Blog

Washington’s state and local taxes and spending per capita ranked 14th and 13th highest among the states in 2021

The two main ways to compare taxes and spending across states are per capita and as a share of personal income. The U.S. Census Bureau released state and local finance data for fiscal year 2021 a few weeks ago. According to the data, Washington’s state and local taxes per capita increased 8.2% to $6,663 in […]

New brief: Modest Operating Budget Growth in Inflationary Times

After a few years of record spending increases, the Legislature slowed the growth in the operating budget this year. As enacted, appropriations from funds subject to the outlook (NGFO) for 2023–25 are up 8.9% compared to the 2022 supplemental. New policy spending of $4.744 billion is the most of any original biennial budget going back […]

Happy Fiscal New Year’s Eve!

Today is the last day of state fiscal year 2023 and the last day of the 2021–23 biennium. Tomorrow is the first day of the 2023–25 biennium, which comprises fiscal years 2024 and 2025. The operating budget and other legislation enacted this year appropriated $69.804 billion from funds subject to the outlook (NGFO) for 2023–25, […]

Times understates the state spending increase on schools related to the McCleary decision

The Seattle Times provided a fairly good overview Sunday of school funding and why some districts are dealing with budget shortfalls. However, they understated the spending increases related to the McCleary decision. The Times writes, “The state spent about $9 billion a year on education a couple years before the overhaul — dubbed the ‘McCleary […]

Washington received an estimated $2.743 billion from the enhanced federal match for Medicaid

During the pandemic, the federal government has been providing an enhanced federal match for Medicaid. Typically, the federal government pays for 50% of Medicaid spending in Washington, and the state covers the other half. (A higher match is in place for some Medicaid clients, pursuant to the Affordable Care Act.) The enhanced pandemic federal medical […]

Capital gains tax revenues, school construction, and volatility

As I wrote last month, capital gains tax collections for FY 2023 were significantly higher than forecasted. By statute, the first $500 million collected in a year will go to the education legacy trust account (ELTA), a fund subject to the outlook (NGFO). Anything over that will go to the common school construction account (CSCA). […]

Including vetoes, the 2023–25 operating budget leaves an unrestricted ending balance of $23 million in the outlook

Today the Economic and Revenue Forecast Council approved an official budget outlook based on the 2023–25 operating budget. It includes the impacts of the governor’s vetoes and the appropriations in 2E2SSB 5536 (the drug policy bill that was adopted during the May 16 special session). As passed by the Legislature on April 23, the budget […]

Capital gains tax collections have come in higher than anticipated

The state’s March 2023 revenue forecast assumes that capital gains tax revenues will total $248.0 million in fiscal year 2023 (which ends on June 30). All of that would go to the education legacy trust account (ELTA). By statute, the first $500 million (adjusted for inflation annually) in collections goes to the ELTA (which is […]

State continues to treat working families tax credit as a spending program instead of a revenue reduction (plus, remittances to date)

This is the first year in which low-income Washingtonians can claim the working families tax credit (WFTC). According to the Department of Revenue (DOR), through May 15, the state has returned $83 million to 175,886 taxpayers. The 2023 supplemental operating budget appropriates $221.0 million for WFTC remittances in FY 2023. (And the fiscal note for […]

Operating budget vetoes add about $15 million in NGFO spending

Last week, Gov. Inslee signed the 2023 supplemental and 2023–25 operating budgets. He vetoed several provisions. Altogether, it appears that his vetoes increase appropriations from funds subject to the outlook (NGFO) by a net of $14.9 million. In the 2023–25 budget, the governor vetoed $1.6 million in NGFO appropriations and $5.1 million in assumed NGFO […]