State and Local taxes drop to 50-year low

According to the Washington State Department of Revenue, state and local taxes – as a percent of personal income – dropped to their lowest level in 50 years during Fiscal Year 2009. The tax burden of $93.24 ($56.70 in state taxes and $36.54 in local taxes) is the all-time lowest level for this state in the past fifty years (see Table 6). The ranking of 35th has only been lower twice – in 1981 (39th) and 2005 (37th).

While many states experienced declines in taxes relative to personal income during that period, Washington's decline changed its national ranking to 35th highest among the states in 2009 from 30th highest in 2008. The national average for Fiscal Year 2009 was $102.10, down from $111.99 the prior year. The $93.24 figure is the lowest since the Department of Revenue began tracking this statistic in 1960. For the past 10 years, the figure has ranged from $105 to $110. Even during the past three years of economic recession, Washington has remained high in average personal income, ranking 11th from the highest in 2008 (the year used for the Fiscal Year 2009 comparisons in this report), then increasing to 10th in 2009 and finally dropping slightly to 13th for 2010.

United States business confidence improves

Business confidence – also known as The Purchasing Managers Index (PMI) – improved in the U.S. to 52.7% in November, 2011 from 50.8% in October of 2011, according to the Institute of Supply Management (ISM). The PMI is a composite index of five indicators (production level, new orders, supplier deliveries, inventories, employment level), extracted through surveys to more than 400 purchasing managers from around the country, chosen for their geographic and industry diversification benefits. The business confidence survey measures the level of optimism that company managers have about the performance of the economy and how they feel about their organizations’ prospects.  (Source: Trading Economics.com; Institute for Supply Management)

In a related note, attached is the Consumer Price Index (CPI) which represents the total cost of a combination of goods and services (market basket) during the established Base Period of 1982 through 1984 as it relates to costs and wages as of October 2011. (Source: Prepared by the U.S. Department of Labor)

Spokane Public Schools Replacement Levy is on the ballot

The Spokane Public Schools Board of Directors recently put a replacement educational program levy on the Feb. 14, 2012 ballot. The levy is a way for the Spokane community to provide almost one-quarter of the dollars necessary to offer a well-rounded education to Spokane Public Schools’ students. The levy replaces the 2009 levy approved by voters, which expires in 2012.

The levy supports classes, programs and staff: teachers for providing reasonable class sizes; counselors, career specialists, nurses and librarians; gifted and talented program; high school and middle school electives such as Advanced Placement classes; elementary band and strings program; elementary art classes; online learning; drop-out prevention programs; special education and English language learner programs; student transportation; sports, clubs and intramurals; security officers; and support staff such as custodial, maintenance, administrative and clerical.

The amount of the levy is $71.5 million for 2013, $72.5 million for 2014 and $73.5 million for 2015. It is estimated to cost taxpayers between $3.89 and $4.49 per thousand dollars of assessed valuation, depending on whether the state legislature decides to cut or maintain levy equalization assistance – a subsidy to property "poor" districts like most eastern Washington school districts.  Find more information about the replacement levy at www.spokaneschools.org/levy2012.

Survey Report (INCS) now available!

Associated Industries offers the latest information and guidance you need to address one of the most crucial decisions business leaders face—how to compensate key personnel. Associated Industries offers a condensed look at regional workforce adjustments and compensation trends (the AI INCS Link.) For information on the full report, click here.