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Deficit may exceed $8 billion

Lawmakers look for more areas to trim and more jobs are expected to be cut for next biennium

By Brad Shannon | The Olympian • Published February 19, 2009

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Lawmakers are bracing for a larger-than-expected budget deficit of $8 billion in the two-year budget cycle that begins July 1.

Gov. Chris Gregoire signed bills into law Wednesday that reduce state spending by about $300 million through June and save more than $700 million in the new budget cycle, but that is a small share of what is needed.

House Majority Leader Lynn Kessler, D-Hoquiam, said recently that her caucus is preparing budget cuts based on an assumption that the shortfall could hit $8.5 billion. If the revenue holds up better than that, more money can be put back in to restore cuts, Kessler said.

Rep. Jeannie Darneille, a Tacoma Democrat, said she is chopping about 25 percent out of past allocations for 80 general-government agencies that her House General Government Appropriations Committee is examining. Most are small agencies.

Darneille hasn't been willing to give details but says "we are thinking boldly" about cuts.

"My target is cutting $601 million from the 80 agencies, which is why I've aged so dramatically in the last month," Darneille said in an interview late last week. "It's starting to wear on me. It's emotionally challenging. Our staff here is coming to grips that business as usual is not going to be the same in the House of Representatives."

In other words, people are going to lose jobs.

What Gregoire signed into law includes a freeze on hiring in the three branches of government and limits on travel and equipment purchases.

But that's just the beginning, and budget writers are looking at things they might have considered off-limits in the past.

Layoffs of state workers would echo the drastic actions in California, where a $42 billion budget shortfall looms. California Gov. Arnold Schwarzenegger ordered layoff notices for about 10,000 government employees in the Golden State on Tuesday, and another 10,000 layoff notices are ready for issue.

California's Democratic-controlled Legislature is trying to bridge its budget gap with cuts and tax increases including a 1 cent increase in the sales tax and increases in gasoline and income taxes.