Governor-elect Bob Ferguson, who will be sworn into office on Jan. 15, has unveiled his operating budget priorities for the 2025-27 biennium. While he does not provide a in-depth budget proposal, this release offers an overview of his fiscal approach. Ferguson’s priorities come after outgoing Governor Jay Inslee presented his budget proposals in mid-December.
Washington state faces a projected budget deficit of $10-12 billion over the next four years, prompting both Ferguson and Inslee to seek solutions. However, they took different approaches, particularly regarding new revenue. Inslee’s proposal focuses on a mix of spending reductions, delayed investments, and new revenue sources, including a wealth tax and increases to the business and occupation tax.
In contrast, Governor-elect Ferguson’s priorities favor operational efficiency and targeted budget reductions. He proposes a 6% reduction for most state agencies and a 3% reduction for four-year higher education institutions. His approach notably avoids new taxes, emphasizing that new revenue should only be considered as a last resort. However, like Inslee, Ferguson proposes delaying investments where possible, such as for new programs that have yet to be implemented. These measures are expected to save $4.4 billion, in addition to the roughly $3 billion in one-time savings and delayed investments outlined in Inslee’s recommendations.
Ferguson’s proposal does avoid cuts to basic education, the community and technical colleges, and public safety agencies, including the Washington Department of Corrections, Washington State Patrol, and the Criminal Justice Training Program. Pass-through entitlements, like the Washington College Grant, would also remain unaffected by budget reductions.
Additionally, Ferguson has identified four priority areas for $800 million in new investments: public safety, housing, the ferry system, and affordability.
The Washington State Legislature will use Inslee and Ferguson’s proposals as a starting point for 2025-27 budget negotiations. After the legislature passes their final budgets, they will go to Ferguson for his consideration and signature.
The 2025 legislative session begins this upcoming Monday, Jan. 13. For updates on the UW’s advocacy efforts, visit the News & Updates section of this website.