Oregon Public Broadcasting

Oregon lawmakers probably won’t be able to add or expand any programs during their February special session.  The newest budget projections indicate a sharp drop in revenue for the state.  Salem correspondent Chris Lehman has more.

State Economist Tom Potiowsky wanted to be clear.

Tom Potiowsky: “Our office is not saying that Oregon will be in recession.  Now that is not in our forecast.”

But his office is saying the economic growth will be slower than expected.  They’re predicting a slowdown in income tax collection.  It’s all part of a general national economic slump.

The news means lawmakers won’t have the $70 million they expected to be on the table this month.  It’s closer to $28 million, and they were hoping to put some of that into savings.

House Revenue Committee Chair Phil Barnhart, a Democrat, says it’s not clear who’s going to lose out.

Phil Barnhart:  “There are some members out there, legislators, who want to pursue initiatives that would involve spending. My guess is that those are probably less viable now because the ending fund balance has declined quite a bit.  I don’t believe there’s any reason for Oregonians to panic at this point.”

That’s because the overall budget numbers are still in the black.  If things stay on course, agencies shouldn’t have to cut back any services.

On the other hand, new spending on things like state police and land use reform might get pushed off to a later date.

Republicans like Senate GOP leader Ted Ferrioli called the numbers concerning.

Ted Ferrioli:  “It also should be a clear indicator to legislators that we should cut costs, look for waste, pull back a little bit from the spending binge that we’ve been on.”

Republicans said the state could use its own version of the economic stimulus package passed by Congress.

They proposed a $375 million tax cut, with the money coming from across the board spending reductions.  But with the overall economic picture uncertain, the plan doesn’t appear to be going anywhere in Salem.

Online:

Oregon Office of Economic Analysis