OLYMPIA, Wash. – Governor Bob Ferguson addressed the latest revenue forecast from the Washington State Economic and Revenue Forecast Council, which projects a $720 million shortfall over the next four years.
Ferguson emphasized in a press release the impact of federal actions.
“While this revenue forecast is disappointing, it is not surprising. We knew that things were unlikely to improve in the near term, especially in light of continued chaos from the Trump Administration — including tariffs, which have an outsized negative impact on a trade-dependent state like Washington,” Ferguson said.
Ferguson noted the potential impact of federal cuts: “It is particularly discouraging given the current efforts by the Trump Administration to make draconian cuts to Medicaid, education and food benefits. If those move forward, it will mean billions of dollars in cuts impacting our most vulnerable residents.”
Ferguson stated that his team is analyzing the forecast and does not currently plan to call a special session, but that he is monitoring federal developments closely.
As budget preparations begin, Ferguson said he’s instructed agencies to seek additional savings, acknowledging the difficulty of this task.
“This will not be easy. We already made many difficult decisions last session in order to bridge our $16 billion shortfall,” he said.
The governor plans to review the next revenue forecast in September.
