Revenue forecast gives budget writers an additional $861 million for the 2019–21 budget
The state Economic and Revenue Forecast Council (ERFC) held its quarterly meeting today. The forecast of general fund–state (GF–S) revenue for the current biennium (2017–19) increased by $256 million to $44,182 million. The forecast of GF–S revenue for the upcoming biennium (2019–21) increased by $545 million to $49,609 million, and the forecast of GF–S revenue […]
March 12 , 2019 - Emily Makings
Washington’s tax structure brings in considerable revenues
Last week, a KUOW story claimed that Washington’s tax structure “means Washington taxes are low compared to other states, on average. States that tax people based on income bring in higher revenues.” This is just not the case. As we showed in a recent report, Washington’s state and local taxes per capita were $5,050 in […]
March 08 , 2019 - Emily Makings
New federal overtime rule proposed; implications for Washington?
The U.S. Department of Labor (DOL) has proposed increasing the federal overtime threshold from $455 a week ($23,660 a year) to $679 a week ($35,308 a year). If adopted, this would mean that employees making less than $679 a week would have to be paid overtime if they work more than 40 hours. The proposal […]
March 06 , 2019 - Emily Makings
The Fed on the urban-rural divide
The February 2019 Monetary Policy Report from the Board of Governors of the Federal Reserve System includes a section on differences in employment in rural and urban areas nationally (pages 10-12). It notes that the national employment-to-population (EPOP) ratio (the share of the population that is employed) “has returned to about its level before the […]
March 06 , 2019 - Emily Makings
Tariffs are borne entirely by domestic consumers and importers
A new study by economists from the Federal Reserve Bank of New York, Princeton, and Columbia looks at the effects of the trade war. The paper notes that the tariffs imposed by the U.S. last year and the retaliatory tariffs imposed on U.S. exports represent the “first episode of large-scale competitive tariff protection since the […]
February 22 , 2019 - Emily Makings
Oregon close to approving statewide rent control
Rent control is in the news, as it looks like Oregon will enact it statewide. AP reports that the state Senate has passed the legislation, and Gov. Kate Brown told reporters she expected the full House to approve the measure. “I look forward to signing the bill,” said Brown, a Democrat. We wrote about rent […]
February 18 , 2019 - Emily Makings
Economic impacts of the trade war, and the outlook for Washington agriculture
A couple of economic outlooks released last month show the impact of trade policy on the U.S. and our state. The U.S. imposed new tariffs last year; in response, other countries imposed retaliatory tariffs on U.S. goods. First, the Congressional Budget Office’s Budget and Economic Outlook: 2019 to 2029 estimates that the new tariffs will […]
February 12 , 2019 - WRC
Economic Profile: The Economic Contribution of Washington State’s Petroleum Refining Industry in 2017
In a new report, we look at the impact of Washington’s five major petroleum refiners on the state’s economy in 2017. In 2017, the refiners directly provided 2,171 full-time jobs, paying an annual average wage of $129,132. In addition, the refiners employed, at high wages, 2,658 contract workers on an average day, doing maintenance, capital […]
February 07 , 2019 - Emily Makings
Washington continues to have the third-highest private-sector and ninth-highest public-sector union membership rates in the country
In 2018, the union membership rate was 10.5 percent nationally and 19.8 percent in Washington, according to the Bureau of Labor Statistics. Washington had the nation’s third-highest union membership rate. Washington also had the nation’s third-highest private-sector union membership rate, at 12.9 percent. Washington’s public-sector union membership rate was 51.9 percent, the ninth-highest. (This breakout […]
January 18 , 2019 - Emily Makings
A new proposal to lower the B&O tax rate for manufacturers
A bill has been introduced in the Legislature that would reduce the business and occupation (B&O) tax rate for many manufacturers. Currently, the rate ceiling for manufacturers is 0.484 percent, but certain manufacturing activities face lower rates in current law. For example, commercial aircraft manufacturing and timber or wood products manufacturing have rates of 0.2904 […]