The increase will push the state’s per-gallon tax rate on gas and other vehicle fuels from 49.4 cents to 55.4 cents. Starting July 1, 2026, it will rise each year by 2% – about a penny annually – to account for inflation.
The decline in receipts will force the state to draw down savings, but Ferguson isn’t summoning the Legislature into a special session to respond. At least not yet.
The warning from the Democratic governor comes amid an increasingly gloomy budget outlook and underscores that the state’s financial difficulties are not over.
State Rep. Mark Klicker, R-Walla Walla, authored House Bill 1108 that sought to unearth “the primary cost drivers for homeownership and rental housing” in Washington. It had 25 co-sponsors – 14 Republicans and 11 Democrats – and cleared the Legislature with only nine people voting against it. The governor vetoed it quietly in his office on May 20, the final day on which he could act on legislation.
Lawmakers, lobbyists and business leaders are all watching to see what the governor does. Ferguson, just four months on the job, is aware of the acute interest and seems determined to keep folks in suspense right up until May 20.
Thousands of state government and community college employees in Washington want Gov. Bob Ferguson to ensure they receive a pay raise in July like the rest of the state workforce – but it may be a long shot.
Members of the Washington Public Employees Association not receiving those increases work at 14 community colleges, including Columbia Basin College, and in nine state agencies. Among them are the Department of Natural Resources, Department of Revenue, the Liquor and Cannabis Board and Department of Agriculture.
