Gov. Chris Gregoire Thursday proposed $2 billion in budgets cuts that would increase class sizes in public schools, eliminate subsidized health insurance for the working poor and cut the length of supervision for inmates released from prison.

That's just a start. In all, the governor has proposed more than 160 budget cuts ranging from $100,000 to more than $160 million.

Her suggested cuts add up to $1.65 billion. She also recommends delaying a state payment to public schools by one day, pushing $330 million of state spending into the next two-year budget. It's an accounting trick that doesn't actually reduce state spending.

"There's no question in my mind we're not going to meet the needs of people out there that need it," Gregoire said, regarding the proposed cuts, noting that she plans to talk to nonprofit groups about helping pick up the slack.

"I have no where else to turn," she said. "I have to be honest with myself and the people of the state of Washington. While my heart is there, my pocketbook is empty."

Gregoire's proposal drew prompt criticism.

"We're concerned this budget proposal really drives low-income families off the cliff without anything to soften the fall," said Molly Firth, with the Community Health Network of Washington. "We're really concerned it will shred the safety net."

Firth and many other groups representing people affected by the cuts are urging lawmakers to put a tax package on the ballot.

Some Democrats, including Senate Ways and Means Chairman Ed Murray, D-Seattle, have talked about the need to ask voters for a tax increase to soften the blow.

Gregoire did not rule out looking at taxes, but said she's hasn't looked at the options yet and isn't ready to discuss it.

"This is what the cuts look like," she said. "We have to ask ourselves now, do we want to look at alternatives of revenue. What might they be, and do we want to go there."

The governor noted her proposed cuts are recommendations, and that she'll talk to the communities and groups that will be affected before releasing a full budget next month.

Gregoire on Thursday also issued a proclamation calling the state Legislature into special session on Nov. 28 at noon. The governor had earlier said she planned to call lawmakers back on that date.

Big moves recommended by Gregoire include:

• Reducing support to colleges and universities by 15 percent, saving $166 million.

• Cutting levy equalization payments to property-poor school districts in half, saving $150 million.

• And increasing class sizes by two students in grades 4-12, saving, $137 million.

She also suggests cutting the state's contribution to employee health insurance premiums.

One of things most striking about the proposal is its sheer breadth. Most of the recommended cuts are relatively small (less than $20 million) given the current $32.2 billion budget. For example, she proposes eliminating the state drug task force for a savings of $808,000.

Most of the cuts the governor outlined on Thursday have been discussed in some form previously. The state has been in a budget cutting mode since the recession hit three years ago.

State services have been reduced across the board. The government workforce has shrunk by several thousand positions and students and their families are struggling with double-digit tuition increases lawmakers approved to make up for cuts to higher education.

"This is what our options look like even after we've taken the biggest steps in decades to make government leaner and more efficient," Gregoire said in a statement. "I don't want anyone to think that I like these options. These choices were made out of necessity."

Andrew Garber: 360-236-8266 or agarber@seattletimes.com