“Our budget is a moral document. It’s the way that we say, this is what is important to us.”
“We have the ability to be able to bring some additional revenue in, to be able to diversify our portfolio here in Washington state, if we’re able to pass some progressive revenue measures that ask the wealthy to do their part, just like everybody else has been doing all along.”
“Voters not only want and expect these services to be funded because they see the importance they have in their communities and they feel the effects in their families, they want those services to be funded, and they also want the wealthy few to do their part and pay what they owe, just like they’ve been doing.”
- Treasure Mackley, Executive Director, Invest in Washington Now
“Washington isn’t facing a revenue crisis—it’s facing a spending crisis.”
“Over the last four years, the state taxes are up 25%, but spending is up 40%, and that’s how you can get that gap.”
“The state has spent more than $5 billion on homelessness over the last decade, and with that money being spent, we now have the third largest homeless population in the entire country, with the 13th most populous state.”
- Paul Graves, President, Enterprise Washington
Washington state lawmakers face a looming budget deficit of $10 billion to $15 billion over the next four years, forcing consideration of a wide range of options from implementing cuts or raising revenue through new taxes.
Democratic leaders, who control the Legislature, must craft a balanced budget that Gov. Bob Ferguson will approve. While progressive advocacy groups call for new taxation on wealthy residents, conservatives and business groups argue that excessive spending is to blame for the fiscal shortfall.
Invest in Washington Now, a union-backed advocacy group, is among those urging lawmakers to prioritize revenue solutions rather than budget cuts. During an appearance on TVW’s Inside Olympia, Executive Director Treasure Mackley contended that Washington’s tax system disproportionately burdens low- and middle-income earners.
“Our tax code has been upside down for decades,” Mackley said, “Low- and middle-income folks pay up to 13% of their income in taxes, while the wealthiest pay far less.”
The organization played a key role in passing Washington’s capital gains tax in 2021, which was upheld despite multiple legal and ballot challenges. Now, Mackley and her allies are pushing for additional measures, such as a wealth tax, to balance the budget and maintain funding for essential services.
“The capital gains tax was a step in the right direction, but we have more work to do,” Mackley said. “This is about making sure the wealthy contribute their fair share, just like everyone else.”
Progressives argue that state spending is necessary to maintain public services, including education, health care, and infrastructure. Mackley warns that deep cuts could disproportionately harm children, seniors, and low-income families. “A budget is a moral document,” she said. “It reflects our values and priorities as a state.”
On the other side of the debate, business-backed groups argue that the budget shortfall is a direct result of excessive government spending. Former Republican state lawmaker Paul Graves, now president of Enterprise Washington, contends that the state has spent irresponsibly in recent years.
“In the last four years alone, state spending has increased by 40%, while revenue has only grown by 25%,” Graves said. “We don’t have a revenue problem — we have a spending problem.”
Enterprise Washington launched a public education campaign before the legislative session called Budget Breakdown to highlight what it sees as unsustainable fiscal policies. The campaign contends that while funding for homelessness and education has skyrocketed, outcomes in these areas have not improved.
“If we’re going to have a conversation about taxes, we also need to have a conversation about accountability,” Graves said. “Where is all this money going, and why aren’t we seeing better results?”
Gov. Ferguson, in his first term, has proposed $4 billion in budget cuts while stating that additional revenue measures should be considered carefully. He has been cautious about endorsing a wealth tax, signaling that he wants a balanced approach.
“We can’t just cut our way out of this, but we also have to be mindful of the impact of new taxes,” Ferguson said in a recent press briefing.
The debate over spending cuts or new taxes is taking place on the eve of the next state revenue forecast, which comes March 18 and will help define how much money budget writers will have to work with. Legislative leaders are expected to unveil a proposed budget in the coming weeks. Senate Republicans were the first out with an all-cuts/no-new-taxes budget proposal released last Tuesday.