Democratic Governor-elect Ferguson proposes bold spending cuts, echoing what Republicans have wanted

Governor-elect Bob Ferguson revealed plans to ask all state agencies to reduce their projected spending by 6%, as Washington faces a projected $12 billion budget shortfall over the next four years.

Ferguson, who will officially take office on January 15, estimates the 6% reduction will save the state $4 billion.

The governor-elect’s announcement came during a legislative preview session with journalists at the State Capitol on Monday. His proposal arrived shortly after Democratic leaders in both the House and Senate expressed reluctance to cut existing programs, though they acknowledged that examining current spending would be necessary.

“There are no sacred cows,” Ferguson, who currently serves as Attorney General, said.

As a demonstration of his commitment, Ferguson shared a proposal to reduce the Attorney General’s budget by $35 million, a cut he is willing to make within his own department.

“I’m willing to take this step,” Ferguson said. “People need to understand how dire this situation is.”

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Ferguson outlined a comprehensive strategy to tackle the budget shortfall.

This plan includes $300 million in savings from the resolution of ongoing disputes related to the tobacco master settlement and an additional $75 million saved by sweeping funds from regulatory and civil law enforcement agencies, including the Attorney General’s Office.

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However, Ferguson was clear his proposed cuts would not impact K-12 education funding, which he is prioritizing.

“It will not be a uniform 6% reduction across all agencies,” Ferguson explained. “Some may see deeper cuts — up to 8% — while others may 4%.”

He said he is committed to ensuring that essential services, especially those that directly impact people, are preserved.

Ferguson’s budget also seeks to increase the proportion of funds allocated to education. Meanwhile, public safety agencies, including the Washington State Patrol and the Department of Corrections, will be shielded from cuts under his proposal.

The governor-elect has also outlined specific measures to achieve savings, such as consolidating management positions by 10-25%, cutting non-essential administrative roles and slashing in-state and out-of-state travel by up to 50%.

Agencies will also conduct zero-based budget reviews for outdated or ineffective programs, including expired pilot projects and obsolete working groups.

Ferguson’s cost-cutting proposals align with his campaign promise to reduce state spending, a stance that has resonated with Republican leaders who have long argued that Washington’s financial woes stem from excessive spending, not a revenue shortage.

“Raising taxes is not the solution,” House Minority Leader Drew Stokesbary, a Republican, said minutes before Ferguson’s announcement. “We can definitely find the necessary savings without raising new taxes.”

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Several areas to be invested in as Ferguson proposes cuts across agencies

Despite the focus on spending cuts, Ferguson has also highlighted the importance of investing in critical areas. Over the next four years, he proposes $800 million in general fund investments to enhance public safety, address housing development and improve affordability for Washington families.

His proposals include $100 million per biennium to boost the number of law enforcement officers in the state and $5 million to address a backlog of 15,000 cases at the Washington State Toxicology Laboratory.

Additionally, Ferguson is advocating for $600 million in the Capital Budget to support the creation of over 1.1 million housing units over the next two decades. The governor-elect is also proposing a $20 million investment in Washington’s ferry system, with the potential to use funds from the Climate Commitment Act to finance new ferries.

Other notable proposals include $480 million to ensure universal school lunches for all students and $100 million to expand childcare eligibility for employees at small businesses.

These ideas have not yet been translated into legislation, which will be reviewed by the Democrat-controlled Senate and House. The legislative session kicks off on Monday, lasting for 105 days, with budget decisions likely to be made toward the end of the session.

Editors’ note: A previous version of this story contained an incorrect quote attributed to Governor-elect Bob Ferguson about proposed budget cuts and the agencies affected. That quote has been changed and updated.

Matt Markovich often covers the state legislature and public policy for KIRO Newsradio. You can read more of Matt’s stories here. Follow him on X, or email him here.

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