Gov. Chris Gregoire Tuesday signed Washington’s supplemental budget, which used a mix of tax hikes and program cuts to close a $2.8 billion deficit.

“This budget is a fair mix of cuts and revenue that ensures our most vulnerable receive the services they need, our young learners get the education required to be successful and productive, and our communities remain safe and protected,” the Democratic governor said. “Despite our difficult economic times, we managed to protect many core services that Washingtonians value, and at the same time reduce and streamline state government.”

Overall, the deficit was filled by a combination of $747 million in cuts, $618 million in federal funding, and $757 million in new revenue, according to Gregoire’s office.

The budget package includes new and higher taxes on beer, soda, gum, and candy. It eliminates exemptions from the state’s business and occupation tax.

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