Governor Bob Ferguson announced that Washington state will use state funds to cover the gap left by the federal government’s defunding of Planned Parenthood, even as the state grapples with a significant revenue shortfall and an unprecedented surge in government spending.
The move comes just months after Ferguson signed into law the largest tax increase in state history. Despite that revenue-boosting package, the Washington State Economic and Revenue Forecast Council revealed earlier this month that the state will collect $720 million less over the next four years than previously estimated. That shortfall puts additional pressure on the state’s newly enacted $77.9 billion operating budget for 2025–2027, a record-breaking plan built on a sweeping set of new taxes and fees.
The budget increases state spending by 8.2 percent over the previous cycle and was passed despite earlier warnings of a looming $16 billion deficit. To plug that hole, Democrats approved six major tax increases, including:
A 6-cent-per-gallon gas tax hike;
Increases to property and sales taxes;
Higher business and occupation (B&O) taxes;
Expanded fees for services like child care and fishing licenses.
Critics are raising alarms over the razor-thin $2 million cushion left in the state’s general fund, a slim margin that offers little room for unexpected economic turbulence.
