Please see the message below from Secretary Cheryl Strange
Dear Team DSHS,
I want to follow up with you on what DSHS is doing in response to the significant budget shortfall the state is facing, which you know from the news and previous communications from DSHS leadership is an estimated $12 billion over the next four years. As a result, Gov. Ferguson recently directed state agencies within the executive branch, including DSHS, to complete a budget-reduction exercise to identify savings and submit plans to his office by Feb. 6.
DSHS was directed to identify $702 million, less than 6% of our appropriation, excluding cash benefits to clients, in General Fund-State savings, for the 25-27 biennium which begins July 1,2025. This exercise instructed agencies to consolidate management positions, reduce administrative overhead and restrict equipment purchases to those necessary for core agency functions. It also instructed agencies to reduce out-of-state travel by at least 50% and in-state travel by 25%, along with other cost-saving considerations. As I worked with my DSHS Cabinet to complete this exercise, I asked us to follow a guiding light of better government, keeping in mind the vital services we provide to the people of Washington state.
Gov. Ferguson will now review the plans that agencies have submitted and work with the Office of Financial Management to publish and eventually provide his recommendations to legislative budget writers. We anticipate the governor’s final recommendations will be published on the OFM website later this month, and we will alert you when that happens.
The next caseload forecast comes out next week and the next state revenue forecast will be released in March, both of which will trigger the Legislature to begin in earnest the work of crafting the budget to fund state government for the next two years. This exercise, and the ensuing action by the Legislature, is all part of the long discussion over the legislative session that will ultimately give us a final, enacted budget. It is at that time we will know what, if any, savings reduction actions are needed, and which, if any, of our proposals will be implemented.
I want to thank all of you who sent cost-saving ideas to help us with this difficult task. I know these are anxious times for everyone and my goal is to keep you informed as we continue to navigate through these budget challenges. In the meantime, let’s focus our efforts on those who count on our services every day. Thank you for all you do.
Fondly,
Cheryl
CHERYL STRANGE / Acting Secretary
Office of the Secretary
Washington State Department of Social and Health Services
(O) 360-902-7800 / cheryl.strange2@dshs.wa.gov
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