Washington governor wants agencies to look for deeper cuts

Washington Gov. Bob Ferguson has directed state agencies to tighten their budgets further due to an increasingly challenging fiscal outlook. A memo from K. D. Chapman-See, the director of the Office of Financial Management, emphasized that agencies should only submit funding requests for critical costs not covered by existing budgets.

With a projected budget shortfall of $16 billion over the next four years, the governor's call for deeper cuts reflects the state's ongoing financial struggles. Requests for funding must be submitted by September 15, ahead of Ferguson's proposed spending plans due in December. Lower-than-expected tax collections and economic uncertainties have contributed to the budget woes, according to chief economist David Reich. Although Washington has more than $2 billion in emergency reserves, the financial situation necessitates further spending reductions. Chapman-See noted that hiring, travel, and contracting freezes introduced earlier this year are likely to continue.

The state's financial health will be closely monitored as the next forecast for tax collections is due on June 24.