Republican budget leaders in Washington have expressed caution regarding Governor Bob Ferguson’s newly proposed supplemental operating budget for 2025-27. The proposal, released today, marks Ferguson’s first operating budget since taking office in January 2025.
Senator Chris Gildon of Puyallup, the Senate Republican budget leader, emphasized the importance of fiscal discipline as lawmakers prepare to review the governor’s plan. Gildon stated:
“If the governor is as concerned about affordability as Senate Republicans, this is the time to show it – and on the surface his budget proposal appears to be a step in that direction for our state.
“I appreciate that he had committed to avoiding tax increases in 2026 – but if so why does his budget appear to end a preferred tax rate involving data centers? Considering that rate had attracted a $500 million data-center investment to Puyallup less than two years ago, canceling it now seems economically short-sighted. It also concerns me that his budget doesn’t balance over four years, as is normally required by law, because he was able to fall back on a loophole. It’s not a good look for the very first operating budget you submit to the Legislature.
“Senate Republicans will look at his budget carefully while we continue working up a list of more ways to save costs and make government more efficient, to go with the thoughtful reforms that were wrapped into our $ave Washington budget but voted down by Democrats this past year.
“Ultimately the top priority has to be a budget our state can afford. I hope the governor sticks to his no-tax vow despite the pressure from Democrats who will use their second consecutive, self-inflicted budget shortfall as an excuse to go after a new jobs tax and a new state income tax. The bottom line is, you don’t make living in Washington more affordable by making it more expensive. Senate Republicans will be ready to help produce a sustainable supplemental budget that lives within its means and doesn’t place Olympia first.”
Senator Nikki Torres of Pasco, assistant Republican budget leader, also voiced concerns about affordability and long-term fiscal responsibility:
“Washington families are already stretched to the breaking point. The cost of housing, groceries, gas, and childcare keeps climbing, and too many people simply can’t afford to keep up. They’re looking to state government for discipline, restraint, and responsible stewardship — not policies that make Washington even more expensive to live in. Any operating budget must start with fiscal realism, transparency, and real accountability for how taxpayer dollars are spent.
“A responsible budget must balance over the long term and provide stability for employers who have invested in our state. It cannot rely on loopholes, midstream policy changes, or the assumption that the state can continue spending as if it has an endless line of credit while families are forced to make tough choices at home.
“In the end, affordability means living within our means and stopping the constant cost increases that are pricing people out of Washington. Olympia must stop making life more expensive for the people and job creators it depends on.”
State law requires Washington’s governor to submit an annually balanced operating budget ahead of each legislative session based on available revenue sources.
This latest proposal follows significant financial challenges earlier this year when majority Democrats addressed an estimated $7 billion shortfall by approving what has been described as https://www.seattletimes.com/seattle-news/politics/wa-legislature-passes-17-9b-capital-budget-with-money-for-housing-schools/—the largest tax package in state history—which is projected at nearly $12.5 billion over four years.
Despite these measures aimed at closing funding gaps after Governor Ferguson signed off on them May 20th 2025 (https://www.seattletimes.com/seattle-news/politics/washington-lawmakers-pass-new-state-budget-including-major-tax-changes/), recent estimates from non-partisan Senate staff indicate another upcoming deficit: approximately $1.5 billion over two years with projections exceeding $4 billion across four years.
