Blog

Gov. Inslee’s bond proposals would increase debt service costs above the maximum level recommended by the treasurer, reversing a long-term trend

The state treasurer, in the 2023 Debt and Credit Analysis report, recommends that Washington keep annual various purpose general obligation (VP GO) debt service costs under 5% of general state revenues (GSR). (Generally, these debt service costs are paid out of the operating budget.) Debt service costs were below 5% of GSR in 2021 and […]

With GFS funds, paid family and medical leave premium rate could decrease to 0.76% next year

Two weeks ago, the Senate Committee on Labor & Commerce approved SSB 5286, which would make changes to the paid family and medical leave (PFML) program premium rate structure. As I noted at the time, in the near term, premium rates under the bill would be higher than expected under current law in order to […]

Gov. Inslee’s budget would balance over four years, but total reserves at the end of 2025–27 would be just $2.411 billion

Yesterday the Economic and Revenue Forecast Council (ERFC) adopted an official budget outlook based on Gov. Inslee’s operating budget proposal. It estimates that the budget would leave an unrestricted ending balance in funds subject to the outlook (NGFO) of $275 million over four years. But there is uncertainty about the economy and the constitutionality of […]

As public pension unfunded liabilities are reduced, proposed bills would save funds by discontinuing extra payments once full funding is reached and provide COLAs for plan 1 retirees

Washington’s public pension plans are well funded. Overall, the funded ratio of all plans was 93% as of June 30, 2021 (the most recent data). All individual plans in Washington were over 90% funded, except for the Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) plans 1 (which have been closed to new […]

On OSPI’s monitoring and accounting of federal relief money

The Joint Legislative Audit and Review Committee (JLARC) has found that the Office of Superintendent of Public Instruction (OSPI) has “not yet established processes to monitor districts’ efforts to address the academic effects of restricted in-person instruction or outcomes of emergency spending”—despite federal and state requirements to that effect. School districts in Washington received three […]

Paid family and medical leave premium rate could increase to 0.9% next year

SB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, was approved by the Senate Labor & Commerce committee on Tuesday. The bill reflects the recommendations of the legislative task force on paid family and medical leave premiums, and it comes after multiple periods over the past year when […]

January report on state tax collections: revenues for the most recent month exceeded forecast by $88 million

Yesterday the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between December 11 and January 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 […]

Washington is expected to have extraordinary revenue growth this biennium—it should be saved

In 2011, voters approved a constitutional amendment that requires a portion of any extraordinary revenue growth (EORG) to be deposited in the budget stabilization account (BSA, or the rainy day fund). This is a good budget practice because it forces the state to save extra money when revenues are especially high rather than unsustainably increasing […]

New brief: The State Should Avoid Tapping Reserves While Revenues Are Growing

A potential recession is a major risk to the state revenue forecast, but Washington’s strong budget sustainability practices—including the budget stabilization account (BSA, or the rainy day fund)—will help the state through a downturn. However, in 2021, despite not facing a revenue shortfall, the Legislature swept the BSA. (Pursuant to the constitution, this required only […]

Gov. Inslee proposes a historically large $4 billion bond referendum to reduce homelessness, on top of historically large regular capital bond bill

The biggest-ticket policy item in Gov. Inslee’s budget proposals is $4 billion in bonds for homelessness and housing programs, which would have to be approved by voters. State debt is limited by the state constitution. Under Article VIII, Section 1, the principal and interest payments on the state debt cannot exceed 8.25% of average general […]