OLYMPIA, Wash. — Gov. Bob Ferguson could sign the Democrats’ new nearly $78 billion, two-year budget this week.
Ferguson promised to go through the budget line by line before signing.
The budget includes $8.7 billion in new taxes to close a $16 billion budget shortfall. It also includes a $7.5 billion capital improvement plan, funding construction and infrastructure projects across the state. The plan marks an investment in affordable housing, public school construction, and the protection of natural resources.
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It also scraps a proposal to furlough state employees one day a month.
The new taxes hit businesses in particular, including raising two business and occupation tax rates on banks.
Another applies retail sales tax to services the state hadn’t targeted before, like temporary staffing, security, and advertising.
The transportation funding plan, passed with bipartisan support, includes a $15.5 billion allocation for highway projects, road repairs, and the state ferry system. The plan introduces a six-cent increase in the state’s gas tax, that would be effective in July.
By law, Washington must have a balanced budget.
If Ferguson doesn’t sign the budget, it could trigger a special legislative session.
