Blog

Consumer confidence falls sharply

Kriss noted that state revenue collections were falling below projections, signaling a possible large downward revision in the forecast that will be released March 17. The predictive art faces increasing challenges in a dynamic and changing global economy, as discussed here and here. Now factor in another sign of tough times ahead. U.S. consumer sentiment […]

March Economic and Revenue Update

The state’s monthly economic and revenue update (commonly called the collections report) is out today and can be downloaded here. Adjusting for the shift of certain taxpayers from quarterly to monthly reporting frequency, revenue for the February 11 to March 10 reporting month was $65 million below forecast. Adjusted revenue for the previous month was […]

Go Tall

There’s an article in the Seattle Times about the ongoing debate over building height in Pioneer Square.  It is particularly of interest given the Edward Glaeser article on Seattle that Dick linked to yesterday. One part of Glaeser’s article that I haven’t seen highlighted is the ending: Seattle has also helped itself by permitting taller […]

No pot of gold likely in St. Patrick's Day state revenue forecast ….

That’s the theme of my column today. Given the increasing difficulty of forecasting state revenues and the significant downside risks, I suggest legislators underspend the revenue forecast this year. And, they should resist the temptation to kick the can forward with one-time gimmics. That these ideas continue to surface signals a lack of legislative seriousness, […]

New Policy Brief: Time to Fix Workers' Compensation

We have a new policy brief today on workers’ compensation reform. As Dick noted earlier, the compromise bill that passed the Senate over the weekend would move us closer to the national mainstream, and the WRC has made similar recommendations in the past. Reforms like the ones in the compromise bill would help reduce the […]

Economic growth the Seattle Way … or not

Two reports today present sharply contrasting views of the Puget Sound region’s economy and prospects. In the New York Times, Harvard economist Edward L. Glaeser sings Seattle’s praises. Seattle is one of the few large cities outside the Sun Belt that is growing more quickly than the country as a whole. The city’s growth reveals […]

Editorial support for bipartisan Senate workers' compensation bill…

The Senate passed ESB 5566 last weekend, a good workers’ compensation bill that will move Washington closer to the national mainstream, benefiting both injured workers and employers. The Washington Research Council last year published Mainstreaming Workers’ Compensation: Reforms for 2010. The bill refines several of our recommendations and represents a major step forward for the […]

K-12 Employee Health Care Savings

Washington State Wire has a good article by Erik Smith today on K-12 employee health care. As he notes, the state auditor recently released a report on the subject (the executive summary is here). State employees get their health insurance through the Public Employees Benefits Board (PEBB); school districts may participate in the PEBB plans, […]

Some Choice in Workers' Comp

On Saturday, the state Senate passed ESB 5566, which makes reforms to the workers’ compensation system.  Among other changes, the bill would allow injured workers to choose a voluntary settlement agreement instead of taking a permanent pension. Such permanent pensions are a drain on the system.  As part of the governor’s workers’ compensation reform proposals […]

Understating Public Pension Shortfalls

The Washington Post reports that while official figures put state and local public pension shortfalls at $344 billion, some economists estimate the underfunding is more in the ballpark of $1.9 trillion. The discrepancy occurs because of what the article calls the "government method of accounting."  Most states, including Washington, use the actuarial method of accounting in […]