WA leaders spar over state's multi-billion-dollar budget deficit

Facing multibillion-dollar budget shortfall, Washington weighs options

Gov. Bob Ferguson says Washington must make tough, immediate decisions to close a multibillion-dollar budget gap, rejecting sales or property tax increases as fast solutions.

OLYMPIA, Wash. - Washington state faces a multi-billion-dollar budget shortfall, and Gov. Bob Ferguson says the path to closing the gap will require tough and immediate decisions.

"It’s not like we’re at a point where I can say, ‘Hey, we have now closed this multi-billion-dollar shortfall,’" Ferguson told FOX 13 News. "We are still very much in the ‘difficult decision’ mode," he added.

Representative Shaun Scott, a Democrat from the 43rd District, is proposing a plan he says will bring in an extra $3 billion annually. His proposal is a 5% payroll tax on salaries over $125,000 to fund housing, education, and healthcare.

What they're saying:

"If these corporations were as enthusiastic about paying their taxes as they were about paying to avoid them, there are millions of Washingtonians who would not have to worry about how to pay for higher education, for health care and housing in our state," Scott said.

However, Ferguson said this sort of tax would not fix the state’s current issues.

"By the time you get revenue like that in the door, that doesn’t solve your problem that’s right in front of us, which, again, is a multi-billion-dollar budget shortfall," he said.

The governor said the state needs immediate solutions to stabilize cash flow, but added forms of revenue that can be implemented quickly are off the table.

"There are things one can do that you can turn on right away, like a sales tax," Ferguson said. "I can assure you that’s not going to happen. I would veto a sales tax increase in a heartbeat. Those things that can turn on quickly — property taxes — that’s not going to happen, either," he added.

The other side:

While there is no definitive answer on if and how the state can make up the cash shortfall, one Republican lawmaker says the state does have areas it could consider cutting from its budget.

"One of the things we shouldn’t have done, and should consider rolling back, is huge raises we gave to our state workers," said Representative Chris Corry.

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