State budget news:

►  In today's Olympian -- State shortfall hits $9 billion mark -- The still-slipping state and national economies have chipped away $552 million more in hoped-for tax receipts for state government through mid-2011, widening the state's budget shortfall to $9 billion. Rep. Ross Hunter says it means "totally awful" cuts are in the works and that budget writers were preparing for deep enough cuts to bridge the gap. The news will delay next Tuesday's rollout of a Senate budget proposal until later in the week.

►  In today's Everett Herald -- 10,000 state layoffs possible as budget hole grows -- Among those who Sen. Rodney Tom says might get pink slips, higher education and public schools could lose 4,000 employees each with the rest coming from government agencies and departments. Statewide, there are roughly 215,000 state-funded workers in those areas.

►  In today's News Tribune -- Deep state cuts, but no new taxes -- Sen. Debbie Regala (D-Tacoma) Rep. Dawn Morrell (D-Puyallup) and Rep. Skip Priest (R-Federal Way) predict budgets heavy with program cuts, assisted with federal money and not dependent on new taxes.

Local news:

►  In today's Everett Herald -- Boeing layoff includes 458 Machinists 

►  In today's Everett Herald -- Boeing pink slips going out today -- About 700 of them are in the Puget Sound region; about 650 of them work in the Commercial Airplanes unit. The workers' last day will be May 22. Boeing had said it would focus on overhead functions for layoffs. But last month, the company gave 60-day notices to 466 Machinists. A company spokesman declined to say how many pink slips were being handed out to Machinists or engineers here. Boeing officials will meet with labor group leaders this morning to discuss the number of union members affected in this round of layoffs.

►  Today at SeattleTimes.com -- Boeing issues layoff notices to 900 employees -- About 700 of them are in the Puget Sound region; about 650 of them work in the Commercial Airplanes unit.

►  At SeattlePI.com -- Cash-strapped King Co. faces $67 million retiree medical bill -- Council member Kathy Lambert wants to buy long-term health insurance for LEOFF1 employees.

►  In the (Aberdeen) Daily World -- Hoquiam School District could face staff cuts -- It is facing a shortfall of at least $800,000 next year and it could get worse. Teacher layoffs are possible.

►  In today's Seattle Times -- Seattle Fire Chief accused of retaliation -- A high-ranking officer in the Seattle Fire Department is accusing Fire Chief Gregory Dean of demoting him in retaliation for blowing the whistle on misconduct by a lieutenant overseeing fire safety at Qwest Field.

National news:

►  At AFL-CIO Now -- Obama: We should make it easier for workers to organize

Says President Obama: "When I say that we should make it easier for unions to organize, and observe Davis-Bacon (prevailing wage laws), all I’m trying to do is to restore some balance to our economy so that middle-class families who are working hard… should be able to save, buy a home, go on a vacation once in a while. They should be able to save for retirement, send their kids to college, that’s not too much to ask for. That’s the American dream, and the only way we get there is if we have bottom-up economic growth instead of top-down economic growth."

►  At AFL-CIO Now -- Contracts can't be broken -- unless they involve union workers -- AIG honchos say that despite being bailed out by $173 billion in taxpayer funds, they can’t break the sacrosanct contractual bond that guarantees billions in bonuses to the same executives who brought the insurance giant to its knees. The lesson learned in these months of financial chaos: Contacts can’t be changed -- unless they involve unionized autoworkers.

►  From AP -- Bailout bonus tax heads to Senate after House passes 90% levy -- The Senate plans to vote next week on steep levies on employee bonuses after the House overwhelmingly approved a 90 percent tax on bonuses at AIG and other companies receiving bailout funds.

►  At SeattlePI.com -- SEIU union members protest AIG in downtown Seattle -- The protest appears to be one of many demonstrations planned in cities across the country.

►  In today's LA Times -- SEIU, California Nurses Association end feud -- The two unions agree to jointly organize employees at large medical facilities across the country.

►  In today's Washington Post -- Health care reform's moment (op-ed by Tom Daschle) -- The debate over health-care reform would be decided by who occupies certain positions in Washington. It won't. It will be decided by the American people. And at the Forum on Health Reform, those voices were finally heard. In a report that was handed to President Obama, more than 30,000 Americans who volunteered to participate in local health-care discussions affirmed in their own words (available at www.HealthReform.gov) what we've been seeing in polls and public meetings for a long time: The American people want major health-care reform now.