WA lawmakers react to governor calling tax proposal ‘too risky’

High-Stakes Tax Debate: Governor pushes back on $12 billion proposal

Governor Ferguson challenges Democrats to rethink their $12 billion tax proposal, citing unsustainable risks amid looming economic threats.

OLYMPIA, Wash. - As lawmakers have a little over a week to pass a balanced budget, Governor Ferguson is once again raising objections to new taxes proposed by Democrats in charge of the legislature.

In a statement Thursday, the governor said the $12 billion dollar package of increases in sales, business and capital gains taxes is "unsustainable, too risky and fails to adequately prepare Washington state for the crisis that looms ahead."

The crisis Ferguson is referring to is actions taken by the Trump administration around federal funding and tariffs.

What they're saying:

"Significant federal cuts loom for Medicaid, early learning, K-12 education, scientific research, health care and emergency response," he said. "Families are also bearing the burden of the Trump Administration’s tariffs, making everything from groceries to car repairs more expensive."

In the House, Majority Leader Joe Fitzgibbon, D-West Seattle, said the governor has not signaled strong support or opposition to proposals, other than going against a wealth tax proposal. Though legislators are getting a sense of Ferguson’s "relative comfort level" around various revenue options.

"But we have said that if that revenue number is too high, then we really need him and his team to provide some suggestions for where they would suggest additional cuts," FItzgibbon said.

Budget writers still recognize the need for new revenue, the majority leader said, but now have to look back at cuts they initially avoided.

"The cuts that we’ve made already are not easy," Fitzgibbon said. "But the cuts that we would have to consider as that revenue number goes down only become more difficult."

By the numbers:

On the other side of the aisle, House Appropriations Ranking Member Rep. Travis Couture, R-Allyn, said his caucus agrees with the governor that raising $12 billion in taxes is too much.

"But $8 billion, $5 billion and $3 billion are also unsustainable for new tax increases," he said. "The only acceptable number is $0 in tax increases."

Couture argued the state should dial back spending as new taxes would hurt people at a time of increasing unaffordability. From his perspective, the governor is not providing a clear sign of how much he would accept in new taxes, complicating things for legislators.

"It keeps forcing that exercise where you have to rework the budget and it's a very intensive exercise," he said. "We don’t have a lot of time left in the legislative session. Every time the governor plays a game of "go find another rock," it seems like we’re heading towards a special session."

Fitzgibbon said while there is "always a possibility" things could head into overtime, lawmakers are "working on the expectation" they will finish on time. Under the state constitution, the regular session must end on Sunday, April 27.

Albert James is a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University.

The Source: Information in this story comes from original reporting by Murrow News Fellow Albert James.