OLYMPIA… The Republican senators who saw their service-protecting, no-new-taxes budget rejected by Democrats earlier this year are reacting cautiously to the supplemental 2025-27 operating budget proposed today by Gov. Bob Ferguson.
Sen. Chris Gildon of Puyallup, Senate Republican budget leader, said it’s essential for Ferguson to now avoid flip-flopping when legislative Democrats push for even more tax increases in 2026. He offered this assessment:
“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.”
Sen. Nikki Torres of Pasco, assistant budget leader, said this:
“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.”
Washington’s governor is required to submit a budget to the Legislature ahead of each annual legislative session. Under state law it must be balanced within the revenue available.
This is the first operating budget proposed by Ferguson since taking office in January 2025. During the 2025 session, majority Democrats responded to an operating-budget shortfall of around $7 billion by passing a budget built on the largest tax package in state history. It’s estimated to cost nearly $12.5 billion over four years.
Despite the huge tax hikes, the budget began heading toward negative territory shortly after Ferguson signed it May 20. Earlier this month, non-partisan Senate budget-committee staff have estimated the upcoming shortfall at $1.5 billion over two years and more than $4 billion over the next four years.