State Expenditure Reduction

WHEREAS, employment continues to decline within the State of Washington beyond the levels predicted during the 1970 special session of the legislature, and;

WHEREAS, as a result of decreased employment and other economic conditions in the state, General Fund revenue is being collected at a rate increasingly below the budgeted level, and;

WHEREAS, it is important for the state to keep program activity at budgeted levels wherever possible in order not to contribute further to the economic decline, and;

WHEREAS, expenditures must not exceed revenues for the biennium.

NOW, THEREFORE, I, Daniel J. Evans, Governor of the State of Washington, by virtue of the power vested in me by law as set forth in Chapter 43.88 RCW and Chapter 282, Laws of 1969, Ex. Session, do hereby establish for Washington State Agencies the following administrative measures designed to further reduce expenditures:

1. Employment Reduction. Agencies operating from General Fund revenues are to begin reducing agency employment so as to achieve at least a 5% reduction below the September 30, 1970, employment level by July 1, 1971. Two groups of state employees will be exempt from this order. They are (1) those employees within the Division of Public Assistance who determine financial eligibility of welfare recipients, and (2) those field employees within the Department of Revenue who are responsible for the collection and recovery of General Fund Revenues.

Savings from this action are to be reverted to the General Fund. This action is in addition to the savings goals established by all agencies.

2. Personal Service Contracts and Overtime Payments. It will be the responsibility of each agency head to eliminate, where possible, the use of personal service contracts and the need for paying supplementary compensation. Personal service contracts and payment of overtime are not to be used as means for avoiding the effects of the reduction in employment provision of this Order.

3. Out-of-State Travel. The use of General Fund monies for out-of-state travel is hereby prohibited except for those meetings which are critically necessary to preserve the health or safety of state citizens, or for obtaining additional funds in support of state programs.

4. Equipment Purchases. The use of General Fund monies for the purchase or lease of equipment is hereby prohibited except in those circumstances when the timely purchase or lease of such equipment results in documented cost reductions which must be submitted to the Office of Program Planning and Fiscal Management for review. Also exempt is that equipment which is necessary to provide safe working and living conditions for state employees and residents of state institutions.

5. Lapsing of Unspent Funds. Beginning October 30, 1970, General Fund appropriation balances shall be lapsed into a reserve account on a monthly basis rather than the present quarterly basis. The additional funds placed into reserve shall be added to the agency's savings goal which has already been established.

6. Exceptions to this Order may be approved based upon written justification to me from the Agency Director.

7. Increased Savings Goals. The preceding provisions of this Executive Order shall not apply to elected officials or colleges and universities which are not subject to my control under the Budget and Accounting Act. In lieu of these provisions, these agencies will be asked to meet additional savings goals without specific supervision from my office.

8. Not Affected by this Order are those agencies funded outside the State's General Fund which may continue program activities at the reduced level authorized by my memorandum of April, 1970, as long as funds are available to support those levels of expenditures.

IN WITNESS WHEREOF, I have hereunto set
my hand and caused the seal of the State of
Washington to be affixed at Olympia this
27th day of October A.D., Nineteen hundred and seventy.

Daniel J. Evans
Governor of Washington


Secretary of State