Infrastructure, a proposed wealth tax and Washington's efforts to recover from damage wrought by several days of severe flooding in December dominated Gov. Bob Ferguson's first State of the State speech.
Ferguson, who was sworn in as governor Jan. 15, 2025, acknowledged challenges, but leaned toward optimism based on the state's history of recovering from hard times and residents' resilience. He took a much different tone than the reformer mantra in his inaugural speech.
"To keep our growth going, let's get back to basics, invest in our infrastructure, make our tax system more fair, and continue our progress on addressing the housing crisis," Ferguson said Tuesday. "In the next two months, let's create history — to make the state of our state even stronger."
He asked lawmakers to take bold actions during the 60-day legislative session to invest in infrastructure, housing, and to approve changes to make the state's tax system more equitable. Lawmakers opened the short session Monday, during which they will make adjustments to the $79 billion 2025-27 biennium budget Ferguson signed in May.
He called Washington's tax structure an upside-down system in boosting the
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Transportation projects, including maintenance that has been deferred over decades in addition to repairs from storm damage, will be paid for with bonds backed by new taxes and fee increases included in the 2025-2027 transportation budget approved in May, a move opposed by Republicans. Ferguson is a Democrat and the party controls both houses of the legislature.
His budget includes $225 million in bonds to support the state's Housing Trust Fund in the capital projects budget, which he said will build or preserve 4,000 housing units.
Ferguson said federal policy changes are creating division and costs for the state, including the exodus of scientific experts and shifting policy at the Centers for Disease Control and Prevention and turmoil wrought by Immigration and Custom Enforcement agents.
He asked lawmakers to embrace the spirit of bipartisanship. He cited multiple bipartisan proposals before the Legislature he supports, including a bill that prohibits law enforcement from wearing masks and requires identifying information to be clearly displayed on uniforms.
Last month, he said, historic flooding caused tremendous damage and hardship to thousands of Washingtonians, but the heart and spirit of residents helped the state overcome challenges.
"Government gets its share of criticism. But it's only fair to stop and notice when government delivers, especially under the most challenging and stressful circumstances. We were not passive observers of a historic event," Ferguson said. "Quite the opposite. When the story of this historic flood is written, it will recognize that when history paid us an unexpected visit in December, the people and this state stepped up, and faced the challenge head on."
Republicans strongly criticized Ferguson's speech, particularly his embrace of a "millionaire's tax" and perceived shift from the moderate tone he used in his inaugural speech. They argue the focus should be on fiscal responsibility and reducing the cost of living without raising taxes.
Republican Sen. Keith Wagoner of Sedro-Wooley, who gave the Republican response to Ferguson's speech, noted the governor downplayed the need for significant tax hikes in his inaugural speech emphasizing a preference for spending cuts and government efficiency to address last year's projected multi-billion shortfall.
"He said he would not sign a budget built on new and higher taxes," Wagoner recalled. "Less than five months later, the governor signed the majority Democrats' bloated budget and the largest tax increase in Washington's history. Whether he never intended to keep his word or simply couldn't muster the courage to stand up to his party, it doesn't really matter."
"I have a question: Which Bob Ferguson will we get this session?" Wagoner asked.
