Gov. Gregoire�s statement on events following revenue forecast

For Immediate Release: November 19, 2010

OLYMPIA � Gov. Chris Gregoire today issued the following statement based on actions taken following yesterday�s revenue forecast. The director of the Office of Financial Management declared that collectively bargained contracts and arbitration awards are not feasible for the state:

�Following the revenue forecast I requested legislative leadership from both parties to submit their budget recommendations to me no later than November 29. The Office of Financial Management is providing the Legislature detailed information on possible options to balance the budget. All options are on the table, but to reach the savings we need, significant choices will need to be made.

�The forecast fell far short of expectations and my budget director, Marty Brown, sent me a memo declaring that collective bargaining agreements and arbitration awards arrived at earlier this fall are financially infeasible. Based on the revenue forecast and that declaration I am calling those parties to come back to the table.

�A separate state law that deals with existing agreements indicates that should a significant shortfall occur the governor has the authority to ask parties to immediately enter into collective bargaining. Therefore, I signed a proclamation asking the parties of the 2009-2011 collective bargaining agreements to immediately return to collective bargaining. By law, the modifications made must be mutually agreed to. The financial situation for our state is significant and will continue to require all of us to work together.�

To read the governor�s proclamation, visit: http://www.governor.wa.gov/proclamations/pr_10-06.pdf

To read a letter OFM Director Marty Brown sent to the governor, visit: http://www.governor.wa.gov/news/2010-11-18_Financial_Feasibility_CBAs_Arbitration_Awards.pdf