No new taxes, for now: WA Gov. Ferguson details plans for budget cuts

Washington Gov. Bob Ferguson on Thursday announced plans to help close the state’s massive budget gap – and he said new taxes aren’t the solution. Instead, he’s focusing on slashing spending, at least for now.

The governor’s office estimates the budget gap is around $15 billion over the next four years and has spent weeks working with agency leaders to come up with ways to cut costs.

“We’re not going to tax our way out of this thing – not going to happen,” Ferguson said. “$15 billion is a lot of money.”

Ferguson, a Democrat, appears to be breaking with his party on taxes. Democrats in the Legislature are currently weighing several pieces of tax legislation and have openly talked about their interest in taxing more of the state’s wealthiest residents.

In a news conference Thursday, Ferguson did not completely close the door on finding new revenue through taxes.

“It’s too soon to say right now,” he said.

He added that he and his team would continue to focus on slimming the budget in the weeks ahead.

Ferguson said the total savings identified so far, when combined with cuts laid out in former Gov. Jay Inslee’s December budget proposal, would be around $7 billion – half of the projected deficit.

Ferguson laid out his team’s ideas that would lead to new savings of roughly $4 billion – from state employee furloughs and scaling back funding for various programs. Some of those ideas would be made through direction to state agencies, while others would require action from the Legislature.

Part of Ferguson’s savings plan includes delaying or cutting back new spending lawmakers put in place in recent years. That includes slowing funding increases in child care, as well as reduced funding for a couple of food security and public health programs that had received millions of dollars in increases during the pandemic.

While Ferguson said the state should still honor newly bargained salary contracts for state employees, he also recommended that most state employees take one furlough day per month for two years to save the state another $300 million. State patrol, prison, and hospital staff would be exempt.

“Furloughs, of course, do reduce compensation without reducing salaries, so that employees will return to the compensation levels they have earned and bargained once we get through this budget crisis,” Ferguson said.

Ferguson said Thursday that he also wants to see agencies cut their out-of-state travel by half, and spend 10% less on equipment, goods, and services. Some state office and warehouse spaces would be consolidated or eliminated under Ferguson’s savings plan.

The ranking Republican on the Senate budget committee, Sen. Chris Gildon (R-Puyallup) said in a statement he “welcomes” the savings plans from the governor, but is concerned by the furlough proposal in particular.

“I doubt the people of our state will see this as a fair deal,” Gildon wrote.

But Democrats in the Legislature will be the ones in charge of writing the budget – and while they have acknowledged some cuts are needed, they’ve also repeatedly talked about the risks of cuts as they weigh various tax measures.

In written statements following Ferguson’s announcement Thursday, Democratic leaders in the House and Senate said they appreciate the governor’s recommendations. But Senate Democrats’ budget chair June Robinson (D-Everett) wrote that lawmakers must consider “progressive revenue options” as they work out a final spending deal in the coming months.