OLYMPIA, Wash. – Governor Ferguson delivered his State of the State address, focusing on a $2.3 billion budget shortfall.
To address the budget gap, Ferguson proposed cuts to administrative and travel funds, grant funding and subsidies for nursing homes, preschools and public health.
There will also be a 1.5% cut to state universities and a 3% cut to Washington State University and the University of Washington.
The state plans to use half of its rainy day fund to cover the remaining deficit.
Ferguson outlined plans to allocate one billion dollars for repairing aging bridges and another billion for building and repairing ferries. Additionally, $164 million is earmarked for paving roads next summer with another $756 million over the next decade. Ferguson also proposed $244 million for affordable housing.
The governor reiterated his support for a millionaires tax, stating, “Washington families whose income is in the bottom 20% pay a whopping 13.8% of their total income in taxes, while those whose income is in the top 1% pay only 4.1% of their income. That’s not fair. That’s not right.”
This tax would target individuals earning a million dollars a year, taxing them at 9.9%. These earners make up less than half a percentage point of Washingtonians, and the tax is expected to generate $3 billion annually starting in 2029. The revenue would support low-income families, small businesses and K-12 education.
Republicans have expressed concerns that this could lead to an income tax for all residents.
Senator Keith Wagoner, the Republican Whip, responded to Ferguson’s address and said, “If we were getting the results our citizens deserve, maybe the tax and spend policies could be justified, but we simply are not. And you all know that. In nearly every metric that matters, we’re failing our citizens.”
Wagoner highlighted Washington’s high cost of living, housing and rent affordability issues and gas prices. He also pointed to forecasts predicting a billion-dollar drop in state revenue over the next four years.
The legislative session is set to conclude on March 12, with more developments expected in Olympia.
