Peninsula Daily News news sources
OLYMPIA — Across-the-board cuts of 4 percent to 7 percent will be necessary to balance the state budget over the coming months if the economy doesn’t improve, Gov. Chris Gregoire said today.
The governor made the revelation at a news conference in Olympia. She has ordered agencies to prepare for the cuts of that magnitude by Oct. 1.
“This recession is unlike anything any of us have experienced. It’s pouring down rain, so we’ve exhausted our rainy day fund,” Gregoire said. “We will survive this crisis … but it’s going to be a long and bumpy road.”
Gregoire said she is hopeful the large reductions won’t be necessary if the September revenue forecast is favorable, but she wants agency directors to get ready. They’ll receive the exact reduction number after the forecast.
A 7 percent cut would save the state $500 million between October and the end of the year.
The governor also ordered a $51 million cut in state welfare programs, mostly by decreasing the number of people eligible for the program and its services, including child care subsidies.
In addition, Gregoire said she’s telling agencies to prepare for up to 10 percent cuts during the next two-year budget cycle. That’s because the expected budget deficit for 2011-13 is $3 billion.
The cutbacks mean some health programs will be eliminated and there could be layoffs in all state agencies through the remainder of the fiscal year, which ends in June 2011, Gregoire said.
