Unlike the federal government, which can spend money it doesn’t have, state governments are required by law to balance their budgets.
The state is facing an $855-million deficit in the remaining biennium, which ends in June. With less than four months until the end of the budget year, there is only one way to fix it: Make severe cuts to the state’s programs.
The Joint Ways and Means Committee drafted a set of principles to follow early last week and then began sifting through the budget to make critical decisions about where to cut funding.
“State government needs to change how it spends,” Sen. Ted. Ferrioli said in a statement. “First we need to save, then prioritize and cut out what is unimportant and fund the services that matter to Oregonians.”
By the numbers
– | The Ways and Means ?committee co-chairs suggested Friday that the following cuts be made in an attempt to rebalance the 2007-09 budget. |
– | $58.2 million from ?public safety |
– | $18.9 million from ?human services |
– | $11.2 million from ?administrative costs |
– | $5.5 milion from economic development projects |
The priorities included placing human safety issues first, limiting damage to education, recognizing the long-term costs of dismantling vital programs and keeping in mind that cost shifts to some agencies may lead to increased burdens in others.
Oregon State Police Public Information Officer Greg Hastings said that although the Ways and Means committee’s decision on what programs it might cut are not final, public safety programs may be subject to significant cuts.
“We won’t know for sure what program areas might be cut or what the trickle down might be for local agencies, but we will be affected,” Hastings said.
The impact on Eugene will also remain unknown until the middle of the week, but City Councilor Alan Zelenka is anticipating the city will have to make major adjustments.
“Since the report came out, they have been busily crunching numbers,” he said. “When the state budget forecast has significant shortcomings, the financial situation for the city goes from bad to worse.”
“No one is giving up. No one has a pocketful of magic fairy dust to solve the problem,” Speaker of the House Dave Hunt said in a statement. “Oregonians have elected us in these tough times to lead and to make tough choices both in terms of cutting the budget and finding ways to fill the holes in our revenue structure.”
In light of the recent federal stimulus package, the state legislature’s rebalance plan includes maximizing the use of federal dollars wherever possible and focusing on the impact the refinance decisions will have on the economy, jobs and public safety during the period of hardship now as well as in the future.
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