Gov. Ferguson against WA Dems' wealth tax proposals

Name: WA governor opposes key part of budget plans
Uploaded: 2025-04-01T18:16:58-07:00
Description: Washington Governor Bob Ferguson is not on board with the proposed budget on the table by state Democrats. he says one of the proposed taxes is not going to work, and spoke on what needs to happen in legislators are going to pass a budget by the end of the month.

WA governor opposes key part of budget plans

Washington Governor Bob Ferguson is not on board with the proposed budget on the table by state Democrats. he says one of the proposed taxes is not going to work, and spoke on what needs to happen in legislators are going to pass a budget by the end of the month.

OLYMPIA, Wash. - Washington Governor Bob Ferguson weighed in on legislative Democrats’ budget plans, throwing water on a key proposal to bring in more money to close a multi-billion-dollar projected deficit.

"If the legislature wishes to complete our work on time, they need to immediately move the budget discussions in a significantly different direction," the governor told reporters Tuesday afternoon.

Ferguson said budget proposals from fellow Democrats in control of the legislature are not "close to one I could sign." While he acknowledged the state cannot solely rely on cuts to close its budget shortfall, he said there are "far too much in taxes" in the House and Senate Democratic proposals.

WA Governor at odds with Democrat colleagues

By the numbers:

He singled out their plans to create a tax on the assets of wealthy individuals, concerned about how successful it would be in the long term and if it is even constitutional.

"The legal arguments for a wealth tax are untested," the governor said. "The courts could go either way on that issue. It would be irresponsible to rely on an untested, new tax to balance our budget."

Ferguson said he would be open to discussing a smaller attempt at a wealth tax to see if the idea could stand in court.

While he did not offer much comment on the other revenue proposals because of ongoing negotiations, the governor raised concerns around a Senate Democratic idea to tap into state reserve funding.

Echoing concerns from Democratic State Treasurer Mike Pellicciotti, Ferguson said that rainy day money is key to respond to times of crisis, including the uncertainty that comes with tariffs, funding cuts and other actions from the other Washington.

"We protect our values by making sure we are not beholden to a federal government that has shown its willingness to use funding to punish organizations and states it disagrees with," he said. "I am not going to allow the state that I love to be at the financial mercy of Donald Trump and Elon Musk. That is not going to happen."

Before the governor spoke, legislative Democratic leaders said a lot of conversations would be taking place over the next few weeks to get one budget across the finish line.

The other side:

"We have lots of plans B, C and D," Senate Majority Leader Jamie Pedersen, D-Seattle, told reporters at a press availability. "We’re going to have good, productive conversations and we fully intend to give him a budget and a set of revenue bills that he will support and can sign."

After the governor shared his thoughts, Senate Democratic budget writer June Robinson, D-Everett, said she appreciated the governor’s "commitment to a balanced approach" that guided the caucus’ budget process from the start.

"I’m confident we will continue working together to deliver a final budget that meets the needs of Washingtonians and puts our state on strong financial footing for the future," she said in an email.

What they're saying:

On the other hand, legislative Republicans praised the governor for his opposition to the wealth tax, with hopes he will come out against the other tax proposals.

"Our state needs a budget that won’t drive employers and innovators out of Washington and doesn’t add to the tax burden that is already causing so many families to struggle financially," Senate Republican budget leader Nikki Torres, R-Pasco, said in a statement. "With less than a month to go in the regular session, I hope the governor’s words correct the course our Democratic colleagues are on."

As negotiations continue, Ferguson said any budget he signs must protect reserve funding, rely on realistic revenue projections, minimize new investments, contain billions in savings while preserving key services and not depend on revenue sources that could be overturned in the courts.

Legislators have to pass a budget to the governor before the 2025 session ends on 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 from Murrow News Fellow Albert James.