The housing market is obliterated, local government budgets are tight and families throughout the state are struggling to make ends meet; from an outsider’s perspective, the economy looks bleak. However, Gov. Ted Kulongoski is planning for a brighter future, not saving for a rainy day.
“We need to invest in those things that are the fundamental building blocks of a strong economy,” Kulongoski said in a press release Monday morning. “In other words, we must invest for the future – even if that means making painful disinvestments in the present. In that sense, my budget is a visionary statement of where I want to lead Oregon.”
By the numbers
| Dec. 1, 2008: Gov. Ted Kulongoski released his budget recommendation July 1, 2009: The budget would go into effect $15.8 billion: Kulongoski’s projected state budget 54: percentage of the governor’s budget dedicated to education 6,700: projected number of jobs created by Kulongoski’s transportation plan $225 million: projected budget deficit for the second year in the 2009-11 biennium $249 million: what it will cost to provide all Oregon children under 19 with health insurance 60 cents: the additional cigarette tax Kulongoski wants to tack on to the current price of a pack of cigarettes $163 million: budgeted for higher education-based state financial aid $917 million: what the Oregon University System will receive to aid the state’s colleges in improving retention and graduation rates |
Kulongoski recommended a $15.8 billion budget plan early Monday. The state’s financial resources are dwindling in the wake of the economic downturn, but Kulongoski is prioritizing education, health care, climate change, transportation and job creation in an effort to maintain the state’s momentum through the difficult economy.
The governor made education his top priority in the 2009-11 budget, dedicating 54 percent of the general fund to the expansion and maintenance of current programs.
The governor’s proposed budget preserves educational funding for the first year of the biennium. However, in the second year, there is a projected $225 million deficit Kulongoski plans to compense for by tapping into the Educational Stability Fund, a rainy day reserve funded by 18 percent of state lottery ticket sales. The use of the funds requires a three-fifths majority vote by the legislature – not a sure thing, according to Finance and Budget Advisor for the Legislature Paul Warren.
“The Educational Stability Fund was established for a rough economic forecast similar to this one. The question now is whether or not this situation is extreme enough for three-fifths of the legislature to vote to use the funds. It ultimately lies in their hands,” Warren said.
Post-secondary education improvements include a budgeted $506.8 million to assist community colleges in enriching their curriculums and expanding their ability to meet growing enrollment needs.
The Oregon University System will receive $917 million, set aside to improve student retention and graduation rates. Finally, Kulongoski recognized the rising cost of tuition and included $163 million in his budget to expand the new Shared Responsibility Model, the state’s financial aid program.
For health care funding, Kulongoski budgeted $249 million to guarantee Oregon children under the age of 19 access to affordable health care. The governor also proposed a sixty-cent cigarette tax to fund children’s health care.
Investing in Oregon’s transportation system and infrastructure is yet another part of the governor’s plan. By stimulating transportation, the governor hopes to make Oregon more competitive in attracting new business. In addition, improving the infrastructure of transportation is estimated to create 6,700 jobs.
The effects of the governor’s budget on Lane County will be unknown for another week, according to Lane County Budget Officer David Garnick.
“It’s impossible to know what the budget’s impact will be on Lane County until we take some time to look it over closely. Some think that won’t happen until next week,” he said.
[email protected]
