Washington governor wants agencies to look for deeper cuts

Washington Governor Bob Ferguson is urging state agencies to make deeper budget cuts as the state faces a troubling financial outlook. In a memo from K. D. Chapman-See, agencies are instructed to submit only critical funding requests by September 15, emphasizing the need for efficiencies and administrative savings. Ferguson's proposed budget will be unveiled in December, with the Legislature considering it during the 2026 session.

The projected budget shortfall has expanded to between $10 billion and $12 billion over the next four years, raising concerns about the fiscal situation. Chapman-See's memo recalls a previous directive that limited agencies from requesting funds for new programs. The upcoming tax collection forecast on June 24 could reveal further budget challenges. While the state maintains over $2 billion in emergency reserves, ongoing hiring and travel freezes are anticipated to remain in place. The economic review indicates lower-than-expected tax collections due to uncertainties in trade and federal policies.