Incoming Gov. Ferguson describes taxes as a ‘last resort’ for WA budget deficit

Gov.-elect Bob Ferguson emphasizes reduced spending over new taxes to address Washington's $4 billion budget shortfall. — Incoming Governor Bob Ferguson. Photo courtesy The Center Square Washington

The call for reduced spending is in response to a multi-billion shortfall for the upcoming 2025-2027 biennium

TJ Martin
The Center Square Washington

Gov.-elect Bob Ferguson has released his office’s budget priorities, which call for $4 billion in reduced spending by Washington state agencies while describing new taxes as a “last resort.”

The call for reduced spending is in response to a multi-billion shortfall for the upcoming 2025-2027 biennium, though the deficit for the next four years could be as high as $16 billion, according to Gov. Jay Inslee. As previously reported by The Center Square, the budget deficit is driven by an enormous increase in state spending since 2014, as state revenue is currently at record-highs due in part to the Legislature enacting dozens of new taxes over the past decade.

Ferguson’s rhetoric is at odds to an extent with the philosophy of Inslee’s budget proposal; though Inslee called for reduced spending and freezes to new spending, his budget would also add $4 billion in new taxes, primarily through a controversial wealth tax on millionaires that has drawn criticism over its potential impact on the state’s economy. Inslee defended his budget on the basis that budget cuts during the Great Recession caused long-term problems for various state services.

Regarding Inslee’s budget, Ferguson wrote that “I can say that I agree with some of those decisions, including the housing investments that are outlined in this report. Others require additional scrutiny. While these investments have merit, we cannot afford all of them in this budget climate.”

Ferguson also wrote that “the reductions will be challenging, but ultimately, I believe they will improve our capacity to serve the people. We must review every program in state government through the following lens: Is this program more important than guaranteeing universal school lunches to every Washington student? Is it more important than childcare access for small business employees?”

Although some Democrat lawmakers have perceived the defeat of several anti-tax initiatives in November as a “mandate” for new revenue, Ferguson wrote that “Washingtonians expect that we will increase revenue as a last resort. I will not contemplate additional revenue options until we have exhausted efforts to improve efficiency.”

Ferguson’s budget proposal drew cautious praise from Washington GOP Chairman Jim Walsh, R-Aberdeen, who wrote on X that “as predicted. The incoming governor is (rightly) putting daylight between himself and the outgoing guy. Let’s hope this holds up.”

Ferguson will be sworn in as Washington’s next governor on Jan. 15.

This report was first published by The Center Square Washington.