Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 21, 1997
Contact:  Governor's Communications Office, 360-902-4136

Governor Locke directs state agencies to submit options for curtailing spending

OLYMPIA - Gov. Gary Locke today directed state agencies to submit new budget plans for the next two years identifying options for reducing base spending by 5 percent from the amount used to develop former Gov. Mike Lowry's $19.5 billion budget proposal.


Locke signaled his intentions in a directive sent to agencies by the state Office of Financial Management (OFM). Exempt from the reduction exercise are basic education programs, higher education instructional programs, and student financial aid.


The directive gives agencies one week to revise their budget submittals and report any new information - including updated estimates of winter storm damage - that may be helpful in developing the new Governor's budget recommendations to the state Legislature.


Locke emphasized that his request for reduction options does not mean that every agency's budget will be cut by 5 percent.


"This exercise is designed to provide us with some flexibility to address the needs of public education and other key priorities within the limits set by Initiative 601," Locke said. "To do that, we need to examine options for reducing costs in other areas."


Former Gov. Mike Lowry did not give agencies a specific target for savings in preparing his own budget recommendations. In issuing his directive to state agencies, new OFM director Dick Thompson said he recognized that many state employees will have to work double-duty to revise their budget proposals by the January 28 deadline.


"We recognize the tight turn-around time for state agencies, and we appreciate their extra effort," Thompson said. "This is the Locke administration's first full week in office, and we really couldn't proceed with this exercise before now."


Unlike Lowry, Locke said he plans to submit a 1997-99 budget proposal to the Legislature that does not require any statutory changes in Initiative 601. According to OFM's calculations, the initiative will limit General Fund-State (GF-S) expenditures to $19.3 billion after accounting for adjustments allowed under current law for new responsibilities passed down to the state by the federal government and other factors.


"As I have said before, I do not plan to propose changes to Initiative 601 during this legislative session," Locke said. "I think we can write a responsible budget that provides adequate funding for public education and other priorities within the existing limit. I do, however, plan to work with legislative leaders to ensure that we can meet the state's responsibilities in these areas in future years."


In addition to revising their 1997-99 budget requests, Locke has asked agencies to update their estimates of winter storm damage and other factors that might affect funding levels for the current fiscal year, which ends June 30, 1997. As of January 14, agencies had identified costs to state facilities - including highways - of $5.8 million GF-S and $49.5 million in other funds that cannot be met within existing budgets.


Thompson noted that those cost estimates are far from complete, and do not include matching-fund requirements necessary to secure federal assistance or provide assistance to cover local costs or aid to individuals.

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