Blog

New special report: Getting the Tax Structure Right: It’s Complicated

Read the full report here. Briefly: Charges that Washington has the nation’s most regressive state and local tax structure stem from a 2015 report by the Institute on Taxation and Economic Policy (ITEP). The ITEP analysis contains a number of methodological flaws that lead it to overstate the tax burden on low-income households nationally and, […]

New special report: Manufacturing Jobs Part II: Education and Workforce Development Strategies to Close the Skills Gap

In a new special report, we continue our series on manufacturing jobs with a look at education and workforce development strategies. The executive summary follows, and you can read the full report here.   Manufacturers in Washington state face ongoing workforce challenges. The strong economy and growing retirements from the Baby Boom generation have created substantial […]

New economic profile: Banking in Washington

Banks provide thousands of good jobs and generate thousands more through their economic activity. They provide access to the capital needed by new and established businesses alike. For individuals and families, they offer a safe place to deposit earnings, save for the future, and borrow money. And through their philanthropic activity, they support programs and […]

New policy brief: In the 2018 Supplemental, the School Salary Increase is Fully Funded, But the Rainy Day Fund is Shortchanged

As passed by the Legislature, the 2018 supplemental operating budget increases near general fund–state plus opportunity pathways spending by $941.0 million. Appropriations for 2017–19 now total $44.649 billion. The supplemental does not levy new taxes, and it reduces property taxes in 2019. It also fully funds the increase in school salaries in SY 2018–19, as […]

New policy brief: The Senate- and House-Passed Supplemental Budgets Would Fully Fund School Salary Increases

The Senate and House have passed 2018 supplemental budgets that would increase NGFS+ spending by $1.117 billion and $380.4 million, respectively. Both would fully fund the increase in school staff salaries required by the McCleary decision, which should satisfy the state Supreme Court. Also, both the Senate and House would reduce state property taxes—but they […]

New policy brief: Capital Gains Tax is a Not-So-Capital Idea

A capital gains tax (HB 2967) is currently under consideration in the Legislature. The questionable constitutionality of the tax makes it a risky source of revenue, whether for the schools as previously proposed or property tax relief now. Moreover, should the legislation somehow clear the high constitutional bar, the volatility of the tax would add […]

New policy brief: ERFC Adopts Outlook for Governor’s Supplemental Budget Showing It Balances Over Four Years

The Economic and Revenue Forecast Council (ERFC) has adopted an outlook based on Gov. Inslee’s 2018 supplemental operating budget proposal. The supplemental would increase 2017–19 NGFS+ spending by $960.8 million and it would leave $2.151 billion in total reserves in 2017–19. According to the outlook, the proposal would leave an unrestricted ending fund balance in […]

New special report: Avista and Hydro One: Lessons from Utility Consolidation in North America

Across North America, utilities have steadily consolidated over time. This has occurred because of the economics of the industry, public policies, market conditions, and regulatory policy changes. The consolidations can take several forms; utility mergers and acquisitions can be characterized, for example, as large-entity takeovers, mergers of equals, or in the Fortis Model (in which […]

New policy brief: Strong Economy Continues to Boost State Revenue Collections

Reflecting better than anticipated economic performance ERFC increased the forecast by $279 million in September and by $304 million in November. It is likely that in February ERFC will again revise the forecast upward. As legislators prepare their supplemental budget they should not assume that this pattern of regular increases to the forecast will continue. […]

New policy brief: Legislature Has Used Rainy Day Fund Each Biennium Except 2011–13

Since the budget stabilization account (BSA, or rainy day fund) was established in 2007, the Legislature has transferred or appropriated funds from it in each biennium except 2011–13. Since 2013–15, the state has experienced “extraordinary revenue growth,” most of which is required to be saved in the rainy day fund. Instead, the Legislature has spent […]