Manufacturing down, raising recession risk
The Institute for Supply Management today reports a contaction in manufacturing activity. Economic activity in the manufacturing sector contracted in June for the first time since July 2009; however, the overall economy grew for the 37th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®. The report was issued today by Bradley J. Holcomb, CPSM, […]
June 28 , 2012 - Emily Makings
Some Thoughts on the Health Care Reform Ruling
As everyone is well aware of by now, the Supreme Court ruled this morning on the constitutionality of the Patient Protection and Affordable Care Act. The Court upheld the law, including the individual mandate–but under the taxing power, not the Commerce Clause. Additionally, the Court decided that states are not required to take part in […]
June 27 , 2012 - Emily Makings
Public Pension Accounting Changes
Yesterday the Governmental Accounting Standards Board (GASB) approved new standards for public employee pension accounting. The new standards will not directly affect pension liabilities; rather, they make the true nature of those liabilities more clear. As GASB’s chairman said of the changes, The new standards will improve the way state and local governments report their […]
June 27 , 2012 - Richard S. Davis
The "fiscal cliff" threatens state budgets
In my column today I look at threats to the September revenue forecast, with a particular focus on the fiscal cliff. As we noted in our earlier post, the forecast council acknowledges a 40 percent probability that state revenues will come in substantially below the baseline projection (that’s the pessimistic forecast). The usual risks are […]
June 27 , 2012 - Richard S. Davis
Merle Hazard's take on the fiscal cliff…
Here’s a much more accessible take on the fiscal cliff, the topic of this post earlier today. h/t Calculated Risk.
June 26 , 2012 - Emily Makings
New Brief: Characteristics of a Healthy Business Climate
In a new policy brief, we look at how Washington fares in nine recent business climate rankings. The rankings come from the U.S. Chamber of Commerce, the Small Business and Entrepreneurship Council, the Beacon Hill Institute, Chief Executive magazine, Site Selection magazine, Forbes, CNBC, Thumbtack.com, and Development Counsellors, Inc. Criteria and emphasis differ among the […]
June 22 , 2012 - Kriss Sjoblom
State Tax Notes: Washington State Falls Short on Transparency
Our Policy Brief Five Keys to Evaluating a Tax System highlights transparency’s importance. A recent article by Cara Griffith in State Tax Notes (“Washington State Falls Short on Transparency,” June 18, 2012) calls out the Department of Revenue for a lack of transparency. By insisting on keeping the contents of its letter rulings and most […]
June 20 , 2012 - Emily Makings
New Brief: Implementing Washington's Health Benefit Exchange
The Patient Protection and Affordable Care Act (federal health care reform) is a hot topic these days, as the Supreme Court is expected to release its decision on the constitutionality of the law soon. One part of the federal legislation is a requirement that states establish health benefit exchanges through which individuals and small businesses […]
June 20 , 2012 - Richard S. Davis
Official June revenue forecast little changed, risk factors remain high
The economic and revenue forecast council is meeting now to receive the official revenue forecast from interim director Steve Lerch. Here are the numbers: Changes to the economic forecast, which were slight, have resulted in a $16.1 million reduction to the General Fund-State (GF-S) revenue forecast for the current biennium and $132.9 million for the […]
June 15 , 2012 - Kriss Sjoblom
Adam Smith's four maxims regarding taxation
As a follow-up to the Policy Brief we posted yesterday (Five Key’s to Evaluating a Tax System), here is the full quotation of Adam Smith’s four maxims on taxation: