Blog

Gov. Inslee would use a portion of marijuana excise tax revenue for community reinvestment grants

Gov. Inslee’s supplemental operating budget proposal would transfer $125.0 million from the dedicated marijuana account to a new community reinvestment account. The money would then be used by the Department of Commerce for community reinvestment grants for communities that “have experienced historically and inequitably enforced criminal laws and penalties for illegal drug sales, possession and […]

Although the state will not be collecting the long-term care tax in January, the mechanism for the delay may mean that the tax will still be deducted from paychecks

With state collection of the long-term care tax suspended until at least April, it appears that the tax may still be deducted from many workers’ paychecks in the meantime. In making the announcement last week, Gov. Inslee said that “employers will not be subject to penalties and interest for not withholding fees from employees’ wages […]

Long-term care tax will be delayed until at least April

As I wrote a few weeks ago, there has been talk that the long-term care payroll tax (0.58% of wages) could be delayed instead of beginning on Jan. 1, 2022. Today, Gov. Inslee announced that he is “ordering the state Employment Security Department not to collect the premiums from this program from employers before they […]

State transportation revenues are still below pre-pandemic estimates

Revenues to funds subject to the outlook (NGFO), which fund the operating budget, were essentially back to pre-pandemic levels by March 2021. With the Nov. 2021 forecast, NGFO revenues are up $8.566 billion (5.1%) through 2023–25 (compared to the pre-pandemic Feb. 2020 forecast). State transportation revenues are a different story. According to the Nov. 2021 […]

Could the long-term care tax be delayed for a year?

The Seattle Times reports that Gov. Inslee and Senate Democrats are talking about delaying the long-term care payroll tax. Senate Democratic leadership sent the governor a letter on Wednesday asking him to delay the tax until Jan. 1, 2023. Under current law, the tax is scheduled to begin Jan. 1, 2022. A lawsuit was filed […]

State revenues are $7.356 billion higher than expected at the end of the legislative session

As Kriss wrote Friday, the state revenue forecast is up again. Chart 1 shows how much biennial revenues from funds subject to the outlook (NGFO) have grown over the past few decades. Even adjusted for inflation, actual NGFO revenues for 2019–21 were 40.9% higher than the pre-Great Recession peak. Adjusted for inflation, NGFO revenues for […]

Notes from the Ways & Means work session: Bank tax revenues, CBA costs, and one city’s rejection of federal relief funds

On Monday, the Senate Ways & Means Committee held a work session that included several items of fiscal interest. (The meeting can be watched here.) First, Dr. Lerch of the Economic and Revenue Forecast Council gave an update on the economic outlook. That day it was announced that with the November collections report, revenues have […]

Lawsuits filed over long-term care program and document recording fee surcharge

Lawsuits have been filed over the state’s long-term care program (for which premiums will be paid beginning in January) and a document recording fee surcharge enacted this year (to provide funds for housing programs). Long-Term Care A class action lawsuit asks a federal court to find the long-term care program “unlawful and unenforceable under ERISA, […]

Paid family and medical leave premiums will increase in 2022; this is one of several expected payroll tax increases for next year

According to the Employment Security Department (ESD), premiums for paid family and medical leave will increase to 0.6% beginning Jan. 1, 2022. The premium for this program is paid on gross wages up to the Social Security cap ($147,000 in 2022). The rate can range from 0.1% to 0.6%; if the balance ratio is sufficiently […]

Washington’s revenue growth since the Great Recession is currently the second strongest in the country

State revenues from funds subject to the outlook (NGFO) are estimated to be substantially higher through the outlook period (2019–21, 2021–23, and 2023–25) than was expected when the 2021–23 budget was adopted this spring. The June revenue forecast added $3.675 billion in economic changes (not including tax changes the Legislature made) and the September revenue […]