State Capitol
Press Release
November 19, 2008
Governor Calls for Across the Board Reductions to Balance 2007 Budget
(Salem) – The Governor today directed the Department of Administrative Services to exercise the authority under ORS 291.261 to reduce agency spending to prevent the $140 million General Fund deficit that was projected for the current budget today in the December 2008 revenue forecast.
“Today’s forecast shows the depths of this recession and the economic uncertainty facing our state and our nation right now,” Governor Kulongoski said.  “This recession demands tough decisions and requires shared sacrifice – and today’s action is the first of many difficult decisions that lie ahead.”
Consistent with state law, this reduction will be equally distributed among state agency appropriations.  At this time, the Department is estimating the reduction will equate to about 1.2 percent of each agency’s biennial budget.  Because there are only six months left in the biennium, however, the cut will be closer to 5 percent of what each agency has left to spend.
On December 1, the Governor will deliver his recommended budget for 2009-11 to the legislature that outlines his plan for how the state will manage this drop in revenue through the next biennium.  To the extent possible, the Governor has asked state agencies to align their current reductions with the budget going into the next biennium.
“Families are hurting, businesses are hurting and our communities are hurting,” the Governor said. “The reductions I’m ordering today will have an impact on us all, but my hope is that it will help us gain some stability for the current budget so we can focus on targeting our investments in the next budget that get Oregonians back to work and invest in our children’s future through health care and education.”
Anna Richter Taylor, 503-378-6169
Rem Nivens, 503-378-6496

Page updated: November 19, 2008

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