DCYF budget request driven by maintenance level items related to the Fair Start for Kids Act
The Department of Children, Youth, and Families (DCYF) is requesting $4.537 billion from the general fund–state (GFS) for 2025–27. That would be an increase of $1.206 billion (36.2%) over enacted 2023–25 appropriations. The carry-forward level would decrease by $102.7 million, the maintenance level would increase by $1.057 billion, and the policy level would increase by […]
October 25 , 2024 - Emily Makings
K–12 budget request would increase spending by $3.972 billion (and potentially increase classified staff salary allocations above teacher salary allocations)
The Office of Superintendent of Public Instruction (OSPI) is requesting an increase of $3.972 billion to its general fund–state (GFS) budget for 2025–27. If the proposals are adopted by the Legislature, GFS appropriations for public schools would increase by 13.6%, to $33.139 billion. (See the box at the bottom of this post for budget and […]
October 25 , 2024 - Emily Makings
OFM on the projected budget shortfall
Earlier this week we published two reports on the upcoming 2025–27 operating budget. In the first, we estimated that the state is facing a $5.1 billion shortfall for the biennium. That estimate incorporates the current revenue forecast, carry-forward level spending (the biennialized cost of enacted appropriations, calculated by the Office of Financial Management [OFM]), estimated […]
October 24 , 2024 - Emily Makings
WA Supreme Court: B&O deduction for investment income applies only to investment income that is “incidental to the main purpose of a business”
State statute allows a business and occupation (B&O) tax deduction for “amounts derived from investments”—unless they are “amounts received from loans” or “amounts received by a banking, lending, or security business” (RCW 82.04.4281). Nevertheless, today the state Supreme Court held that “Businesses can claim only the deduction for investments that are incidental to the main […]
October 23 , 2024 - Emily Makings
Paid family and medical leave premium will increase to 0.92% next year
The paid family and medical leave (PFML) premium rate will increase to 0.92% in 2025. The Employment Security Department (ESD) made the announcement during today’s meeting of the PFML Advisory Committee. Although the 2025 rate is significantly higher than the current 0.74% rate, ESD still expects to see short term deficits in the PFML account […]
October 23 , 2024 - WRC
New brief: Anatomy of the Projected State Budget Shortfall
We estimate that Washington is facing a $5.1 billion budget shortfall for 2025–27. However, this is not a revenue shortfall. Biennial revenues have not declined. Instead, spending growth has outpaced revenue growth. Indeed, legislators have regularly appropriated more than they expect to collect from forecasted revenues—especially in 2023–25. Enacted appropriations for 2023–25 exceed revenues expected […]
October 22 , 2024 - Emily Makings
New policies requested by agencies would increase spending by $6.756 billion in 2025–27
Most agencies have submitted budget requests for the 2025–27 biennium to the Office of Financial Management (OFM). Many have also submitted requests for the 2025 supplemental to the 2023–25 budget. (The numbers in this post are in terms of funds subject to the outlook unless otherwise noted.) The requests provide early estimates of the maintenance […]
October 21 , 2024 - WRC
New brief: Washington Faces an Estimated $5.1 Billion Shortfall
The cost of maintaining current services in the upcoming 2025–27 operating budget is expected to be higher than currently-forecasted revenues for funds subject to the outlook (NGFO). Including the September revenue forecast, a preliminary estimate of the maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) for the biennium, and the […]
October 21 , 2024 - Emily Makings
Washington’s value of agricultural production in 2023 was a new record high
According to the National Agricultural Statistics Service, the value of agricultural production in Washington was $13.951 billion in 2023. Adjusted for inflation, that’s 0.1% above the 2022 value. Apples are the most valuable commodity in Washington, but the value of apple production declined by 8.6% (adjusted for inflation) compared to 2022. The next four commodities […]
October 16 , 2024 - Emily Makings
Our policy briefs on the initiatives, in one place
Ballots for the general election are being mailed out this week. Three initiatives on the ballot would have fiscal impacts for the state, and we’ve written policy briefs on each of them: The briefs explain what the initiatives would do and provide important context about how they would affect state revenues and programs.