Washington Faces $15 Billion Budget Shortfall

As the state faces an estimated $15 billion budget shortfall over the next four years, Governor Bob Ferguson pitches $4 billion in cuts.

12th District Rep. Mike Steele (R-Chelan) says that's a good step in the right direction, but it's not quite enough.

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"Washington State does not have a revenues problem, we have a spending problem," Rep. Steele said. "We're looking at general fund budget with revenues in excess of $114 billion, and it's incredible to see that kind of number and to think that we can't make it all work when our neighboring states around us, Idaho for example, has an entire budget of $8 billion."

Gov. Ferguson's proposal includes maintaining all K-12 investments, as well as adopting all of former Governor Jay Inslee's proposed investments. It also includes maintaining public safety investments from the current biennium, adopting all investments in addressing homelessness, maintaining the Collective Bargaining Agreements with public servants, and maintaining cash benefit assistance and Medicaid.

Rep. Steele says maintaining already promised programs, like Medicaid, is important, but the state should limit adding new programs amidst a shortfall.

"We cannot be in the business of creating new ones right now," Rep. Steele said. "We're still arguing with our friends in the transportation budget and the general funds budget in terms of how we allocate funds."

Fellow 12th District Rep. Brian Burnett (R-Wenatchee) warns some legislators will want to increase taxes to fight the state out of the shortfall.

"It will make businesses shut down, move out of state," Rep. Burnett said. "It's not a good outcome."

Gov. Ferguson's plan looks at leaning out state agencies, examining proposed or adopted spending not yet implemented, reconsidering recent spending, and examining the way the state had been spending due to federal funds from the COVID-19 pandemic.

Combined with former Gov. Inslee's proposals, the shortfall would reduce to $8 billion under this plan.