Gov. Chris Gregoire is signing an order Monday for across-the-board budget cuts, but the depth of the cuts won’t be known until state revenue forecasters release their quarterly revenue report on Thursday.
Based on lower-than-expected tax collections since the mid-June revenue forecast, the state’s general-fund reserves have fallen to about $84 million for the budget that is supposed to last until June 2011. That means that with any kind of drop in revenues, Gregoire will have to order cuts starting Oct. 1 to keep the state out of red ink over the nine-month period.
“Given the signs we’ve already seen with collections going down and (last week’s) economic update, we’re fairly certain we will be seeing a significant revenue shortfall,” said Glenn Kuper, spokesman for Gregoire’s Office of Financial Management.