Governor Bob Ferguson has announced his supplemental operating budget proposal which he claims will not raise taxes, eliminates tax breaks for corporations, preserves access for reproductive health care and maintains core services, like K-12 education, while making important investments in affordability, including maintaining the Working Families Tax Credit.
According to the Governor’s Office, after plugging a $16 billion budget hole last legislative session, Washington has faced more challenges, including falling revenue, rising costs, and cuts from the Trump Administration. Due to caseload increases and other costs, the state is facing another $1.6 billion dollar shortfall in this supplemental budget.
To address the shortfall, Ferguson’s proposal includes: Ending two tax exemptions for large corporations to save $89 million a year; Using $123 million in unspent money from funds across state government; Implementing $797 million in reductions to state agencies — including administrative reductions — reducing recent expansions and increases to programs, and delayed implementation of programs; Temporarily changing how the state allocates Capital Gains Tax funds, Department of Revenue request legislation on insurance premiums taxes and shifting other non-tax resources for a savings of $300 million; And utilizing $1 billion from the Rainy Day Fund.
