Budget

New special report: Has the State Finally Closed the Book on McCleary?

In a new special report, we dig in to EHB 2242, the education funding bill passed by the Legislature this session. Briefly:

Taking vetoes into account, the budget doesn’t balance over four years (plus, a note on minimum wage disemployment effects)

The Legislature passed a 2017–19 operating budget that balanced over four years; an outlook prepared for the compromise indicated unrestricted ending fund balances of $985 million in 2017–19 and $42 million in 2019–21.

Studying the studies in the budget

Tucked into the $43.7 billion operating budget are several requirements for studies and audits. They didn’t make it into our overview of the budget, but I thought some are worth highlighting:

New brief: Legislature Passes 2017–19 Operating Budget That Increases Spending by $5.3 Billion

In a new policy brief, we provide an overview of the 2017-19 operating budget, as passed by the Legislature on June 30. Briefly:

The operating budget compromise included a reduction of the B&O tax rate for all manufacturers—will it be signed by the governor?

In order to balance the operating budget, the Legislature passed two bills that will increase revenues by an estimated $2.070 billion in 2017–19 and $3.358 billion in 2019–21. 

Gov. Inslee signed the operating budget but vetoed several provisions

A new fiscal year (2018) and a new biennium (2017–19) began on Saturday, July 1, but it doesn’t feel much like a fresh start.

Policy changes in the compromise budget versus those passed in March

The Senate has passed the compromise 2017-19 budget. If enacted, spending will increase by $5.254 billion (near general fund-state plus opportunity pathways) over 2015-17. Of that, about $2.071 billion is at the policy level. The chart below (click on it for a larger version) shows how the policy changes are distributed throughout the budget and compares the compromise with the budgets passed earlier this session by the Senate and House.

2017–19 operating budget compromise would appropriate $43.7 billion

Budget negotiators reached an agreement on the operating budget for 2017–19 Wednesday morning, but details were not made public. The Senate Ways and Means Committee will have an executive session on the budget and other bills today at 8 am, and the budget must be passed and signed by the end of today. This tight timeline means that there was very little time for staff to get the numbers and language together.

There may be support for proposed online sales tax, but could Washington actually collect any revenues?

The 2017–19 operating budget that was passed by the House earlier this year assumes enactment of several new taxes. These include requiring remote sellers, marketplace facilitators and referrers to collect and remit sales taxes on online purchases made by Washington residents or report the sales to the Department of Revenue (so that it could then collect use taxes from the buyers directly). It’s estimated that it would increase revenues by $329.2 million in 2017–19.

Policy Today podcast: State Revenue Forecasts & the State Budget

In today's podcast we talk about the process of forecasting state revenues, and how that process relates to the state budget.

Pages