$1 billion shortfall: Governor Inslee warns of huge deficit (VIDEO)

OLYMPIA -- State agencies are scrambling to comply with Governor Jay Inslee's plan for 15-percent across the board cuts.

Inslee says the state faces a $1 billion hole in the next two years because of the sluggish nature of the economy.

"This is a drill not to impose across the board cuts, this is a drill to give the Governor the option to figure out where the pain would be least.," Inslee said. "There's no way that we can get significant cuts like these without there being actual pain, actual service cuts."

Many are worried about big cuts to health care, higher education, mental health services, and prisons -- among other important state agencies.

Inslee also says next year's $1 billion budget problem doesn't even take into account the nearly $2 billion that must be added to public education because of a state supreme court mandate.