Blog

Inflation clouds the outlook for state revenues

At its quarterly meeting yesterday (June 22), the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts add nearly $2.3 billion to the amounts available over the remainder of the current biennium and the next two biennia. These gains, however, are totally erased by increases in the forecast […]

June report on state tax collections

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

Average annual wage in Washington grew 7.5% in 2021

The state average annual wage was $82,508 in 2021—7.5% higher than 2020’s average wage. In 2020, the average wage had increased by 10.1%, which is the largest increase ever. The increase in 2021 is the second largest, according to the Employment Security Department (ESD). (ESD emailed this information out this morning but the news release […]

May report on state tax collections: another blowout

The monthly report on general fund revenue collections from the state’s Economic and Revenue Forecast Council (ERFC) was issued last Friday. This report includes payments from monthly, quarterly and annual filers. In the case of monthly filers, the report covers payments received between April 11 and May 10 for the sales tax, the use tax, […]

Update on personal income, consumer spending and saving rates following the COVID-19 recession

Here are updates of four charts I have posted monthly regarding national income and consumer spending during the COVID-19 recession, including new numbers for March and revisions to numbers for prior months. Personal Income in March was 0.5% greater than in February and 11.6% less than the peak reached in March 2021, which was boosted […]

Credit rating agencies accept the Washington rescue plan transition account as part of the state’s reserves

Earlier this week, the state treasurer announced that the credit rating agencies have affirmed Washington’s strong (Aaa/AA+/AA+) credit ratings. All three praised Washington’s budget reserves and fiscal management practices. In our policy brief on the enacted 2022 supplemental budget, we noted that the Legislature substantially increased reserves. However, most of those savings are held in […]

Seattle’s revenues are expected to continue to increase

On April 20, the Seattle City Budget Office (CBO) presented its revenue forecast to the Seattle City Council’s Finance and Housing Committee. This was a complement to the forecast presented by the new Office of Economic and Revenue Forecasts (OERF) on April 8. The OERF is responsible for forecasting most of the city’s revenue streams, […]

April report on state tax collections

The monthly report on general fund revenue collections from the state’s Economic and Revenue Forecast Council (ERFC) was issued this morning. 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 Revenue Act receipts), this report covers payments received […]

Seattle revenue forecast is up, led by the payroll expense tax

Seattle’s new Office of Economic and Revenue Forecasts presented its April 2022 revenue forecast to the city’s Economic and Revenue Forecast Council on Friday. The Council adopted the baseline forecast, under which selected revenues for 2022 are estimated to be $89.8 million (8.4%) higher than expected in the Nov. 2021 forecast for 2022. Created last […]

Update on personal income, consumer spending and saving rates during the COVID-19 recession

Here are updates of three charts I have posted monthly regarding national income and consumer spending during the COVID-19 recession, including new numbers for February and revisions to numbers for prior months. I also include a new chart on Medicaid spending, which has grown significantly over the last two years. Personal Income in February was […]