Department of Revenue

  Average Annual FTEs Near General Fund State Other Funds Total Funds
  (Dollars in Thousands)
Current Budget 1,402.7 587,839 51,476 639,315
2023-25 Maintenance Level 1,471.8 861,460 48,627 910,087
Difference from 2023-25 Original 69.1 273,621 (2,849) 270,772
% Change from 2023-25 Original 4.9% 46.5% (5.5%) 42.4%

2023 Policy Other Changes

Inflation Adjustments 0.30 12 0 12
WFTC Implementation Support 8.8 12,601 0 12,601
PPT Admin Costs 0.20 48 0 48
Property Tax Appeal Admin Costs 0.10 19 0 19
Unclaimed Property Funding 16.0 0 2,644 2,644
2023 Policy Other Changes Total 25.4 12,680 2,644 15,324

2023 Policy Comp Changes

State Employee Benefits 0.0 125 14 139
Rep Employee Health Benefits 0.0 419 45 464
WPEA General Government 0.0 11,819 1,219 13,038
Non-Rep Recruitment/Retention 0.0 308 35 343
Non-Rep General Wage Increase 0.0 3,959 390 4,349
PERS & TRS Plan 1 Benefit Increase 0.0 232 24 256
Vaccine Booster Incentive 0.0 266 30 296
2023 Policy Comp Changes Total 0.0 17,128 1,757 18,885

2023 Policy Central Services Changes

Shared Tenant M365 to CSM 0.0 (877) (104) (981)
State Data Center 0.0 (296) (35) (331)
Archives/Records Management 0.0 9 1 10
Audit Services 0.0 31 4 35
Legal Services 0.0 709 84 793
CTS Central Services 0.0 1,345 159 1,504
DES Central Services 0.0 151 18 169
OFM Central Services 0.0 1,743 207 1,950
GOV Central Services 0.0 401 48 449
2023 Policy Central Services Changes Total 0.0 3,216 382 3,598
Total Policy Changes 25.4 33,024 4,783 37,807
2023-25 Policy Level 1,497.2 894,484 53,410 947,894
Difference from 2021-23 94.5 306,645 1,934 308,579
% Change from 2023-25 Original 6.7% 52.2% 3.8% 48.3%

Policy Changes

Inflation Adjustments

Funds are provided for the costs to administer changes in law to clarify inflation adjustments and associated language relating to the port district index, refinery fuel use tax, and hazardous substance tax. (General Fund - State)

WFTC Implementation Support

Funding is provided for the Working Family Tax Credit (WFTC) program to administer remittances, implement fraud and identity theft mitigation measures, and increase application and language accessibility to serve a diverse population of applicants. (General Fund - State)

PPT Admin Costs

The department will use these funds to administer petroleum products tax (PPT) adjustments, which include reverting to the prior tax rate and increasing the balancing thresholds in the Pollution Liability Insurance Program Trust Account. (General Fund - State)

Property Tax Appeal Admin Costs

The department will administer property tax-related technical corrections that include having the option to convert informal Board of Tax Appeals hearings to formal hearings under certain circumstances and making other clarifications and simplifications to the property tax code. (General Fund - State)

Unclaimed Property Funding

Since the introduction of marketing efforts and program efficiencies, the agency has seen a significant increase in claims filed by the public to recover their lost or misplaced property. This additional funding for 16.0 FTE staff will help address current claim volumes as well as the projected increase. (Unclaimed Personal Property Account - Non-Appropriated)

State Employee Benefits

Health insurance funding is provided for state employees who are not represented by a union, who are covered by a bargaining agreement that is not subject to financial feasibility determination, or who are not part of the coalition of unions for health benefits. The insurance funding rate is $1,160 per employee per month for fiscal year 2024 and $1,233 per employee per month for fiscal year 2025. (General Fund - State, Business License Account - State, Timber Tax Distribution Account - State, other funds)

Rep Employee Health Benefits

This provides health insurance funding as part of the master agreements for employees who bargain for health benefits as part of a coalition of unions. The insurance funding rate is $1,160 per employee per month for fiscal year 2024 and $1,233 per employee per month for fiscal year 2025. (General Fund - State, Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)

WPEA General Government

Funding is provided for a general wage increase of 4%, effective July 1, 2023; a general wage increase of 3%, effective July 1, 2024; targeted job classification base range increases; recognition and retention lump sum payments for employees employed on or before July 1, 2022 and continuously employed through July 1, 2023; shift premium increase for eligible shifts from $1 to $2.50 per eligible hour; and a COVID-19 booster incentive of $1,000. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)

Non-Rep Recruitment/Retention

Funding is provided for recognition and retention lump sum payments for employees employed on or before July 1, 2022 and continuously employed through July 1, 2023. (Unclaimed Personal Property Account - Non-Appropriated, Business License Account - State, General Fund - State, other funds)

Non-Rep General Wage Increase

Funding is provided for wage increases for state employees who are not represented by a union or who are covered by a bargaining agreement that is not subject to financial feasibility determination. It is sufficient for a general wage increase of 4 percent, effective July 1, 2023 and a general wage increase of 3 percent, effective July 1, 2024. This item includes both general government and higher education workers. (Unclaimed Personal Property Account - Non-Appropriated, Business License Account - State, General Fund - State, other funds)

PERS & TRS Plan 1 Benefit Increase

For eligible Public Employees' and Teachers' Retirement Systems Plan 1 members, this item provides an increase of 3%, up to a maximum of $110 per month. (Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, other funds)

Vaccine Booster Incentive

Funding is provided for a $1,000 lump sum COVID-19 booster incentive for non-represented employees. This funding does not cover institutions of higher education. (General Fund - State, Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)

Shared Tenant M365 to CSM

Agency budgets are reduced by the base budget amounts provided to Consolidated Technology Services for Microsoft 365 licenses so the cost can be added to the central service model allocation in CTS central services (Step 92J). (Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, Timber Tax Distribution Account - State, other funds)

State Data Center

Adjustments are made for each agency's share of costs related to the State Data Center. (Unclaimed Personal Property Account - Non-Appropriated, Timber Tax Distribution Account - State, Business License Account - State, other funds)

Archives/Records Management

Adjustments are made for each agency's anticipated share of charges for archives and records management services provided by the Secretary of State's Office. (General Fund - State, Business License Account - State)

Audit Services

Adjustments are made for each agency's anticipated cost of audits performed by the State Auditor's Office. (Business License Account - State, General Fund - State, Timber Tax Distribution Account - State, other funds)

Legal Services

Adjustments are made for each agency's anticipated cost of legal services provided by the Attorney General's Office. Because legal services expenditures are based on consumption, funding provided in the central service model is not all inclusive. The methodology to estimate consumption has been updated from a three-year average to a two-year average and allows for analysis to incorporate unique agency circumstances. (General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, Business License Account - State, other funds)

CTS Central Services

Adjustments are made to reflect each agency's anticipated share of charges from Consolidated Technology Services (CTS) for the Office of the Chief Information Officer, Office of Cybersecurity, state network, enterprise services, small agency IT services, security gateways, and geospatial imaging services. This amount now includes the total amount for agencies that use the Microsoft 365 shared tenant. See Chapter 11 of the 2023-25 OFM Budget Instructions for allocation methodologies. (General Fund - State, Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)

DES Central Services

Adjustments are made to reflect each agency's anticipated share of charges from the Department of Enterprise Services (DES) for campus rent, parking, contracts, and security; capital project surcharges; financing cost recovery; public and historic facilities; real estate services; risk management services; personnel service rates; the Perry Street and Capitol Campus child care centers; small agency services; and the department's enterprise applications. See Chapter 11 of the 2023-25 OFM Budget Instructions for allocation methodologies. (Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, Business License Account - State, other funds)

OFM Central Services

Adjustments are made to reflect each agency's anticipated share of charges for existing statewide applications, the One Washington program, and other central services provided by the Office of Financial Management. See Chapter 11 of the 2023-25 OFM Budget Instructions for allocation methodologies. (Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, Business License Account - State, other funds)

GOV Central Services

A new central service is created to reflect each agency's anticipated share of charges from the Office of the Governor for statewide policy staff and the Office of Equity. (General Fund - State, Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)