A message to partners and stakeholders on budget reduction options

Tue, 06/09/2020

Dear HCA partners and stakeholders,

The Office of Financial Management (OFM) asked state agencies to submit options for State Fiscal Year 2021 that would save 15 percent of our state general fund appropriation. You can view these budget reduction options on OFM’s website.

This is a painful exercise, because we must offer up options that we know would impact the people we serve. Please know that the savings options we identified are not a formal proposal. Our ultimate goal is to preserve health care services for Washington residents to the extent possible, while the state addresses a significant revenue shortfall due to the COVID-19 pandemic. Additional federal funding and a recovering economy may help minimize the impact on those we serve.

OFM will continue working with agencies to refine budget reductions for the Governor and the Legislature to consider. We will be discussing budget reductions with our Medicaid Title XIX Advisory Committee, Public Employees Benefits Board, School Employees Benefits Board, and other stakeholders as we prepare our supplemental 2021 budget proposal and 2021-2023 biennial budget proposal over the summer.

I welcome your input and ideas, and I thank you for your ongoing partnership in building a healthier Washington.

Sincerely,

Sue Birch, HCA director