At a yesterday, Gov. Bob Ferguson responded to the recently released operating budget proposals from both the House and Senate. He stated from the outset that neither proposal is one he could sign, citing an overreliance on new taxes鈥攑articularly a proposed wealth tax.
While the proposals include several new revenue streams aimed to addressing the state鈥檚 multibillion-dollar budget shortfall, Ferguson singled out the wealth tax as problematic. He described it as 鈥渘ovel, untested, difficult to implement, and most importantly for purposes of adopting a sustainable budget, will face immediate challenges in court.鈥� His remarks effectively remove a broad wealth tax from consideration for inclusion in the state鈥檚 final 2025-27 operating budget.
Washington鈥檚 budget process begins with the House and Senate releasing separate proposals. Lawmakers then work together to reconcile the differences and craft a compromise budget. Once approved in both chambers, the compromise budget is sent to the Governor, who can sign it, veto it entirely, or issue partial vetoes. During his press conference, Ferguson emphasized that the legislature will need to pivot in order to secure his signature.
Despite his concerns, Ferguson expressed appreciation for elements of both budgets, specifically praising the inclusion of additional savings and reductions. He acknowledged the hard work of the House and Senate budget writers and noted that productive budget conversations are ongoing.
The legislature will continue working toward a final compromise budget, which must be approved by both the House and Senate by the end of the legislative session on April 27.
Questions?
The UW Office of State Relations is in Olympia every day throughout session. For questions about the legislative process or the UW鈥檚 advocacy efforts, please contact Morgan Hickel at mhickel@uw.edu.