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WA Budget Cuts: See What’s at Stake

We’ve launched WA Budget Cuts, a new website that lays out the devastating impacts of the required “Book 1” Budget—an all-cuts, no-revenue proposal that attempts to balance Washington’s $12 billion deficit under existing law. This example budget isn’t a reflection of decisions made by Governor Ferguson or House Democrats, but rather a stark illustration of what happens when we’re forced to make cuts without new revenue. The reality is grim.

 

 

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​​Many of you have likely seen a coordinated media campaign focusing on the total size of the state budget, implying that Washington’s budget shortfall is simply a matter of overspending. What these narratives leave out is the reality of how our budget is structured—and the fact that this isn’t an issue of priorities, but of rising needs, inflation, and slowing revenue growth.

The vast majority of the budget—75-80 percent—is protected by constitutional, federal, or statutory obligations, such as funding for public schools. That means the deepest cuts must come from the remaining 20-25 percent, which includes vital programs like healthcare, housing assistance, and long-term care. Choosing to balance the budget through cuts alone isn’t a neutral decision—it prioritizes reductions over solutions that could protect the services Washingtonians rely on. Here’s what that would mean in practice:​​

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​​​I believe Washingtonians deserve to know the full picture—not just the size of the budget but the real people and services at risk. WA Budget Cuts provides a closer look at the programs on the chopping block and what their loss would mean for families and communities across the state. Visit WA Budget Cuts to learn more and stay informed.

Revenue will play a crucial role in bridging the gap between Governor Ferguson proposed $4 billion in cuts and the $2 billion in reductions proposed by former Governor Inslee in December. Just earlier this week, Washington’s nonpartisan Economic and Revenue Forecast Council shared an updated forecast that projects an additional drop in revenue of $845 million. Here are some proposals on the table:

• HB 1319 – Enacting a wealth tax on intangible financial property would bring in $10.3 billion over the next 4 years.

• HB 1320 – Modifying B&O tax rates to fund programs and services would bring in $2.6 billion over the next 4 years.

• HB 1334 – Linking the property-tax cap to population growth and inflation and raising the limit on annual increases from 1% to 3% would bring in $818 million over the next 4 years.

• HB 1356 – Modify how schools are financed and adjusting the state’s Local Effort Assistance (LEA) thresholds would bring in $797 million over the next 4 years.

• HB 1560 – Imposing an excise tax on the annual compensation paid to certain highly compensated hospital employees would bring in $25 million over the next 4 years.

• HB 1839 – Increasing the investments in our workforce by amending the advanced computing surcharge would bring in $635 million over the next 4 years.

• HB 1907 – Defining the rental of individual storage space at self-service storage facilities as a retail transaction would bring in $147 million over the next 4 years.

• HB 2019 – Making the Estate Tax more progressive would bring in $557 million over the next 4 years.

• SB 5771 – Increasing the working families’ tax credit to reflect the economic impact of property taxes would bring in $238 million over the next 4 years.

Above all, we will fight for a balanced and fair budget that prioritizes the needs of Washingtonians, especially those who are most vulnerable.