The Associated Press
OLYMPIA — Gov. Chris Gregoire, facing a faltering economy and tough campaign criticism, announced immediate budget savings of about $240 million today, including a 1 percent across-the-board cut at state agencies.
The plan, which could lead to government layoffs, is expected to boost the state’s current surplus and help cut the next budget’s deficit nearly in half, from $3.2 billion to about $1.7 billion.
Some critical state programs, including education, social services and public safety, are exempt from the 1 percent cut to agencies under Gregoire’s control. The plan also includes general savings and money transfers.
Agency leaders will decide how they’ll save the money in the 1 percent cut, but layoffs clearly are on the table, Victor Moore, director of the Office of Financial Management, told The Associated Press.
“I think to a certain extent, it’s unavoidable,” Moore said.
Gregoire’s budget office is working on a no-new-taxes plan to solve the $3.2 billion deficit projected for the 2009-2011 fiscal year that begins next July. The next governor and Legislature will have to solve the budget hole starting in January.
The Democratic governor has faced intense criticism from Republican challenger Dino Rossi over the projected deficit. After months of largely dodging the question, Gregoire has lately shown signs of wanting to tackle the deficit head-on.
In August, she announced about $90 million in savings from a hiring and travel freeze.
The largest chunks of the additional savings announced Tuesday are $76 million from federal dollars that will help pay for welfare, and the 1 percent agency cuts, expected to save $45.6 million.
