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Proposed transportation package would use carbon allowance auction proceeds and state operating funds, increase fees, and impose a new exported fuel tax

Yesterday the chairs of the Senate and House transportation committees proposed a transportation package that would provide $16.801 billion over 16 years (FY 2023 through FY 2038). SB 5974 (the revenue bill) is scheduled for public hearing in the Senate Committee on Transportation tomorrow. (SB 5975 is the spending bill. Summaries and project lists are […]

New brief: A Surplus of $11.249 Billion: Gov. Inslee Would Increase Spending, but a Sustainable Budget Could Include Tax Reductions

We estimate that the state surplus in funds subject to the outlook (NGFO) is now $11.249 billion over four years. On top of that, the state has one-time funds: $1.0 billion in the Washington rescue plan transition account, $1.273 billion in general federal relief funds, and about $1.2 billion in the budget stabilization account. This […]

The state has decreased its estimate of revenues from the wealth tax proposal

Yesterday the Senate Ways & Means Committee heard SB 5426, which would impose a wealth tax. The bill and its companion HB 1406 were originally introduced last year. Last year, the Department of Revenue (DOR) estimated that the tax would increase revenues by $4.949 billion in 2023–25 and by $4.830 billion in 2025–27. Kriss wrote […]

Paid family and medical leave financial troubles have escalated quickly

Late last week the Employment Security Department (ESD) revised upward its estimates of the amount of money that could be needed to address the expected cash deficit in the paid family and medical leave (PFML) program. Gov. Inslee’s budget proposal would appropriate $82 million from the general fund–state (GFS) to cover any cash deficit in […]

Climate resiliency surcharge proposed for large financial institutions

Senators Carlyle and Rolfes have introduced SB 5967, which would add a new “climate resiliency and mitigation” surcharge on certain financial institutions. Essentially, this would fall on the same banks subject to the 1.2% business and occupation (B&O) surtax on large financial institutions, to the extent that they finance fossil fuel companies. As with the […]

Long-term care program delayed

Gov. Inslee has signed SHB 1732 and ESHB 1733. As adopted, SHB 1732 delays implementation of the state’s long-term care program by 18 months. If employers have withheld any premiums this month, they have 120 days (from the date of collection) to refund them to employees. Long-term care premiums will now be assessed beginning July […]

Paid family and medical leave bill would use federal relief to shore up account

As I wrote yesterday, there are serious concerns about the solvency of Washington’s paid family and medical leave (PFML) program. A Senate committee approved a bill on Wednesday that would add some actuarial requirements to the program. Today, Sen. Lynda Wilson introduced SB 5959. In the short term, the bill would appropriate $125 million from […]

New actuarial requirements have been proposed for the paid family and medical leave program

In response to the emerging paid family and medical leave (PFML) program financial situation, legislators have modified SB 5649. Originally, the bill would have made various benefit changes to the program. Yesterday the Senate Labor, Commerce & Tribal Affairs Committee approved a substitute bill that would make fewer benefit changes and would add several actuarial […]

Paid Family and Medical Leave premium rate may need to increase to 0.8% next year, as program faces a possible cash deficit

At a Ways & Means (W&M) Committee work session on Jan. 18, the Employment Security Department (ESD) provided an update on the paid family and medical leave program. According to the update, “ESD is currently concerned about the fund’s solvency.” They expect the account to have a cash deficit in March or April. (As I’ve […]

State and local funding for school construction could increase under proposed bills

Earlier this week the House Capital Budget Committee held a public hearing for HB 1775. The bill would create modernization and construction grants for school districts with enrollment of 1,000 or less. (Including charter and tribal schools, in SY 2021–22, 164 districts have enrollment under 1,000.) Grant applications would be prioritized based on the district’s […]