Blog

In dismissing long-term care lawsuit, federal judge makes some unexpected points about the program

The U.S. District Court for the Western District of Washington has dismissed the class action lawsuit that asked the Court to find the state’s long-term care program (WA Cares) “unlawful and unenforceable under ERISA, federal, and state law.” (The link to the ruling is via this AP story.) The Court held that it does not […]

Paid family and medical leave program balance has gone negative

Back in January, the Employment Security Department (ESD) estimated that the paid family and medical leave (PFML) program would be in cash deficit in March or April. At a meeting of the PFML Advisory Committee on Wednesday, ESD said that cash flow has fallen below zero this month. Indeed, on Wednesday, the account’s balance was […]

The adopted official budget outlook will be more transparent about reserves, and an alternative outlook shows what would happen if capital gains taxes aren’t collected

Today the Economic and Revenue Forecast Council (ERFC) adopted an official outlook based on the 2022 supplemental operating budget. Incorporating all actions this session and the governor’s vetoes, the budget leaves an unrestricted ending balance in funds subject to the outlook (NGFO) of $222 million in 2021–23 and $374 million in 2023–25. It has been […]

Seattle revenue forecast is up, led by the payroll expense tax

Seattle’s new Office of Economic and Revenue Forecasts presented its April 2022 revenue forecast to the city’s Economic and Revenue Forecast Council on Friday. The Council adopted the baseline forecast, under which selected revenues for 2022 are estimated to be $89.8 million (8.4%) higher than expected in the Nov. 2021 forecast for 2022. Created last […]

Tax Structure Work Group advances five reform concepts

On March 30 the Tax Structure Work Group voted to move forward five tax reform concepts for elaboration and analysis. To my surprise, a personal income tax was not one of the concepts that moved forward. A 2017-19 budget proviso (see section 101) initially established the Tax Structure Workgroup (TSWG) within the state House of […]

Gov. Inslee’s budget vetoes will not have a significant fiscal impact

On Thursday, Gov. Inslee signed and partially vetoed the supplemental operating budget. (His veto message is here.) Appropriations levels have not yet been officially updated on the state’s fiscal site, but it looks like the vetoes will reduce appropriations from funds subject to the outlook (NGFO) by about $12.9 million. (As passed by the Legislature, […]

The official budget outlook will continue to assume revenues from the capital gains tax

Today the Economic and Revenue Forecast Council (ERFC) held a budget outlook methodology meeting. The budget outlook workgroup wanted the ERFC’s guidance as to how to treat revenues from the capital gains tax in the upcoming official budget outlook (based on the 2022 supplemental). The capital gains tax was adopted last year, and the first […]

Transportation budget’s exported fuel tax replaced with annual transfers from the general fund and public works assistance account

The transportation package that was proposed in February would have increased transportation revenues by $16.801 billion over 16 years. That included $2.053 billion in revenues from a new tax on exported fuel. The exported fuel tax provision was later stripped by the House. The conference report for the transportation budget would increase revenues by $16.988 […]

What is the impact to the budget if the capital gains tax is unconstitutional?

Yesterday the Douglas County Superior Court ruled that the capital gains tax is unconstitutional. According to the ruling, the tax is an income tax and it violates the state constitution’s uniformity requirement and 1% limit on property taxes. The attorney general has already said he will appeal. If the state supreme court ultimately agrees that […]

An alternative budget proposal would provide general tax relief; Senate Democrats introduce a new B&O tax relief bill

On Monday, Rep. Stokesbary proposed a supplemental operating budget that offers quite the contrast to the proposals from the chairs of the Ways & Means and Appropriations committees. Rep. Stokesbary’s proposal would reduce revenues from funds subject to the outlook (NGFO) by $2.118 billion in 2021–23 and by $8.347 billion in 2023–25. That includes two […]