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Washington state government agencies will freeze all hiring, personal service contracts and equipment purchases to mitigate the economic impact of the coronavirus pandemic, Gov. Jay Inslee announced Wednesday, as the state faces a potential multibillion-dollar drop in revenues.

The directive allows exemptions for positions that create revenue, are necessary for public health or safety or are critical to the state’s response to the COVID-19 crisis. Purchases and contracts needed for critical services will also be exempt. The order goes into effect Monday.

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"While this is not going to be easy, I ask each agency to use common sense, good judgment and creativity to accomplish the ultimate goal of this directive: to capture immediate savings through spending reductions not related to the public safety and essential health and welfare of Washingtonians," the directive states.

Inslee’s declaration comes as state agencies were asked to come up with a plan to cut their budgets by 15 percent after an unofficial revenue forecast showed a possible $7 billion reduction in state revenues through mid-2023 as a result of the outbreak, KOMO News reported.

But the estimated shortfall is based on “substantial uncertainty” because March and April state tax collection data is not yet available, the Seattle Times reported. An official forecast is expected in June.

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The cuts could affect states agencies such as the Department of Social and Health Services, Department of Corrections, Department of Children, Youth and Families, and even Washington’s higher education system, the paper reported, citing data from the state Office of Financial Management.

Meanwhile, Inslee also called upon higher education institutions, boards and commissions, and other separately elected officials to impose similar cuts and freezes.

Washington has already begun rolling out a phased reopening plan to restart the economy and resume daily life. Several counties entered Phase 2 Wednesday, allowing select “personal services” like barbers and nail salons to reopen.

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As of Tuesday, there were 17,512 confirmed coronavirus cases and 975 deaths in Washington, according to state health department data.