Christine Gregoire, who served as Washington state’s Democratic governor from 2005 to 2013, has sharply criticized the current leadership for what she calls out-of-control spending and harmful tax policies. Speaking at the 2026 Association of Washington Business Summit, Gregoire highlighted the dramatic increase in the state budget and questioned the effectiveness of the legislature’s approach to economic management.
Budget Growth More Than Doubled Since Gregoire’s Tenure
Gregoire pointed out that when she left office, Washington’s state budget was $33 billion. Today, it has ballooned to $80 billion, more than doubling in just over a decade. She expressed concern that despite this massive increase in spending, the state continues to face budget shortfalls at the end of every legislative session.
“I think that’s a little bit too much of a growth,” Gregoire said, emphasizing that the spending increases have not translated into visible improvements for residents. “All too often, what we’re finding is, we’re paying the tax and things are getting worse.”
Tax Increases Driving Residents and Revenue Away
Gregoire also criticized recent tax hikes, including the state’s estate tax, which she noted has risen from 20 percent—already the highest in the nation alongside Hawaii—to 35 percent. She warned that such high taxes are pushing people to leave Washington, which in turn reduces capital gains tax revenue and philanthropic contributions that the government relies on.
“When they leave, they stop paying cap gains. When they leave, they stop giving significantly to philanthropy, which would otherwise be necessary by government,” she said. Gregoire argued that the state’s financial challenges are less about income and more about unchecked spending, which lawmakers attempt to address by imposing additional taxes, regulations, and rules.
Lack of Business Experience Among Lawmakers
Gregoire questioned whether the Democratic-controlled legislature truly understands the economic impact of its policies. She pointed out that few members of the Democratic caucuses have backgrounds in business, which she believes leads to a disconnect between lawmakers and the realities faced by businesses and taxpayers.
“How many people in either of the Democratic caucuses have come from a business past? OK, so if you haven’t come from it, you don’t know it, you don’t understand it,” Gregoire said. She stressed the need for external education efforts to help legislators grasp how policies affect small businesses and consumers alike.
As an example, she cited the sales tax on services, which was intended to target large corporations but ended up significantly impacting small businesses and their customers.
Calls for Fiscal Responsibility and Predictability
Gregoire emphasized that the business community requires predictability to thrive, something she feels is lacking under current policies. Instead, she sees a pattern of escalating spending and taxation that undermines economic stability.
“I would suggest to you we don’t really have an income problem. We have a spending problem, and we’re answering it by stacking one more tax, one more rule, one more regulation,” she said.
Conclusion: A Warning from a Former Democratic Leader
Christine Gregoire’s critique offers a rare rebuke from a prominent Democrat toward her party’s stewardship of Washington state’s economy. Her concerns about runaway spending, high taxes, and lawmakers’ lack of business experience underscore ongoing debates about fiscal responsibility and economic growth in the state. As Washington continues to grapple with budget challenges and population shifts, Gregoire’s warnings highlight the need for policies that balance revenue needs with economic vitality and taxpayer confidence.
Source: Read the original reporting.
