How the state budgets prepare for the possibility that the climate commitment act will be repealed (as revenues in the latest carbon auction came in low)
Climate commitment act (CCA) funds (proceeds from the carbon emission allowance auctions) are appropriated in the operating, capital, and transportation budgets. The supplemental budgets passed by the Legislature this year appropriate CCA funds assuming the current revenue forecast, but they delay a large share of those appropriations so that they will be effective only if […]
March 19 , 2024 - Emily Makings
Studies and other interesting provisos in the supplemental transportation budget
Washington is facing considerable transportation revenue and cost challenges. As I noted in my post about the conference report for the supplemental transportation budget, the budget includes language directing the state Department of Transportation (WSDOT) to “seek consequential cost reduction opportunities” for the SR 520 West End project and requires a review of planned procurement […]
March 06 , 2024 - Emily Makings
Supplemental transportation budget conference report would increase appropriations by 8.1%, add language addressing cost challenges
The conference report for the supplemental transportation budget would increase appropriations from all budgeted funds by $1.099 billion (8.1%). Revised 2023–25 appropriations would be $14.714 billion, which is $24.3 million higher than the version passed by the Senate Feb. 27 and $252.0 million higher than the version passed by the House Feb. 24. (I wrote […]
March 01 , 2024 - Emily Makings
Could unexpectedly high pension investment returns help to fund transportation?
The state pension system’s investments earned $22 billion more than expected in fiscal year 2021. These gains will be factored in to the calculations of contribution rates over time. All else equal, contribution rates will decline. That means savings for the state and local employers in the system. At the same time, as we’ve written, […]
February 28 , 2024 - Emily Makings
Senate-passed transportation budget would appropriate $227.7 million more than the House-passed budget
The House and Senate have each passed supplemental transportation budgets. The House-passed budget would increase 2023–25 appropriations from all funds by $846.5 million, bringing revised 2023–25 appropriations to $14.462 billion. The Senate-passed supplemental would increase appropriations from all funds by $1.074 billion, bringing revised 2023–25 appropriations to $14.690 billion. The two proposals do not quite […]
February 16 , 2024 - Emily Makings
The state’s gross fuel tax revenue forecast appears to be on autopilot
The Feb. 2024 transportation revenue forecast estimates that transportation revenues (including, e.g., revenues from motor vehicle fuel taxes; licenses, permits, and fees; ferries; and tolls) will be $6.990 billion in 2023–25. That’s an increase of 0.01% compared to the Nov. 2023 forecast and a decrease of 0.79% compared to the March 2023 forecast (on which […]
January 17 , 2024 - Emily Makings
Ecology’s carbon emission allowance auction revenue forecast, and an accounting of how the money is being spent
The state’s current forecast of carbon emission allowance auction proceeds estimates that revenues will be $1.092 billion higher than expected when the 2023–25 biennial budget was enacted last year. Gov. Inslee’s supplemental budget proposals would appropriate $915.2 million of that. Revenues The climate commitment act (CCA) was enacted in 2021. The first carbon emission allowance […]
December 21 , 2023 - Emily Makings
Gov. Inslee’s transportation budget proposal would add funding for fish passage barrier removal, but transportation funding challenges loom
Gov. Inslee’s proposed supplemental transportation budget would increase 2023–25 appropriations from all funds by $1.580 billion (11.6%). Of that, $1.035 billion is considered maintenance level and $544.9 million is new policy. (Of the total change, $418.0 million is from federal funds.) Generally, the maintenance level is the cost of continuing current services, adjusted for inflation […]
December 01 , 2023 - Emily Makings
On the importance of independence in revenue forecasting, and some context on the transportation revenue forecast process
KING 5 reports that the state Department of Transportation’s gas tax forecaster is suing the state “for allegedly retaliating against him for refusing to keep quiet about his economic forecast on the state’s gas price.” Whatever the merits of the forecaster’s claims, this story illustrates how important independent revenue forecasts are. Indeed, the state deserves […]
November 30 , 2023 - Emily Makings
The November transportation revenue forecast doesn’t give transportation budget writers much to work with
The Transportation Revenue Forecast Council now estimates that transportation revenues will total $6.990 billion in 2023–25. That’s $56.4 million (0.8%) less than was expected for the biennium in the March transportation revenue forecast (on which the current transportation budget was based). As we discussed in our recent report on transportation revenues, the transportation revenue forecast […]