Former Democratic Governors Warn Washington Has a Spending Problem + Did the World Cup Help Seattle?

Two former Democratic governors are raising serious concerns about Washington state spending, while business leaders, correctional officers and Seattle hotel operators report new challenges involving the state’s economy, public safety and World Cup results. Former Washington Gov. Gary Locke criticized Olympia’s budget process during the Association of Washington Business Economic Future Solutions Summit. Locke warned against using one-time revenue to fund permanent government programs and said voters could lose trust when money approved for one purpose is later redirected elsewhere. Locke described that practice as a potential “bait and switch” and questioned why Washington continues to face projected budget deficits despite record revenue and recently approved taxes. Former Gov. Christine Gregoire has issued a similar warning. Gregoire noted that Washington’s operating budget has grown from approximately $33 billion when she left office to roughly $80 billion today. She argued that the state does not have an income problem but a spending problem and warned that repeatedly adding taxes, regulations and new costs creates uncertainty for Washington businesses. Kelly Chambers, a former Washington state representative who now serves as a regional administrator for the U.S. Small Business Administration, also discussed the contrast between the business climates in Washington and Idaho. Chambers said companies are leaving Washington, Seattle office vacancies remain high and declining commercial property values can shift more of the tax burden onto residents. She said many businesses want to remain in Washington but need an economic environment that allows them to expand, hire workers and become the next major homegrown employer. The episode also examines major safety concerns inside King County correctional facilities. King County Correctional Officers Guild President Dennis Folk says inmates have been breaking electronic tablets and using glass and metal components to make homemade weapons. Folk described an incident in which an inmate allegedly attempted to stab officers with a weapon made from tablet materials. He also questioned why inmates who intentionally destroy the devices can reportedly receive replacement tablets. King County officials say the tablet program provides access to legal resources, education and family communication, but acknowledged that devices can be misused. Questions remain about disciplinary consequences, replacement policies and whether inmates face charges for damaging county property or possessing weapons. Finally, new hotel data show Seattle sold fewer rooms during the World Cup than during the same period last year. Occupancy reportedly declined approximately 7% in June and 5.7% in July, although hotels raised room rates around match days to offset some of the decline. Some operators had reserved rooms based on expectations of strong FIFA demand and turned away conventions or conferences that normally visit Seattle during the summer. When the anticipated bookings failed to fully materialize, it was too late to recover some of that business. Despite the hotel results, more than 3 million people reportedly visited downtown Seattle across six World Cup match days. Downtown Seattle Association President and CEO John Scholes said investments in the waterfront, transit, walkability and a stadium near the urban core created a strong experience for visitors and residents. Watch Washington In Focus Daily for the latest reporting on Washington taxes, state government spending, the regional business climate, King County jail safety, Seattle tourism and the economic impact of the World Cup.