Budget

House Democrats propose $13 billion in new taxes

House Democrats released their tax proposals today. They include a financial intangibles (wealth) tax, business and occupation (B&O) tax surcharges, and an increase to the property tax growth limit. Altogether, House Democrats estimate that these proposals would increase revenues by $13.1 billion over four years. The estimated maintenance level shortfall is $8.7 billion. The table […]

To close an estimated $8.7 billion maintenance level shortfall, Senate Democrats propose $17 billion in net new taxes

Today Senate Democrats released their revenue proposals for the 2025–27 operating budget. (The budget itself will be released on Monday.) They would impose a wealth tax (dubbed the financial intangibles tax) and a payroll expense tax, increase the property tax growth limit, and repeal several tax exemptions. They would also reduce the state sales tax […]

With revenue forecast, the maintenance level shortfall is now about $8.7 billion over four years

The Legislature will use the March revenue forecast to write the 2025–27 operating budget. As I wrote yesterday, the Legislature has $1.85 billion less to work with over the outlook period than it did when it enacted the current budget. With the new forecast, I estimate that the maintenance level shortfall (the deficit between current […]

Policy reductions total $2.753 billion for 2025–27 in Senate Republican proposal; they would be offset by $1.491 billion in policy increases

The Senate Republican 2025–27 budget proposal would increase appropriations from funds subject to the outlook (NGFO) by $3.635 billion over enacted 2023–25 appropriations. That includes maintenance level increases (the cost of continuing current services, adjusted for inflation and caseloads) and net policy level decreases of $1.263 billion. The net new policy proposals are comprised of […]

Senate Republican budget proposal would increase spending by 5.1% and not raise taxes

Today Senate Republicans proposed an operating budget for 2025–27 and a 2025 supplemental to the 2023–25 operating budget. It is unusual for the minority party to propose a full budget; the last time was in 2022 (in the House). This proposal provides another set of options for closing the projected budget shortfall; as we wrote […]

New brief: Legislators Can Close the Budget Shortfall Without Raising Taxes

There are myriad ways to solve the budget problem without increasing taxes. Solving the problem will require cutting the 2025–27 maintenance level by about $4.7 billion (6.1%). (Since 2021, the state has adopted $13.874 billion in net new policy spending.) Gov. Ferguson and former Gov. Inslee have proposed billions of dollars in savings ideas over […]

Principles guiding Gov. Ferguson’s list of budget savings are sound, but the list includes items that aren’t true savings

Gov. Ferguson has released a list of budget savings options totaling $19.8 million in 2023–25 and $1.844 billion in 2025–27. According to the governor, the savings he presented today would total $3.926 billion over four years, and they are in addition to the savings former Gov. Inslee included in his Book 2 (preferred) budget proposal […]

Inslee’s Book 1 budget takes one spending reduction path; the Legislature could choose a different set of spending cuts to solve the budget problem

Each December, the governor is required to submit an operating budget to the Legislature that balances within existing revenues (the “Book 1” or “current law” budget). The governor may also propose a budget that increases revenues (the “Book 2” or “new law” budget). The budget proposed by former Gov. Inslee that included B&O tax increases […]

Caseload and utilization changes make up less than 40% of the maintenance level increase for 2025–27

The estimated budget shortfall for 2025–27 is the amount by which the estimated maintenance level exceeds existing resources. (Some estimates of the shortfall also throw in the cost of collective bargaining agreements with employees and other new policies.) The maintenance level for 2025–27, as estimated in former Gov. Inslee’s operating budget proposal, is $77.227 billion […]

Several tax increases under consideration in Washington would be the largest in over 30 years (at least)

State revenues for funds subject to the outlook (NGFO) are currently expected to increase by $5.040 billion from 2023–25 to 2025–27. The estimated budget problem for 2025–27 is the result of legislative spending choices. Nevertheless, several tax increases have been introduced in the Legislature and proposed by former Gov. Inslee and the Senate Democratic Caucus. […]