New Brief: The Drag of Unfunded Commitments
During the current legislative session, legislators must close a significant remaining 2011-13 budget shortfall. When in a situation like this, it is tempting to suspend programs rather than eliminate them, in the hopes that the economy will improve in the next biennium. Indeed, legislators have deferred spending on various programs, in this biennium and previously. […]
January 19 , 2012 - Richard S. Davis
Proposed capital gains tax would add volatility to state tax structure
State Rep. Laurie Jinkins, D-Tacoma, has proposed a new, 5 percent capital gains tax. Introduced as HB 2563, the measure has picked up 26 Democratic sponsors and will doubtless generate a bit of buzz. At least the think tank that germinated the idea is pleased. Here’s what the Washington State Budget and Policy Center has […]
January 16 , 2012 - Richard S. Davis
Moving ahead with education reform despite state budget challenges
Last Friday, I noted that education reform dominated the first week of the legislative session. A good op-ed by Dean Allen, CEO of McKinstry Co. and current chair of the Washington Roundtable, explains the urgency. By 2018, two out of three family-wage jobs in our state will require post-secondary education or training. Yet, on average, […]
January 16 , 2012 - Richard S. Davis
Tax simplification supported by governor and business community, some major cities opposed
AWB president Don Brunell blogged recently about the advantages to businesses of the B&O tax simplification measure endorsed by Gov. Chris Gregoire. Brunell writes: AWB has pointed out the B&O tax is different than the sales tax because at least 39 cities collect B&O taxes independently using their own rules, penalties and fees. B&O taxes […]
January 13 , 2012 - Richard S. Davis
Education reforms top first week of legislative session
The first week of the 2012 legislature draws to a close this cool Friday the 13th of January. Encouragingly, education reform has found substantial bipartisan support. In the Seattle Times, Brian Rosenthal has a good overview of yesterday’s action. Declaring that traditional methods have failed, a bipartisan group of lawmakers formally introduced a pair of […]
January 12 , 2012 - Kriss Sjoblom
State Revenue Collections Remain On Track
The Economic and Revenue Forecast Council released the January Economic and Revenue Update yesterday. Here is the summary: The U.S. economy is performing as expected in the last forecast, but downside risks remain extremely high. Washington’s economy is benefitting from solid performances by aerospace, software and agriculture. But overall growth is being held back by […]
January 09 , 2012 - Richard S. Davis
A longer-term look at state budget gaps
Sunday the Seattle Times editorial board released a series of reforms necessary to guide the state back to a sustainable budget. It’s a smart list, including a number of ideas that we have written about in the Thrive Washington series and in various WRC policy briefs. As important, the editorial examines the growing gap between […]
December 30 , 2011 - Emily Makings
The Comprehensive Annual Financial Report and Workers' Comp Audit
The State Auditor’s Office has released its 2011 Comprehensive Annual Financial Report (CAFR) Summary. Total government expenses declined 7.42 percent from 2010, with the largest reductions coming from workers’ compensation (-71.44 percent) and unemployment insurance (-21.97 percent). Unemployment compensation activity reported operating income of $171 million in fiscal year 2011 versus a loss of $985 […]
December 15 , 2011 - Kriss Sjoblom
OFM Posts 6-Year Outlook
The Office of Financial Management has posted a new six-year outlook for the state budget. OFM's analysis shows that, even with the cuts that Gov. Gregoire has proposed to close the deficit in the current biennium, the state faces budget deficits in the following two biennia under current law. The main culprits are restoration of […]
December 12 , 2011 - Emily Makings
Legislative 2012 Supplemental Budget Proposal
The legislature released a proposed 2012 supplemental budget today (PSSB 5883 or PSHB 2058). As we discussed in our brief on the governor’s proposed supplemental, the state has about a $2 billion problem to solve. Legislators don’t propose getting anywhere near that figure during the special session. Instead, they would begin by cutting the problem […]