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Friday, May 01, 2026

Washington Governor Bob Ferguson Signals Cuts-Only Budget Plan as State Faces $15 B Shortfall

Washington Governor Bob Ferguson Signals Cuts-Only Budget Plan as State Faces $15 B Shortfall

Ferguson prepares to submit a spending-reductions-focused budget before the legislative session begins, ruling out new taxes for now
Washington State Governor Bob Ferguson has announced that he is preparing a budget centred entirely on spending cuts as the state confronts a projected multi-billion-dollar deficit over the next four years.

The plan — due to be submitted before Christmas — will prioritise reductions to government expenditure rather than raising taxes.

Faced with a shortfall estimated at up to US$15 billion, Ferguson and his administration have scoured state finances for savings proposals.

State agencies have already identified roughly US$3.9 billion in potential reductions.

Majority of recommendations avoid touching core services such as K-12 education, public safety or essential welfare and health-care programs.

Key measures under consideration include furlough days for many state workers, pausing or scaling back non-essential programs, cutting travel and equipment budgets, consolidating administrative offices, and delaying or phasing in new initiatives.

The governor’s office has emphasised efficiency and preserving critical services while reining in fiscal excess.

Ferguson acknowledged the burden of the cuts but said the state must act now to restore fiscal stability.

"We’re not going to tax our way out of this thing, not going to happen," he said, underscoring a commitment to limit the financial burden on households already grappling with high costs across housing, fuel and everyday goods.

While legislative leaders have indicated that further revenue measures — including tax proposals — might eventually be necessary to fully close the gap, Ferguson’s office said the priority remains cost-containment.

The budget-drafting process is scheduled to coincide with the state legislature’s 60-day session, beginning in mid-January, where lawmakers will weigh his cuts-only blueprint against possible revenue-raising alternatives.

The coming months will test whether Washington can balance fiscal responsibility with essential public services amid a challenging economic environment.
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