Gov. Jay Inslee warned of a projected budget deficit of over $10 billion for Washington state, urging agencies to start cutting costs.
A memo from his budget director highlighted factors like increased costs, rising demand for public services, and lower-than-expected tax revenue, estimating a shortfall between $10 billion and $12 billion over the next four years.
To balance the 2025-27 budget, Inslee’s plan will prioritize essential services and caseload needs, avoiding expansions.
Agencies are asked to suggest cost-saving measures, including hiring freezes and delaying programs, with submissions due Nov. 15.
Already, the Department of Social and Health Services and Department of Transportation have paused hiring for non-essential roles.
Sen. June Robinson, leading budget writer in the Senate, acknowledged the challenge and said spending cuts and potential new revenue options are on the table.
Senate Minority Leader John Braun expressed confidence that the deficit could be managed without new taxes, keeping spending around $76 billion for the next biennium.
The state’s largest budget area, education, saw a request from Superintendent Chris Reykdal for an extra $3 billion to support public schools, focusing on fully funding special education.