Spending freeze issued in WA amid significant budget deficit

Spending freeze issued in WA amid significant budget deficit

Washington Governor Jay Inslee says he is implementing a hiring and spending freeze as the state faces a “significant operating budget deficit.”

Gov. Inslee issued a directive on Tuesday, commanding state agencies put a hold on hiring certain positions. This includes positions not related to public safety or other non-discretionary activities.

Specifically, the hiring freeze does not apply to:

  • positions that directly impact public safety
  • positions essential to the health and welfare activities of state government
  • positions that generate revenue
  • positions that are required to meet statutory mandates or federal requirements

According to the Washington State Office of Financial Management, the state’s projected budget deficit is between $10 and $12 billion. The current budget runs through June 2025.

Additionally, the directive orders a freeze on services contracts. This does not include contracts, contract amendments, or other agreements that cost less than $10,000, are related to public safety, generate revenue, are funded through private or federal sources, or are approved information technology projects.

Goods and equipment purchases are also on hold as the state navigates its financial shortfall. This includes a travel freeze as well. However, the freeze does not apply to:

  • purchases under $10,000
  • purchases or travel necessary for core functions of an agency
  • purchases or travel funded by private or federal grants
  • purchases or travel necessary to protect life or public safety
  • travel for tax collection or other revenue-generating activities

At the end of the directive, Inslee called upon non-cabinet agencies, higher education institutions, boards and commissions, and other separately elected officials to impose similar restrictions within their jurisdictions.

“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,” the directive read, in part.

Inslee’s directive remains in effect until it is rescinded. The governor is expected to propose a new state budget soon.

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