OLYMPIA, WA (MyBellinghamNow.com) – Gov. Bob Ferguson has released his proposal to address the state’s multi-billion-dollar budget shortfall.

Ferguson’s proposed budget follows through on his promise to not raise taxes for residents.

Instead, it seeks to end certain tax breaks for large corporations, make significant cuts at state agencies and utilize $1 billion from the state’s rainy day fund.

It would also pull nearly $600 million in revenue from the state’s Climate Commitment Act fund to support tax and energy credits for families. Ferguson estimates the current deficit at about $2.3 billion.

Aside from the budget, the governor voiced his support for a proposed income tax on residents earning more than $1 million per year.

“In recent years, the inequities of our state’s current tax structure have been exacerbated by increasing income inequality, which has been made even worse by President Trump’s massive tax cuts for the wealthy – an unprecedented upward transfer of wealth that makes the rich even wealthier, while hard-working people are overburdened,” Ferguson said.

According to the governor, less than half of one percent of Washingtonians would pay the tax and estimates that it would raise at least $3 billion every year.

The proceeds would be used to reduce taxes on small businesses, bolster K-12 funding and eliminate sales tax on a wide range of items.

If approved by lawmakers, the revenue wouldn’t be fully realized until 2029.