Governor Gregoire is still in denial that we have a budget crisis in Washington State, yet today she ordered a hiring freeze for state agencies and called for a 5% reduction in their fuel usage:

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

In response, the Washington Federation of State Employees, the largest union representing state employees, sent out a "HOTLINE BULLETIN" stating that the economy is still strong, despite its claim of a $2 billion deficit.

Given that WFSE is sitting at the bargaining table with the Governor's office for various groups of state employees, and that wages have yet to be discussed (according to press releases from both camps), I wonder just how long everyone will remain in denial when no wage increases are granted.