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Seattle’s general fund and payroll expense tax revenue forecasts have increased since August

Yesterday Seattle’s Office of Economic and Revenue Forecasts (OERF) presented the city’s October revenue forecast for the general fund and several other revenue streams that go to dedicated accounts (including the payroll expense tax). For the city’s general fund, the forecast estimates that revenues will decline in 2023 and 2024 (year over year). However, that […]

Value of agricultural production in Washington reached a record high in 2022

According to the National Agricultural Statistics Service, the value of agricultural production in Washington in 2022 was $12.776 billion, an increase of 26.8% over 2021. Adjusted for inflation, the year-over-year increase was 19.8%. This is a record high for Washington, even adjusted for inflation. Although apples are still by far the most valuable commodity in […]

Forecast of state revenues increased

At its quarterly meeting yesterday, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts increase the amount available over the current and next bienniums by a total of $1,366 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the education legacy […]

September report on state tax collections: revenues for the most recent month were $5.1 million short of the forecasted amount

On September 15 the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between August 11 and September 10 for the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest […]

Cap and Invest compliance cost estimated for on-road vehicles based on the August 31 allowance auction price

The department of ecology today announced the results of its third regular auction of Cap-and-Invest Program allowances, which was held on August 30 (link). The settlement price for current (2023) vintage allowances was $63.03. This is up significantly from the 2023-vintage price at the May 31 auction, $56.01. Table 1 contains my updated projections of […]

Cap and Invest allowance prices

In 2021 the legislature passed and the governor signed Senate Bill 5126 creating the state’s Cap and Invest program, which is intended to greatly reduce carbon dioxide emissions in the state. Under the program, beginning this year, each regulated entity is required to obtain an “allowance” for every metric ton of carbon dioxide it emits […]

August report on state tax collections: revenues for the most recent month were $81.2 million greater than the forecasted amount

Yesterday the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between July 11 and August 10 for the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest (collectively the […]

Seattle’s revenue forecast anticipates slowing growth, but general fund revenues are expected to be higher than assumed in the adopted budget

Yesterday Seattle’s Office of Economic and Revenue Forecasts presented the city’s August revenue forecast. It includes updated estimates of general fund revenues and “general fund adjacent” taxes (e.g., the payroll expense tax and the real estate excise tax) for 2023 and 2024. The forecast notes that, compared to the April forecast, general fund revenues are […]

July report on state tax collections: revenues for the most recent month were $101.1 million greater than the amount forecasted

Yesterday the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between June 11 and July 10 for the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest (collectively the […]

Washington’s average annual wage grew much slower in 2022 than in recent years

The Employment Security Department (ESD) reports that the state average annual wage was $84,167 in 2022. That is just 2.0% higher than the 2021 average wage. In 2020 and 2021, there were record high increases in the average wage (see the chart below). According to ESD, the growth in the average wage slowed because “[a] […]