OLYMPIA – With just five weeks until the Washington State Legislature reconvenes for the 2026 session, a significant budget deficit of approximately $4 billion looms large. State Rep. Timm Ormsby, D-Spokane, who chairs the House Appropriations Committee, expressed uncertainty about the exact size of the gap but indicated that this figure is likely on the low end. “And that’s to keep current programs and services,” Ormsby noted in a recent interview.
Lawmakers are unanimous in acknowledging the need for action, but they diverge sharply on the proposed solutions. A faction of Democrats advocates for new taxes on wealthy individuals and large corporations to prevent further budget cuts. Conversely, Republican lawmakers are cautious about introducing new revenue streams, asserting that the focus should remain on funding essential services only.
Governor Bob Ferguson has stated that he intends to prioritize budget cuts over tax increases. “This is going to be a challenging budget with a multibillion-dollar shortfall,” Ferguson said. He highlighted the difficulties of making further cuts after already reducing the budget by $8 billion earlier this year. “As you might imagine, the next billion that you’re cutting is a lot more challenging to cut than the first billion that you’re cutting.”
Debate Over Budget Solutions Intensifies
Ormsby remarked that Ferguson’s emphasis on cuts was expected. He pointed out that the true measure of the governor’s commitment will be the budget proposal set to be presented later this month. “That will be the most telling of what policy decisions the governor has decided in order to reconcile the budget problem,” Ormsby said, deeming it more significant than statements made during press events.
State Sen. Mark Schoesler, R-Ritzville, echoed similar sentiments, stating he wants to give the governor “the benefit of the doubt.” However, he expressed concern that a budget devoid of new taxes could result in alarm among constituents. “Many times, a no-tax budget comes out to scare the heck out of granny and others,” Schoesler said, hoping for a sincere effort from Ferguson to find savings and efficiencies.
Despite a positive start to Ferguson’s tenure, Schoesler explained that frustrations grew among some lawmakers as the session progressed. “We started on a positive note… and that gave us the highest tax increase in state history,” he said, referring to Republican leaders such as Rep. Tom Dent and Senate Minority Leader John Braun. Schoesler believes the state can balance its budget without resorting to new taxes, citing a proposal from Sen. Chris Gildon as evidence that savings can be achieved.
Democratic lawmakers, however, continue to push for measures to generate new revenue. State Rep. Shaun Scott, D-Seattle, recently proposed a tax on large corporations with employees earning more than $125,000 annually. Scott asserts that this plan could generate $2 billion each year, which would help fund essential services such as public schools and healthcare.
Calls for Consideration of New Revenue Streams
Scott emphasized the financial capabilities of Washington, stating, “The idea that we ‘can’t afford’ childcare, transit, or housing is absurd.” He believes that those who have benefited the most should contribute appropriately to support public services.
State Rep. Natasha Hill, D-Spokane, expressed her hope that Ferguson would reconsider an all-cuts approach. “Taking that approach reflects a lack of care and concern for poor people in Eastern Washington, and I would say, particularly communities of color,” Hill said. She remains supportive of exploring new revenue options, including a state income tax, a concept that has faced repeated rejection from voters.
Ormsby articulated a broader concern, stating he “shudders at the thought” of the Legislature not considering revenue increases to fund vital state programs. “We cannot dismantle structures to the point where they cannot be rebuilt,” he warned.
As the clock ticks down to the legislative session, Ferguson’s initial budget proposals are anticipated to surface in the coming weeks. He acknowledged that the current options for cuts are more painful than those considered shortly after he took office. “There is a noticeable difference in what the team’s bringing to me for potential cuts,” Ferguson stated, highlighting the challenging road ahead for state lawmakers.
