Gov. Ferguson pushes $4B in cuts to plug WA budget deficit

WA Gov. Ferguson reccomends budget cuts

Washington Governor Bob Ferguson released nearly $4 billion in recommended budget cuts to tackle the state's projected multi-billion dollar deficit.

OLYMPIA, Wash. - Governor Bob Ferguson (D) released details of around $4 billion in recommended budget cuts Thursday to tackle the state’s multi-billion-dollar deficit, reiterating the need to reduce spending before thinking about new taxes.

"It’s a challenge that demands thoughtful leadership and a commitment to fiscal responsibility," Ferguson told reporters at a press conference at the state capitol.

The governor’s recommendations are not a full budget, but rather suggestions for the legislature to consider as they write the state’s budget for the next two years. They originated from his pre-inauguration request to most all state agencies to reduce spending by 6%.

Washington's projected budget shortfall

By the numbers:

The approximately $3.9 billion in savings include reductions to government travel, property expenses and non-vital operations; reviewing and scaling back new spending and program expansions; and making most state employees take a furlough day every month over the next two years.

Ferguson says that move will save $300 million dollars.

According to the governor, his proposals maintain investments in K-12 education, public safety and housing assistance, while also honoring collective bargaining agreements made with state workers. Cash benefit assistance programs and Medicaid eligibility are also maintained.

Ferguson said the recommendations build upon $3 billion in savings proposed by former Governor Jay Inslee.

"Combined, these proposals reduce the projected $15 billion budget shortfall by $7 billion," he said.

The backstory:

State economists said the $15 billion figure, higher than previous estimates of $12 billion, is driven in part by a sharp uptick in demand for state services across the board, like healthcare, childcare and education.

The governor said there is an additional $1 billion in savings suggested by state agencies. While he will provide them to the legislature, he does not necessarily recommend them.

"As a general matter, they tended to be services directly to Washingtonians, a benefit they were receiving – housing assistance or something along those lines. And I was reluctant to cut those," he said.

Before he was sworn in, Ferguson said he viewed new taxes as a last resort to close the budget gap. He echoed that message Thursday, saying his focus has entirely been on identifying savings and it is too soon to say whether new taxes will be needed.

"Look, we’re not gonna tax our way out of this thing. Not gonna happen. $15 billion is a lot of money," the governor said.

Will spending cuts fix Washington's budget crisis?

What they're saying:

In a statement, state Senator Chris Gildon (R-Puyallup) welcomed the suggested cuts and praised the shared belief in new taxes as a last resort. Though he also raised concerns about state employee furloughs and how the $15 billion deficit total is calculated.

"Overall, if Republicans were to write a new operating budget, we would likely incorporate many of the governor's cost-savings suggestions," the Republican budget leader said. "However, we believe there are additional opportunities beyond what he offered today, and we would be glad to share those with the governor as we identify them."

The other side:

On the other side of the aisle, Senate Ways and Means chair June Robinson (D-Everett) said while she appreciated the governor’s work, "reductions alone will not allow us to sustain the services Washingtonians rely on."

"To truly meet the needs of the people we serve, we must make thoughtful reductions and consider progressive revenue options that ensure fairness and long-term stability," she said in a statement.

Ferguson said more savings proposals will come in the next few weeks as his team continues to work to close the budget gap. At the same time, he will be talking with legislators about their proposals and is looking forward to an updated revenue forecast later next month.

The governor is hopeful a balanced budget will come out of the legislature before their session ends on April 27.

Albert James is a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University.

The Source: Information in this story comes from original reporting by Murrow News Fellow Albert James.