Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - February 19, 2002
Contact:  Governor's Communications Office, 360-902-4136

Locke may order across-the-board budget cuts

OLYMPIA – Gov. Gary Locke today said a worsening state revenue outlook will likely mean deeper budget cuts and may require him to order an across-the-board budget reduction.

“Today’s announcement by the state Office of the Forecast Council is sobering,” Locke said, referring to the official state revenue forecast downturn of $246.8 million. “We are now looking at a deficit of more than $1.5 billion in the 2001-03 biennial budget and that deficit may grow with tomorrow’s forecast on school enrollment, rising social service caseloads and increasing prison populations.”

Noting that Washington’s situation is not unique, Locke said, “A national economic recession intensified by the events of September 11 has left our state and 39 others facing budget shortfalls in the billions of dollars. Today’s revenue announcement means we must tighten our belts even more.”

Locke said he already has taken action to impose a hiring freeze in addition to the 1,685 full-time equivalent (FTE) reductions since July. He also restricted state employee travel and imposed a freeze on equipment purchases. He added that more severe measures will be necessary to offset the serious revenue losses caused by the effect of the Sept. 11 terrorist attacks on the national and state economies.

The governor met this morning with legislative leadership and budget chairs and pledged to work with them to find a solution to the growing budget problem.

“As I have said all along, it remains my hope that the state budget be balanced without a general tax increase,” Locke said.

The governor also will ask the Legislature to consider eliminating cost of living adjustments (COLAs) for state workers and state vendors.

Locke suggested other cost-saving options including an additional across-the-board reduction in all state agency budgets.

In addition to budget cuts, Locke suggested increasing revenue by closing outdated tax exemptions. The governor has asked the Office of Financial Management to review the tax exemptions and report back on its findings.

“These are difficult times but we have gotten through them before and we will get through them again if we work together,” Locke concluded.

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Related Links:
- Office of the Forecast Council
- Washington State Legislature
- Office of Financial Management
- Budget Highlights
- Locke proposes cuts to balance state budget

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