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Forecast of state revenues increased

At its quarterly meeting yesterday, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts increase the amount available over the current and next bienniums by a total of $1,366 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the education legacy […]

September report on state tax collections: revenues for the most recent month were $5.1 million short of the forecasted amount

On September 15 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 […]

Washington’s reserve levels are higher than national data suggest

In a post this week, the Tax Policy Center (a joint venture of the Urban Institute and Brookings Institution) writes, As a share of total general fund spending, total state rainy day fund balances have climbed steadily since the Great Recession, now totaling 15.4 percent of state spending in fiscal year 2022, the highest share […]

State Supreme Court: school capital construction costs are not the sole responsibility of the state

The state Supreme Court has ruled that “school capital construction costs are not a component of the ‘education’ that the State, alone, must amply fund” under the state constitution. Wahkiakum School District had sued the state in 2021. The district argued that the state wasn’t amply funding school construction and instead relied on local levies, […]

August report on state tax collections: revenues for the most recent month were $81.2 million greater than the forecasted amount

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 July 11 and August 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 […]

Budget sustainability and transparency in Seattle

As I’ve written, Seattle may have a general fund shortfall in the next few years. In response, the city is talking about new taxes. However, the city has also been laying the groundwork to improve budget processes and transparency. To the extent that budget process changes improve sustainability, the city will be better prepared to […]

Why is Seattle considering new revenue?

As I wrote yesterday, a work group in Seattle has come up with nine options for new revenue for the city. The following chart is from the revenue work group’s report. It shows that the city increased general fund spending in recent years above the amount of available ongoing revenues (even though revenues have been […]

School finance charts: enrollment, revenues, share of state budget

In June, the Seattle Times held a webinar on school finance. It prompted me to put together some education finance charts with background data. First, T.J. Kelly of the Office of Superintendent of Public Instruction noted that school enrollment has declined since the pandemic. Indeed, there was a substantial drop in school year (SY) 2020–21. […]

July report on state tax collections: revenues for the most recent month were $101.1 million greater than the amount forecasted

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 June 11 and July 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 […]

Capital gains revenues and the June forecast

As Kriss wrote last month, the June revenue forecast for funds subject to the outlook (NGFO) is up over the outlook period (2021–23, 2023–25, and 2025–27) compared to the March forecast. Additionally, NGFO revenues are expected to grow by 2.4% in 2023–25 and by 6.8% in 2025–27. (However, adjusted for inflation, revenues are expected to […]