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Governor begins chopping $577 million from state budget

UPDATE: Senate president says Legislature weighing options to soften the blow

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Gov. Ted Kulongoski told the state Department of Administrative Services Tuesday implement a series of budget cuts to eliminate an estimated $577 million deficit from the state’s 2009-11 general fund.

“Today marks another step in this difficult process,” Kulongoski said. “With limited options to balance the budget, and growing uncertainty about federal assistance, the longer we wait to implement these reductions, the deeper the cuts will have to be to bring the budget into balance.”

Under Kulongoski’s plan, which was unveiled in late May, each state agency’s budget would be cut by 4.6 percent across the board, which represents a 9 percent cut for the last 12 months of the biennium.

The cuts, which would go into effect July 1, mean the Department of Education would lose $258 million, which will hit local school districts’ budgets. The Department of Human Services will lose $158 million. The Department of Corrections will lose $51 million.

“I know these cuts are significant and will impact the lives of thousands of Oregonians across the state,” Kulongoski said. “But we have to operate with the reality of today and we simply do not have the revenue to fund the level of services approved in the current budget.”

Several Republican lawmakers have pressed for a special legislative session to make budget cuts, instead of across-the-board reductions that could hit hard schools, services for senior citizens and public safety agencies. The legislative leadership has so far resisted the call for the session, hoping for financial help from Congress.

Senate President Peter Courtney, a Salem Democrat, called the governor's cuts “sobering news as these cuts reflect services that Oregon families depend on." He said the Legislature would “look at our options to soften the blow from the most severe of these cuts."

“Each step of the way, we’ll be thinking of everyday Oregonians and the challenges they’re facing in their own lives," Courtney said. “Although there’s simply not enough revenue to continue the level of services the state provides, our final plan will be a reflection of our efforts to protect those who need us most."

The proposed cuts included closing three state prisons, but Kulongoski said he would ask the Legislative Emergency Board for money to prevent the closures.

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Reader comments

Re: Governor begins chopping $577 million from state budget

Has anyone noted that the state defecit is close to the same amount Portland will soon attain in order to pay for the much needed elevate bike paths? It's nice that Portland is such a large city that our future defecit will match that of the entire state. But we will have bike paths!

"curmudgeon"

(email verified)

Tue, Jun 22, 2010 at 04:58 PM

Re: Governor begins chopping $577 million from state budget

The first thing the Governor should do is reduce the fat by resending the excessive pay increases he gave to top state managers in the last year or so.

"Terry Parker"

(email verified)

Tue, Jun 22, 2010 at 06:37 PM

Re: Governor begins chopping $577 million from state budget

Thanks Ted,don't let the door hit you on the way out. Get us in big time debt and then run. As it now turns out, you're now asking us to do something you weren't smart enough to do all these years. Oregon deserved a clown like you, most of your loyal Mult.and Lane liberals deserve the worst. You and Sam Adams are both Obama clones, spenders and liars. Do us all a favor,don't get involved in anymore politics, we've had all we can stand.

"Nick D"

(email verified)

Tue, Jun 22, 2010 at 09:02 PM

Re: Governor begins chopping $577 million from state budget

Thanks so much to all the liberals who love to spend and cant save. Let me at the budget. I'll make it balance, just like I do my own. I know...........what a concept!


Yes, the state has a huge budget. But it's like anything else. Cut away..........

"Disgusted with it all"

(email verified)

Tue, Jun 22, 2010 at 09:21 PM

Re: Governor begins chopping $577 million from state budget

So ... they rake in $750+ million with 66&67, and are still some $577 m short ? GovTed recently stated that govt positions would be cut, but I see no mention of it in this article. I work for a huge company that is reducing some 10% of it's workforce, and we just have to actually live with 401k losses when the market turns downward. Why has the bloated public sector become such a sacred cow? I believe it's because they have control of the purse. Let's see if once again, the gov talks tough re govt labor costs, then makes no cuts whatever in the workforce. I really don't think that any of us neglected taxpaying pigeons would see a whiff of difference if Salem excreted @ 20% of it's useless bumbling bureaucrats.

"coppertoner"

(email verified)

Wed, Jun 23, 2010 at 12:03 PM

Re: Governor begins chopping $577 million from state budget

lottery money could be shifted to cover some of these programs dependent on general funds. fish screens have been overfuned by multiple sources, without cuts, for a decade now...

"mjkellyview"

(email verified)

Wed, Jun 23, 2010 at 12:48 PM

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