Blog

Should the working families tax credit be treated as an appropriation or a revenue reduction?

The Department of Revenue (DOR) is one of just 10 agencies that have requested smaller general fund–state (GFS) budgets for 2023–25 than 2021–23. It is asking for a GFS budget reduction of $290.4 million (by far the largest reduction among the agencies). This is due to DOR’s request for a technical correction to the accounting […]

The full cost of the Fair Start for Kids Act begins to come into focus

[Updated 10/12/22] The Department of Children, Youth, and Families (DCYF) has proposed a 2023–25 budget that would increase its general fund–state (GFS) spending by $1.270 billion (57.3%). The increase represents 8.1% of total GFS requests made by agencies. Only public schools and the Department of Social and Health Services requested larger increases in GFS spending—and […]

Agency budget requests for 2023–25 would increase spending substantially

Most state agencies have now submitted their 2023–25 operating budget requests to the Office of Financial Management (OFM). If the requests were adopted as is by the Legislature, they would increase general fund–state (GFS) spending by 28.5% over 2021–23. (For context, the Economic and Revenue Forecast Council estimates that GFS revenues will increase by 3.4% […]

Milliman: Current statutory maximum for paid family and medical leave premiums is “too low”

Financial problems with the state’s paid family and medical leave (PFML) program surfaced at the beginning of this year. (For more information, read our analysis of the situation, including background information and a review of legislative changes this year.) Consequently, the Legislature required the Office of Financial Management (OFM) to contract with an entity for […]

Document recording surcharges are not yielding the revenues expected for housing programs

Washington has four document recording surcharges that are used to fund homelessness programs. Today the Department of Commerce told the House Appropriations Committee that revenues from these fees are falling short of estimates. (Commerce’s presentation to the committee is available here.) Indeed, Commerce’s 2023–25 budget request includes a placeholder at maintenance level that would address […]

Comparing revenue forecasts

As Kriss wrote last week, the September revenue forecast for 2021–23 and 2023–25 is down $452 million compared to the June revenue forecast. However, revenues for these biennia are expected to be $1.636 billion above the February revenue forecast (on which the current budget was based). The governor will propose a 2023–25 operating budget after […]

State revenue forecast down $452 million

At its quarterly meeting today, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts reduce the amounts available over the remainder of the current biennium and the next biennia by $452 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the […]

September report on state tax collections

On Thursday the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between August 11 and September 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 […]

Tax regressivity and state spending

On Wednesday, Crosscut ran a piece from the Center for Public Integrity on the regressivity of state taxes. The story relies on the 2018 state and local tax structure study from the Institute on Taxation and Economic Policy (ITEP). We wrote in depth about our concerns with the ITEP study here. In short: It overstates […]

New brief: Cash Deficits in the Paid Family and Medical Leave Program Signal Additional Tax Increases Ahead

Washington’s paid family and medical leave (PFML) program is one of the first in the nation. PFML benefits are funded by a premium that is assessed on employee wages, up to the Social Security cap ($147,000 in 2022). From 2019 through 2021, the premium rate was 0.4%; it was increased to 0.6% this year. The […]