Gov. Gregoire signs bills to reduce state spending

For Immediate Release: February 18, 2009

OLYMPIA � Gov. Chris Gregoire today signed Senate Bill 5460, which imposes belt-tightening measures across state government, and House Bill 1694, which takes early action to reduce spending during the current fiscal year.

�The bills I am signing today take the necessary step of slowing state spending to address the revenue shortfalls that have been growing significantly since November,� Gregoire said. �I applaud the Legislature for acting now to confront the shortfalls that are building every day.�

The Senate measure puts into law the hiring and spending freezes ordered by Gregoire last August and adds provisions to increase savings. All agencies of the legislative, judicial and executive branches will be prohibited from:

� Filling new or vacant positions.

� Entering into personal services agreements or contracts.

� Purchasing equipment costing more than $5,000.

� Out-of-state travel or training.

The legislation provides for specific exemptions � for key areas such as public safety, revenue generation and the securing of federal funding � for each prohibition and allows for exceptions to be made for the critically necessary work of an agency. Additionally, for one year, all exempt and Washington Management Service employees of the legislative, judicial and executive branches cannot receive salary or wage increases.

�This is the earliest budget bill to pass the Legislature and reach the governor in modern times. During this economic crisis we will continue to see unprecedented steps to maintain our most important priorities: families, kids and health care. We need to keep our options open but also prepare for major budget cuts to deal with the largest financial crisis in a generation,� said Sen. Margarita Prentice, D-Renton, chair of the Senate Ways & Means Committee.

House Bill 1694 implements measures to decrease spending by $635 million in the general fund and near-general fund budget in the current biennium, which ends June 30. All state agencies will be required to impose significant cuts to reach the desired savings levels.

�These bills are just the first step, but an important one because the cuts in them start with us � the Legislature and agencies,� said Rep. Kelli Linville, D-Whatcom. �We are tightening our own belts now while we continue to scour the budget. The savings in these two bills address a good chunk of the projected shortfall in the supplemental budget weeks before we usually consider a budget bill of any kind.�

The actions taken today are part of a significant number of measures being taken by the state and federal government to address the economic crisis. On Feb.16, Gregoire signed a bill to help families by increasing the size of unemployment checks and expanding the number of people eligible for benefits. Additional help is also coming to Washington through the president�s Economic Recovery and Reinvestment Act, which President Obama signed Feb. 17 in Denver. The federal package will send billions of dollars to Washington to save or create thousands of jobs, improve roads and bridges, and help with vital needs in education and social services.

�Although we appreciate the money coming from the federal government, let me be clear about one point � this money will not solve our budget shortfall,� Gregoire said. �Much of the funding will be directed to specific purposes and cannot be used to prevent budget cuts. That is why our action today to reduce spending is so crucial.�

The governor also took action on House Bill 1066, relating to special elections, and House Bill 1133, which will put money back into the school construction assistance grant program. The bill allows bonds to be issued to restore the school construction fund.