The Blog

Governor Chris Gregoire Governor Chris Gregoire

10/08/08

As pressures on the national economy are increasingly being felt at the state level, we have begun action to increase budget savings. We’ve frozen out-of-state travel, cut back on personal services contracts and stopped hiring. But a faltering national economy, coupled with higher prices at the gas pump and the grocery store, has led to lower revenue receipts.

So this week I have taken the next step to help protect our state’s economy. I’ve ordered $330 million in savings, including a 1 percent across-the-board cut in state agencies, exempting certain programs in education, public safety and the protection of our most vulnerable citizens. We’re saving money through other steps, too. These actions will leave us with $850 million in the bank at the end of the fiscal year. And they will save almost $605 million in the next two-year cycle, together almost half what is projected to be an approximate $3.2 billion shortfall in 2011.

As the Office of Financial Management now prepares the budget for 2009–11, it is using the Priorities of Government approach I’ve employed before. This system looks at the most essential services provided by state agencies, and asks the question “What do taxpayers want for their tax dollars?” It isn’t business as usual, but business driven by proven results. This proposal will be ready in December, as required by law.

In the meantime, I am grateful to all the state employees whose hard work and dedication make Washington a better place to live, work and raise a family. I ask you to continue your great efforts on behalf of the citizens of Washington as we all weather this storm.