Oregon Public Broadcasting

It looks like Northwest states will get an infusion of cash from the feds thanks to a key vote in the U.S. Senate. That vote Wednesday means Washington Governor Chris Gregoire won't have to resort to across-the-board budget cuts.

The Senate vote – a procedural one – revives at $26 billion healthcare and education package to help cash-strapped states.

Washington state lawmakers banked on that money – a nearly half-a-billion dollar share – when they balanced the budget earlier this year. Without it, Governor Gregoire said she'd have to call a special session or cut spending across state government to tune of four percent.

Now, that crisis appears averted. But Gregoire warns Washington still faces major budget woes next year.

Chris Gregoire: "This gets us through what is a fiscal crisis right now but obviously as we go into the next biennial budget with a estimated $3B shortfall we've got a lot of work to do."

In the short-term, Gregoire is trying to keep the current budget from going into the red before lawmakers return to Olympia in January.

In Oregon, the additional federal dollars should avert further cuts and teacher lay-offs in the Portland school district.