Ferguson could sign Democrats' nearly 78 billion budget this week

Governor Bob Ferguson is poised to sign a new budget this week worth nearly $78 billion, designed to address a $16 billion shortfall with $8. 7 billion in new taxes. This budget includes a significant $7. 5 billion capital improvement plan aimed at enhancing infrastructure, affordable housing, and public school facilities across Washington. Notably, it eliminates a previously proposed furlough for state employees, signaling a shift in budgetary priorities.

The tax plan specifically targets businesses, raising rates for banks and imposing retail sales taxes on services such as temporary staffing and advertising. Additionally, the bipartisan transportation plan earmarks $15. 5 billion for crucial highway projects while introducing a six-cent gas tax increase effective July. Washington's law mandates a balanced budget, making this approval critical for state operations. If Ferguson does not sign the budget, it could lead to a special session of the legislature to resolve the issue.

The budget's implications are significant, potentially reshaping state funding and services for the next two years.