Facing a $12 billion budget shortfall over the next four years, Governor-elect Bob Ferguson announced on Thursday a goal of $4 billion in budget cuts, along with $1.3 billion worth of new programs that he wants to see in the 2025-27 biennial budget.
The $12 billion predicted shortfall is likely the Legislature’s biggest problem in the upcoming 105-day session that begins Jan. 13.
“Washingtonians expect that we will increase revenue as a last resort,” Ferguson said. “I will not start contemplating additional revenue options until we have exhausted efforts to improve efficiency.”
At a Thursday press briefing, Republican legislative leaders contended that the shortfall can be fixed solely by budget cuts with no new taxes. Meanwhile, Democratic legislative leaders countered that some cuts can be made, but some new, yet-to-be-determined taxes are inevitable. Democrats control both the House and Senate.
Governors’ budget proposals are outlines of an individual governor’s suggestions and priorities. The Legislature has the power to set the budget, and the governor has the power to veto some or all of that document.
At the Thursday press briefing, Ferguson called for a cut across all state agencies, averaging about 6%, which would trim $4 billion from the shortfall. Not all agencies would individually have to cut 6%. Some might cut more and some might trim less, he said.
This $4 billion would be in addition to roughly $3 billion in one-time savings and deferred expenses identified in outgoing Gov. Jay Inslee’s proposed 2025-27 budget. Ferguson also proposes saving an additional $300 million by resolving disputes in a legal settlement with the tobacco industry. He also proposes eliminating another $75 million from the state’s regulatory and civil law enforcement agencies, including from the Attorney General’s Office. Ferguson is the outgoing Washington attorney general.
Meanwhile, Ferguson’s Thursday news release also listed $1.3 billion in new expenses.
That money includes $100 million in grants to local governments to increase the number of new well-trained law enforcement officers; $5 million to clear the backlog of approximately 15,000 cases at the Washington State Toxicology Laboratory; $600 million allocated to the state’s capital budget to build new homes, while reducing their costs to families; $20 million for ferry crew recruitment and retention; $480 million to guarantee school lunches for every Washington student and $100 million to expand child care eligibility for employees at small businesses.