VANCOUVER, Wash. — Former Washington Democratic Governor Christine Gregoire delivered sharp criticism of the state’s fiscal management during the Association of Washington Business 2026 Summit in Vancouver earlier this month.
Gregoire, who now serves as CEO of Challenge Seattle, a coalition of business leaders addressing regional issues, said the state budget has ballooned dramatically since her tenure ended.
“I left office with a budget of 33 billion, and the budget today is 80 billion. I think that’s a little bit too much of a growth. And yet how we find ourselves at the end of every legislative session now is in the hole and projected to be in the hole,” Gregoire said during her summit appearance.
The former governor’s comments highlight growing tensions between the business community and state government over fiscal policy. Gregoire, who served as governor from 2005-2013, said that Washington doesn’t have an income problem but a spending problem.
Former Washington Attorney General Rob McKenna joined Gregoire at the conference, where both warned that recently implemented taxes are prompting companies to relocate operations outside the state. McKenna specifically cited the cumulative impact of multiple tax measures as a breaking point for businesses.
“The income tax is not just the straw in the camel’s back. It’s the log that’s going to break the camel’s back because it comes on top of the capital gains tax. It comes on top of the estate tax, which fortunately is at least for now, lowered again,” McKenna said.
Gregoire also pointed to the sales tax on services as an example of policies that have negatively affected both businesses and consumers. She noted that while the tax was positioned as targeting large corporations, small businesses and their customers have experienced significant adverse impacts.
Gregoire expressed frustration with the disconnect between increased taxation and improved outcomes for residents.
“All too often what we’re finding is we’re paying the tax and things are getting worse. So how do we answer to that?” she said.
McKenna addressed the relationship between business leaders and state lawmakers, suggesting that companies often feel their concerns are dismissed when they attempt to engage with the legislative process.
If you’d like the watch the video of Gregoire and McKenna, click here.
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