Blog

Update to state revenue forecast sets stage for supplemental budget

The state Economic and Revenue Forecast Council (ERFC) met on Thursday (Feb. 15) to update the forecast of state revenue. The forecast of general fund–state (GFS) revenue for the current biennium (2017–19) increased by $647.0 million to $44,212.9 million. The forecast of GFS revenue for the following biennium (2019–21) increased by $671.2 million to $48,253.4 […]

Notes from the budget-required studies on data centers, drug prices, and publicly-owned banks

As part of the 2017–19 operating budget, the Legislature required that several studies be conducted. Three were due in Dec. 2017: on data centers, prescription drug price transparency, and the feasibility of a publicly-owned state bank. Data Centers: The Department of Commerce produced a detailed report on the data center industry in Washington. It writes, […]

How will school funding change this session?

In November, the state Supreme Court said that the state’s school funding fix, EHB 2242, will bring the state into compliance with the McCleary decision—if the salary component is fully implemented in SY 2018–19 instead of SY 2019–20. Beyond that, “At this point, the court is willing to allow the State’s program to operate and […]

New policy brief: ERFC Adopts Outlook for Governor’s Supplemental Budget Showing It Balances Over Four Years

The Economic and Revenue Forecast Council (ERFC) has adopted an outlook based on Gov. Inslee’s 2018 supplemental operating budget proposal. The supplemental would increase 2017–19 NGFS+ spending by $960.8 million and it would leave $2.151 billion in total reserves in 2017–19. According to the outlook, the proposal would leave an unrestricted ending fund balance in […]

Newly-passed capital budget provides $1.033 billion for public schools

Last night the Legislature passed a 2017–19 capital budget (SSB 6090). Of course, normally the capital budget would have been approved last year, but legislators had tied its approval to finding a solution to the state Supreme Court’s Hirst decision. (The 2016 decision was about ensuring adequate water supply before granting building permits.) As the […]

New policy brief: Strong Economy Continues to Boost State Revenue Collections

Reflecting better than anticipated economic performance ERFC increased the forecast by $279 million in September and by $304 million in November. It is likely that in February ERFC will again revise the forecast upward. As legislators prepare their supplemental budget they should not assume that this pattern of regular increases to the forecast will continue. […]

U.S. Supreme Court takes up two cases that could have major impacts on Washington’s budget

On Friday, the U.S. Supreme Court announced that this year it will hear two cases that will be closely watched by Washington’s Legislature. First, the Court will hear South Dakota v. Wayfair, Inc. This is about whether states can require out-of-state retailers to collect sales taxes. In 1992, the Court held that states can only […]

New policy brief: Legislature Has Used Rainy Day Fund Each Biennium Except 2011–13

Since the budget stabilization account (BSA, or rainy day fund) was established in 2007, the Legislature has transferred or appropriated funds from it in each biennium except 2011–13. Since 2013–15, the state has experienced “extraordinary revenue growth,” most of which is required to be saved in the rainy day fund. Instead, the Legislature has spent […]

New policy brief: Gov. Inslee’s 2018 Supplemental Operating Budget would Increase Spending by $960.8 Million

In a new policy brief, we take a look at Gov. Inslee’s 2018 supplemental budget proposal. It would increase NGFS+ spending by $960.8 million, raising 2017–19 appropriations to $44.7 billion. Of that spending increase, $761.4 million would be appropriated to fully implement new school staff salaries in school year 2018–19. Under the proposal, the unrestricted […]

Policy changes and shifts in the governor’s supplemental

Last week Gov. Inslee proposed his 2018 supplemental operating budget. As I wrote on Thursday, it would increase near general fund–state plus opportunity pathways (NGFS+) spending for 2017–19 by $960.8 million. Of that, $879.0 million is from policy changes (new spending). The table shows the breakout by budget area. (Maintenance level reflects changes to things […]