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Two opposing views on Washington’s long-term care program

The Forefront blog of Health Affairs has published two counter-takes on WA Cares, Washington’s delayed long-term care program. One considers WA Cares a failure, and the other (while acknowledging some problems) considers WA Cares a model. I wanted to add some context for both. (Technically, WA Cares is the long-term services and supports trust [LTSST] […]

Based on actual long-term care program opt-out data, the payroll tax rate will need to rise by an estimated 0.036%–0.061% to maintain solvency

As we noted in our 2021 report on the state’s long-term care program, it looks like the 0.58% payroll tax rate for the program will not be high enough to maintain actuarial solvency. By statute, the premium rate for the long-terms services and supports trust (LTSST) program (also known as WA Cares) cannot exceed 0.58%. […]

Medicaid savings and Washington’s long-term care program

Since our report last year on Washington’s now-delayed long-term care program, the Office of the State Actuary has published new information on Medicaid savings and private opt-outs. (I’ll write about the opt-outs in another post). The long-term care program is technically called the long-term services and supports trust (LTSST) program, but it is commonly known […]

Court of Appeals: Seattle’s payroll expense tax is “a valid exercise of the City’s taxing authority”

Today the Court of Appeals upheld Seattle’s payroll expense tax. According to the opinion, the tax “applies to the privilege of engaging in business, not an employee’s right to earn a living by working for wages.” Thus, “it is a valid exercise of the City’s taxing authority.” Seattle collected $248.1 million from the payroll expense […]

Seattle’s operating deficit is the result of unsustainable budgeting, not a “revenue shortfall”

A story in the Seattle Times about Seattle’s projected operating deficits states, “the city must find a sustained new revenue source.” (The headline: ‘“No obvious way out’: Seattle facing $117 million revenue shortfall in 2023.”) Although it’s true that the city is projecting general fund operating deficits over the next several years, it is not […]

General fund spending is outpacing revenues in Seattle, even as revenues have increased considerably

On Wednesday, the Finance and Housing Committee of the Seattle City Council discussed general fund financial planning. Last month, the committee received the full general fund (GF) revenue forecast. Revenues are expected to be up compared to the forecast on which the 2022 adopted budget was based. However, this week city staff told the committee, […]

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 […]