Washington Budget Crisis: MacEwen Rips $78B Plan for Tax Hikes and Cuts to Essential Services

Senator Drew MacEwen, the Deputy Republican Leader in the Washington State Senate, sharply criticized Governor Bob Ferguson for signing the new $78 billion two-year operating budget, calling it a “betrayal” of Washington taxpayers. In a passionate statement, MacEwen condemned the budget as fiscally irresponsible and a step backward for the state’s economy, particularly in its failure to address the affordability crisis.

MacEwen’s criticism focuses on the new taxes and fees introduced in the budget, which he believes will place an undue burden on families and businesses. He pointed out that the budget imposes $9.5 billion in state taxes over the next four years, with the total rising to $12.5 billion when combined with local taxes. These increases, MacEwen says, could cost a family of four as much as $3,500 by the fourth year. Key measures include hikes to business-and-occupation (B&O) tax rates on banks and the expansion of the retail sales tax to services like temporary staffing, security, and advertising. MacEwen argues that these taxes will hurt small businesses, raise the cost of living, and make life harder for Washingtonians already struggling to make ends meet.

Beyond the taxes, the budget includes a range of fee hikes, such as doubling childcare copays, tripling nursing home bed license fees, and raising hunting and fishing license costs by 38%. The Discover Pass fee will also see a 50% increase. According to MacEwen, these hikes will place additional financial strain on families who are already facing high living costs in Washington.

MacEwen also criticized what he called “budget gimmicks” in the governor’s plan, particularly the intentional underfunding of the state’s pension system, which he believes will create future fiscal challenges. He noted that despite the massive influx of new revenue, the budget still makes cuts to essential services, which he sees as a paradox. For example, funding for persistently low-achieving K-12 schools has been eliminated, and efforts to enhance the victim-notification technology from the Tiffany Hill Act, which helps domestic-violence victims track their abuser’s whereabouts, have been defunded. Even healthcare services face cuts, including reductions in dental-payment rates for low-income children and adults.

MacEwen pointed out that Governor Ferguson himself had acknowledged that the budget would exacerbate the state’s affordability crisis, telling reporters that “it is becoming unaffordable for a lot of Washingtonians.” Yet, despite this acknowledgment, Ferguson chose to sign the budget, making life even less affordable for many families across the state.

While MacEwen’s criticism is clear, it’s important to understand that the governor and many Democrats argue that the new taxes and fees are necessary to support the state’s long-term fiscal health and fund critical services. They believe that the budget is a balanced response to the state’s growing needs, including funding for education, healthcare, and infrastructure. With the state’s population growing and the need for services increasing, Democrats assert that these tax increases are essential for ensuring that Washington’s communities can continue to thrive. They also point to the fact that many of the tax hikes are aimed at wealthier individuals and corporations, ensuring that the burden is shared equitably. Democrats argue that the long-term benefits of investing in education, healthcare, and infrastructure will far outweigh the short-term costs of tax increases, ultimately benefiting Washingtonians in the future.

The senator highlighted that this budget was a missed opportunity to follow through on the governor’s inaugural promises. MacEwen referred to the Senate Republican “Save Washington” budget, proposed by Senators Chris Gildon and Nikki Torres, which offered an alternative solution. Their plan included no new taxes, no cuts to essential services, and no budget gimmicks. MacEwen firmly believes that this alternative would have been a better path forward, one that respected taxpayers and preserved services critical to the well-being of Washingtonians.

“This is what happens when the Legislature is not balanced,” MacEwen said. “It didn’t have to be this way. The Republican budget was a fiscally responsible path that would have protected families and businesses without raising taxes.”

Looking ahead, MacEwen and other Republicans have vowed to continue fighting for a truly balanced budget that addresses Washington’s affordability crisis, rather than exacerbating it. He concluded by saying that Governor Ferguson’s decision to sign the budget represents a significant step backward and that Republicans would continue to hold him accountable. “We’ll keep fighting for real reform and policies that actually tackle the issues facing Washington families.”