WASHINGTON — Governor Bob Ferguson proposed a supplemental budget plan aimed at addressing the state’s $2.3 billion budget shortfall.
Ferguson emphasized that his budget is balanced and makes significant investments.
“My proposed budget is balanced,” Ferguson said. “It does not raise taxes. It eliminates tax breaks for corporations. It preserves access for reproductive healthcare. It maintains core services like K through 12 education. It makes important investments.”
Ferguson outlined that his plan addresses a $2.3 billion budget shortfall through five initiatives. The first initiative involves ending two tax exemptions for large corporations, which saves approximately $89 million annually. He also plans to utilize around $123 million in unspent funds across state government. Tough decisions were made to cut about $797 million from state agencies, Ferguson explained.
“300 million is a combination of temporarily changing how we allocate capital gains tax funds, do our request legislation on insurance premiums tax and shifting other non-tax resources,” Ferguson said.
Additionally, Ferguson intends to use approximately $1 billion from the Rainy Day fund.
“We are making important investments to make Washington more affordable,” Ferguson said.
However, not everyone agrees with the proposed priorities. Todd Myers, Vice President at the Washington Policy Center, criticized the budget, saying it draws from the Rainy Day fund due to what he sees as irresponsible spending.
“The rainy day fund is there for a reason,” Myers said. “If you need it, it’s good to use it. But that’s not why we’re using it. We’re not using it because it’s a rainy day. The rainy day is we have spent irresponsibly.” Myers said.
During the press conference, Ferguson said, “It’s raining.”
Myers also noted that while some budget items will benefit Washington, others will not.
“I think we need to do a top to bottom look at where we are spending money,” Myers said.
Further discussions about the budget are anticipated, with Washington GOP Chairman Jim Walsh emphasizing the need for negotiation.
“The real problem we have with our operating budgets in Olympia for the state is we don’t negotiate them very well in the first place,” Walsh said. “The truth is, we don’t negotiate them at all.”
Walsh also said that Washington should focus on more effective allocation of existing funds rather than increasing spending.
“What we need to focus on is allocating those existing dollars more effectively,” Walsh said.
