An economics think tank warns Gov. Bob Ferguson’s proposed budget would eventually lead to a nearly $2 billion shortfall partly due to $289 million in increased appropriations in the 2027-29 biennium. 

The Washington Research Council notes that because the state’s employment growth is expected to be under 1% and Ferguson is proposing using an appropriation from the state’s budget stabilization account, his proposed budget does not have to meet the state’s requirement to balance over four years.  

Ferguson’s budget did not use a budgeting loophole that allows the state to assume 4.5% in annual revenue growth, even when forecasts do not project such growth. If that loophole has been included, his budget would have balanced over four years. 

“However, for the sake of budget sustainability, I wish he had shown the Legislature a way to address the budget problem this year and balance over four years,” wrote Emily Makings, the think tank’s senior policy analyst. “If the Legislature follows suit and doesn’t balance the budget over four years, it will just be deferring the pain until next year.”