Blog

State Supreme Court should rule on supermajority

Another year, another challenge to the voter-approved supermajority requirement for tax hikes. In my column in the Everett Herald, I say it’s time for the Court to put the issue to rest. The justices may again decide the case on procedural or technical grounds, ducking the threshold question. For example, they could conclude the group […]

Pessimistic State Economic & Revenue Update

Economic and Revenue Forecast Council (ERFC) staff today released the monthly Economic and Revenue Update for August. Here are the document's summary bullet points: The national economic outlook has weakened significantly since our last forecast. There is now an even greater chance of slipping back into recession. Washington’s economic outlook has also dimmed as consumer […]

First media coverage of our impact analysis of I-1183 liquor privatization

Credit to Erik Smith at Washington State Wire for his report on the revenue impact analysis Special Report we released yesterday. An initiative that would shutter the state liquor stores would generate huge revenue for state and local governments – an extra half-billion dollars over the first five years alone, according a new report from the […]

Initiative 1183 Would Produce Revenue Gains for State and Local Governments

The Research Council has published a Special Report on I-1183. Briefly: Initiative 1183 would end the state monopoly over the liquor sales and distribution system in Washington. Our analysis shows that state and local governments would gain $443 million in additional revenue over six years under the initiative, compared to the current state monopoly baseline. […]

States will feel the impact of federal deficit reduction

In my column today, I discuss the growing reliance of state governments on federal funding. In 2008, before the stimulus act, federal funds accounted for about 26 percent of total state spending. With the stimulus, that share rose to nearly 35 percent in 2010, returning to pre-stimulus levels next year, long before state revenues recover. […]

Governors expect tough times to linger

News from the National Governors Association summer meeting in Salt Lake City was decidedly grim. State governments, beneficiaries of stimulus dollars that sustained spending during the worst days of the recession, continue to face ongoing fiscal challenges. As the governors watch the debt and deficit debates in D.C., most acknowledge the end of federal assistance. […]

Minnesota shutdown ending with budget agreement

Minnesota’s two-week government shutdown appears to have been resolved. I wrote about it in this column, drawing a comparison with the federal debt ceiling and deficit showdown. The Republican legislature and Democratic governor travel down a well worn road to covering budget gaps. The deal raises the revenue Dayton sought — $1.4 billion — but […]

Disappointing July Revenue Collections Report

The Economic and Revenue Forecast Council (EFRC) issued its monthly Economic and Revenue Update today. Once again revenue has come in under forecast. For the month, General Fund–State collections were $22.1 million (1.7 percent) less than the amount anticipated under the forecast adopted in June. Of this $22.1 million, $4.1 million was an unanticipated refund. […]

Protecting state pension funds

Following up on Jay Inslee’s proposal for the state to invest a small part of pension funds in start-up companies, Erik Smith examines the issue at Washington State Wire. We’ve been skeptical of the idea in the past. The simple, singular goal of the investment board is, well, Smith has a good quote from the […]

Minnesota fails to reach budget accord; others wrap up on time.

Yesterday we noted that Minnesota, Oregon, Massachusetts, and Iowa had come to the last day of the fiscal year without an approved budget. All but Minnesota managed to get the job done. (h/t Stateline.org) The Star Tribune reports on the Minnesota shutdown. It’s a familiar face-off. Democratic Gov. Mark Dayton wants to raise taxes. Republicans […]