Blog

New brief: A Capital Gains Tax Would Not Improve Budget Sustainability

Although the March revenue forecast increased estimated state revenues for the 2017–19 and 2019–21 biennia, the House Appropriations Committee Chair proposed a new capital gains tax along with his 2019–21 operating budget. The Senate is also considering a capital gains tax, although in this case the proceeds would be used to reduce other taxes rather […]

New brief: Senate Ways and Means Committee Chair’s Proposed Operating Budget Would Increase Spending by $7.5 Billion

The 2019–21 operating budget proposed by the Senate Ways and Means Committee Chair would increase appropriations from funds subject to the outlook by $7.511 billion (16.8 percent) over 2017–19. Of that, $1.667 billion is due to spending on new policy, while maintenance level changes (the cost of continuing current services, including the response to the […]

New policy brief: House Appropriations Chair’s Proposed Operating Budget Would Increase Spending by $8 Billion

The House Appropriations Committee Chair has proposed a 2019–21 operating budget that would appropriate $52.811 billion from funds subject to the outlook (NGFO). This is an increase of $8.150 billion (18.2 percent) over 2017–19 appropriations. This increase would be the largest in at least 25 years, after a 17.9 percent increase in 2005–07 and a […]

New brief: A Tax Expenditure Budget Wouldn’t Improve State Tax Policy

In a new policy brief, we look at a proposed “tax expenditure budget.” PSHB 1703 would expire tax preferences (the state’s collective term for exemptions, exclusions, deductions, deferrals, credits, and preferential tax rates) unless they are readopted by the Legislature each biennium as part of a “tax expenditure budget.” Washington’s current tax preference review process […]

Economic Profile: The Economic Contribution of Washington State’s Petroleum Refining Industry in 2017

In a new report, we look at the impact of Washington’s five major petroleum refiners on the state’s economy in 2017. In 2017, the refiners directly provided 2,171 full-time jobs, paying an annual average wage of $129,132. In addition, the refiners employed, at high wages, 2,658 contract workers on an average day, doing maintenance, capital […]

New policy brief: Washington Businesses Pay More Than Half of State and Local Taxes

The upcoming legislative session will feature discussions about whether new revenues are necessary; inevitably there will be legislative proposals to increase business taxes. According to a report from the Council on State Taxation, businesses in Washington paid 50.1 percent of state and local taxes in 2017, well above the U.S. average of 43.7 percent. Additionally, […]

New policy brief: Washington’s Budget Sustainability Requirements Work When Followed

Washington’s four-year balanced budget requirement and constitutionally-protected rainy day fund promote state budget sustainability. The requirement that budgets balance over four years helps to limit the use of budget gimmicks and to prevent unsustainable bow wave spending. Reserves improve sustainability by providing a cushion for emergencies and limiting major program cuts during economic downturns. Because […]

New policy brief: Gov. Inslee Proposes a 22.3 Percent Spending Increase for 2019–21

Gov. Inslee has proposed a historically large 2019–21 operating budget that would increase spending from funds subject to the outlook (NGFO) by $9.973 billion (22.3 percent). Of that spending, $6.415 billion is the cost of continuing current services and completing implementation of the K–12 spending required by the state Supreme Court’s McCleary decision. Current resources […]

New policy brief: Washington Spending Review: Spending Up 44 Percent Since Pre-Recession Peak

Washington’s state and local spending increased dramatically coming out of the Great Recession as the state invested primarily in education to address the McCleary education funding lawsuit. With McCleary now in the rear-view mirror, there appears to be an enormous appetite among legislators for new spending on almost everything else. As the spending proposals begin […]

New policy brief: Washington Revenue Review: Revenues Are Still Growing Strong, But for How Long?

Washington’s tax structure brings in revenues that are proportional to those in other states. Meanwhile, growth in state and local taxes from 2015 to 2016 was highest in Washington. In its November revenue forecast, the Economic and Revenue Forecast Council estimates that near general fund–outlook (NGFO) revenue will be $45.799 billion in 2017–19, $50.002 billion […]