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Gov. Gregoire moves forward with across the board cuts

For Immediate Release: September 16, 2010

OLYMPIA � Gov. Chris Gregoire today announced the need to move forward with across the board cuts of 6.3 percent following this morning�s revenue forecast which projects a $520 million deficit for the remainder of the 2009-2011 biennium.

�Even with all of our belt tightening over the last two years, we must reduce spending more to bring the budget into balance,� Gregoire said. �Last month, I directed state agencies to begin preparing for budget reductions. Today I am directing them to implement across-the-board cuts of just under 6.3 percent, effective October first.�

Gregoire warned that the cuts could mean the loss of up to 9,000 slots at local community and technical colleges at a time when demand is at its highest, a reduction of funding for 75 percent of our local school districts that receive extra financial support through levy equalization, and the closure of another state prison.

�These cuts will affect communities and services across the state,� Gregoire said. �The need to reinvent the way we write the state budget has never been greater.�

Gregoire also called on state agency directors to prepare for the next biennium, when we expect to face a nearly $4.5 billion shortfall, and has directed agencies to submit decision packages this month that describe how to best fill that gap.

Gregoire is currently leading more than 100 leaders in business, agriculture and education on a trade mission in Asia to increase exports, encourage foreign investment and create new jobs in Washington state.

�Our work here is about jobs � it�s about opening new doors and ensuring new opportunities for our citizens, whether they are in business, tourism, agriculture, clean technology or education,� Gregoire said. �Already, we are the top exporting state, per-capita, in the US. One in three jobs in Washington is tied to trade. That�s why I�m here � even as we look at budget reductions, we must continue to be competitive. More trade means more jobs in Washington state.�