Washington Governor Forms Economic Development Council Amid Cooling Economy

Governor Bob Ferguson signed an executive order Thursday creating a 26-member Governor’s Economic Development Council. The panel, which includes Ferguson and Lt. Gov. Denny Heck, will meet and deliver a plan by June 2025, advising on out-of-state investment and regulatory and tax barriers.

Seattle Times

Washington’s unemployment rate was 5.2 % in May, third-highest nationally, and Economic and Revenue Forecast Council warned of a two-year budget shortfall. Association of Washington Business poll shows 73 % of firms cite taxes as a top obstacle, up 18 % since winter 2025. Only 7 % of residents rate the economy strong, and half expect a recession soon.

KUOW NPR

The 26-member panel includes executives from Amazon (David Zapolsky), Microsoft (Brad Smith), Boeing (Stephanie Pope), T-Mobile (Mike Katz), Puget Sound Energy, Alaska Air Group, Uwajimaya, Stemilt Growers, Washington State Labor Council, Building and Construction Trades Council, and Puyallup Tribe Chair Bill Sterud. Governor Ferguson and Lt. Gov. Heck sit on it.

Seattle Times

Ferguson said Washington “cannot take its strength for granted,” emphasizing “family-wage jobs” and a business-friendly climate. He pledged no new tax hikes in budget and is open to incentives. Leader Morgan Irwin of Association of Washington Business voiced hope for a “will to change course,” and Joe Fain of Bellevue Chamber of Commerce expressed optimism the governor is tackling it.

KUOW NPR

Tax hikes, “millionaires tax,” and “onerous regulatory climate” drive firms away. Janicki Industries announced a plant in Montana, citing taxes and regulations. Starbucks’ Nashville office expansion, linked to a 2025 tax increase, raised alarm. T-Mobile’s Katz warned tax-policy unpredictability harms Washington employers competing. Labor leader Heather Kurtenbach of Building and Construction Trades Council expects pushback from unions over tilt.

Seattle Times

• “We need to make sure businesses can start and grow here in Washington state,” — Bob Ferguson, Governor of Washington

Seattle Times

• “Decisions at the state level (are) making it difficult for us to create new jobs for future employees by investing in local growth,” — John Janicki, President, Janicki Industries

Seattle Times

• “I’m optimistic that the governor is taking a serious problem seriously,” — Joe Fain, President and CEO, Bellevue Chamber of Commerce

KUOW NPR

• “That unpredictability is a major disadvantage for Washington employers, “especially for a company that’s headquartered here but competes nationally,” Mike Katz, chief business and product officer at T-Mobile, said in an interview following Thursday’s announcement.” — Mike Katz, Chief Business and Product Officer, T-Mobile

Seattle Times

The council will deliver recommendations by June 2025, outlining strategies and actions for state agencies. Ferguson said the proposals will shape his budget and legislative agenda, to streamline licensing, expand incentives, and address regulatory bottlenecks. Observers will watch how council’s work intersects with legal challenges to the “millionaires tax” and state-budget negotiations.

Seattle Times