A view of the Washington state Capitol building in Olympia, obscured by a slight mist, Jan. 27, 2025. (Photo by Washington State Standard)
Shortly after being elected, Gov. Bob Ferguson convened a diverse transition team to advise him on priorities like health care, education, infrastructure investment, and more. Among the many subcommittees formed, the Budget and Government Efficiency group sought to tackle some of the state’s most pressing fiscal challenges, including how to approach an estimated $12 billion projected budget shortfall over the next four years.
Our three organizations had the privilege to participate in this effort, with Seattle Metropolitan Chamber of Commerce CEO Rachel Smith co-chairing the Budget and Government Efficiency group alongside outgoing Democratic state Sen. Mark Mullet. A diverse group engaged in healthy debate, and the outcome is one we are proud of.
The group’s report highlighted fiscal practices that have made their way into the daily workings of Olympia budget-writing in recent years, namely budgeting beyond our means, using rainy day funds — even without an emergency, and relying on unsustainable budget maneuvers to balance the books. Such practices do not serve Washington communities and residents well, only adding to a cycle of overspending and then having to pull back and problem-solve.
To break this cycle, the report urges lawmakers to:
- Refrain from spending one-time money on ongoing programs.
- Start new programs only with sustainable funding, and importantly, budget within forecasted revenues.
- Drive savings through efficiencies, rightsizing fees, collecting debts, and retooling programs to reduce costs and improve service.
The report does not consider taking money from city or county governments, asking state employees to take pay cuts or furloughs, or changing collective bargaining agreements. Rather, we encouraged officials to take actions that will incentivize economic activity and avoid actions that would disincentivize it.
These principles align with observations included in the governor’s budget priorities, where he emphasized: “I will not contemplate additional revenue options until we have exhausted efforts to improve efficiency.”
And we know, the public agrees. Poll after poll confirms Washington voters want policymakers to review current budget practices and spending before considering additional taxes.
Washingtonians care deeply about making progress on public safety, homelessness, and housing affordability. They overwhelmingly value small and local businesses and the jobs they create. The public cares about our economy and how it impacts their own economic situation, and they expect economic health will be considered before discussions about new taxes.
We see a lot of alignment between Governor Ferguson, the public and employers. That’s why we are concerned by what we are hearing from some policymakers and advocates. Some of this discussion feels out of step with these shared priorities. Two-thirds of Washington voters already don’t trust state government to use their tax dollars wisely, and proposals to tax jobs and talking points that characterize some taxpayers as “villains” only further erodes trust in government — and it jeopardizes Washington’s economic opportunity and future.
Tax policy is serious business — and taxes should be fair — but this kind of dialogue serves only to divide. Further, a tax-first, plan-later approach will not deliver the results our communities need.
We have an opportunity for a reset.
Washington’s success is built on healthy employers who create, sustain, and grow good jobs. That’s part of what makes this place so great.
This strong foundation has fueled prosperity for the people who live here, doubled state tax revenues over the past decade for government services, and enabled us to make major progress in education, housing, infrastructure, and clean energy.
To preserve this progress and address the challenges ahead, we hope policymakers will follow Governor Ferguson’s lead by:
- Conducting a serious analysis of the budget, rejecting or modifying policy decisions that undermine sustainability, and embracing, in Governor Ferguson’s words, “prudent fiscal leadership.”
- Protecting investment in the public’s priorities, including public safety and education.
- Diving deep into agencies or programs to identify opportunities to support — or course correct — for improvement, efficiency and better outcomes.
We are optimistic going into 2025 — optimistic that we can support our communities, grow our economy and jobs, and work in partnership to get important things done. And we look forward to working with lawmakers to keep Washington moving forward.