Ferguson, GOP submit supplemental budgets

OLYMPIA — Washington Governor Bob Ferguson has released his proposed supplemental budget for the upcoming legislative session, which is set to start Jan. 12. The governor submits his proposal and the legislature sets its own priorities as a budget is worked out. 

“I’m providing a road map to the legislature,” Ferguson said during a Tuesday press conference. “This is, of course, the first step in a conversation about how best to balance our budget. Legislators will, of course, have their own ideas, and obviously, I've had conversations with leadership in recent weeks regarding my proposed budget. I'm looking forward to continuing to work with them and all members, of course, of the legislature as this proposed budget moves over to the legislative branch.” 

This budget proposal is a supplemental proposal to the budget passed by the Washington Legislature earlier this year. Ferguson is proposing a variety of cost-saving measures after the state realized a $16 billion budget hole last legislative session, which it addressed at the time. However, Ferguson said falling revenues, rising costs and what he called “cuts and chaos from the Trump Administration” have led to an additional $1.6 billion shortfall that needs to be addressed. To do so, Ferguson has asked state agencies to reduce spending and will be using Climate Commitment Act funds as well as $1 billion of the state’s Rainy Day Fund in an effort to lighten the impacts of budget cuts on state agencies and Washingtonians. State agencies were asked to reduce their budgets by a combined $800 million.  

"The governor also wants to drain nearly $1 billion from the rainy day fund - even though Washington already has the smallest reserves in the country. That fund is supposed to be for real emergencies, like flooding and wildfires, not for covering up years of overspending. Burning it down now leaves the state exposed when the next downturn hits,” said State Rep. Travis Couture, R-Allyn, in response to Ferguson's proposed budget package.  

Couture is the ranking Republican member of the House Appropriations Committee for the state of Washington.  

Ferguson pointed much of the blame for the additional budget shortfall to the Trump Administration. A press release from the governor’s office indicates that Washington’s dependence on international trade for its economy and state revenue made it more susceptible to impacts from tariffs put in place by President Donald Trump. Additional impacts include costs associated with Supplemental Nutrition Assistance Program – formerly known as food stamps and commonly referred to as SNAP – that require monitoring of work requirements, more of the administrative cost put on states – an estimated $45.7 million for Washington. Health care access and other issues also saw an increase in state-level costs as a result of what Trump dubbed the One Big Beautiful Bill.  

Ferguson also said it was important to ensure Washington residents could afford basic necessities. AS a result, he is proposing $55 million to maintain the Cascade Care premium subsidy program to help lower the cost of Affordable Care Act Plans, $569 million in Climate Commitment Act revenues assigned to maintain the Working Families Tax Credit and $30 million in CCA funds to support the Washington Families Clean Energy Credits. 

Ferguson also said he would like to eliminate some tax exemptions for major corporations while expanding or preserving tax credits for small businesses.  

Couture has presented a budget proposal on behalf of the Republican Party as well, also saying that a large focus should be on affordability for state residents.  

“For Washingtonians, the pain is real,” said Couture, the ranking Republican on the House Appropriations Committee. “Groceries cost more. Housing costs more. Gas and child care cost more. But Olympia keeps spending more and delivering worse results. This (proposed Republican budget) says enough is enough, and protects people who have nothing left to give.” 

Couture’s announcement said the GOP proposal is set to restore funding for programs cut or underfunded in the state’s current budget passed earlier this year, including Medicaid, hospital relief, food assistance, infant care for drug-exposed newborns, law enforcement recruiting and wildfire prevention.  

Couture said the state needs to get back to spending within its means.  

“Washington has spent more than it expected to collect for four straight budgets,” he said. “That’s not sustainable for the people of Washington state, and it shouldn’t be how government operates.” 

Budget Specifics:  

To view the governor’s and the GOP’s supplemental budget proposals, follow the links below:  

Ferguson Plan: https://bit.ly/FERG2026 

Republican Plan: https://bit.ly/GOPPLAN 

    COUTURE