Gov. Gregoire Predicts Budget Cuts Will Be 'Truly Ugly'

Gregoire and other leaders learned last week that the budget deficit through mid-2011 is about $5.1 billion. That includes a shortfall of about $500 million in the current budget, which lasts through June.

The Moscow-Pullman Daily News reported that, on Friday, Gregoire said almost everything is on the table for spending cuts. She's unveiling a budget plan next month, and said: "I will come up with something that will look truly ugly, truly ugly."

Gregoire's pledged not to raise taxes, saying that's the wrong step in an economic downturn.