New pension assumption will increase pressure on state budget
As Brad Shannon reports in the Olympian, suggestions made by the state actuary for improving the solvency of the state pension system will result in a further squeeze on the state’s troubled budget. In a new report, actuary Matt Smith recommends that lawmakers lower rate-of-return expectations on pension investments to about 7.5 percent over […]
September 04 , 2011 - Kriss Sjoblom
Raha presages major downward adjustment to state revenue forecast
State economist Arun Raha presented the preliminary September economic forecast for the state at a meeting of the Economic and Revenue Forecast Council in Olympia last Friday (September 2). Raha indicated that a major downward adjustment to the forecast of state revenue for the 2011-13 biennium is forthcoming. Events since the last forecast in June […]
August 26 , 2011 - Richard S. Davis
Washington missing growth opportunities…
Think it here, make it there. A typically thoughtful column by Bill Virgin in Seattle Business suggests that’s the path being taken by key innovators in our state. Virgin’s column, Losing Ground, looks at what may be a troubling pattern. He acknowledges Washington’s competitive advantage in research and development, particularly in emerging industries. Washington does […]
August 11 , 2011 - Kriss Sjoblom
Pessimistic State Economic & Revenue Update
Economic and Revenue Forecast Council (ERFC) staff today released the monthly Economic and Revenue Update for August. Here are the document's summary bullet points: The national economic outlook has weakened significantly since our last forecast. There is now an even greater chance of slipping back into recession. Washington’s economic outlook has also dimmed as consumer […]
July 27 , 2011 - Richard S. Davis
States will feel the impact of federal deficit reduction
In my column today, I discuss the growing reliance of state governments on federal funding. In 2008, before the stimulus act, federal funds accounted for about 26 percent of total state spending. With the stimulus, that share rose to nearly 35 percent in 2010, returning to pre-stimulus levels next year, long before state revenues recover. […]
July 27 , 2011 - Richard S. Davis
New interstate comparison of business taxes – WA still high
The Council on State Taxation released its annual report on business taxes. The research, conducted by Ernst & Young LLC, is the most comprehensive analysis available. The press release highlights document the lingering effects of the recession (data are for 2010). Key findings of the study include: After falling by 0.9% in FY2009, state and […]
July 20 , 2011 - Kriss Sjoblom
ESD Estimates Washington Gained 3,600 Jobs in June, Unemployment Rate Up 0.1 to 9.2 Percent
The state Employment Security Department today issued its monthly estimates of employment and the unemployment rate. The estimated unemployment rate increased to 9.2 percent in June from 9.1 percent in May. Seasonally adjusted, the total number of non-farm jobs increased by 3,600, to 2,827,700 in June from 2,824,100 in May. The state has added 59,200 […]
July 18 , 2011 - Richard S. Davis
Governors expect tough times to linger
News from the National Governors Association summer meeting in Salt Lake City was decidedly grim. State governments, beneficiaries of stimulus dollars that sustained spending during the worst days of the recession, continue to face ongoing fiscal challenges. As the governors watch the debt and deficit debates in D.C., most acknowledge the end of federal assistance. […]
July 15 , 2011 - Richard S. Davis
Minnesota shutdown ending with budget agreement
Minnesota’s two-week government shutdown appears to have been resolved. I wrote about it in this column, drawing a comparison with the federal debt ceiling and deficit showdown. The Republican legislature and Democratic governor travel down a well worn road to covering budget gaps. The deal raises the revenue Dayton sought — $1.4 billion — but […]
July 11 , 2011 - Kriss Sjoblom
Disappointing July Revenue Collections Report
The Economic and Revenue Forecast Council (EFRC) issued its monthly Economic and Revenue Update today. Once again revenue has come in under forecast. For the month, General Fund–State collections were $22.1 million (1.7 percent) less than the amount anticipated under the forecast adopted in June. Of this $22.1 million, $4.1 million was an unanticipated refund. […]