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In recent editions of the Government Action newsletter, we examined the spending and financing plans proposed by Democratic leaders in both the House and Senate. Now, we turn our attention to the executive branch and Governor Bob Ferguson’s clear message on these state budget proposals.
Gov. Ferguson has distanced himself from key parts of the funding plans supported by the majority in the legislature. He made it clear that neither budget is acceptable in its current form.
His concerns are straightforward.
- Both budgets call for too many tax increases.
- They rely on a new wealth tax—a measure that is untested, hard to implement, and likely to face immediate legal challenges.
Adding to the fiscal challenge is the state’s updated revenue forecast from February, which adds another billion dollars to the budget shortfall. Over the next four years, Washington must cover a $16 billion gap.
- In response, Gov. Ferguson supports deep budget cuts at every level of public administration.
Lawmakers now have a three-week deadline to reconcile differences between the two legislative chambers and between the legislature and the governor’s office. Gov. Ferguson has warned that he might veto any budget bill that does not address his concerns. Such a veto could force a special session that might extend legislative negotiations into the spring or summer.
The governor is urging a more cautious, fiscally responsible approach.
With 28% of the state’s budget coming from federal funding and tens of billions tied up in an unstable earmarking process, he asks lawmakers to prepare for the worst.
Specifically, he wants to see:
- Protection of the budget stabilization account (the rainy day fund) in full.
- Budget figures based on realistic revenue forecasts instead of an optimistic 4.5% growth.
- A focus on limiting new investments to avoid overcommitment.
- The inclusion of significant efficiencies and cost savings.
- Reliance only on secure revenue sources that are unlikely to be repealed or face legal challenges.
A chief priority for Gov. Ferguson is to protect Washington’s triple-A bond rating. This rating is crucial because it allows the state to borrow at favorable rates for public works, education, transportation, and other infrastructure projects. However, this privileged status could be at risk if the current course is not corrected.
As the legislative session enters its final weeks, the pressure to come to a workable budget grows. For ongoing updates, subscribe to Government Action or join us on April 22 at 8 a.m. in the Valley Chamber offices on Sprague and University.
