State Workers

Gregoire orders another $260 million in cuts

Not entirely sure what those entail. Certainly have to be more painful than the first $330 million in cuts. Here's what her office announced:

Agencies are being asked to further cut their remaining Fiscal Year 2009 General Fund spending, with some exemptions for revenue-creating activities and other legal obligations. These savings will combine with the $330 million being saved through freezes on hiring, out-of-state travel, personal service contracts and equipment purchases, as well as across-the-board cuts previously directed by the governor.

“Our state is collecting less revenue due to continued national financial turmoil,” Gregoire said. “We must act now to reduce our spending and put our budget back in the black without touching the Rainy Day Fund.”

UPDATE: I’ve attached a letter from Office of Financial Management director Victor Moore to agencies asking for the savings. Here’s the only detail on how to select savings:

We need you to use the following criteria to identify these cuts and savings:

1. Identify and take under-expenditures and efficiencies that go beyond those already taken;

2. Continue to pull back on new programs not yet fully implemented; and

3. Scale back existing programs and activities that fall lower in the Priorities of Government process and/or have been identified in your work with OFM as 2009-11 Biennial Budget reduction items. Please consult with your OFM budget analyst and seek appropriate legal advice as appropriate when taking these steps.

The best part of the letter, though is page two, which lists how much each sector is supposed to save. Out of $260 million, $181 million is supposed to come out of the Department of Social and Health Services. DSHS will bear 70 percent of the budget-cutting burden.

And now, again, the video report, which is quite appropriate:

Crossposted at State Workers and Wilson blog.