Blog

New brief: Washington Businesses Paid 50% of State and Local Taxes in 2024

From 2000 to 2024, business and occupation tax collections increased by 269.5%. Businesses also pay sales taxes, property taxes, and many other state and local taxes. A new report from the Council on State Taxation finds that businesses paid 50.0% of all state and local taxes in Washington in fiscal year 2024. Washington businesses paid […]

S&P Global no longer considers Washington’s credit rating outlook to be “positive”

Washington has been getting very high marks from the credit rating agencies in recent years, in part due to Washington’s constitutionally-required rainy day fund and four-year balanced budget requirement. This is important because it means Washington can sell bonds at lower interest rates, lowering the cost of borrowing and helping to limit the share of […]

Tariffs and uncertainty

Last week the Office of Financial Management (OFM) released a report on the impact of tariffs on Washington state. The report provides estimates of how federal tariff policy could affect prices, jobs, state revenues, and economic growth. Meanwhile, the preliminary September economic forecast from the Economic and Revenue Forecast Council (ERFC) cites the tariffs and […]

Credit rating agencies reaffirm Washington’s ratings, while noting some good and bad budget choices

Last month, the three credit rating agencies reaffirmed Washington’s Aaa (Moody’s) and AA+ (S&P and Fitch) ratings. According to the Office of the State Treasurer, “With these ratings, Washington now exceeds the credit rating of the federal government for the first time in history.” Washington’s credit ratings impact the state budget because states with stronger […]

State average wage increases by 6.8%; various state benefits and the UI taxable wage base will increase correspondingly

The Employment Security Department (ESD) reports that Washington’s average annual wage was $95,160 in 2024—an increase of 6.8% over 2023. According to ESD, “The increase was driven by a 0.7% increase in employment and an 7.5% increase in total wages and salaries, which grew by nearly $23.5 billion in 2024.” The state average wage is […]

NGFO revenues are now forecasted to be $844 million lower than in the November forecast

The Economic and Revenue Forecast Council (ERFC) now estimates that revenues from funds subject to the outlook (NGFO) will be $844 million lower over the outlook period than anticipated in the November 2024 forecast. Compared to the November forecast, the forecast for the current 2023–25 biennium increased by $55 million, to $66.445 billion. The forecast […]

Washington’s value of agricultural production in 2023 was a new record high

According to the National Agricultural Statistics Service, the value of agricultural production in Washington was $13.951 billion in 2023. Adjusted for inflation, that’s 0.1% above the 2022 value. Apples are the most valuable commodity in Washington, but the value of apple production declined by 8.6% (adjusted for inflation) compared to 2022. The next four commodities […]

New brief: I-2117: Repealing the Climate Commitment Act

Initiative 2117 would repeal the Climate Commitment Act (CCA). The CCA was enacted in 2021 with the goal of reducing carbon dioxide emissions in the state to 5% of 1990 levels by 2050. The average price of carbon emission allowances at 2023 auctions was $54.74, more than twice the $22.78 anticipated in the 2021 fiscal […]

Forecast of state revenues increased slightly

At its quarterly meeting last Friday, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts increase the amount of revenue expected over the current and next bienniums combined by a total of $29.9 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general […]

Washington Supreme Court weighs in on “price gouging”

Earlier this month, the state Supreme Court, in response to certified questions from a federal court, held that “price gouging” may be an unfair act under the state consumer protection act (CPA, RCW 19.86.020). However, the majority did not “recognize a rigid 15 percent price increase threshold as a predicate to a price gouging claim.” […]