OLYMPIA, Wash. (AP) — Gov. Chris Gregoire is set to unveil her final budget proposal before leaving office next month.


Gregoire will release the proposed budget Tuesday morning at her office at the Capitol. Washington state governor-elect Jay Inslee will take office in January facing a projected $900 million deficit for the next two-year budget ending in mid-2015, not counting money lawmakers will need to spend to improve funding for education as directed by the state Supreme Court earlier this year.

Inslee has said he will not raise taxes, but Gregoire has said that is not feasible.

Gregoire is expected to issue two proposals: one, an all-cut budget for 2013-2015 budget, and another of how she thinks the next biennium budget should be balanced, which could include new taxes.