Oregon Public Broadcasting

Washington State’s projected budget deficit has ballooned – to more than $5 billion.

That unprecedented shortfall follows Wednesday’s release of a new state revenue forecast. It shows Washington is taking in much less sales tax revenue because of a nosedive in consumer spending.

Victor Moore is Governor Chris Gregoire’s budget director.

Victor Moore: “We’re going to have to go back to the agencies and find additional cuts in the current biennium while we’re trying to write the 09-11 budget so we immediately have to go back out and find additional cuts in order to put us back into a positive position.”

Governor Gregoire has said taxes are not on the table. But her fellow Democrats in the legislature warn of “ugly” cuts ahead. They say everything is on the table – including taxes.