The Number is in: Oregon's Deficit at $3.8 Billion

For the past several weeks, all discussion about furloughs, pay cuts, and layoffs have been put on hold until we got a final forecast from Oregon State Economist Tom Potiowsky. It's in, and the number, though huge, isn't quite as bad as people expected.

The gap is less than had been feared by many legislators, but there’s bad news, too. Lawmakers will still have find $350 million in cuts before the current two year budget period ends in June. Lawmakers hope to end the 2009 session by June 30, one day before the new two-year budget cycle starts.

They have the most discretion over spending personal and corporate income taxes and lottery proceeds, all of which are down in today’s forecast.

The gap between projected income and current services was estimated at $3.3 billion in the previous forecast issued Feb. 20.

Legislative budget analysts have said it would take $16.7 billion to continue programs at the current two-year level, which does not account for mid-cycle hiring of state police troopers and others, phase-in of programs and increased costs such as medical care. But lawmakers already cut more than $300 million from the current budget of $15.1 billion back in March. Other potential cuts were averted through use of federal economic-recovery funds and state funds other than reserves.

Legislative budget writers already were planning for a gap of about $4.4 billion.

Now we just need to wait and see what the number means for Portland State University. The legislature had told agencies to prepare for 30% cuts, but it appears that worst-case scenario won't come to pass. We'll enjoy our silver linings where we can find them.

Update. The university has already planned meetings to discuss the budget with the PSU community. See below for details:

The University Budget Team, Vice President Lindsay Desrochers and Provost Roy Koch invite you to participate in one of two public budget meetings to review preliminary 2009-10 budget recommendations. The University Budget Team will take comments and answer questions from all participants. All members of the University community are urged to attend one of the two sessions. These recommendations will be forwarded with campus feedback to President Wiewel.

Thursday, May 21
Smith Memorial Student Union
Vanport Room 338
11 - 1 pm

Friday, May 22
Smith Memorial Student Union
Vanport Room 338
12- 2 pm