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Forecast of state revenues increased

At its quarterly meeting yesterday, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts increase the amount available over the current and next bienniums by a total of $1,366 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the education legacy […]

September report on state tax collections: revenues for the most recent month were $5.1 million short of the forecasted amount

On September 15 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 […]

Average workers’ compensation rates could increase by 4.9% in 2024

The Department of Labor & Industries is proposing a 4.9% increase in average workers’ compensation rates for next year. That would be the largest increase since 2011 (displacing this year’s increase of 4.8%). According to L&I, rates would increase for 283 of 325 risk classes. L&I notes, “In part, the rate increase is needed because […]

Washington’s reserve levels are higher than national data suggest

In a post this week, the Tax Policy Center (a joint venture of the Urban Institute and Brookings Institution) writes, As a share of total general fund spending, total state rainy day fund balances have climbed steadily since the Great Recession, now totaling 15.4 percent of state spending in fiscal year 2022, the highest share […]

State Supreme Court: school capital construction costs are not the sole responsibility of the state

The state Supreme Court has ruled that “school capital construction costs are not a component of the ‘education’ that the State, alone, must amply fund” under the state constitution. Wahkiakum School District had sued the state in 2021. The district argued that the state wasn’t amply funding school construction and instead relied on local levies, […]

Cap and Invest compliance cost estimated for on-road vehicles based on the August 31 allowance auction price

The department of ecology today announced the results of its third regular auction of Cap-and-Invest Program allowances, which was held on August 30 (link). The settlement price for current (2023) vintage allowances was $63.03. This is up significantly from the 2023-vintage price at the May 31 auction, $56.01. Table 1 contains my updated projections of […]

Cap and Invest allowance prices

In 2021 the legislature passed and the governor signed Senate Bill 5126 creating the state’s Cap and Invest program, which is intended to greatly reduce carbon dioxide emissions in the state. Under the program, beginning this year, each regulated entity is required to obtain an “allowance” for every metric ton of carbon dioxide it emits […]

August report on state tax collections: revenues for the most recent month were $81.2 million greater than the forecasted amount

Yesterday 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 (collectively the […]

Budget sustainability and transparency in Seattle

As I’ve written, Seattle may have a general fund shortfall in the next few years. In response, the city is talking about new taxes. However, the city has also been laying the groundwork to improve budget processes and transparency. To the extent that budget process changes improve sustainability, the city will be better prepared to […]

Seattle’s revenue forecast anticipates slowing growth, but general fund revenues are expected to be higher than assumed in the adopted budget

Yesterday Seattle’s Office of Economic and Revenue Forecasts presented the city’s August revenue forecast. It includes updated estimates of general fund revenues and “general fund adjacent” taxes (e.g., the payroll expense tax and the real estate excise tax) for 2023 and 2024. The forecast notes that, compared to the April forecast, general fund revenues are […]