The Oregon Legislature concluded its second special session to balance the budget late Saturday night, passing the buck to Gov. John Kitzhaber, who has yet to formally indicate whether he will veto the proposal.
The Legislature was meeting for the second time this year to rid the state of an $846 million budget shortfall caused by Oregon’s faltering economy. The final budget, which passed entirely on party line votes, cut $343 million from state programs, upheld $98.6 million of pre-approved cuts and drew $480 million from Medicaid funds, tobacco settlement money and the Education Endowment Fund.
Higher education’s budget was cut by $43.3 million, a smaller amount than was proposed in the last special session.
Erin Watari, a student member of Oregon’s higher education board, said the Legislature’s cuts weren’t unexpected.
“I don’t think it’s satisfactory, but look what’s going on in the state,” she said. “I don’t think higher education is a state priority.”
Joelle Lester, executive director of the Oregon Student Association, agreed that the Legislature could have harmed higher education far more than it did in the plan approved Saturday.
“Of course I’m not happy with it, but I do think we’ve minimized the damage,” Lester said. “We’ve made the best of a very tough situation.”
The proposal passed Saturday night did not include any “sin tax” increases for beer, wine or cigarettes. Kitzhaber indicated earlier this week that he would allow the Legislature’s budget to pass if it included a 50-cent-per-pack tax on cigarettes.
“This Republican plan really doesn’t solve anything,” the governor said to reporters Saturday night. “The convoluted Enron-like financing scheme that this is predicated on pushes the state of Oregon out onto a very dangerous financial ledge that’s both irresponsible and unnecessary.”
Kitzhaber was referring in part to the Legislature-created Education Endowment Fund, which voters must approve in the May 21 election for the balancing plan to work. Saturday’s legislation uses the fund to cover nearly 25 percent of Oregon’s budget shortfall.