WHEREAS, the state's forecasted revenues must be revised downward from earlier estimates; and

WHEREAS, the national recession is responsible for causing some state expenditures to exceed estimates; and

WHEREAS, federal fiscal policy continues to affect major sectors of our economy and to restrict real estate excise tax revenues; and

WHEREAS, the state must operate with a balanced budget keeping expenditures from exceeding revenues for the biennium.

NOW, THEREFORE, I, Dixy Lee Ray, Governor of the state of Washington, by virtue of the power vested in me by RCW 43.88, do hereby require each agency to reduce its allotments for fiscal year 1981 by 1% of General Fund-State dollars. This program will take effect immediately with the Office of Financial Management processing previously submitted documentation by October 1, 1980.

FURTHER, to ensure that agencies have maximum flexibility in managing these reductions, I am hereby immediately rescinding Executive Order 80-06 dated April 30, 1980 which mandated a staffing control program.

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