Yesterday, Governor Gregoire issued an executive order directing across-the-board cuts to state programs and agencies.

The level of the reductions, as stated in the executive order, are to be based on the September Economic and Revenue forecast.  As a result, the level of reductions to state agencies will not be revealed unitl after the release of the September Economic and Revenue forecast on Thursday.  The reductions will go into effect on October 1, 2010.

Over the last month, Governor Gregoire informed state agencies to prepare for across-the-board cuts that could range from 4 to 7 percent. However, given the continual decline in state revenues since June,  the Governor warned that the cuts could be even higher.

In addition, the Governor has stated that quick action by the 2011 Washington Legislature will be needed to pass a supplemental budget that reduces state support for public services by $500 million from the last six months of the current fiscal year. 

It is also expected that the 2011-13 budget will need to be reduced by 10 percent to bridge an estimated state shortfall of $3 billion.