The next five years may see budget cuts in nearly every corner of Oregon government save for Oregon schools, based on a hefty budget proposal released on Thursday by state lawmakers.
The proposal comes from co-chairs of the Joint Committee on Ways and Means – Sen. Betsy Johnson, D-Scappoose, Sen. Elizabeth Steiner Hayward, D-NW Portland/Beaverton, and Rep. Dan Rayfield, D-Corvallis.
Recommended Stories
In June, the Oregon Office of Economy Analysis reported the state may face an estimated $2.7 billion shortfall for the current revenue cycle and an additional $10.5 billion in revenue over the next half-decade.
The state’s K-12 State School Fund totals about $9 billion and the proposal seeks to preserve Governor Kate Brown’s original funding level. An additional $400 million for school districts would come from dipping into the Education Stability Fund under the proposal.
The proposed cuts total $387 million across various state agencies. The Office of Rural Health and Area Health Education Centers would see cuts of around 5 percent.
Oregon Promise grants would only be eligible for only families making under $18,000 while funding for GED programming would be slashed by $350,000.
Cuts include closing the Shutter Creek Correctional Institution in North Bend and the Warner Creek Correctional Facility in Lakeview during the 2021-23 biennium. The number of layoffs from such cuts were not given.
The proposal would make “minimal reductions” to state child welfare programs.
Other budget cuts include canning vehicle purchases for Oregon State Police through next summer. Increases in on-site inspections of in-home care agencies will also be put on hold.
House Republican Leader Christine Drazan, R-Canby, released a statement on the state’s budget plan, stressing action.
“We have the money set aside for a rainy day and now is an appropriate time to draw from our savings,” Drazan said in the statement. “As we do so, we must stay mindful that Oregon’s budget shortfall is a fraction of the losses experienced by families and businesses throughout our state. As we right-size the state budget we have to prevent additional suffering.”
The proposal leaves the state budget with a net ending balance of $200 million in the general fund. That money can be used to bankroll emergency responses like fighting wildfires.
Hearings on the proposed budget will begin next week to hear public testimony on the rebalance proposal.
A special legislative session wrapped up in late June and a second remains in limbo.
