Blog

Gov. Inslee’s budget would balance over four years, but total reserves at the end of 2025–27 would be just $2.411 billion

Yesterday the Economic and Revenue Forecast Council (ERFC) adopted an official budget outlook based on Gov. Inslee’s operating budget proposal. It estimates that the budget would leave an unrestricted ending balance in funds subject to the outlook (NGFO) of $275 million over four years. But there is uncertainty about the economy and the constitutionality of […]

Paid family and medical leave premium rate could increase to 0.9% next year

SB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, was approved by the Senate Labor & Commerce committee on Tuesday. The bill reflects the recommendations of the legislative task force on paid family and medical leave premiums, and it comes after multiple periods over the past year when […]

Governor would fund Washington student loan program and shift more of its funding from the general fund to the workforce education investment account

In 2022, the Legislature enacted E2SHB 1736, which creates the Washington student loan program. Many program details were left to be determined later, with recommendations due from the Washington Student Achievement Council by Dec. 1, 2022. (The report has not yet been published.) However, E2SHB 1736 did specify that loans will not be issued unless […]

Gov. Inslee’s budget proposal would continue to fund the working families tax credit; two prefiled bills would make changes to the program

On Inside Olympia last month, Gov. Inslee talked about his budget proposals and said, “In fact, we’re actually doing a tax cut in this budget because it funds the working families tax credit. So 400,000 Washingtonians will get a tax cut starting February 1, if they apply for it.” The governor isn’t referring to a […]

PFML task force votes on final rate structure recommendations

Today the Legislative Task Force on Paid Family and Medical Leave Insurance Premiums voted to recommend changes to the paid family and medical leave (PFML) program rate structure. At the end of last week’s meeting of the task force, it didn’t sound like members would be prepared to vote today. But they apparently had productive […]

Capital gains taxes in the November revenue forecast

In March, a Superior Court judge ruled that the state capital gains tax is unconstitutional. (Despite that, the Legislature chose to include capital gains revenues in the operating budget, as we explained here.) The state Supreme Court will hear the case on Jan. 26, but a decision could come after capital gains taxes are due […]

Task force on paid family and medical leave premiums considers proposals to change the rate structure

The Legislative Task Force on Paid Family and Medical Leave Insurance Premiums met last Tuesday to discuss five proposed recommendations for changes to the paid family and medical leave (PFML) premium rate structure. Premium rates would be above 0.6% in all scenarios through at least 2027. Changes are necessary because the program has run deficits […]

Washington slips in business tax climate ranking after the introduction of the capital gains tax

Last month, the Tax Foundation released its 2023 State Business Tax Climate Index, in which Washington slipped dramatically to No. 28 from No. 15 the year prior. The State Business Tax Climate Index compares state tax structures. Here is how the index ranks Washington: Washington had the largest drop in overall tax structure ranking by a wide margin (the second largest […]

The 2021 increase in private long-term care insurance coverage in Washington led the nation

New data from the National Association of Insurance Commissioners (NAIC) show—unsurprisingly—that long-term care (LTC) insurance coverage jumped in Washington in 2021. The 2019 legislation establishing the state’s LTC program exempted people with private LTC insurance policies from the state program. This provision was amended in 2021 to specify that individuals had to purchase private LTC […]

Tax Structure Work Group Nov. 14 Meeting

The Washington legislature’s Tax Structure Work Group (TSWG) met yesterday. Under a proviso in the 2021-23 state budget, TSWG is to develop revenue neutral state tax reform legislation for the 2023 session of the legislature. At its March 30 meeting, TSWG selected 5 reform concepts tor further elaboration and analysis by staff at the Department […]