Washington State Legislative Update
Governor Ferguson Budget Bill Signing Press Conference
The 2025 legislative session has officially concluded in full, with the post-session bill signing period now closed. In recent weeks, all eyes were on Governor Bob Ferguson (D) as speculation mounted over how he would handle key budget and revenue legislation. Would he approve the budgets in full? Issue selective vetoes? Or potentially prompt a special legislative session to revise critical components of the operating budget supported by new revenue bills? These questions stirred concern among lawmakers, advocates, and the public, given the significant impact on the state’s fiscal trajectory and public services.
At a press conference on Tuesday, May 20, Governor Ferguson confirmed he had signed the state budgets and related funding bills, issuing only limited partial vetoes, which can be found here by clicking on Signed/Partial Vetoes. He emphasized a careful, line-by-line review of the budget and acknowledged the difficulty of several decisions, which he said he personally weighed.
A key feature of the operating budget is a $1 billion increase in K-12 education funding, with a strong emphasis on special education. Though Washington has been facing a $16 billion projected shortfall, Ferguson noted that no state employees will be furloughed, despite his original recommendation, and all current cash benefit programs – including TANF and food assistance like SNAP – will remain unchanged. He noted the budget also maintains the state’s rainy day fund and allows flexibility to respond to potential future federal funding cuts. Washington state receives approximately 20% of budget revenue from the federal government.
The Governor also announced $25 million in operating budget vetoes, describing the process as intentional and precise. Notably he strongly signaled the need for further refinements to revenue legislation over the interim – especially changes to the Business & Occupation (B&O) tax and tax on services – before the 2026 supplemental budget is signed next year. While he ruled out calling a special session for now, he acknowledged that ongoing discussions around revenue measures would continue and has instructed staff to begin reaching out to stakeholders. “We need to spend more time on these bills to avoid unintended consequences,” he said, suggesting more than just technical corrections are ahead.
On the Senate’s last-minute passage of a proposed wealth tax, Ferguson expressed cautious openness to a “small, targeted” version. However, he noted the likelihood of legal and voter challenges and made clear he would not rely on it to balance the budget.
Brynn Brady
Ceiba Consulting, Inc.