Blog

Milliman: Current statutory maximum for paid family and medical leave premiums is “too low”

Financial problems with the state’s paid family and medical leave (PFML) program surfaced at the beginning of this year. (For more information, read our analysis of the situation, including background information and a review of legislative changes this year.) Consequently, the Legislature required the Office of Financial Management (OFM) to contract with an entity for […]

Document recording surcharges are not yielding the revenues expected for housing programs

Washington has four document recording surcharges that are used to fund homelessness programs. Today the Department of Commerce told the House Appropriations Committee that revenues from these fees are falling short of estimates. (Commerce’s presentation to the committee is available here.) Indeed, Commerce’s 2023–25 budget request includes a placeholder at maintenance level that would address […]

New brief: Washington’s Business Taxes Continue to Exceed National Average

Washington state’s businesses bore much of the tax burden for fiscal year 2020, delivering nearly half of state and local tax revenue. Nationally, Washington’s business taxes were the 9th highest per employee, the 32nd largest as a share of economic activity, and the 17th greatest as a share of total state and local tax revenue. […]

Washington’s minimum wage will increase by 8.6% in 2023

The Department of Labor & Industries (L&I) has announced that the state minimum wage will increase from the current $14.49 an hour to $15.74 an hour in calendar year 2023. The 8.6% increase is the largest non-step increase since the minimum wage has been indexed to inflation. In 1998, when the prevailing minimum wage was […]

Comparing revenue forecasts

As Kriss wrote last week, the September revenue forecast for 2021–23 and 2023–25 is down $452 million compared to the June revenue forecast. However, revenues for these biennia are expected to be $1.636 billion above the February revenue forecast (on which the current budget was based). The governor will propose a 2023–25 operating budget after […]

States, local governments, and nonprofits qualify for refundable clean energy tax credits under Inflation Reduction Act

The federal Inflation Reduction Act (IRA), which was signed by President Biden in August, includes $270.7 billion (over the 2022–2031 period) in new and expanded clean energy tax credits. (The cost estimate from the Joint Committee on Taxation is available here.) Notably, most of these tax credits will essentially be refundable for states and local […]

State revenue forecast down $452 million

At its quarterly meeting today, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts reduce the amounts available over the remainder of the current biennium and the next biennia by $452 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the […]

Average workers’ compensation rates could increase by 4.8% next year (the largest increase since 2011)

The Department of Labor & Industries (L&I) has proposed increasing average workers’ compensation rates by 4.8% for 2023. This would be the largest increase since 2011, and the fifth-highest increase going back to 1999. Under this proposal, base rates would increase for 286 risk classes (out of 325). According to L&I, wage inflation is a […]

September report on state tax collections

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

Tax regressivity and state spending

On Wednesday, Crosscut ran a piece from the Center for Public Integrity on the regressivity of state taxes. The story relies on the 2018 state and local tax structure study from the Institute on Taxation and Economic Policy (ITEP). We wrote in depth about our concerns with the ITEP study here. In short: It overstates […]