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Updated estimates of CCA compliance costs

On Wednesday the department of ecology reported the results of its first regular auction of Cap-and-Invest Program allowances for 2024, which was held on March 6 (link). The settlement price for current (2024) vintage allowances was just $25.76. This is down significantly from the prices paid at last year’s auctions, which averaged $55.12 per metric […]

Did Initiative 2117 reduce the bids that the state received in today’s cap-and-invest auction?

Between 10 AM and 1 PM today (March 6), the Department of Ecology held its first 2024 auction of greenhouse gas emission allowances. Results of this auction will be published next Wednesday (March 13). The futures market for allowances indicates that the settlement price for today’s auction will be quite a bit lower than the […]

A modest increase to the forecast of state revenues

At its quarterly meeting this morning, the state Economic and Revenue Forecast Council (ERFC) updated its forecasts of state revenues. These new forecasts increase the amount available to budget writers over the current and next bienniums combined by a total of $337 million. Budget reports from legislative fiscal committees typically roll up four accounts: the […]

The truly good news about Washington state in the new ITEP report

On January 9, the Institute on Taxation and Economic Policy (ITEP) released the 7th edition of its widely cited “Who Pays” study. Ostensibly, the good news in this report is that Washington state’s state and local tax system is no longer the most regressive in the U.S. and that the tax rate on the poorest […]

Bills controlling rent and taxing rental income would reduce housing supply

Bills are moving in the Legislature that would impose statewide residential rent control policies and levy the business and occupation (B&O) tax on rental income. As economists have shown, negative impacts would be felt by both renters and landlords, and the statewide housing supply would suffer. Rent Control HB 2114 was approved by the House […]

Treasurer’s fiscal recommendations for the Legislature, and an improved credit outlook for Washington from S&P

Earlier this month, the Office of the State Treasurer (OST) released its annual Debt and Credit Analysis report, which provides data on state debt and recommendations for the Legislature. At the end of FY 2023, Washington had $21.403 billion in outstanding bonds. That was up just 0.6% from $21.269 billion in FY 2022. (Of total […]

January report on state tax collections: revenues for the most recent month were $99.1 million short of the forecasted amount

Yesterday (January 16) the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between December 11 and January 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 […]

Revenue forecast indicates the state will have $2.933 billion more for the operating budget than expected when the current budget was enacted

As Kriss wrote last week, the November forecast of revenues from funds subject to the outlook (NGFO) is up compared to the September forecast. Compared to the March revenue forecast (on which the enacted 2023–25 budget is based), the current forecast is up $2.933 billion (over the 2021–23, 2023–25, and 2025–27 biennia). That increase includes […]

Forecast of state revenues increased

At its quarterly this morning this morning, 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 $752 million. Budget reports from legislative fiscal committees typically roll up four accounts: the general fund–state, the […]

Washington ranks 35th overall in the Tax Foundation’s 2024 State Business Tax Climate Index, down from 29th last year

Washington’s overall ranking in the Tax Foundation’s State Business Tax Climate Index is 35th this year. (The 2024 index reflects state tax climates on July 1, 2023.) Our ranking has dropped quite a bit over the past few years—Washington ranked 29th in 2023 and 15th in 2022. The overall ranking is composed of five broad […]