There is no doubt that Oregon is in the midst of the most difficult economic climate in generations. The state economist’s latest budget forecast for the 2009-2011 budget cycle projects a staggering $4.2 billion revenue shortfall that will affect many aspects of how our state functions. As the global economic crisis diminishes the amount of money Oregon’s families have in their budget, it also restricts the amount of resources the Legislature has to provide support to Oregonians in need. About 94 percent of Oregon’s general fund pays for education, public safety and human services, and unfortunately, the huge shortfall facing the state means deep cuts to these vital services.

Earlier this week, the Co-chairs of Joint Ways and Means, our main budget-writing committee, released their recommended budget for 2009-2011. This budget is the culmination of months of work within the Legislature and frequent consultation with everyday Oregonians, including a series of 9 committee hearings in towns across the state last month. We heard from over 500 Oregonians from all walks of life that we can’t simply cut our way out of this global economic crisis, nor can we raise enough revenue to fill the hole in our budget. Instead, we must take a balanced approach that involves cuts, targeted revenue increases and tapping our reserve funds to work our way out of this economic crisis.

While budget cuts will be painful for many, I strongly believe this is the best plan to get us through these tough times and on the road to recovery. Throughout this process, I have received feedback from many of you about the global economic recession and its effects on your families. As we move forward, I hope you will continue to let me know how your thoughts on our proposal and how we can best work together to build a strong future for Oregon.  

Below, I’ve included the core principles and an overview of the legislature’s plan to balance the budget during these trying times. I encourage you to read the core principles of the Co-chairs recommended budget below or read the entire budget through and send me back your thoughts.

Sincerely,

Joint Committee on Ways and Means

Co-Chairs’ 2009-11 Recommended Budget
Moving Forward Together

• Focus on jobs and the economy.
• Protect children, seniors, and Oregonians with disabilities.
• Oregonians depend on opportunities in education, access to affordable health care, a level playing field for business, and safe communities. We are committed to addressing these needs and to building for our future even in the midst of the harshest economic downturn of our lifetimes.
• With dedicated teachers, innovative businesspeople, passionate community leaders, top flight public safety personnel, inspiring front line health care providers and caregivers, and productive working men and women in every region—along with a state government that listens, understands, and responds--Oregon will move forward once again, together.
  

Budget Overview:

We are proposing a balanced approach to addressing the fiscal crisis our state faces.

After public hearings throughout the state, and after consultation with our colleagues, educators, students, parents, seniors, health care providers, law enforcement personnel, judges, farmers, commercial fishermen, small business owners, and Oregonians from all walks of life, it is clear that we can neither simply cut services to solve this problem or raise enough revenue to do so. We must do both.

We are proposing strategic cuts in every area of the state budget, following the principles we have put forth, with the intention of making sure that the core mission of every agency can continue to be addressed. These strategic cuts, along with the greatly appreciated resources provided by the federal stimulus dollars and prudent use of our state reserves, are the main tools we are using to address Oregon’s fiscal crisis.

We are also proposing, with Senate and House leadership, to bring in a targeted amount of additional revenue from big corporations and those making over $250,000 a year -- those who can afford to contribute more towards a fair and balanced budget.

Along with most every Oregon family right now, we are tightening our belts and doing everything we can to protect our kids and our vulnerable citizens, addressing short-term needs but keeping our eyes on the future as well.

We have no doubt that with the dedication and shared commitment of all Oregonians, we will weather this storm and emerge even stronger when it is over.

You can see the complete legislative budget proposal by visiting Oregonbudget.gov, or clicking here.