What a “No Revenue” budget means for workers

State House Democrats warn of catastrophic cuts to services that save lives if the Legislature seeks to balance the budget without raising revenue 

OLYMPIA, WA (February 24, 2025) — Washington State is facing a budget deficit. As the Legislature considers proposals to address this shortfall, Democrats in the State House have launched a website detailing the consequences of a budget that calls for no new revenue from taxing major corporations and the ultrawealthy, instead relying entirely on cuts. The result? A budget that devastates programs working families rely on.

The site, What Does A “No Revenue” Budget Mean?, pulls data from Governor Inslee’s “Book 1” budget, released before he left office. It’s an example of an “all cuts, no revenue” budget, based on current law, assuming no new taxes or changes to policies during the 2025 Legislative Session. The information on cuts in the Book 1 budget was compiled by nonpartisan legislative staff.

While Inslee’s budget isn’t in play, Governor Ferguson and the Legislature have not yet embraced a new revenue plan to address the funding shortfall. But Book 1 is an example of the depth of budget cuts needed to balance the budget without new revenue — and a warning of the disastrous, long-term consequences of austerity for working families across Washington.

Those cuts could include nearly $3.5 billion ripped away from Washingtonian’s healthcare, slashing funding for children’s health insurance, medicaid pharmacy coverage, and reproductive health services.

More than $1 billion could be taken from higher education, with across the board cuts at all institutions, cuts that will pull opportunities away from working families, especially in eastern Washington.

Over $1 billion in funding for longterm care and supportive housing could be lost.

Early learning funding cuts could be profound: ECEAP — the state’s early learning program, which helps families and young children thrive — would see $263 million in cuts, entirely eliminating Early ECEAP, which helps promote prenatal health and support infants and toddlers.

Over $300 million would be stripped from food security and assistance, including cuts to TANF, an essential lifeline for working families who fall on hard times, as well as cuts to programs providing nutrition support for seniors.

These cuts come at a time when many working families are already struggling to afford the high costs of healthcare, groceries, and housing. A “No Revenue” budget cutting critical support services only deepens that economic pain. And since Washington’s existing tax code requires workers to pay proportionally more in taxes than the ultrawealthy, working families won’t just lose services; they’ll be left footing the bill.