Blog

State property tax collections leveled off in 2022, after several years of unfettered growth

State property tax collections grew by just 0.4% in fiscal year 2022, according to data released by the Department of Revenue last month. That’s the smallest annual increase going back to at least 1998, but it comes after four years that recorded the highest growth in collections. During the high growth period, the state property […]

Public schools funding in the capital budgets and a proposed new grant program for school construction

The Senate-passed capital budget would appropriate $876.4 million from all funds for public schools in 2023–25, and it assumes that the appropriations for the funded projects would total $6.868 billion over 10 years. The capital budget approved by the House Committee on Capital Budget would appropriate $844.1 million from all funds for public schools in […]

Comparing the Senate and House capital budgets

The Senate passed its capital budget (ESSB 5200) on March 24. It has not yet passed its bond bill (SSB 5201). As approved by the Ways & Means Committee, the bond bill would authorize $4.167 billion in general obligation bonds. The House has not yet passed either its capital budget (SHB 1147) or its bond […]

April report on state tax collections: revenues for the most recent month were $4.6 million less than the amount forecasted

Friday the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between March 11 and April 10 for the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest (collectively the […]

Major K–12 policy proposals in the Senate- and House-passed budgets

The Senate- and House-passed 2023–25 operating budgets would change funding for school employee salaries, special education, and transitional kindergarten. The two houses have also passed policy bills on these topics. School Employee Salary Inflation Both houses have now passed, and the governor has signed, ESB 5650. The bill specifies that the inflationary adjustment for school […]

Proposed real estate excise tax bill would increase the top rate (but not for commercial properties for two years)

Tomorrow morning SHB 1628 is scheduled for executive session in the House Finance Committee. SHB 1628 would increase the real estate excise tax (REET). (I wrote about the original version here.) As approved by the House Committee on Local Government in February, the bill would increase the top REET rate to 4.0% for the portion […]

Will the state backfill programs funded with document recording surcharges?

[Updated 4/14] The Office of Financial Management (OFM) has written to the Legislature to express its concerns with the operating budgets passed by the House and Senate. One of the items specifically mentioned by OFM is that the Legislature should “ensure appropriate backfill for lower-than anticipated document recording fees to maintain current services and programs.” […]

The House and Senate would add a new $100 document recording assessment to fund a covenant homeownership program

Both the House and Senate have passed slightly different versions of HB 1474. The bill would add a $100 “covenant homeownership program assessment” for each recorded document. (This would not apply to birth, marriage, divorce, or death documents; marriage licenses issued by a county auditor; certain name change orders; documents recording government wage liens or […]

New brief: Comparing the Senate- and House-Passed Operating Budgets

Compared to the 2022 supplemental, the Senate-passed operating budget proposal would increase 2023–25 appropriations by 8.2% and the House-passed proposal would increase appropriations by 9.4%. Neither the Senate nor the House would increase general taxes. To fund the new, ongoing spending, both proposals—but especially the House’s—would use one-time funds, including reserves. Read the report here.

Under Senate and House budget proposals, paid family and medical leave premium rate could increase to 0.82% or 0.83% next year

SSB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, has been passed by both the Senate and the House. I described the bill here. The bill requires the premiums to be set to maintain a new three-month reserve. The legislative task force on paid family and medical leave […]