Video: Wash. gov orders hiring freeze

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OLYMPIA, Wash. - Gov. Chris Gregoire is telling state agencies to cut hiring, travel and fuel costs as the weak economy continues to take its toll.

In a memo released Monday, Gregoire tells agency directors to cut gas consumption by five percent.

"I am asking each of you to step up your efforts to increase savings. I ask that you be creative and take action now," the governor said in a news release. "The high price of energy is hurting our businesses and our families. Anything we can do to reduce fuel consumption will ease the burden on our budget and on taxpayers."

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Washington Governor Christine Gregoire.

She also orders freezes on hiring, out-of-state travel, service contracts and extra equipment.

"Along with limits on non-emergency travel, I've asked my agency directors to freeze hiring to fill job vacancies, shelve any plans to purchase new equipment; and avoid signing all but emergency personal services contracts," the governor said.

There are some exceptions for emergencies.

The freeze comes as Gregoire works on a new two-year state budget. The Democrat has been asking agencies to propose service cuts to balance the budget. She says tax increases are a last resort.

Gregoire won't say how big of a deficit the state is facing. But legislative budget experts say the gap could be about $2.7 billion.

"These steps will put us in better situation for the next budget," Gregoire said. "We are in better shape than most states because we have saved over $800 million to smooth out the bumps in the economy, a fact recognized by numerous independent organizations that have increased their ratings of Washington's economic stability."