State workers from Governor Kulongoski to your local school superintendent are preparing for more bad economic news. Oregon state economist Tom Potiowsky will release the next quarterly revenue forecast on August 26, but he’s already sent a letter to the governor letting him know it’s not looking good and, in fact, it’s probably going to be worse than he thought earlier in the summer.
In June, Kulongoski asked state agencies to make a nine percent cut to their budgets to make up for over a half billion dollar gap in the state’s overall budget. Now, it looks like that wasn’t enough. Based on some grim economic indicators (job growth, housing, bank lending and consumer spending), Potiowsky says the state’s shortfall could be between $200 million and $500 million more.
What will the state’s budget shortfall mean for you? Have you already felt the affect of the nine percent cuts to schools and other services? Have you lived through rough times like this before — in Oregon or another state? What have you seen that works?
- Tom Potiowsky: Oregon state economist
- Dave Hunt: Speaker of the Oregon House of Representatives and a Democratic state representative from Clackamas
- Bruce Hanna: Oregon House Minority Leader and Republican state representative from Roseburg
- Tim Nesbitt: Chief of staff to Oregon Governor Ted Kulongoski
- Brian Sigritz: Director of state fiscal studies for the National Association of State Budget Officers