The Associated Press
OLYMPIA — Gov. Chris Gregoire told state agencies today to prepare for additional budget cuts as high as 10 percent, warning that the state’s economic outlook has weakened.
In a letter to agency heads, Gregoire budget director Marty Brown called the task “daunting.” His office has asked agencies to prepare packages that would reduce projected spending by 5 percent or 10 percent — the latter of which would save the state more than $1.6 billion.
“We don’t think the economy is getting any better, and we need to get prepared,” Brown said.
He said it is too soon to say whether lawmakers will have to return to Olympia for a special session to deal with the budget. A new revenue forecast is due out next month, and Brown said he is not optimistic about what it will show.
Relying on projections, lawmakers had set aside an estimated $738 million to handle any slowdowns in revenue for the two-year budget cycle that began in July. An updated revenue forecast in June quickly wiped out much of that buffer, leaving $163 million.
Brown wants the potential spending cuts submitted just days after the new revenue forecast is released.
Lawmakers cut some $4.5 billion in projected spending during this year’s session, relying heavily on reductions in education funding. Democrats were unable to close the shortfall with any tax increases because of a voter-approved initiative last year requires a two-thirds majority to pass them.