Governor proposes nearly $3.93 billion in savings, preserves K–12 and Medicaid; furloughs proposed for state workers

The governor told reporters the administration is recommending approximately $4 billion in savings — "the precise number is $3,926,404,000" — to help address a projected $15 billion budget shortfall and said the proposals will be forwarded to the legislature for consideration.

The governor framed the package as preliminary and emphasized that the administration is not presenting a full budget. He said the recommendations are intended to preserve core services: "we achieved these savings, and this is important, while maintaining all k through 12 education investments" and "if you are a Washingtonian on Medicaid, you will not lose your state coverage." The governor added that combined with former Gov. Inslee's $3 billion in prior reductions, the proposals cover about $7 billion of the projected shortfall.

The administration outlined several principles guiding the choices, including pursuing "good government" efficiencies, reexamining very recent spending increases, pausing or phasing in new program expansions, and not indefinitely backfilling one‑time federal COVID dollars. Examples the governor cited include returning a $1,100,000 Forest Practices Board rulemaking appropriation to the General Fund, closing a 24‑bed Dogwood unit at the Special Commitment Center to consolidate beds and save nearly $4,000,000, and ending a leased warehouse that the governor said would save about $2,200,000 in the next biennium and $4,400,000 over four years.

On program timing, the governor said some expansions would be phased in rather than implemented all at once. He gave childcare as an example: phasing a proposed rate increase over four years would yield about $144,000,000 in savings while still delivering the expansion to providers over time.

The governor proposed personnel measures to help balance the books: "I am proposing more than $300,000,000 in savings by requiring most State employees to take a furlough day 1 day a month for the next 2 years," with explicit exemptions for frontline public‑safety employees such as troopers, corrections staff and state hospital workers. He said negotiated compensation increases would be preserved and characterized furloughs as a temporary measure to preserve long‑term funding commitments.

The governor acknowledged remaining work and said the administration will continue reviewing agency proposals and meet with legislative leaders. He pointed to an upcoming revenue forecast as an important milestone that may change the size of the shortfall and said his office will submit additional suggestions (about $1 billion) to the legislature that the administration is not recommending at this time.

In a multi‑topic question‑and‑answer session, reporters pressed on whether the administration is now prepared to consider tax increases; the governor said "it's too soon to say" and that the revenue forecast and ongoing negotiations will inform decisions. He also declined to take an immediate position on plans to use rainy day reserves, saying discussions with the legislature and attention to the state's credit rating are warranted.

On workforce impacts beyond furloughs, the governor said specific numbers would be provided by staff and that decisions about layoffs or attrition remain part of ongoing analysis. He said some higher‑education requests included a roughly 3% reduction, with community colleges spared cuts. When asked about food bank funding, the governor said the state's general fund support even with recommended reductions remains significantly higher than several years ago and emphasized the role of community and faith‑based partners.

The governor closed by thanking staff and reporters, saying the recommendations are for legislative consideration and that the administration will continue to refine proposals as more information — notably the revenue forecast — becomes available.