Blog

Ecology’s carbon emission allowance auction revenue forecast, and an accounting of how the money is being spent

The state’s current forecast of carbon emission allowance auction proceeds estimates that revenues will be $1.092 billion higher than expected when the 2023–25 biennial budget was enacted last year. Gov. Inslee’s supplemental budget proposals would appropriate $915.2 million of that. Revenues The climate commitment act (CCA) was enacted in 2021. The first carbon emission allowance […]

Only 7% of proposed real estate transfer tax revenue would go to housing accounts

Yesterday a bill was introduced that would create a new real estate transfer tax, which would be levied on top of the real estate excise tax for properties that sell for over $3.025 million. HB 2276 is scheduled to be heard in the House Finance Committee on Jan. 18. This is a new tack in […]

Previewing state fiscal policy for 2024

The good news heading into the legislative session on Monday is that the state is not facing an operating budget shortfall. Enacted 2023–25 appropriations from funds subject to the outlook (NGFO) are $69.804 billion. Gov. Inslee’s supplemental operating budget proposal estimates that the maintenance level for the operating budget has increased by $870.4 million, meaning […]

Gov. Inslee’s transportation budget proposal would add funding for fish passage barrier removal, but transportation funding challenges loom

Gov. Inslee’s proposed supplemental transportation budget would increase 2023–25 appropriations from all funds by $1.580 billion (11.6%). Of that, $1.035 billion is considered maintenance level and $544.9 million is new policy. (Of the total change, $418.0 million is from federal funds.) Generally, the maintenance level is the cost of continuing current services, adjusted for inflation […]

Updated Cap-and-Invest compliance cost estimates for motor vehicles based on the December 6 allowance auction price

On Wednesday the department of ecology reported the results of its fourth regular auction of Cap-and-Invest Program allowances (link), which was held on December 6. The settlement price for current (2023) vintage allowances was $51.89. This is down significantly from the 2023-vintage price at the August 30 regular auction, which was $63.03. Table 1 contains […]

In Gov. Inslee’s capital budget proposal, capital gains tax revenues would largely supplant current capital funding for schools

Gov. Inslee’s 2024 supplemental capital budget proposal would increase capital appropriations by $1.321 billion (15.3%). Revised 2023–25 capital appropriations would total $9.982 billion. About 80% of the increase comes from new revenues from the capital gains tax and carbon allowance auction proceeds. Any capital gains tax revenues that exceed $500 million in a year are […]

New policies in the governor’s operating budget proposal would increase appropriations by $1.085 billion

Gov. Inslee’s supplemental operating budget proposal would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $1.955 billion. Of that increase, $870.4 million is maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) and $1.085 billion is new policy. The chart below shows how the new policy spending would […]

Gov. Inslee’s 2024 supplemental operating budget proposal would increase appropriations by 2.8%

[Updated 12/14] Gov. Inslee has proposed a 2024 supplemental operating budget that would increase 2023–25 appropriations from funds subject to the outlook (NGFO) by $1.955 billion (2.8%). Revised 2023–25 NGFO appropriations would be $71.760 billion, which would be 15.5% above actual spending in 2021–23. The proposal would not increase revenues, but it would use reserve […]

Higher education capital budget requests come mainly from UW and the community and technical college system

The community and technical college system (CTCS) and five of the six public four-year higher education institutions have made capital budget requests for the 2024 supplemental. (Washington State University has not requested anything for the capital budget.) Altogether, the higher education institutions are requesting $199.7 million in 2023–25 and $288.2 million in future years. Of […]

Capital budget request from Commerce focused on housing, clean energy projects, and broadband

For the 2024 supplemental capital budget, the Department of Commerce has requested $1.276 billion in 2023–25. This is the largest capital request for 2023–25 from any agency, representing 68.4% of all agency capital requests for the biennium. The request also includes estimates of future spending for the proposals. Spending from 2025–27 through 2031–33 would total […]