Blog

Milliman: Current statutory maximum for paid family and medical leave premiums is “too low”

Financial problems with the state’s paid family and medical leave (PFML) program surfaced at the beginning of this year. (For more information, read our analysis of the situation, including background information and a review of legislative changes this year.) Consequently, the Legislature required the Office of Financial Management (OFM) to contract with an entity for […]

Document recording surcharges are not yielding the revenues expected for housing programs

Washington has four document recording surcharges that are used to fund homelessness programs. Today the Department of Commerce told the House Appropriations Committee that revenues from these fees are falling short of estimates. (Commerce’s presentation to the committee is available here.) Indeed, Commerce’s 2023–25 budget request includes a placeholder at maintenance level that would address […]

New brief: Washington’s Business Taxes Continue to Exceed National Average

Washington state’s businesses bore much of the tax burden for fiscal year 2020, delivering nearly half of state and local tax revenue. Nationally, Washington’s business taxes were the 9th highest per employee, the 32nd largest as a share of economic activity, and the 17th greatest as a share of total state and local tax revenue. […]

Comparing revenue forecasts

As Kriss wrote last week, the September revenue forecast for 2021–23 and 2023–25 is down $452 million compared to the June revenue forecast. However, revenues for these biennia are expected to be $1.636 billion above the February revenue forecast (on which the current budget was based). The governor will propose a 2023–25 operating budget after […]

States, local governments, and nonprofits qualify for refundable clean energy tax credits under Inflation Reduction Act

The federal Inflation Reduction Act (IRA), which was signed by President Biden in August, includes $270.7 billion (over the 2022–2031 period) in new and expanded clean energy tax credits. (The cost estimate from the Joint Committee on Taxation is available here.) Notably, most of these tax credits will essentially be refundable for states and local […]

Tax regressivity and state spending

On Wednesday, Crosscut ran a piece from the Center for Public Integrity on the regressivity of state taxes. The story relies on the 2018 state and local tax structure study from the Institute on Taxation and Economic Policy (ITEP). We wrote in depth about our concerns with the ITEP study here. In short: It overstates […]

Long-term care program portability options would not fully address the issue

Last year, the Legislature delayed Washington’s long-term care (LTC) program by 18 months. Unless action is taken in the upcoming legislative session, premiums will be assessed beginning July 1, 2023, and benefits will be available beginning July 1, 2026. Under statute, benefits are only payable to Washington residents—even if a nonresident had previously worked in […]

State Supreme Court: Property insurance doesn’t cover business income lost due to COVID shutdowns; property tax refund cases must be filed in the collecting county

The state Supreme Court released two notable decisions today. The first is about insurance coverage of business income that was lost due to the state’s COVID shutdowns in 2020. The second is about where property tax refund cases must be filed. 1. COVID shutdowns did not trigger property insurance coverage of lost business income because […]

New brief: Cash Deficits in the Paid Family and Medical Leave Program Signal Additional Tax Increases Ahead

Washington’s paid family and medical leave (PFML) program is one of the first in the nation. PFML benefits are funded by a premium that is assessed on employee wages, up to the Social Security cap ($147,000 in 2022). From 2019 through 2021, the premium rate was 0.4%; it was increased to 0.6% this year. The […]

The paid family and medical leave premium rate could rise to 1% next year

Today the Employment Security Department (ESD) told the Paid Family and Medical Leave (PFML) advisory committee that the premium rate for the program might need to be 1% next year. At the beginning of this year, the rate increased from 0.4% to 0.6%. Last month, ESD estimated that the premium rate for 2023 would need […]