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Governor would fund Washington student loan program and shift more of its funding from the general fund to the workforce education investment account

In 2022, the Legislature enacted E2SHB 1736, which creates the Washington student loan program. Many program details were left to be determined later, with recommendations due from the Washington Student Achievement Council by Dec. 1, 2022. (The report has not yet been published.) However, E2SHB 1736 did specify that loans will not be issued unless […]

Gov. Inslee’s budget proposal would continue to fund the working families tax credit; two prefiled bills would make changes to the program

On Inside Olympia last month, Gov. Inslee talked about his budget proposals and said, “In fact, we’re actually doing a tax cut in this budget because it funds the working families tax credit. So 400,000 Washingtonians will get a tax cut starting February 1, if they apply for it.” The governor isn’t referring to a […]

What inflationary increase will be funded when school salaries are rebased this year?

Although almost half of the new policy spending in Gov. Inslee’s 2023–25 budget proposal would be used to increase employee compensation and provider rates, a relatively small portion of that would be for school employees. The state increased allocations for school salaries as part of its response to the McCleary decision on school funding (beginning […]

The enhanced federal Medicaid match will phase down and end on Dec. 31

The federal fiscal year 2023 consolidated appropriations act (passed by Congress on Dec. 23 and signed by the president on Dec. 29) includes a final deadline for the enhanced federal match for Medicaid that has been in place since early in the pandemic. Because this enhanced federal match supplants state funds for Medicaid, Washington has […]

Increased employee compensation and provider rates make up almost half of proposed new policies for 2023–25

Under Gov. Inslee’s proposed 2023–25 operating budget, appropriations from funds subject to the outlook (NGFO) would increase by $4.854 billion to fund new policies. (The cost of continuing current services is expected to increase by an additional $1.401 billion.) Many of the new policy proposals are related to employee compensation or increasing the rates paid […]

Policy reductions in the governor’s 2023 supplemental would help to balance the 2023–25 budget

Gov. Inslee’s 2023–25 operating budget proposal is funded via the increased revenue forecasts since the current budget was adopted and a transfer of $2.1 billion in reserve funds (from the Washington rescue plan transition account) to the general fund–state (GFS). Policy level reductions in the proposed 2023 supplemental to the 2021–23 budget also help to […]

Governor’s 2023–25 budget proposal would increase NGFO funding for new policies by $4.854 billion

As I noted on Wednesday, Gov. Inslee’s 2023–25 operating budget proposal would increase appropriations from funds subject to the outlook (NGFO) by 9.8%, or $6.255 billion. That includes the maintenance level plus new policies. (The maintenance level is the cost of continuing current services, adjusted for enrollment and inflation.) Under the governor’s proposal, the NGFO […]

Gov. Inslee’s 2023–25 operating budget proposal would increase NGFO spending by 9.8%, use WRPTA

Gov. Inslee proposes increasing 2023–25 appropriations from funds subject to the outlook (NGFO) by 9.8% over enacted 2021–23 appropriations. Appropriations would total $70.380 billion for the biennium. The governor’s budget would not increase taxes. (Since the current budget was adopted, the NGFO revenue forecast has increased by $3.078 billion over the 2021–23 and 2023–25 period.) […]

PFML task force votes on final rate structure recommendations

Today the Legislative Task Force on Paid Family and Medical Leave Insurance Premiums voted to recommend changes to the paid family and medical leave (PFML) program rate structure. At the end of last week’s meeting of the task force, it didn’t sound like members would be prepared to vote today. But they apparently had productive […]

Capital gains taxes in the November revenue forecast

In March, a Superior Court judge ruled that the state capital gains tax is unconstitutional. (Despite that, the Legislature chose to include capital gains revenues in the operating budget, as we explained here.) The state Supreme Court will hear the case on Jan. 26, but a decision could come after capital gains taxes are due […]