Democratic Governor Bob Ferguson has officially taken the reins from Jay Inslee. Ferguson enters office just as the 2025 Legislative Session is getting underway. Lawmakers are facing a multi-billion dollar deficit over the next four years. The big question is how lawmakers will respond. There is discussion around delaying the launch of new programs or projects, as well as cuts to state agencies and operations. Tax increases are also under consideration.
In his final budget proposal, outgoing governor Jay Inslee proposed a budget containing about two billion dollars in savings from cuts or delayed implementation and around $13 billion from new tax revenue, primarily from a tax on personal wealth over $100 million.
Governor Ferguson’s budget memo contained around four billion dollars in savings through agency cuts, with exceptions for public safety and public schools. Ferguson has been openly skeptical of the wealth tax idea and favors achieving a balanced budget through cutbacks and savings.
Shortly before the session opened on Jan. 13th, House Speaker Laurie Jinkins and Senate Republican Leader John Braun weighed in on the budget deficit.
“The first priority is really to look at, you know, how effective are our programs and making sure that we capture savings as we can. There before we move into a revenue discussion so there will be more options on the table than anyone can imagine right now,” said Jinkins.
“I’m really interested to hear and see what Governor-elect Ferguson does. You know, he’s talked about direction to his agency heads of six percent cuts. He’s said publicly repeatedly that the taxes are not the way to solve this problem. I think he’s right on those counts,” said Braun. “If he’s just talking about this until they get around to a tax increase, I think he’s going to have a lot of opposition.”
Meanwhile, OSPI Chris Reykdal is asking lawmakers for around $3 billion in additional revenue for schools, mainly Special Education.
“There’s this cap that you’ve heard about. Our formulas limit how many students are initially eligible for Special Ed. That’s ridiculous. This child’s need should dictate that, not an artificial cap established in Olympia,” said Reykdal.
“Well, when there’s a funding stream, for example, Special Ed., that’s dedicated to students with disabilities, and then you have to go grab money from everywhere else to accommodate those civil rights obligations because, you know, the state doesn’t have the funding, everything pays the price. It’s less library service. It’s less counselors. It’s less nurses. It’s less mental health supports. It’s less elective opportunities or maybe they’re cutting middle school athletics or extracurriculars. Some of these things are the whole reason kids stay in school, right? So the ripple effect in schools is huge,” said Reykdal. “When Special Ed. isn’t funded, districts have to use all their other resources and that takes program opportunities away from all kids.”
The state superintendent said he is also pushing for higher wages for some of the lowest paid K-12 staff.
“You should not work for a public school lifting up young people to their dreams and find yourself needing public assistance and we find that to be the case. If you’re a part time hourly employee who doesn’t get full time work, paraeducators, bus drivers, food and nutrition workers, custodial, they’re really on the margins right now and economy like this. So we’re always going to be trying to move those wages as well,” said Reykdal.