Democrats have their work cut out for them this session as Gov. Bob Ferguson and the Republicans continue to oppose tax increases in the operating budgets.

Facing an estimated $16 billion shortfall over the next four years, party leaders have proposed increasing taxes to make up for the losses.

Ferguson said neither budget presented by the House or Senate is one that he can sign.

“First, they each propose far too much in taxes. Second, they both rely on a wealth tax that is novel, untested, difficult to implement and most importantly for purposes of adopting a sustainable budget will face an immediate challenge in court,” Ferguson said.

The Senate Democrats proposed a $78.5 billion operating budget for the 2025-27 biennium, while the House Democrats proposed a $77.8 billion budget. The Senate Republicans released a $76.5 billion budget, but with a Democrat majority in both chambers it will not be voted on.

“We cannot simply cut our way out of a budget deficit. That works when you are balancing a spreadsheet, but it does not work for Washington families, Rep. Mia Gregerson, D-SeaTac, said in a press release.

The “wealth tax” that the House and Senate are attempting to pass would allow Washington state to tax stocks, bonds, and other intangible assets over $50 million. Although there are differences in the two bills, both budgets rely on the taxes to help fund public schools.

According to Rep. Drew Stokesberry, R-Auburn, the current budgets only need a $5 billion tax increase, which would be covered by just one of the several taxes proposed.
“They don’t need to nickel and dime ordinary Washington residents,” Stokesberry said this week.
The Senate and House introduced a bill that allows counties and districts individual control over raising property tax. There is also a proposed tax on short-term rental homes and nicotine oral patches.

“The Democrats want to tax the joy out of Washington,” Stokesberry said.

The Senate Republican budget proposed no new or increased taxes, opting instead to forgo already negotiated raises for government employees and redirect funds from the Climate Commitment Act.

“If the Legislature wishes to complete our work on time they need to immediately move the budget discussions in a significantly different direction on both of these issues,” Ferguson said.

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