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Budget gap looms as leaders weigh spending cuts and new taxes; incoming governor proposes 6% agency cut
Summary
Legislative budget chairs described a multi‑billion‑dollar maintenance‑level deficit; Democrats signaled willingness to consider progressive revenue options while Republicans emphasized spending cuts and efficiency. Governor‑elect Bob Ferguson proposed a 6% across‑the‑board agency reduction (excluding K‑12 and public safety) and targeted fund reallocations.
Budget leaders and caucus heads at the pre‑session briefing painted differing pictures of the state’s fiscal outlook and how to respond.
Senate Ways & Means Chair June Robinson said the legislature must "work through that exercise" of identifying realistic spending reductions and prioritize core services while considering what is palatable to members and the public.
Representative Tim Ormsby, speaking for House budget writers, emphasized three elements — how much, for what, and from whom — and said the state’s heavy reliance on regressive sales tax makes the fairness question central to any revenue discussion.
Republican leaders and budget writers argued the gap is driven primarily by spending growth and urged rigorous line‑by‑line scrubs. Representative Travis Couture and others pointed to program reviews and oversight (including tort payments and poorly performing programs) as sources of potential savings.
Senate Majority Leader Jamie Peterson and House Democrats said they expected to consider a range of revenue options, including targeted taxes on very high incomes and corporate categories, but said they would be mindful of legal and administrative limits. Peterson pointed to voter approval last November of several revenue‑linked initiatives as evidence of public support for some progressive revenue steps.
On the executive side, governor‑elect Bob Ferguson presented a preliminary budget approach he plans to press as governor: a 6% reduction across state agencies (excluding K‑12 education and public safety) intended to yield roughly $4 billion in savings, together with targeted reallocations. Ferguson said his transition team also recommended sweeping $35 million from an affirmative litigation fund in the attorney general’s office to cover priorities while preserving core functions: "We're sweeping $35,000,000 from a fund that I helped create... putting into making these investments," he said.
Lawmakers noted several decisive upcoming markers: the March revenue forecast will set formal boundaries, and committee timelines will shape when revenue proposals or cuts could be enacted. Leaders warned any choices will involve trade‑offs between protecting services and avoiding regressive tax increases.
What happens next: Legislative budget committees will continue line‑by‑line reviews, caucuses will develop packages that blend reductions and potential revenue measures, and the revenue forecast will refine options soon after it is released.
