Washington Governor Cites $720M Four-Year Revenue Shortfall

Washington Governor Bob Ferguson addressed a new state revenue forecast predicting a $720 million shortfall over the next four years, attributing the decline largely to external factors including tariffs and federal budget cuts proposed by the Trump Administration. He warned that these federal actions could result in significant reductions to Medicaid, education, and food benefits, disproportionately impacting vulnerable residents and challenging the state's fiscal stability. Despite the disappointing forecast, Ferguson emphasized the state's preparedness to manage the situation, referencing previous tough budget decisions that addressed a $16 billion shortfall. His administration is currently analyzing the forecast and has instructed state agencies to identify additional savings as they prepare the upcoming budget, although no special legislative session is planned at this time. The governor also noted that the state cannot fully replace lost federal funds and will closely monitor developments that might necessitate revisiting budget plans. A review of the next revenue forecast is expected in September, underscoring ongoing economic uncertainty and the need for continued fiscal responsibility.