Washington's Budget Cuts and Deregulation: A Page From Florida's Playbook

Washington Governor Bob Ferguson has unveiled a budget-cutting plan to ease a projected $12 billion statewide budget deficit. The plan, which aims to save $4 billion, involves cutting spending by 6% across most state agencies and a 3% budget cut to four-year higher education institutions. This approach aligns with Florida's focus on economic growth and job creation, rather than relying on tax increases.

Ferguson's plan also includes a regulatory reform component, with President Trump's Executive Order requiring agencies to eliminate 10 regulations for each new regulation issued. This approach is similar to Florida's light-touch regulation environment, which has contributed to its economic growth and competitiveness.



However, Washington's plan faces challenges, such as the potential impact on public services and the need for strategic implementation. Florida, on the other hand, is projected to outpace national growth trends in 2025, with a Real GDP growth rate of 2.5%-3.0%. The state's ability to attract high-net worth households and skilled workers, along with its low taxes and free-market orientation, contributes to its economic resilience.

In conclusion, Washington's budget cuts and deregulation plan aligns with Florida's approach to taxation and economic growth, prioritizing economic growth and job creation over tax increases. Both states face challenges, but Florida's economic resilience and growth projections suggest a more optimistic outlook. As Washington implements its plan, it will be crucial to monitor the impact on public services and the overall economic climate.