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Ferguson’s budget priorities include billions of dollars in new savings and investments in housing, public safety, ferries, and affordability

Budget priorities document available here [PDF].

OLYMPIA — Governor-elect Bob Ferguson today announced his budget priorities, including a plan to save approximately $4.4 billion.

Washington state faces a projected budget shortfall of more than $12 billion over the next four years. Given the urgency of the budget situation, Ferguson released his budget priorities ahead of taking office Jan. 15. In addition to billions of dollars in reduced spending, Ferguson calls for new investments in public safety, housing, ferries, and policies that reduce costs for families, including universal free school lunches and expanded childcare affordability for employees of small businesses. He also announced his budget principles that will help Washington achieve balanced, responsible budgets that protect Washington’s values and deliver good government to the people.

Ferguson proposes to reduce state agency spending by at least $4 billion and save an additional $300 million by resolving ongoing disputes in the tobacco master settlement. He also proposes additional savings generated by sweeping $75 million from regulatory and civil law enforcement agencies, including from the Attorney General’s Office.

The savings identified are a first step in the budgeting process. They are separate from, or in addition to, the approximately $3 billion in one-time savings and delayed investments identified in Governor Jay Inslee’s 2025-2027 proposed operating budget.

“Washingtonians expect us to govern efficiently while upholding our shared values,” Ferguson said. “I intend to tackle our biggest challenges head on. To that end, I am sharing my budget priorities ahead of the legislative session. I will be transparent about the hard choices ahead of us and how I plan to approach them. By working together as leaders, we can bring Washington through these budget challenges and come out stronger as a state.”

As part of his priorities, Ferguson released a framework for achieving reductions in state agency spending. The reductions will not impact basic education spending. In fact, one of his principles includes increasing the percentage of the budget going to support K-12 education.

The reductions also will not impact public safety agencies, including the State Patrol, Department of Corrections, and Criminal Justice Training Commission.

He will ask agencies to start with the following strategies:

• Consolidate management positions by 10-25%
• Make 10-25% reductions to administrative, executive and externally focused positions that are not essential to the delivery of government services
• Restrict equipment purchases
• Reduce agency out-of-state travel by at least 50% and reduce in-state travel by at least 25%

In addition to administrative reductions, Ferguson will ask agency leadership to work with the Office of Financial Management to evaluate and, where possible, conduct a zero-based budgeting review of certain programs, working groups and studies, starting with:

• Programs that have just launched or are not fully implemented, including pilots;
• Programs originally funded on a one-time basis using federal COVID-era dollars;
• Agency working groups and advisory committees or groups that are more than four years old and may have achieved a substantial portion of their mission;
• Small programs that serve fewer than 1,000 customers every year;
• Any program that does not track and publish performance measures; and
• Legislatively directed studies.

Governor-elect Ferguson will work with the Office of Financial Management and cabinet agencies to finalize details of his across-the-board reductions proposal and to provide his framework to legislative budget writers as they begin their work in the coming days. Ferguson will also ask legislators and state employees to use their expertise to identify opportunities for efficiency and cost savings.

New investments in public safety, housing, ferries, and affordability

Ferguson is calling for approximately $800 million in new investments of general fund dollars over the next four years on the following priorities:

• Public Safety: A $100 million per biennium grant program to increase the number of well-trained law enforcement officers in Washington state. It is not acceptable that we rank dead last in the country in law enforcement officers per capita. Ferguson also proposes $5 million to clear the backlog of approximately 15,000 cases at the Washington State Toxicology Laboratory. This backlog is delaying justice for cases across the state.
• Housing: The housing crisis is impacting families in communities in every region of the state. We must build more than 1.1 million units of housing in the next 20 years to meet the anticipated growth and start to reduce the cost of housing. The budget proposal includes $600 million in the capital budget to build more housing across the state to reduce the cost of homes for Washington families.
• Ferries: The budget priorities include support for Gov. Inslee’s proposal to invest nearly $20 million in the transportation budget to support crew recruitment and retention and increase service to island communities.
• Affordability: Ferguson proposes $480 million to guarantee universal school lunches for every Washington student. He also proposes $100 million to expand child childcare eligibility for employees at small businesses. These proposals will improve student learning, reduce costs for thousands of Washington families, and support small businesses that fuel our economy.

Budget principles

Ferguson’s priorities document provides an overview of how he will approach budget decisions as Governor. Some core principles:

• Avoid legislation that includes hidden spending hikes: Too often, legislation is structured to include low spending in the early years of implementation, with significant increases in spending hidden outside the four-year budget outlook. This undermines the spirit of four-year balanced budgeting. We must stop passing legislation that delays implementation beyond the next biennium.
• Increase the percentage of our budget spent on basic education: The Washington state constitution calls education the “paramount duty” of our state. And yet, only 41.9% of the current budget proposal is spent on K-12 schools. Washington must increase, not decrease, the portion of our budget spent on K-12 education.
• Ensure strong budget reserves: Prudent fiscal leadership means ensuring that the state has adequate budget reserves to respond in times of crisis and to weather economic uncertainty. Draining the Rainy Day fund is an unsustainable budget practice with long-term consequences. Governor-elect Ferguson is committed to protecting the Rainy Day Fund to ensure Washington has sufficient budget reserves for emergencies.
• Support state employees: State employees provide essential services that make Washington a great state to live and raise a family. Washington must support the recruitment and retention of qualified, talented state employees by funding the 32 collective bargaining agreements negotiated by the Office of Financial Management.

Ferguson on revenue

“Washingtonians expect that we will increase revenue as a last resort,” Ferguson said. “I will not start contemplating additional revenue options until we have exhausted efforts to improve efficiency.”

State Senator and Former Sheriff John Lovick Will Lead the Transition Effort 

SEATTLE, WA – Today, Governor-elect Bob Ferguson announced that State Senator and former Snohomish County Sheriff John Lovick (D-Mill Creek) will chair his transition committee focused on improving public safety and increasing the number of well-trained law enforcement in Washington.  

“Our public safety challenges, including a statewide fentanyl epidemic, require immediate action,” said Ferguson. “Washington ranks last in the nation for law enforcement per capita. That’s unacceptable – it will change while I am Governor.” 

State Senator John Lovick is the former Snohomish County Sheriff and served in the Washington State Patrol for decades. The subcommittee will include a diverse group of stakeholders and will focus on strategies to improve safety, including:  

1. A $100 million grant program for local governments to hire more well-trained police officers;
2. Increasing resources within the Department of Corrections to pursue every individual who absconds from their court supervision responsibilities; and
3. Develop and implement a crisis response plan to combat the fentanyl epidemic. 

“I can’t think of a better focus for the next administration than improving public safety and I trust Governor-elect Ferguson on these tough issues,” said Lovick. “It is critical that people not only are safe but feel safe – in their homes, neighborhoods, and schools.”  

The subcommittee will include members of Ferguson’s bipartisan, 55-member Transition Team and other Washingtonians appointed by Lovick.  

Ferguson’s Transition Team will establish a strategic plan to help Ferguson implement his priorities for the first 100 days of his new administration. 

About Governor-Elect Bob Ferguson 

Bob Ferguson has dedicated his career to serving the people. He is completing his third term as Washington State's Attorney General. He is committed to improving government and building a stronger future by focusing on key issues such as public safety, health care costs and housing affordability, child care, education, and economic growth.  

SEATTLE — Washington Governor-Elect Bob Ferguson today announced the formation of a Transition Team tasked with ensuring a seamless transition into the new administration. The team is composed of a diverse group of experienced professionals and community leaders who will help with the preparation and implementation of Ferguson’s vision and priorities for Washington.

The bipartisan Transition Team consists of leaders from every region of the state. The Transition Team will work closely with Ferguson’s Executive Leadership Team, current administration officials, stakeholders, and community organizations to assess needs and establish a strategic plan to help Ferguson implement his priorities for the first 100 days of his new administration.

“Transition is a critical time for our state,” Ferguson said. “I’m grateful to this team for dedicating their time and energy to improving state government to better serve Washingtonians. We will focus on delivering practical, commonsense solutions to the challenges facing our state. This team brings a wealth of knowledge and experience. They will help us build a stronger Washington.”

The Transition Team will assist with all the key tasks of transitioning to a new administration, including:

• Developing strategies to implement Ferguson’s key budget and policy priorities for his first 100 days, including improving public safety, expanding housing opportunities, and increasing affordability for all Washingtonians.
• Recommending approaches and reforms to better deliver services for Washingtonians, including identifying efficiencies, improving customer service and making government more accessible and responsive.
• Identifying and vetting talented professionals who are interested in serving in Ferguson’s cabinet and throughout the administration.
• Identifying strategies to safeguard Washingtonians from the potential harms of another Trump administration and Project 2025.

The following individuals have been appointed to the Transition Team:

1. Jennifer Allen, CEO, Planned Parenthood of Washington
2. Lourdes Alvarado-Ramos, Former Director, State Dept. of Veterans Affairs
3. Jorge Baron, King County Councilmember
4. Andy Billig, former State Senate Majority Leader
5. Lisa Brown, Spokane Mayor
6. Mark Brown, former Department of Labor & Industries Director and Lacey Mayor
7. Marty Brown, former Office of Financial Management Director
8. Nick Bumpous, President, UA Local 598
9. Joan Crooks, former CEO, WA Environmental Council/ WA Conservation Voters
10. State Representative Tom Dent, LD 13
11. Djibril Diop, Legislative and Political Director, Washington Education Association
12. Denny Eliason, business advocate
13. Luke Esser, former State Representative, LD 48
14. Hugh Ewart, President Aduna Healthcare
15. Carl Florea, Leavenworth Mayor
16. Leo Fuller, attorney and Member of the University of Washington Board of Regents
17. Ollie Garrett, President TABOR 100
18. Faye Guenther, President, UFCW 3000
19. Sterling Harders, President SEIU 775
20. Paul Harris, State Senator-elect, LD 17
21. Toshiko Hasegawa, Port of Seattle Commissioner
22. Denny Heck, Lieutenant Governor
23. Curt Holmes, Vice Chair Kalispel Tribe
24. Gerry Johnson, Founder and Partner, Pacifica Law Group
25. Mary Kipp, President, Puget Sound Energy
26. Dennis Lawson, President, WA State Council of Fire Fighters
27. Marko Liias, State Senator, LD 23
28. Marty Loesch, former Chief of Staff to Governor Chris Gregoire
29. John Lovick, State Senator, LD 44
30. Alyssa Macy, CEO, Washington Conservation Action
31. Mamie Marcuss, former Chief of Staff to AG Ferguson
32. Jaime Martin, Snoqualmie Tribe
33. Dave Mastin, former State Representative, LD 16
34. Anne Mcenerny-Ogle, Vancouver Mayor
35. Sylvia Miller, Vice Chair, Puyallup Tribe of Indians
36. Hamdi Mohamed, Port of Seattle Commissioner
37. Mark Mullet, former State Senator, LD 5
38. Tim Probst, former State Senator, LD 49
39. Paula Sardinas, small business owner and advocate
40. Tana Senn, State Representative, LD 41
41. Fawn Sharp, Vice Chair, Quinault Tribe
42. April Sims, President, Washington State Labor Council
43. Dave Somers, Snohomish County Executive
44. Steve Strachan, Executive Director, WA Association of Sheriffs and of Police Chiefs
45. Neil Strege, WA Roundtable
46. Monica Stonier, State Representative, LD 49
47. Rachel Smith, CEO, Seattle Metropolitan Chamber of Commerce
48. Yasmin Trudeau, State Senator, LD 27
49. Billy Wallace, Washington and N. Idaho District Council of Laborers
50. Victoria Woodards, Tacoma Mayor
51. Sam Virk, small business owner
52. Sung Yang, former Chief of Staff to King County Executive Dow Constantine

Ferguson’s transition work has already begun, starting with last week’s announcement of his executive leadership team. Christian Sinderman will serve as Transition Coordinator. The Transition Team will meet for the first time on Friday, November 22. Updates will be shared with the public regularly as the process unfolds.

Ferguson will prioritize improving system and service
MUKILTEO – Today, Governor-elect Ferguson held his first events focused on the Washington state ferry system. The events in Mukilteo and Clinton included meetings with Washington State Ferries staff, members of the Inlandboatman’s Union (IBU) and the Marine Engineers Benefits Association (MEBA), a tour of the vessel, and a listening session in Clinton with local elected officials, business leaders, and ferry commuters.

“It is critical that we improve ferry service,” said Governor-elect Ferguson. “I heard again today how essential ferries to helping island communities access health care, jobs, and education. Washingtonians deserve service they can count on, and that is why addressing the ferry crisis is a priority for my administration.”

Ferguson has also directed his Transition Team to develop proposed reforms to improve the reliability and service of Washington State Ferries. The Transition Team, a 55-member group made up of stakeholders from across Washington State, includes a subcommittee with a focus on transportation infrastructure and the ferry system. The subcommittee will develop policy priorities for the first 100 days of Ferguson’s term, including key reforms to improve ferry reliability and service.

Ferguson shared the direction of some of those potential reforms during his listening sessions, which include:

• Elevating the Director of Ferries within the Department of Transportation and Executive cabinet to improve accountability and direct communications;
• Procurement reforms that could accelerate delivery of new vessels;
• Research alternatives for updating the propulsion systems to minimize service disruptions;
• Continue addressing to staff training and retention priorities to improve and restore services;
• Create customer involvement programs that improve outreach, responsiveness, and feedback.

The input from workers, passengers, and local businesses will help shape Ferguson’s proposed ferry system reforms. Ferguson’s tour fulfills his pledge to meet with communities impacted by ferry service during his transition.

The event is the first in Governor-elect Ferguson’s planned outreach and engagement to ferry-impacted communities. He will visit San Juan County later in 2025.

Ferguson will be sworn in on January 15, 2025.

Housing Committee will be chaired by Lieutenant Governor Denny Heck 

OLYMPIA, WA – Today, Governor-elect Bob Ferguson announced the first of twelve Transition Team subcommittees. The subcommittee, chaired by Lieutenant Governor Denny Heck, will focus on Ferguson’s housing priorities for the first 100 days of his term.  

The Housing Subcommittee will include members of Ferguson’s bipartisan Transition Team and key stakeholders from across the state, to be determined by the Lieutenant Governor. 

“Housing affordability is a crisis in every corner of our state,” said Governor-elect Ferguson. “We need to address this challenge with statewide, urgent action to cut through bureaucracy and build more housing, protect renters and families on the brink, and address high housing costs that hurt our economy and Washington families.” 

"Governor-elect Ferguson truly understands that we need to build more homes of all kinds for all our neighbors, especially affordable homes. I am honored to help him in this effort," Lieutenant Governor Denny Heck said. "By many measures Washington state has the most acute housing shortage. When so many cannot afford to live in the community in which they work, we know this an urgent problem that demands decisive action.” 

Ferguson campaigned on a pledge to build 200,000 units of housing in his first term.  

The Housing Subcommittee will outline a legislative strategy focused on Governor-elect Ferguson’s key housing priorities such as:  

1. Increasing the housing supply by passing and implementing permitting and zoning reforms to build all forms of housing including subsidized affordable housing for people with low and very low incomes, workforce housing, “missing middle” housing for working- and middle-class families, and market rate housing. 

1. Working with stakeholders to pass eviction reforms and pass other common-sense protections that safeguard renters from predatory rent increases and acknowledge the critical role of small landlords in providing affordable housing. 

The 55-member Transition Team will work closely with Ferguson’s Executive Leadership Team, current administration officials, stakeholders, and community organizations to assess needs and establish a strategic plan to help Ferguson implement his priorities for the first 100 days of his new administration. The other subcommittees will be announced in the coming days. 

About Governor-elect Bob Ferguson 

Bob Ferguson has dedicated his career to serving the people. He is completing his third term as Washington State's Attorney General. He is committed to improving government and building a stronger future by focusing on key issues such as public safety, health care costs and housing affordability, child care, education, and economic growth.