Blog

A $1.5 billion budget gap?

Gov. Inslee told the Everett Herald last week that the state faces a big budget gap in 2019–21: “We are about one-and-a-half billion dollars underwater going into the next biennium,” Inslee said. That’s the projected deficit before putting in more money to improve the mental health system, expand early childhood education and do “some of […]

OSPI’s 2019-21 budget request includes capital gains tax, change to maximum local levy

Today the Superintendent of Public Instruction, Chris Reykdal, held a press conference to announce his 2019–21 budget request. So far only an overview of the request is available, but it includes several fiscal policy proposals. The Office of Superintendent of Public Instruction (OSPI) writes, a “key aspect of Reykdal’s budget priorities involves addressing inequities created […]

Washington may be ready for a near-term recession, but we’re not ready for one in the next biennium

Moody’s estimates that 23 states have enough funds in reserve to get through a moderate recession, as reported by Route Fifty today. Those 23 states include Washington. The estimates are based on “a downturn that happens almost immediately.” But Route Fifty also reports that Moody’s “puts the highest odds for the next recession as hitting […]

McCleary school funding case is over; K-12 spending has increased dramatically since 2012

Happy news for state budget writers today: The state Supreme Court has terminated its jurisdiction in the McCleary case on school funding. Today’s order concludes, “the State has complied with the court’s orders to fully implement its statutory program of basic education by September 1, 2018, and has purged its contempt.” The $100,000 per day fine […]

Plaintiffs in McCleary case: Allow program to operate, but it’s probably not enough

Yesterday the plaintiffs in the McCleary case submitted their response to the state’s 2018 post-budget filing. They acknowledge that the case is over. In the Court’s Nov. 2017 order, the Court said it “is willing to allow the State’s program to operate and let experience be the judge of whether it proves adequate.” Plaintiffs accept […]

Official budget outlook adopted—with a major caveat

Today the Economic and Revenue Forecast Council (ERFC) adopted the official budget outlook based on the 2018 supplemental operating budget. Unfortunately, TVW did not cover the meeting, but according to ERFC staff, there were no changes to the draft outlook. The outlook incorporates the effects of Gov. Inslee’s vetoes. Total resources for 2017–19 are $12 […]

AG, once again: State has achieved full compliance with McCleary

Yesterday the attorney general submitted the state’s post-budget report on school funding to the state Supreme Court. He argues: The state is fully compliant with the McCleary decision, The court should lift the contempt order and stop the daily penalties as of March 27, The court should allow the state to spend the funds in […]

Gov. Inslee signed the budget, but vetoed some budgetarily-significant provisions

On Tuesday, Gov. Inslee acted on the supplemental operating budget and related legislation. We wrote about the budget as passed by the Legislature in this policy brief. First, the governor signed ESSB 6614, which reduces the state property tax in 2019 and diverts funds from the budget stabilization account. Second, he signed E2SSB 6362, which […]

New policy brief: In the 2018 Supplemental, the School Salary Increase is Fully Funded, But the Rainy Day Fund is Shortchanged

As passed by the Legislature, the 2018 supplemental operating budget increases near general fund–state plus opportunity pathways spending by $941.0 million. Appropriations for 2017–19 now total $44.649 billion. The supplemental does not levy new taxes, and it reduces property taxes in 2019. It also fully funds the increase in school salaries in SY 2018–19, as […]

An explanation for why $935 million was chosen as the figure to be transferred to the ELTA

The supplemental budget assumes passage of SSB 6614, which would reduce property taxes and also transfer $935 million from the general fund to the education legacy trust account (ELTA), thereby reducing funds in the budget stabilization account (BSA). (See yesterday’s post for more.) I wondered yesterday why $935 million was chosen, as it seemed to […]