In response to a proposed $12 billion in new taxes, Governor Bob Ferguson acknowledged the Legislature’s hard work addressing a $16 billion state budget shortfall, while expressing concerns about the state’s fiscal future amid federal uncertainty.
Ferguson warned that ongoing and potential cuts to federal funding, Impacting Medicaid, education, disaster relief, and public health, pose serious risks to Washington’s economy. He cited the recent denial of FEMA emergency funds and possible reductions in public health support as examples of federal unpredictability.
He also emphasized the impact of tariffs on Washington’s trade-reliant economy, highlighting how increased costs on imported goods could burden families and farmers across the state.
While praising legislative efforts to reduce reliance on a wealth tax and make the tax system more equitable, Ferguson concluded that raising $12 billion in new taxes is “too risky” during a time of economic instability. He called for a balanced solution that combines measured revenue increases with spending reforms to maintain economic resilience.
