WPC’s Report Card for Washington’s Future should serve as needed wake-up call for lawmakers, media, and the governor’s office.

Imagine your friend or grandparent going to the doctor, taking a battery of tests, and learning that several of those tests showed a sharp decline in health. The first thing you’d want to know is what, if anything, can be done to reverse the decline.

We need that kind of response for the State of Washington. Governor Ferguson is unencumbered by the legacy reputation of the Inslee administration.  Now is a time when both parties should be able to recognize the clear signs of trouble ahead for Washington state.

Today, WPC released the first broad category report for our ongoing series, Report Card for Washington’s Future. The report, “Washington’s High Tax Burden and Low Rate of Business Formation and Survival,” provided several indicators showing an alarming decline in the health of Washington’s business climate.

• According to several independent analysis, Washington’s business climate has declined significantly since 2014, dropping from the 6th best business tax climate to the 5th worst in 2025.
• From 2019 to 2023, the number of private business establishments increased in 85 percent of the counties across the nation. Only three of those growth counties were in Washington state and all of Washington’s largest counties, including King, Pierce, Snohomish, Clark and Spokane experienced negative private sector growth.
• Washington’s first-year business failure rate of 40.8 percent is nearly double the national average.

Do those indicators sound like a state heading in the right direction to you?

While Washington’s business climate suffers long-term decline, state spending has been seeing considerable growth.  The general fund operating budget (NGF-O) increased from $33.6 billion in the 2013 -15 biennium to $71.9 billion in the 2023 -25 biennium. After adjusting for inflation and population, that’s an increase of 51 percent.

The danger then is that those most linked to government may not sense the decline n private-sector health – after all, the public sector has seen plentiful growth. Of course, at some point, the ability to sustain the public sector and provide desired services and safety nets depends on the prosperity of the private sector.  But at that point, the turn-around will be much harder to achieve.

Read WPC’s newest “Report Card for Washington’s Future” here and share the data with friends. Ask lawmakers and your favorite media outlet about it.  Our goal is to spark a new and honest conversation about where we are so we can find better solutions.

Also, watch for Monday’s Report Card release when we examine our state’s environmental record.