin (the second largest […]

November 21 , 2022 - Emily Makings

The 2021 increase in private long-term care insurance coverage in Washington led the nation

New data from the National Association of Insurance Commissioners (NAIC) show—unsurprisingly—that long-term care (LTC) insurance coverage jumped in Washington in 2021. The 2019 legislation establishing the state’s LTC program exempted people with private LTC insurance policies from the state program. This provision was amended in 2021 to specify that individuals had to purchase private LTC […]

November 18 , 2022 - Kriss Sjoblom

Forecast of state revenues increased

At its quarterly meeting today, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts add more than $1.4 billion to the amount available over the current and next bienniums. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the education legacy trust […]

November 17 , 2022 - Emily Makings

Adjusting the NGFO balance sheet for the most recent information on revenues and spending indicates an estimated $150 million shortfall in 2023–25

David Schumacher, director of the Office of Financial Management, has tried to get state agencies to manage their expectations for the 2023–25 operating budget. And rightly so: we estimate that the balance sheet for the biennium is already in a negative position. When the Legislature adopted the 2022 supplemental to the 2021–23 biennial budget, it […]

November 16 , 2022 - Kriss Sjoblom

November report on state tax collections: revenues for the month exceeded forecast by $157 million

Yesterday the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between October 11 and November 10 for the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest (collectively the […]

November 15 , 2022 - Kriss Sjoblom

Tax Structure Work Group Nov. 14 Meeting

The Washington legislature’s Tax Structure Work Group (TSWG) met yesterday. Under a proviso in the 2021-23 state budget, TSWG is to develop revenue neutral state tax reform legislation for the 2023 session of the legislature. At its March 30 meeting, TSWG selected 5 reform concepts tor further elaboration and analysis by staff at the Department […]