Ferguson signs budget boosting Washington state spending and taxes

Washington Governor Bob Ferguson signed a two-year budget and tax package on Tuesday to address a significant $16 billion budget shortfall. The budget, totaling $77. 8 billion, funds essential services, including public education, healthcare, and housing, while introducing a 6-cent increase in the gas tax to support transportation projects. The budget relies on approximately $4 billion in new revenue generated from various tax increases, including a permanent boost in business taxes and higher rates for large financial institutions. Ferguson faced criticism from Republican lawmakers for approving substantial tax hikes after initially advocating for fiscal restraint.

Senator June Robinson praised the limited use of the veto, indicating a successful bipartisan effort. The budget also leaves the state with $225 million in cash reserves and $2 billion in its emergency fund. Ferguson expressed intent to scrutinize the new business taxes further to mitigate any unintended consequences. The approval of the budget marks a significant policy shift amid ongoing fiscal challenges.