Blog

Should school salary inflationary adjustments be based on estimates of future or past inflation?

HB 1732 and SB 5650 would both specify an inflationary adjustment for school employees for school year (SY) 2023–24 of 3.8%. Additionally, under current law, the inflationary adjustment is the implicit price deflator (IPD) for the fiscal year (FY). Under the bills, beginning in SY 2024–25, the adjustment would be based on IPD for the […]

HB 1628 would increase the maximum REET rate to fund affordable housing—but how much would go to which accounts?

Until 2020, the real estate excise tax (REET) was a flat 1.28% tax on the selling price of real estate. In 2019, the Legislature graduated the rate, which reduced the rate for some taxpayers and increased it for others. (We wrote about the change in this policy brief.) Under current law, the maximum rate is […]

Meaningful reviews of state spending over time do not present spending only as a share of personal income

SSB 5082 would repeal the non-binding advisory votes on tax increases that have been on ballots since 2012. It would also require voters’ pamphlets to include a link to a website that provides specified budgetary information. This appears to be a nod to transparency and a sop to voters—who put the advisory votes in place […]

Bill would use a portion of estate tax collections to fund the developmental disabilities community services account

SB 5099 would deposit “extraordinary” estate tax revenues into the developmental disabilities community services account (DDCSA) instead of the education legacy trust account (ELTA). The DDCSA was created in 2005 and may be used for “supports and services in a community setting to benefit eligible persons with intellectual and developmental disabilities.” It is currently funded […]

Gov. Inslee’s bond proposals would increase debt service costs above the maximum level recommended by the treasurer, reversing a long-term trend

The state treasurer, in the 2023 Debt and Credit Analysis report, recommends that Washington keep annual various purpose general obligation (VP GO) debt service costs under 5% of general state revenues (GSR). (Generally, these debt service costs are paid out of the operating budget.) Debt service costs were below 5% of GSR in 2021 and […]

With GFS funds, paid family and medical leave premium rate could decrease to 0.76% next year

Two weeks ago, the Senate Committee on Labor & Commerce approved SSB 5286, which would make changes to the paid family and medical leave (PFML) program premium rate structure. As I noted at the time, in the near term, premium rates under the bill would be higher than expected under current law in order to […]

Gov. Inslee’s budget would balance over four years, but total reserves at the end of 2025–27 would be just $2.411 billion

Yesterday the Economic and Revenue Forecast Council (ERFC) adopted an official budget outlook based on Gov. Inslee’s operating budget proposal. It estimates that the budget would leave an unrestricted ending balance in funds subject to the outlook (NGFO) of $275 million over four years. But there is uncertainty about the economy and the constitutionality of […]

As public pension unfunded liabilities are reduced, proposed bills would save funds by discontinuing extra payments once full funding is reached and provide COLAs for plan 1 retirees

Washington’s public pension plans are well funded. Overall, the funded ratio of all plans was 93% as of June 30, 2021 (the most recent data). All individual plans in Washington were over 90% funded, except for the Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) plans 1 (which have been closed to new […]

On OSPI’s monitoring and accounting of federal relief money

The Joint Legislative Audit and Review Committee (JLARC) has found that the Office of Superintendent of Public Instruction (OSPI) has “not yet established processes to monitor districts’ efforts to address the academic effects of restricted in-person instruction or outcomes of emergency spending”—despite federal and state requirements to that effect. School districts in Washington received three […]

Paid family and medical leave premium rate could increase to 0.9% next year

SB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, was approved by the Senate Labor & Commerce committee on Tuesday. The bill reflects the recommendations of the legislative task force on paid family and medical leave premiums, and it comes after multiple periods over the past year when […]