News Release

Contact:  Robin Maxey                        Geoff Sugerman               May 18, 2009

            (503) 986-1605                           (503) 986-1210

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

Ways and Means Co-Chairs Release Plan

to Bridge $4.2 Billion Budget Gap

(SALEM) – The co-chairs of the Joint Legislative Ways and Means Committee released their plan Monday to fund state services over the next two years with a $14.6 billion state budget, including a $6 billion allocation for K-12 education funding.

The budget includes $2 billion in cuts from the essential budget level. The co-chairs budget also utilizes federal stimulus dollars ($399 million from the state stabilization fund and $542 dedicated to Medicaid), state reserve funds ($361), and $800 million in new revenue to close the state’s $4.2 billion budget hole.

After spending two weeks holding public hearings around the state, co-chairs Representative Peter Buckley and Senator Margaret Carter said it was clear Oregonians preferred a balanced approach that did not rely solely on cuts or on new revenue increases. The vast majority of 600 Oregonians who testified at the nine public hearings said a balance between cuts and revenue was essential to the future of Oregon.

“This budget cuts over $2 billion in state services, so the impacts are clearly going to be felt by Oregonians across the state.  But I believe we have provided a balanced approach that protects the core missions of our state – including education and services to our seniors and our most vulnerable citizens,” said Buckley (D-Ashland).

“These are difficult times and just like families across Oregon, the state must make agonizing budget decisions.  The reality is that every agency and every program will feel the pain,” said Carter (D-Portland). “To the greatest extent possible, we believe we have created a budget that doesn’t put our children at risk; a budget that protects the most vulnerable Oregonians including our senior citizens; and a budget that provides security for the public and keeps our courts open.”

The budget plan calls for funding K-12 education at $6 billion for the next two years, including an initial $5.6 billion appropriation and $400 million in reserve funds to be released in the second half of the biennium. That means schools will be allocated approximately $2.9 billion in the 2009-2010 school year, the normal amount allocated during the first year of the biennium.

The co-chairs budget funds Human Services at $4.2 billion, including $541 million in federal stimulus dedicated to Medicaid. Public Safety agencies are slated to receive $1.9 billion with the Judicial branch receiving $508 million.

The budget plan funds Natural Resources agencies at $323 million, administration at $194 million and transportation agencies at $92.9 million.

The co-chairs budget includes cuts in nearly every state agency. In addition, the co-chairs budget assumes $725 million in reserves. That includes $400 million in reserves set aside for the second year of the education budget.

“This budget embraces the key principles we laid out early in the session – that we provide a fair and balanced approach that shows we are tightening our belts and does not balance the budget on the backs of middle class Oregonians or those who need our help the most,” said Speaker Dave Hunt (D-Clackamas County). “In these extremely difficult times, co-chairs Buckley and Carter have done a masterful job of charting a course through very difficult and turbulent seas.”

“I have said since December that we can’t just cut our way out and we can’t just tax our way out of this economic crisis,” said Senate President Peter Courtney (D-Salem/Gervais/Woodburn). “In this budget plan the co-chairs have presented a balanced approach which asks everyone to share in the responsibility of ensuring education opportunity for our children, keeping our families and communities safe and protecting our seniors and other vulnerable citizens.”