OLYMPIA—Washington State Governor Bob Ferguson announced his plan to slash an additional $4 billion of the state’s $15 billion budget deficit. The Governor said he hopes to continue working with the legislature to figure out how to deal with the remaining $8 billion dollars to end the legislative session with a “balanced budget.”
“[O]ur state is facing a significant budget shortfall. It’s a challenge that’s going to demand thoughtful leadership, action, and a commitment to fiscal responsibility. Washington has long been a beacon of progress, innovation, equity, and opportunity, and we must ensure that these values continue to guide us through these difficult decisions,” said Governor Ferguson Thursday.
Ferguson’s plan involves a series of proposals which will ultimately fall on law makers for their consideration resulting in total savings of $3,926,404,000, according to his office. Combined with former Governor Jay Inslee’s budget proposals, which reduced the shortfall by $3 billion, if all proposals go according to plan this session, Governor Ferguson says the state could see a total of $7 billion in cost avoidance – or about 46.6% the state’s total projected deficit.
The announcement came at a press conference on Thursday morning, February 26, at the Governor’s Conference Room in the state’s capitol, where Ferguson assured the public that his cuts will maintain investments in public safety, housing assistance and home insecurity, and all current cash benefit assistance programs (such as TANF, Temporary Assistance for Needy Families, and Medicaid eligibility), all while actually increasing the budget of K-12 education.
“We have not had much time to go through a very large budget. We need more time to go even deeper. That’s what we’re going to be doing for the next two months. While we are not proposing a full budget stay, of course, it’s fair to say that we did months of work in a few weeks,” said Ferguson.
Ferguson’s cuts involve reconsidering the state’s spending. For example investment decisions made two years ago for the current biennium.
In addition, the federal one-time COVID relief funds have essentially all dried up, the Governor said, and in some cases the state has backfilled those dollars with ongoing general fund resources. Though he acknowledged many of these programs are beneficial he added that his office took a close look at whether the state could continue to support them with its general fund.
Just one example of this is the Department of Agriculture providing assistance to local food banks, of which it receives $12 million from the State’s general fund to support these efforts per biennium as recently as 2019. The state used COVID relief funds to increase support of this program, increasing the investment to $128 million in the 2021-2023 biennium. The Governor is proposing to reduce this to $82 million in the next biennium, which is still about six-times the investment the state was making about six years ago.
In the Governor’s analysis his team also found some appropriations that state agencies are unable to spend for one reason or another. For example: The Forest Practices Board has $1.1 million allocated for rule making but the Governor said they board does not need to do rule making at the moment, so the $1.1 million will be relocated to the sate’s general fund.
The Governor’s Office also said they found some investments that exceed the needs of the state. One example of this is closing the 24-bed dogwood unit at the Special Commitment Center due to declining populations, which saves nearly $4 million.
The state could also save an additional $2.2 million in the next biennium, and $4.4. million over the next four years, by closing a large warehouse that the state secured for medical logistics during the pandemic – something Governor Ferguson said is no longer needed.
“The Department of Ecology and State Parks are saving taxpayers $2.4 million over four years by consolidating office space and sharing office space. Zero impact to public services. That’s just smart government,” said Ferguson.
Similar to this, the Department of Services for the Blind pays for a certain number of spots in the youth adult training programs at the School for the Blind in Vancouver, whether they’re filled or not. The Governor announced a partnership with the State of Oregon to open enrollment eligibility to Oregon resident in order to fill vacancies here; The Oregon Commission for the Blind will then reimburse the State of Washington for whatever spots are filled. The Governor expects these reimbursements to bring in $52,000 over the next four years.
As far as cuts, the Governor said he is proposing “targeted reductions” in state-funded marketing and outreach campaigns as well as studies and task forces that are not essential for public safety or contributing social safety net. The state will also significantly reduce state government travel.
Some programs, and program expansions, that have not implemented yet could also be paused or phased in over time to reduce spending. An example of this is the state saving $144 million by gradually implementing the proposed rate increase to child care center over the next four years instead of all at once on July 1.
“These individuals will receive this expansion, it’s just going to take a little bit longer,” Ferguson added.
The Governor is also proposing cutting the state’s investment in foundational public health – from $155 million to $133 million a year – which will save the state tens of millions of dollars over the course of four years.
Ferguson recognized the importance of investing in public health, as someone who served on the King County Public Health Board while serving on the King County Council, but given the state’s current budget constraints, he said it’s a necessary cut.
Given the state’s bargaining agreement the Governor is also proposing most state employees be required to take a furlough day one day a month for the next two years, which would amount to $300 million in savings, he said. This would include Troopers patrolling state roads, staff working in state prisons, and state hospital workers.
“I believe this is necessary to preserve the funding for the compensation increases they earned and negotiated. I continue to support full funding for the Collective Bargaining Increases. Furloughs, of course, do reduce compensation without reducing salaries. So that employees will return to the compensation levels that they have earned and bargained once we get through the budget crisis,” said Ferguson.
In addition to Ferguson’s proposals he said there are several recommendations that could amount to another billion dollars in savings that he will be presenting to the legislature for their consideration. The Governor added that he will continue to issue proposals over time as he considers these recommendations in the coming weeks.
Ferguson also added that he is mindful of the state’s supplementary budget which his team will be closing in on later this year.
The state also has a revenue forecast on the horizon which may, or may not, adjust the state’s current shortfall.
“I recognize that we could do everything right in the way we budget and still end up with a budget deficit in the future. For example, the federal government could make decisions that adversely impact our budget. That said, we must do a better job of budgeting within our means,” said Ferguson. “I also want to emphasize that I understand, we understand, that decisions I make, that we make, impact people’s lives and we do not take that lightly…We can achieve savings and preserve our values. I believe that.”
Washington State Democrats weigh in
House Majority Leader Joe Fitzgibbon (D-West Seattle) released the following statement on behalf of House Democratic Leadership regarding Governor Ferguson’s recommendations for $4 billion in savings to address the state budget shortfall:
“We welcome the governor’s recommendations that were shared today to help address the shortfall in the state budget. Many of those recommendations overlap with reductions we are considering, and many of them are new reductions that we will consider as we continue our work to balance the budget while minimizing harm to Washingtonians. Earlier this week, House Democrats underscored the devastating impacts an all-cuts budget would have for our state’s people and families. We are focused on trying to reduce that devastating impact, and to that end, we welcome Governor Ferguson’s additional recommendations in these efforts, and thank him, the team in the governor’s office, at OFM, and in all the executive branch agencies for their hard work in putting together options to help achieve a balanced budget.”
Senate Ways & Means Chair June Robinson (D-Everett) issued the statement below Thursday in response to Gov. Bob Ferguson’s budget savings plan:
“We appreciate the work the governor and state agencies have done to reach this point. Like them, we recognize that budget reductions are necessary and will carefully consider all the options that have been identified. But we have also reached the conclusion that reductions alone will not allow us to sustain the services Washingtonians rely on. People expect a government that remains functional and responsive, especially in times of federal instability.
“Our job is to take a balanced approach — one that ensures critical services remain strong and communities have the support they need. 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. We will continue advocating for a budget that upholds our shared values and keeps Washington moving forward.”
Author: Kienan Briscoe
