OFM projects budget cash deficit
The Office of Financial Management (OFM) is projecting a budget cash deficit starting in August and running the rest of the Fiscal Year. Under state law, the Governor is required to issue across the board budget cuts if a cash deficit is projected unless the legislature has acted to liquidate the deficit. Here is OFM’s current general fund cash deficit projection:
According to RCW 43.88.110(7):
“If at any time during the fiscal period the governor projects a cash deficit in a particular fund or account as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments for that particular fund or account so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods.”
“ . . . WHEREAS, the anticipated revenues combined with the beginning cash balance of the general fund are insufficient to meet anticipated expenditures from this fund for the remainder of the current fiscal period; and . . .
WHEREAS, state law authorizes and directs the Governor to implement across-the-board reductions of allotments of appropriations to avoid a projected cash deficit . . .
NOW, THEREFORE, I, Christine O. Gregoire, Governor of the state of Washington, pursuant to chapter 43.88 RCW do hereby order: The allotment of each appropriation from the State General Fund will be reduced effective October 1, 2010, by an amount necessary to avoid a cash deficit in the State General Fund.”
With the state’s budget office projecting a budget cash deficit, it is time for the Governor to either comply with the law or call a special session and allow the legislature to act.
Lawmakers continue to call for a special session