New brief: State and Local Spending on Housing and Homelessness Has Increased Significantly
Federal pandemic relief significantly boosted state spending on housing programs; as the federal funding has been drawn down, the state has added more funding from state sources. Similarly, even as overall spending by local governments has increased in recent years, the share dedicated to housing and homelessness services has increased. From 2014 to 2024 (adjusted […]
March 30 , 2026 - WRC
New brief: Band-Aid Budget Redux
The Legislature has passed a supplemental operating budget that would increase 2025–27 appropriations from funds subject to the outlook (NGFO) by $2.348 billion (3.0%) compared to the enacted 2025–27 biennial budget. Revised 2025–27 appropriations would be $80.206 billion, which is 11.4% higher than actual 2023–25 spending. Since the biennial budget was adopted last year, the […]
January 28 , 2026 - WRC
New brief: Washington Businesses Paid 50% of State and Local Taxes in 2024
From 2000 to 2024, business and occupation tax collections increased by 269.5%. Businesses also pay sales taxes, property taxes, and many other state and local taxes. A new report from the Council on State Taxation finds that businesses paid 50.0% of all state and local taxes in Washington in fiscal year 2024. Washington businesses paid […]
September 29 , 2025 - Emily Makings
New brief: SJR 8201: Investment Flexibility for Long-Term Care Funds
SJR 8201 would amend the state constitution to allow money in the long-term services and supports (LTSS) trust account to be invested as authorized by law. Effectively, the amendment would allow the funds to be invested in a broader range of vehicles, including stocks. Currently, the funds may only be invested in fixed-income securities. Over […]
July 30 , 2025 - WRC
New brief: With New Revenue Package, the Transportation Budget Balances Through 2027–29
To address transportation budget revenue and cost challenges, the Legislature increased transportation taxes and fees. New revenues include the first gas tax increase since 2015 and increases to the retail sales and use taxes owed on several transportation-related transactions. Additionally, beginning in 2027–29, 0.1% of state sales and use tax collections is dedicated to the […]
July 22 , 2025 - WRC
New report: Historically Large Tax Package Rushed Through at the End of Session
The 2025–27 operating budget relies on a tax package that is estimated to increase revenues to funds subject to the outlook (NGFO) by $9.0 billion over four years. It includes business and occupation (B&O) tax increases (ESHB 2081 and ESSB 5794), the expansion of the sales tax to more services (ESSB 5814), capital gains and […]
July 17 , 2025 - WRC
New brief: The Band-Aid Budget: $9 Billion in New Taxes and $7 Billion in Savings, But No Lasting Solutions
Despite an estimated four-year $8.6 billion maintenance level shortfall—the difference between the cost to continue current services into the next biennium and expected resources—the Legislature increased appropriations from funds subject to the outlook (NGFO) for 2025–27 by a net of $5.913 billion. NGFO appropriations for the upcoming 2025–27 biennium total $77.858 billion, an increase of […]
November 04 , 2024 - WRC
New brief: The Business Tax Burden in Washington is Above the National Average
State business and occupation (B&O) tax collections are up 258% since 2000. But businesses also pay sales, property, and many other state and local taxes. Indeed, businesses paid 49.7% of total state and local taxes in Washington in fiscal year 2022, according to a report from the Council on State Taxation. (Nationally, businesses paid an […]
October 23 , 2024 - WRC
New brief: Anatomy of the Projected State Budget Shortfall
We estimate that Washington is facing a $5.1 billion budget shortfall for 2025–27. However, this is not a revenue shortfall. Biennial revenues have not declined. Instead, spending growth has outpaced revenue growth. Indeed, legislators have regularly appropriated more than they expect to collect from forecasted revenues—especially in 2023–25. Enacted appropriations for 2023–25 exceed revenues expected […]
October 21 , 2024 - WRC
New brief: Washington Faces an Estimated $5.1 Billion Shortfall
The cost of maintaining current services in the upcoming 2025–27 operating budget is expected to be higher than currently-forecasted revenues for funds subject to the outlook (NGFO). Including the September revenue forecast, a preliminary estimate of the maintenance level (the cost of continuing current services, adjusted for enrollment and inflation) for the biennium, and the […]