Ferguson proposes $4 billion in cuts to ease budget deficit

Governor-elect Bob Ferguson unveiled a budget-cutting plan to ease a projected $12 billion statewide budget deficit during a 2025 legislative preview in Olympia on Jan. 9.

“Washingtonians expect that we will increase revenue as a last resort. I will not contemplate additional revenue options until we have exhausted efforts to improve efficiency,” Ferguson said. 

Estimates of the deficit vary widely, from $7 billion to $15 billion. To make up for the deficit, Ferguson proposes cutting spending by 6% of the budget across most state agencies and a 3% budget cut to four-year higher education institutions. The cuts are projected to save $4 billion. Public K-12 education, community and technical colleges, public safety agencies, and pass-through entitlement benefits delivered by state agencies to eligible Washingtonians are not affected by the cuts. 

Ferguson said he will collaborate with legislative leaders and state agencies to identify programs that are not reaching their goals for Washington residents. Some programs could be cut by less than 6 percent, and some could face larger cuts, Ferguson said. 

In December, outgoing Gov. Jay Inslee proposed a wealth tax to make up the projected deficit, which would tax residents of Washington who are worth $100 million or more. Ferguson, however, has expressed skepticism with this plan.

“We are not going to tax our way out of this,” Ferguson said. 

Ferguson also shared his previously proposed plans to invest in affordability, transportation and public safety. He is proposing an additional $100 million over two years to hire more law enforcement officers in the state. Additionally, Ferguson said he wants to accelerate the operation of more ferries. 

In addition to the current budget shortfall, Ferguson said he wants to look at the whole process the state uses to forecast revenue and expenses. 

“I intend to spend some time making sure I understand how we got to this level of a shortfall, and to make sure that I, as a governor, do everything I can to make sure this doesn’t happen again,” Ferguson said.  

Ferguson becomes Washington's next governor Wednesday, Jan. 15. 

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