Gov. Chris Gregoire last week announced spending reductions she said would save $260 million in Washington’s current budget, while setting the stage for what is expected to be a tough next budget.

“Our state is collecting less revenue due to continued national financial turmoil,” Gregoire said in a statement. “We must act now to reduce our spending and put our budget back in the black without touching the rainy-day fund.”

She must submit her budget proposal for the 2009-2011 biennium by Dec. 20.

“Closing the projected budget shortfall will require great sacrifice on the part of all Washingtonians during these tough economic times,” the governor said. “Families and businesses across the state are making sacrifices to weather the economic crisis, and state government will have to make sacrifices, too.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.