Washington facing sharp budget deficit, 'significant impact' to services expected
Budget chief K.D. Chapman-See said projected revenue will not cover current programs, and agencies must avoid new initiatives and most program expansions.
- Gov. Bob Ferguson's office warned state agency leaders last week that they face the "most challenging budget" yet, instructing them to submit frugal budget requests for the 2027-29 biennium.
- Steep price inflation and 14.2% population growth since 2015 are driving costs upward, Financial Management Director K.D. Chapman-See noted, as state government spending has consistently outpaced higher tax revenues.
- To manage the shortfall, agencies must review "base budget expenditures" and scrutinize programs created after Jan. 1, 2019, while pausing the phase-in of most new initiatives.
- Washington's spending-versus-expenses gap has depleted financial reserves, prompting credit-rating agency Moody's to warn of a potential downgrade, while the directive signals a contentious 2027 legislative session.
- Directors have until Sept. 14 to submit proposals, setting the stage for a clash between Governor Ferguson's budget-cut demands and a renewed push for higher taxes from progressive Democrats in the Legislature.
22 Articles
22 Articles
'This state can't out-earn a spending problem': Gee reacts to Ferguson's office warning to brace for 'most challenging budget' yet
The Washington State Office of Financial Management sent out a memo Friday to agency directors warning of “significant budget shortfalls” in both operating and transportation budgets. “This will likely be the most challenging budget any of us has yet faced in these roles,” the memo stated. KIRO host Gee Scott said the state’s budget crisis is a problem on both sides: too much spending and rising costs. “This state can’t out-earn a spending probl…
Washington governor’s office warns agencies to prepare for ‘significant budget shortfalls’
State agency leaders received a dire warning from Gov. Bob Ferguson’s office on Friday that they’re headed toward “what will likely be the most challenging budget any of us has yet faced.”“There will be significant budget shortfalls next biennium in both operating and transportation budgets,” the governor’s budget director, K.D. Chapman-See, wrote in a three-page memo. Chapman-See added: “This year’s revenue forecasts will likely not provide suf…
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