by Jerry Cornfield, Washington State Standard
December 3, 2024
With the state facing a multi-billion dollar budget gap, Washington Gov. Jay Inslee has ordered state agencies to freeze “most non-discretionary and non-essential” hiring, service contracts, purchasing and travel.
Inslee’s directive, issued late Monday, contains exceptions such as positions that “directly impact public safety,” contracts tied to tax collection or revenue generation, and travel required for people to carry out core job duties.
“While this is a difficult endeavor, I ask each agency to participate and use common sense, good judgment, and creativity to accomplish the ultimate goal of this directive to capture immediate savings through spending reductions not related to the public safety and essential health and welfare of Washingtonians,” Inslee wrote in his two-page directive.
In November, the governor warned state agencies of an anticipated operating budget shortfall between $10 billion and $12 billion through June 2029, and directed them to find ways to pare spending. Some departments, such as the Department of Social and Health Services and Department of Transportation, adopted hiring freezes for many jobs.
The deficit figure primarily represents the difference between the anticipated costs of current and promised services and programs and the projected amount of revenue that will come in to pay for them. Put another way, state agencies need $10 billion to $12 billion in additional funding to maintain current programs and services.
The pool of red ink presents a challenge for the outgoing governor who plans to propose a 2025-27 budget in two weeks. It will serve as a starting point for lawmakers and Gov.-elect Bob Ferguson when they set about to write budgets in the 2025 session.
Inslee could wind up issuing two spending plans.
State law requires the governor to propose a budget that is balanced without relying on new sources of revenue. That could require suggesting deep cuts in programs and services. Inslee could put out a second budget that assumes additional revenue to limit reductions.
To that end, agency leaders have submitted possible savings options. These ranged from making immediate cuts to reducing future spending by delaying or canceling planned program expansions. Such delays could require action by the Legislature.
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