Lawmakers write and vote on the budget, but the governor signs it into effect.
When the 2025-27 budget arrives on Gov. Bob Ferguson's desk next month, he will make a critical decision on state employees' pay.
Ferguson, who was endorsed by dozens of workers unions during his run for governor last year, must decide whether to honor a collective bargaining agreement for tens of thousands of public workers to the tune of $1.65 billion over the next two years amid a budget crisis. He'll also have the final say on whether to impose furloughs for savings.
The collective bargaining agreements were negotiated with then-Gov. Jay Inslee's administration at the end of 2024, before Ferguson assumed office. They included general wage increases of 5% over the next two years and additional boosts for certain job classifications.
The tentative agreement requires funding from the Legislature and a signature from Ferguson to take effect.
Ferguson pledged to honor the raises when he unveiled $4 billion in proposed cuts in February. But his proposal included one furlough day per month over the two-year period for an estimated $300 million in savings for the state.
The furloughs drew criticism from state employees who rallied on the steps of the legislative building in Olympia, where they described Ferguson's proposal as a betrayal. Staff at the state Attorney General's Office also walked out in protest of proposed furloughs and cuts.
"I value their feedback on our budget situation, and welcome any thoughts they have on how we can close the $16 billion budget shortfall I've inherited as a new governor," Ferguson said in response to Thursday's walkout.
The House and Senate budget proposals released Monday indicate that Democrats in both chambers agree with Ferguson about the negotiated wage increases. But the Senate budget calls for 13 furlough days for most state employees during the next fiscal year, which equates to a 5% salary reduction and results in $175 million in savings.
Meanwhile, the House budget honors the raises without furloughs. Rep. Timm Ormsby, D-Spokane, said reductions were made at the agency level by scaling back travel, professional development, equipment and service contracts, and board funding. House Democrats, he said, also looked at agencies that previously underspent.
Both budgets rely on new revenue.
Ferguson, who has referred to taxes as a "last resort," has, so far, not weighed in on a tax package from Democrats that includes taxing the state's wealthiest individuals and largest corporations and lifting the cap on property taxes. Ferguson has pitched about $7 billion in cuts — which includes $3 billion in cuts proposed by Inslee in December — leaving significant ground to cover in order to shore up the estimated hole in the budget of up to $16 billion.
Senate Republicans proposed forgoing raises altogether and giving state employees a $5,000 bonus instead with the option to renegotiate with Ferguson's administration. The bonuses would cost an estimated $420 million and their plan does not include furloughs.
Sen. Chris Gildon, R-Puyallup, said that Inslee left Ferguson in an "impossible" situation. Funding the agreement and signing off on the tax increases needed to do so, he said, would be a "defining moment of your time as governor during your first 100 days."
But choosing not to implement the agreement is also a "horrible choice," Gildon said. "Because a lot of these state workers, the unions, are the ones to help put him in office."
While Ferguson and Democratic lawmakers seemingly agree they need to honor the raises, the debate will likely center on whether or not employees will face furloughs or another form of a pay cut in the final budget.
Ferguson's office declined to answer questions about his position on other proposals but said he is in the process of reviewing the House and Senate budgets.
Rep. Shaun Scott, D-Seattle, said Washington needs to live up to its reputation as a progressive state. "We didn't elect a Republican governor and we didn't elect Republicans to majorities in the state Senate," he said.
"It's time for us to affirm our commitment to fully funding the public sector, and for us to stop behaving like the other Washington."
Scott and state employee unions share the view that Washingtonians, especially the state's wealthiest residents, need to pay their fair share.
Amanda Hacker, president of the Washington Public Employees Association, said members were disappointed by Ferguson's proposal. WPEA endorsed Ferguson during the campaign cycle.
"The governor and the legislature are facing a choice right now: they can follow the Trump/Musk model and dismantle public services and hurt public employees — or they can meet this moment by taking steps to fix the tax code, reject cuts to public services and invest in Washingtonians," Hacker said in an email.
Mike Yestramski, president of the Washington Federation of State Employees, also criticized the furloughs. He said the proposals result in pay cuts and wipe away progress made by the negotiations.
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