Oregon Public Broadcasting

State agencies in Oregon will have to find ways to cut their budgets.  

Governor Ted Kulongoski Wednesday ordered a round of across-the-board budget reductions.  

That comes as the state economist sliced his forecast of future tax collections. His changes take the current two-year state budget from a slight surplus to being $142 million in the hole. 

State Economist Tom Potiowsky says it’s not likely to get better any time soon.

Tom Potiowsky:  “Oregon has a history once it’s a full-blown recession to generally do worse than average in recessions like this, so we have to be prepared for that possibility.”

The Governor’s across-the-board cuts mean agencies will have to trim five percent from their spending between now and the end of June. 

In Olympia, lawmakers got even worse news.  Washington state’s chief economist wiped nearly two billion dollars off the ledger Wednesday.