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Gov. Bob Ferguson unveiled his plan for nearly $4 billion in cuts as lawmakers in the Washington State Legislature grapple with a projected four-year operating budget shortfall.
Just after taking office last month, Ferguson asked most agencies to find 6% in spending cuts.
At a Thursday press conference, Ferguson said he has been told the projected shortfallover the next four years is about $15 billion dollars, much larger than the $6.7 billion figure Republican budget leaders say they have been given by nonpartisan staff to the Legislature.
“These are not, of course, final decisions,” the governor said. “These are proposals that we are making to the Legislature for their consideration.”
Ferguson detailed potential savings totaling $3.93 billion. The full list of Ferguson’s current proposals is available here for the supplemental budget, and here for the 2025-27 biennium.
“These savings are in addition to Gov. Inslee’s proposal which reduced the shortfall by an additional $3 billion,” the governor continued. “Together, these proposals reduce the projected $15 billion budget shortfall by $7 billion.”
Ferguson said the savings were achieved without cutting anything from public safety or K-12 education funding.
Earlier this week, Republicans suggested that the $4 billion in raises being given to state employees should be reexamined given the budget situation.
Ferguson said those raises would be honored, but he proposed monthly furlough days for state employees to cut costs.
The governor said his office carefully examined programs that have been adopted in recent years but have not yet been implemented.
“If the Legislature knew two years ago that we’d be facing a $15 billion shortfall, I’m confident some of those investments would not have happened," Ferguson said.
Nonrecurring funding that came in during the COVID-19 pandemic has dried up, the governor pointed out.
“These one-time dollars are essentially gone, and in some cases, the state has backfilled those one-time dollars with ongoing general fund resources,” Ferguson explained. “I took a very close look at whether the state could take on those obligations for those federal dollars that were meant as a one-time investment during COVID.”
According to the governor, several state agencies identified savings.
“The Forest Practices Board has $1.1 million for rulemaking,” Ferguson said. “It actually doesn’t need to do rulemaking at the moment, so we’re moving that back to the general fund.”
Other agencies identified savings as well.
“The Department of Ecology and State Parks are saving taxpayers $2.4 million over four years by consolidating office space and sharing office space,” Ferguson said.
Asked by a reporter if he supports potential tax increase proposals being pushed by majority party Democrats, Ferguson, a Democrat, said it is too soon to say. The process of finding further savings is ongoing, he said, even as lawmakers on both sides of the aisle in both chambers craft budgets.
Democrats have promoted a wealth tax, higher estate taxes, increases in the B&O tax, and a tax on guns and ammo, among several other revenue-generating proposals.
Ferguson did say he is not likely to support a proposal from Democrats to tap the state’s reserve funds to help reduce the shortfall.
“Especially in light of what may be coming from the federal government, to preserve our reserves is going to be important,” Ferguson said, noting that protecting reserves is also important for the state’s credit rating. “We’ll be having those conversations with the Legislature, but I think it’s important to protect that.”
Sen. Chris Gildon, R-Puyallup, budget leader for Senate Republicans, found some common ground with Ferguson.
“The governor has vowed to come up with spending reductions, and I appreciate that he has delivered these savings ideas less than halfway into our session,” he said in a news release. “This allows budget writers to consider them while there is still time. Notably, this is a full month sooner than the former governor managed when he first took office.”
Sen. June Robinson, D-Everett, chair of the Senate Ways & Means Committee, said that Ferguson’s budget savings plan isn’t enough to rule out higher taxes in dealing with the budget shortfall
“We appreciate the work the governor and state agencies have done to reach this point,” she said in a news release. “Like them, we recognize that budget reductions are necessary and will carefully consider all the options that have been identified. But we have also reached the conclusion that reductions alone will not allow us to sustain the services Washingtonians rely on. People expect a government that remains functional and responsive, especially in times of federal instability.”
Lawmakers must “consider progressive revenue options that ensure fairness and long-term stability.”