Oregon Legislative Assembly

Office of the Senate President

Office of the House Speaker

 

 

 

News Release

 

 Contact:  Robin Maxey                       Geoff Sugerman                 April 2, 2009

            (503) 986-1605                           (503) 986-1904

robin.maxey@state.or.us         geoff.sugerman@state.or.us

 

Co-Chairs Outline 2009-2011 Budget Process;

Potential List of Cuts to Be Released Friday

(SALEM) – Ways and Means Co-Chairs Senator Margaret Carter and Representative Peter Buckley  announced a schedule today as they work to prepare and balance the 2009-2011 budget for Legislative approval in the face of a budget hole estimated to grow from the current forecast of $3.1 billion to $4.4 billion.

 

Included in the schedule are numerous opportunities for public input at hearings, as well as the ability to see all the potential cuts that must be considered as the Legislature develops the 09-11 budget.

 

That budget balancing process begins Friday when the co-chairs will release a list of potential cuts from every state agency amounting to 30 percent. That information can be found at a new website -- http://www.leg.state.or.us/budget/ – put together by the Legislative Fiscal office. The list will be posted at 1 p.m.

 

Carter (D-Portland) and Buckley (D-Ashland) noted these are not cuts recommended by the Legislature, but give legislators a list of cuts to prioritize as they prepare for the May revenue forecast.

 

“We are in dire circumstances and cuts this deep will have a profound affect on all Oregonians. We want to hear from the people about how their day-to-day lives will be affected as we evaluate the impact cuts of this magnitude will have on our communities, our families and our schools and as we seek to mitigate the worst of the cuts,” Carter said.

 

Buckley said after the agency lists are released, the Ways and Means Committee will embark on two weeks of public hearings around the state. The first of those hearings is scheduled for Lincoln City on April 20. Additional hearings will be held April 21 in Portland and April 23 at the State Capitol, where video feeds from other cities will also be prepared. The following week’s hearings include visits to Bend, Ashland and Eugene. The full schedule will be released next week.

 

“We will go to the communities of the people who will feel the effects of these potential budget cuts. We are seeking their input on the services we must keep, and the services they believe we can live without,” said Buckley. “These are difficult choices facing Oregon, and we are committed to hearing from our citizens about those services they value most.”

 

Why $4.4 billion? In the March forecast, the 2009-2011 budget hole was pegged at approximately $3.1 billion by the state economist. But Senate President Peter Courtney and House Speaker Dave Hunt said the Legislature needs to be prepared if the May forecast drops projected revenues even further.

 

“These 30 percent cuts will prepare us for the May forecast,” said Courtney. “If we plan smart, we will be ready for any budget shortfall.”

 

The Legislature has several additional tools beyond cuts to mitigate the impacts of the budget hole.  Legislators will be able to tap federal stimulus dollars and state reserve funds to make up some of the deficit. Those federal and state dollars amount to a total of less than $2 billion, requiring at least $2 billion in cuts or revenue increases.

 

“We’ll need a balanced approach to get to a balanced budget,” said House Speaker Dave Hunt. “State reserve funds and federal stimulus dollars won’t fill the entire hole. So we’re going to need a combination of budget cuts and targeted, fair revenue increases to balance the budget in these difficult economic times.”

 

Following the public hearings in late April, Ways and Means subcommittees will begin public hearings on various agency budgets as they work to prioritize the cuts list. When the revenue forecast is delivered in mid-May, legislative budget writers will issue the “co-chairs budget,” hold additional hearings and begin sending budget bills to the floors of the House and Senate.

 

“This will be a very open and transparent process, with multiple opportunities for citizens to weigh in,” said Hunt. “Oregonians will see the scope of the cuts. They will see how the state reserve funds and federal stimulus dollars will fill some of the budget hole. And they will see the gap that must be filled with a balanced approach to budget cuts and additional revenue.”