Washington Gov. Christine Gregoire is telling state agencies to cut hiring, travel and fuel costs as the weak economy continues to take its toll.

In a memo released Monday, Gregoire orders freezes on hiring, out-of-state travel, service contracts and extra equipment, with some exceptions for emergencies, and tells agency directors to cut gas consumption by five percent. The freeze comes as Gregoire works on a new two-year state budget, focusing on proposed service cuts and leaving tax increases as a last resort.

Gregoire won’t say how big of a deficit the state is facing, but legislative budget experts say the gap could be about $2.7 billion. (AP)