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Originally published Tuesday, January 12, 2010 at 12:41 PM

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Gov. Gregoire says budget fix requires taxes, cuts

Gov. Chris Gregoire says some new taxes, along with cuts to programs, will be needed to balance the state budget.

Associated Press Writer

OLYMPIA, Wash. —

Gov. Chris Gregoire says some new taxes, along with cuts to programs, will be needed to balance the state budget.

In her State of the State address Tuesday, Gregoire tells a joint session of the Legislature that she doesn't want taxes to harm the economic recovery of the state. But Gregoire also says she can't abandon her values or "eliminate the safety net for our most needy and cripple our economic future."

Gregoire says her new budget, to be introduced Tuesday, will count on new revenue of about $750 million to buy back some programs that might otherwise be cut from the state's deficit-strapped budget. Some of that may come from new federal dollars. But Gregoire says spending cuts of nearly $1 billion will still be necessary.

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