Ferguson signs budget boosting Washington state spending and taxes

Governor Bob Ferguson signed a budget to close a $16 billion shortfall, raising taxes to generate billions in new revenue. The two-year budget outlines $77. 8 billion in spending for public education, health care, and social services. It includes a 6-cent increase in the gas tax to fund transportation projects. The tax package encompasses increases for businesses, a temporary surcharge on high-grossing firms, and higher rates for large financial institutions.

Despite pushback from Republicans, who criticized the tax hikes as a betrayal of fiscal responsibility, Ferguson highlighted the need for compromise among lawmakers. He exercised limited veto power, only rejecting a small part of a tax bill concerning community banks. The budget concludes with $225 million in cash reserves and $2 billion in the rainy day fund, ensuring fiscal stability. Ferguson plans to review the tax increases further to mitigate any unintended consequences, emphasizing his commitment to responsible governance.