"We are in a crisis," Gregoire said referring to the nearly $6 billion state budget deficit.
There are boards and commissions, she said, that live in a parallel universe where nothing gets done, but create "lots of paperwork and per diem payments."
The governor has been urging state legislators to cut spending since she released her budget last December, but it hasn't happened.
"It's no secret I'm frustrated," Gregoire said. "I think we need to move. And we need to move consistent with the fact we're in a crisis."
The governor acknowledged that dealing with this economic crisis is not going to be easy.
"There are a lot of sacred cows," she said. "We can not just ride out the hard times and go back to business as usual."
Gregoire emphasized throughout the 40 minute press conference that the state has to make better use of technology, to not just save money, but to provide better service to its citizens.
By utilizing technology, Gregoire said that the state can do things faster, cheaper and better.
"We can not let this opportunity pass us by."
Because whether you like it or not, she said times have changed.
"What was good in 1940 or 1960 served a purpose, and we never went back and said has the purpose changed?"
"Now is the time to step up. Now is the time to challenge traditional thinking."
"Government can't maintain the status quo."
Watch the entire press conference on TVW here.
You can view Gregoire's list of boards and commissions she wants gone here.