Facing a tough economy, Washington Gov. Christine Gregoire has announced immediate budget savings of about $240 million, including a 1 percent across-the-board cut at state agencies.
Gregoire’s plan, which could lead to government layoffs, is expected to boost the state’s surplus and help cut the next budget’s deficit nearly in half, from $3.2 billion to about $1.7 billion. The plan, which would also draw from the state’s rainy day fund, would boost the state’s surplus to more than $400 million dollars.
Some critical state programs, including education, social services and public safety, are exempt from the 1 percent cut to agencies under Gregoire’s control.
However, Washington State University was told it will have to cut $6 million from its budget for this school year. The cut represents 2.4 percent of WSU’s state allocation of $254 million. Some progress towards the budget reduction had already been made after WSU president Elson Floyd directed university leadership in April to slow hiring and reduce other expenses in anticipation of an economic downturn.
Gregoire’s budget office is working on a no-new-taxes plan to solve the deficit projected for the 2009-2011 budget period, which begins next July. The next governor – either Gregoire or Republican Dino Rossi - and Legislature will have to solve the budget hole starting in January. (AP)