Inslee warns against budget cuts, unveils official portrait on final day as governor

Outgoing Gov. Jay Inslee addressed the Legislature on Tuesday, his last full day in office, bidding Washingtonians “fair winds and following seas” in the final speech of his 12-year run leading the Evergreen State.

He spent several minutes on one of the most pressing issues facing the state this year: the budget.

Inslee cautioned lawmakers against making deep spending cuts as they navigate the state’s looming budget gap, like those that were made in response to the Great Recession in the late 2000s.

“It took years to build back what we lost in that era,” Inslee said, urging lawmakers to follow his proposal laid out in December that included roughly $2 billion in cuts. “Pruning significantly more than that, I would consider a slide back to those dark days.”

RELATED: Inslee’s final spending proposal: Tax the rich to close budget gap

Officials estimate the current budget shortfall could range anywhere between $10-16 billion over the next four years, depending on how much new spending the Legislature pursues this session.

A main component of Inslee’s December budget pitch is a 1% tax for the state’s richest residents on “worldwide wealth” over $100 million, which he says could generate more than $10 billion over the next four years.

Inslee’s focus on the budget in his final speech comes just days after his successor, Governor-elect Bob Ferguson, who takes office on Wednesday, unveiled a list of budget priorities that emphasizes a cuts-first approach, and expressed skepticism over talks about new taxes.

RELATED: Gov-elect Ferguson 'skeptical' of wealth tax, pitches broad cuts to address WA budget gap

“You've got to make your priorities,” Ferguson said, comparing his budget approach to how a family might handle a tight budget scenario. “You've got to decide what's most important, you've got to cut things you can cut, and that's what we'll be doing as a state.”

In his final speech, the outgoing governor seemed to reject the idea of making broad cuts.

“Abstract numerical cuts cause concrete personal pain,” Inslee said.

Inslee’s budget proposal is largely seen as a starting point for lawmakers, but ultimately Ferguson will be the one signing – or vetoing – parts of the budget after the Legislature strikes a deal in the coming months.

Much of the rest of Inslee’s speech was full of praise for past policy changes on issues like climate, housing, civil rights and gun regulations. He also warned lawmakers against making changes to how money from the Climate Commitment Act’s cap-and-trade program is spent. Voters elected to preserve the Climate Commitment Act last fall, and Republicans have repeatedly called for more flexibility with that funding.

“It’s called the Climate Commitment Act for a reason,” Inslee said. “We ought to honor that commitment.”

Inslee’s remarks also included words of warning and encouragement to lawmakers ahead of the incoming Trump administration, and – as usual – included at least one more sports reference.

“Although my administration’s time is at an end, we’ve been running full speed ‘through the tape,’ and now we are passing the baton,” he said, referring to his state of the state speech in 2024, which centered around a track-running metaphor.

Following his speech, the governor’s official portrait was unveiled. It was painted by artist Grace Athena Flott, from Seattle.