This morning came word of a $1.4 billion drop in projected state revenue, and this afternoon, from China, where she's currently on a trade mission to drum up investment in Washington State, Governor Christine Gregoire announced 6.3 percent across-the-board cuts to all state agencies, effective Oct. 1.

“Make no mistake," Gregoire said on a video-conference call with reporters. "Our communities will feel it. Our services will be reduced across the state.”

What might these cuts look like? Gregoire said they could mean losing up to 9,000 slots at local community and technical colleges, reduced funding for public schools, and another state prison having to shut down.

The budget deficit that's going to be created by the huge projected drop in revenue is about $520 million, and a document sent out by the governor's office shows which agencies are going to have to contribute the most toward closing that $520 million gap. Human services agencies are right at the top of the list (ordered to cut $351.7 million), followed by higher education ($84 million) and K-12 education ($36 million).

“My heart goes out," Gregoire said, "to everyone who will be impacted by these budget cuts.” She called this the deepest recession in the history of Washington State.