Budget-related notes from the gubernatorial debate
During the gubernatorial debate last night, two budget-related points were made that I think deserve some context. (The Seattle Times has video here.) First, Bob Ferguson said that the Climate Commitment Act (CCA) “helps fund a working families tax credit. That’s helping out working families all across the state. We need to expand the amount […]
August 27 , 2024 - Emily Makings
Washington Supreme Court weighs in on “price gouging”
Earlier this month, the state Supreme Court, in response to certified questions from a federal court, held that “price gouging” may be an unfair act under the state consumer protection act (CPA, RCW 19.86.020). However, the majority did not “recognize a rigid 15 percent price increase threshold as a predicate to a price gouging claim.” […]
August 15 , 2024 - Kriss Sjoblom
Report on July state tax collections: revenues for the most recent month were $33.1 million short of the forecasted amount
Yesterday (August 14) the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between July 11 and August 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 […]
August 05 , 2024 - Emily Makings
Contrary to the public investment impact disclosure, I-2109 would not impact school construction funding
This year will be the first in which “public investment impact disclosures” will appear on the ballot, along with the ballot titles for I-2109, I-2117, and I-2124. (Initiative texts, fiscal impact statements, and public investment impact disclosures are available here. There is a lawsuit about the applicability of the public investment impact disclosures to these […]
July 31 , 2024 - Emily Makings
Capital gains tax revenues are not dedicated to the Fair Start for Kids Act, and targeting education spending at 50% of the budget would be questionable policy
The Seattle Times interviewed the gubernatorial candidates about education spending. The resulting news story makes editorial comments about the adequacy of state spending and is inaccurate about the use of capital gains revenues. First, in a few places the story ties the capital gains tax to the Fair Start for Kids Act, which made enhancements […]
July 26 , 2024 - Emily Makings
Revenue forecast accuracy, rainy day funds, and budget stress tests
Washington has strong budget sustainability practices and a tradition of transparent and independent revenue forecasting. There is always room to improve, however. A pair of national reports (from June and last November) have recommendations on revenue forecasting and sustainable budgeting. The Tax Policy Center (TPC) looks at state revenue forecast accuracy (specifically forecasts of personal […]
July 18 , 2024 - Emily Makings
Pension Funding Council adopts lower state pension contribution rates for 2025–27, could save $205 million in the GFS
Yesterday the Pension Funding Council (PFC) adopted state pension rates for 2025–27. The employer contribution rates will decline for each pension system from FY 2025 to FY 2026, and they will either decrease further or stay the same in FY 2027 (depending on the system). For example, the employer contribution rate for the public employees’ […]
July 12 , 2024 - Emily Makings
State tax collections increased 5.8% in FY 2023; B&O taxes increased by 9.9%
State tax collections in fiscal year 2023 totaled $35.388 billion, according to the Department of Revenue (DOR). That’s an increase of 5.8% over 2022. (DOR published its Tax Statistics report for FY 2023 last month.) Of the top three tax sources, business and occupation (B&O) tax collections increased the most in FY 2023, by 9.9%. […]
July 09 , 2024 - WRC
New report: Where Does All the Money Go: Spending Carbon Emission Allowance Auction Proceeds in the Shadow of I-2117
Washington has collected $2.149 billion to date from carbon emission allowance auctions. That’s $1.484 billion more than was expected when the Climate Commitment Act (CCA) was enacted in 2021, as the actual auction prices were higher than anticipated. The windfall, combined with the possibility that the CCA will be repealed in November if voters approve […]
July 08 , 2024 - Emily Makings
June forecast of climate commitment act revenues for 2023-25 is down $313.9 million
The Department of Ecology now estimates that carbon emission allowance auction proceeds will total $2.264 billion in 2023–25. That’s $313.9 million less than had been forecast in November. Similarly, the new forecast for 2025–27 is $139.0 million below the November forecast. Revenues from the December 2023 auction were $55.0 million higher than assumed in the […]