RELEASE: Response to Gov. Ferguson’s Announcement on Budget Savings & Efficiencies

In response to Gov. Bob Ferguson’s announcement of his budget savings and efficiencies recommendations on Feb. 27, the Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce and Washington Roundtable issued this joint statement:

 

“We applaud Gov. Bob Ferguson for his efforts to make state government more efficient and effective and we are reviewing his proposals to reduce agency spending. His approach — deep diving into department budgets for savings and course corrections and focusing on impact and results — is refreshing.

 

Alternatively, over the past two weeks, some have been amplifying a previously developed, all-cuts proposal from the former Governor. That proposal is unrealistic and creates false choices between raising taxes and cutting important programs. Furthermore, it does not address previous spending choices by the legislature that actually created the state’s projected budget shortfall. New policy spending grew by almost $14 billion during the last two biennia, driven by things like expansion of programs and eligibility, increased salary and reimbursement rates, and the creation of new initiatives that have yet to begin. Instead of addressing those cost drivers, this proposal suggests cutting core services that Washingtonians have relied on for years. We are not here because of a recession. We are here due to overspending.

 

Rather than addressing the decisions that created the budget shortfall, this approach serves only to stoke fears, justify tax increases, and manufacture a false choice between drastic reductions and sweeping tax hikes. This only deepens public skepticism. According to recent polling, 65% of Washingtonians do not trust lawmakers to spend their tax dollars responsibly, and 75% don’t believe the Legislature has a plan to address the state’s most critical issues. Voters also overwhelmingly believe that if taxes are raised for businesses, those costs will be passed on to customers, resulting in an even higher cost of living for Washingtonians.

 

We thank Gov. Ferguson for working to make sure the state’s taxpayers get better results for the investments they are making.”

 

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About the Seattle Metropolitan Chamber of Commerce

The Seattle Metropolitan (Seattle Metro) Chamber of Commerce is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,500 members to promote inclusive economic prosperity. Founded in 1882 by local business leaders, the Chamber today is an independent organization representing a regional workforce of approximately 750,000. For more information, visit www.seattlechamber.com.

 

About Washington Roundtable
Washington Roundtable is a nonprofit organization comprised of senior executives of major private sector employers in Washington state. Roundtable members work together to effect positive change on public policy issues that they believe are most important to supporting state economic vitality and fostering opportunity for all Washingtonians

 

About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association representing all sectors of business. AWB serves as both the state’s chamber of commerce and the manufacturers association. While its membership includes major employers like Boeing and Microsoft, 90% of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org.

 

About the Bellevue Chamber
With hundreds of members representing tens of thousands of employees, the Bellevue Chamber is the relationship, policy, and business development hub for organizations throughout the Puget Sound region. We connect businesses with potential employees, sales opportunities, and social engagement, and provide our members access to industry experts and real-time information impacting our city and the Eastside. Learn more at bellevuechamber.org.

Around the Table: Seattle Hospitality Group, Alaska Airlines, Virginia Mason Franciscan Health & More

Pleased to share some recent news from across the Washington Roundtable member this month:

Community Engagement & Impact: Seattle Hospitality Group’s Howard Wright joined the Washington State University’s Board of Regents – it’s great to have his voice in this important space. Reflecting on 2024, Windermere Real Estate reported its impact on the community, and it’s a powerful example of community engagement.

Industry Developments & Accolades: Congrats to Windermere Real Estate’s Geoff Wood on being named to Inman’s 2025 Power Players List; to Alaska Airlines’ Ben Minicucci on being named a Washington Post’s Post Next 50 honoree; to Microsoft on being named one of Glassdoor’s Best Places to work in 2025; and to Virginia Mason Franciscan Health‘s Virginia Mason Medical Center and the Center for Digestive Health on being recognized as one of America’s Best Weight Loss Clinics and Centers for 2025. Also, taking note of a tremendous milestone, congrats to PACCAR on its 120th anniversary!

Thought Leadership: In case you missed it, Russell Investments’ Zach Buchwald recently authored this article on the importance of financial education.

Announcement: Roundtable Leadership Transition

Washington Roundtable Prepares for Leadership Transition; Steve Mullin to Step Down After Three Decades of Service

Washington Roundtable today announced that its longtime president, Steve Mullin, will step away from his role in late 2025, concluding more than three decades of service to the organization and its education foundation, Partnership for Learning. The Washington Roundtable board has engaged global executive search firm Egon Zehnder to lead the search for Mullin’s successor, with the goal of naming a new president later this year.

For more than 40 years, the Washington Roundtable has been a forum where senior private sector leaders come together to align on a shared agenda to support economic vitality and expand opportunity statewide. Mullin joined the organization in 1996 after serving as the founding executive director of Partnership for Learning, which he launched in 1994. He assumed the role of Roundtable president in 2004. Under his leadership, the Roundtable has championed major infrastructure investments, sustainable state fiscal policies, and initiatives to significantly improve education outcomes for Washington students—efforts that are critical to ensuring Washington remains a place where families, businesses, and communities thrive.

Reflecting on his tenure, Mullin stated, “It has been an incredible privilege to work alongside Washington’s business leaders to advance policies that support economic growth and expand opportunity across our state. I am grateful for the partnerships we have built and the progress we have made together to ensure a strong future for Washington.”

Washington Roundtable Chair Julie Sandler praised Mullin’s contributions, saying, “Steve’s leadership has been instrumental in positioning the Washington Roundtable as a highly effective, solutions-oriented voice in state policy. He has helped drive impact on issues ranging from transportation investment to improving education outcomes, and his commitment to collaboration has strengthened partnerships across the private and public sectors. We are deeply grateful for his service and look forward to celebrating his legacy over the next year.”

Before joining the Roundtable, Mullin built a career in public policy and government, holding positions with several Seattle-based public affairs consulting firms. He served in policy and political roles for Senator Dan Evans, Governor John Spellman, Senator Slade Gorton, and Lt. Governor Joel Pritchard, as well as on the nonpartisan staff of the Washington State Legislature. In addition to leading the Roundtable, he has been an active member of Washington’s civic and nonprofit communities, serving in leadership roles with organizations focused on healthcare, workforce development, transportation, and social services.

About Washington Roundtable
Washington Roundtable is a nonprofit organization comprised of senior executives of major private sector employers in Washington state. Our members work together to effect positive change on public policy issues that they believe are most important to supporting state economic vitality and fostering opportunity for all Washingtonians.

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Media Contact: Sara Garrettson, sara@waroundtable.com, 206-623-0180

Opinion: Time to Reset Washington’s Budget Approach

In a new Washington State Standard column, the Washington Roundtable and fellow business leaders call for a budget reset—one that prioritizes accountability, ensures tax dollars are used effectively, and delivers measurable results. Read more:

February 3, 2025

Commentary
Budget reset: Stop the cycle of overspending — show voters the results

By: Dave Mastin, Rachel Smith, and Neil Strege

Shortly after being elected, Gov. Bob Ferguson convened a diverse transition team to advise him on priorities like health care, education, infrastructure investment, and more. Among the many subcommittees formed, the Budget and Government Efficiency group sought to tackle some of the state’s most pressing fiscal challenges, including how to approach an estimated $12 billion projected budget shortfall over the next four years.

Our three organizations had the privilege to participate in this effort, with Seattle Metropolitan Chamber of Commerce CEO Rachel Smith co-chairing the Budget and Government Efficiency group alongside outgoing Democratic state Sen. Mark Mullet. A diverse group engaged in healthy debate, and the outcome is one we are proud of.

The group’s report highlighted fiscal practices that have made their way into the daily workings of Olympia budget-writing in recent years, namely budgeting beyond our means, using rainy day funds — even without an emergency, and relying on unsustainable budget maneuvers to balance the books. Such practices do not serve Washington communities and residents well, only adding to a cycle of overspending and then having to pull back and problem-solve.

To break this cycle, the report urges lawmakers to:

  • Refrain from spending one-time money on ongoing programs.
  • Start new programs only with sustainable funding, and importantly, budget within forecasted revenues.
  • Drive savings through efficiencies, rightsizing fees, collecting debts, and retooling programs to reduce costs and improve service.

The report does not consider taking money from city or county governments, asking state employees to take pay cuts or furloughs, or changing collective bargaining agreements. Rather, we encouraged officials to take actions that will incentivize economic activity and avoid actions that would disincentivize it.

These principles align with observations included in the governor’s budget priorities, where he emphasized: “I will not contemplate additional revenue options until we have exhausted efforts to improve efficiency.”

And we know, the public agrees. Poll after poll confirms Washington voters want policymakers to review current budget practices and spending before considering additional taxes.

Washingtonians care deeply about making progress on public safety, homelessness, and housing affordability. They overwhelmingly value small and local businesses and the jobs they create. The public cares about our economy and how it impacts their own economic situation, and they expect economic health will be considered before discussions about new taxes.

We see a lot of alignment between Governor Ferguson, the public and employers. That’s why we are concerned by what we are hearing from some policymakers and advocates. Some of this discussion feels out of step with these shared priorities. Two-thirds of Washington voters already don’t trust state government to use their tax dollars wisely, and proposals to tax jobs and talking points that characterize some taxpayers as “villains” only further erodes trust in government — and it jeopardizes Washington’s economic opportunity and future.

Tax policy is serious business — and taxes should be fair — but this kind of dialogue serves only to divide. Further, a tax-first, plan-later approach will not deliver the results our communities need.

We have an opportunity for a reset.

Washington’s success is built on healthy employers who create, sustain, and grow good jobs. That’s part of what makes this place so great.

This strong foundation has fueled prosperity for the people who live here, doubled state tax revenues over the past decade for government services, and enabled us to make major progress in education, housing, infrastructure, and clean energy.

To preserve this progress and address the challenges ahead, we hope policymakers will follow Governor Ferguson’s lead by:

  • Conducting a serious analysis of the budget, rejecting or modifying policy decisions that undermine sustainability, and embracing, in Governor Ferguson’s words, “prudent fiscal leadership.”
  • Protecting investment in the public’s priorities, including public safety and education.
  • Diving deep into agencies or programs to identify opportunities to support — or course correct — for improvement, efficiency and better outcomes.

We are optimistic going into 2025 — optimistic that we can support our communities, grow our economy and jobs, and work in partnership to get important things done. And we look forward to working with lawmakers to keep Washington moving forward.

Dave Mastin is the vice president of government affairs at the Association of Washington Business.
Rachel Smith serves as the president and CEO of the Seattle Metropolitan Chamber of Commerce.
Neil Strege is vice president of the Washington Roundtable.