WA Republicans accuse Democrats of inflating budget deficit to justify more taxes

Some Republicans in the Washington state Legislature claimed that Democrats have exaggerated and inflated the state’s projected operating budget shortfall to rationalize tax hikes.

The actual budget deficit amount has fluctuated by billions over the last few months. In November, the state was estimated to be facing a $10-12 billion deficit over the next four years, according to the Office of Financial Management. The following month, then-Washington Governor Jay Inslee announced the budget shortfall had increased even more — surpassing $16 billion. Despite the astronomical number, Inslee said a recession isn’t on the horizon and that Washington’s economy was very strong.

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But, by the end of last year, the Office of Program Research and Senate Committee Services estimated the budget shortfall was just $6.7 billion for the 2027-2029 biennium, according to The Center Square — the same amount Sen. Chris Gildon (R-Puyallup) claimed he got from the Office of Financial Management.

“What else accounts for the discrepancy from $6.7 billion to $12 billion?” Gildon said in an interview with The Center Square. “You add in the $4 billion for state employees and some other policy bills, then you’re at $12 (billion).”

The $4 billion Gildon is referring to is the total for government employee raises due over the next few years. New contracts with the Washington Federation of State Employees will cost the state nearly $1.4 billion between 2025 and 2027 and $3 billion between 2027 and 2029.

“The governor is supposed to do a feasibility study each year to determine if those raises are feasible,” Gildon told The Center Square. “The problem is there’s no definition of what feasible is, so I offered a bill that would define feasible to say it’s only feasible if you don’t have to raise taxes to afford the raises.”

Senator Jamie Pedersen (D-Seattle), the Senate majority leader for Washington, argued tax increases on the wealthy can provide the state with additional revenue during this deficit. Democrats argued a wealth tax would be a solution to climb out of the financial hole.

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“Taxing that wealth for people who have above, say, $50 million or more,” Pedersen said in December.

While Pedersen agreed that state employee raises contribute to the budget shortfall, he maintained that the deficit is around $12 billion.

“That’s the number that we’re working with,” Pedersen told The Center Square. “When you’re in the majority, you’re actually responsible for writing the budget. So, unlike these vague numbers you can pull out of the air, we are working very closely with nonpartisan staff going line by line through the budget, and that process has been ongoing.”

According to FOX 13, state taxes collected are up 99% over the last decade, while state spending has increased by 114%.

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