Blog

Education funding bill would reduce local levies, increase funding for nurses and other staff, and provide learning loss grants to districts

Senators Braun and Mullet have introduced SB 5922, which would make several changes to education funding. The bill would reduce the maximum local enrichment levy; increase local effort assistance (and extend it to charter schools); increase allocations for nurses, social workers, psychologists, and counselors; increase allocations for special education and highly capable programs; provide learning […]

SB 5873 would lessen some of the impact of two payroll tax increases

In a policy brief last year, we wrote about how UI taxes work and how they were increasing due to the pandemic. The UI tax rate is made up of three taxes, including a social tax. The social tax is based on the amount by which systemwide benefits exceed systemwide revenue. Generally, the amount of […]

“Public investment impact disclosures” would not be a good addition to ballot titles

Two similar bills have been introduced that would require “public investment impact disclosures” in ballot titles for initiatives and referenda that make tax changes. The bills give the impression of transparency but would not provide meaningful context for voters. Under current law, the Office of Financial Management must prepare a fiscal impact statement for initiatives […]

Several fiscal bills have been introduced today: Reserves, tax relief, long-term care

First, HB 1875 (Stokesbary) would transfer $1.0 billion from the Washington rescue plan transition account back to the budget stabilization account (BSA, or the rainy day fund). The enacted 2021–23 budget had needlessly transferred $1.0 billion from the BSA to the new Washington rescue plan transition account. This shadow reserve account is not subject to […]

Pre-filed tax bills include proposals to reduce the B&O tax for manufacturers and repeal the capital gains tax

As we’ve written, the substantial budget surplus means that the Legislature will not need to increase taxes to maintain current services. Moreover, tax cuts could be considered. Several bills have been pre-filed that would either reduce or (in a few cases) increase taxes. Although there are no fiscal notes available yet, here are some proposals […]

Washington’s long-term care program could be delayed by 18 months (and other pre-filed bills would make other changes to the program)

A slew of bills has been pre-filed that would make changes to the state’s long-term care (LTC) program. As we’ve written, the Legislature should consider whether the state should be in this line of business. In December, Gov. Inslee, Senate Majority Leader Billig, and House Speaker Jinkins announced that they were “delaying” the premium assessment, […]

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 […]