Governor-elect Bob Ferguson of Washington state has announced his budget priorities, which include approximately $4 billion in reduced state spending and $800 million in new investments. The savings would come from reducing state agency spending, resolving disputes in the tobacco master settlement, and sweeping funds from regulatory and civil law enforcement agencies. The new investments would be allocated to public safety, housing, ferries, and affordability policies such as universal free school lunches and expanded childcare affordability. Ferguson’s budgeting principles aim to increase spending on basic education, ensure strong budget reserves, and support state employees. He also plans to tackle the state’s projected $12 billion budget shortfall over the next four years.