OLYMPIA, WA (MyBellinghamNow.com) – State agencies are being asked to take a hard look at their finances as Washington continues to battle a budget shortfall.

The Washington state Office of Financial Management (OFM) sent a letter last Friday, June 5 directing departments across Washington to make significant cuts.

In the letter, OFM director K.D. Chapman-See outlined significant inflation over the past decade that influenced the decision.

“A ‘business as usual’ approach will not meet the need of this moment – and OFM will be working with each of you to reimagine what it looks like to continue providing essential services to the public while also addressing the budget shortfall,” the letter read. “We recognize reductions necessary to address this shortfall will come on top of billions in reductions adopted in the last 16 months, making these further savings additionally challenging without significant impacts to services the state provides.”

Agencies are now being told to pause phasing-in any new programs and make cuts with special attention to programs expanded upon after 2018.

The 2027-29 biennium is not expected to include new revenue streams that will cut into the expected $4.3 billion deficit.

Even if the so-called “millionaire’s tax” survives an expected ballot vote and lawsuits, the state could not collect on the expected over $2.3 billion in revenue for the biennium until after the 2029 tax season.

Agencies are expected to submit their budget requests to the OFM by Sept. 14.