Illinois Valley News

Members of the Oregon Legislature have voted to not hold a special session to address a $577 million shortfall for the 2009-11 biennium.

As such, Gov. Kulongoski is resorting to the allotment authority granted him under state law to try and resolve the issue.

In a Wednesday, June 9 press release, Kulongoski announced that he received plans from general fund state agencies outlining how to manage 9 percent budget reductions.

“Today“s plans represent the next step in this difficult process,“ Kulongoski said. “There are no good answers and no easy solutions to the current shortfall. With a shortfall of this magnitude, we are limited in our options to balance the budget — and the longer we wait, the more painful and deep the cuts.“

Kulongoski wrote a letter dated May 25 to members of Oregon“s congressional delegation and national leaders pleading for federal assistance to help the state meet its financial obligations.

In particular, Kulongoski urged passage of House Resolution 4213, which would extend the enhanced Federal Medical Assistance Percentage for six more months. That would benefit the state to the tune of approximately $200 million, Kulongoski said.

Also supported by the governor is passage of S.3206, the Keep Our Educators Working Act of 2010.

“This bill would provide an estimated $270 million for education,“ he said. “It would help prevent thousands of layoffs or a reduction in school days for the 2010-11 academic year at Oregon

K-12 schools. This funding will also be critical support for post-secondary education in this time of unprecedented demand and need.“

But the governor“s approach to solving the funding crisis was blasted by Oregon House Republican Leader Bruce Hanna in a June 9 press release.

“Across-the-board reductions are the wrong solution to rebalancing the state budget,“ Hanna said. “The state“s current leadership mismanaged this budget from the very beginning. They have failed to protect critical services, despite $8 billion in new government spending and $1.6 billion in job-killing tax and fee increases.“

Hanna went on to criticize passage of “huge spending increases to several state agencies“ by the Legislature in past years, and continued his call for a special session.

“The Legislature can“t afford to wait for “further analysis“ or yet another taxpayer-funded bailout from the federal government,“ Hanna said. “We should immediately convene into special session, make the tough decisions, and reprioritize spending to protect the most essential programs in education, public safety and human services from devastating cuts.“

House Speaker Dave Hunt (D-Clackamas County) said in a June 9 press release that House Emergency Board members planned to meet with legislative fiscal staff during the next two weeks to assess the cuts and offer recommendations.

Hunt said that Legislative Assembly cuts are nearly finalized, and that House members also will examine proposed cuts from the Secretary of State and Oregon Dept. of Justice. Those agencies are not covered by the governor“s allotment authority, Hunt added.

“As we analyze the proposed cuts in the coming days and weeks, we“ll get a better sense of what the federal government may contribute and exactly what these impacts are on our children, struggling families, small businesses, and communities,“ Hunt said. He added:

“In close conjunction with the Senate and the governor“s office, we“ll develop a plan to mitigate the worst of the proposed cuts. Whether and when we meet in special session will be a decision we“ll make once we“ve had time for the needed analysis.“

Senate Republicans sounded off on the situation in a June 9 press release.

“Across-the-board cuts are a senseless way to manage this situation,“ said Sen. Bruce Starr (R-Hillsboro). “What family facing a shortfall is going to cut its grocery budget at the same rate it cuts its movie budget“ The governor“s across-the-board cuts completely ignore the priorities that Oregonians value.“

Starr said that the budgetary tactic being pursued by Kulongoski would result in cuts of $258 million to K-12 education; $51 million from the state public safety system, resulting in closure of three prisons; and $158 million to human services, which would mean the end of in-home care for 13,200 senior citizens, Alzheimer patients and disabled individuals.

Instead, Senate Republicans suggested that “close to $100 million could be saved if public employees were asked to pay health insurance premiums at the same rate as school teachers.“

Kulongoski expressed optimism that federal aid can help the state make its way through the current crisis.

“I am hopeful that Congress will act quickly to provide needed emergency assistance to help us preserve school days, prevent teacher layoffs and ensure our most vulnerable citizens continue to have access to health care,“ the governor said.

He also said that he plans an announcement about final reductions by the end of June.

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