Oregon’s top budget writers, Sen. Kate Lieber and Rep. Tawna Sanchez, recently revealed a spending framework that highlights state priorities for the next two years. However, a significant portion of this framework relies on federal funding, which is currently uncertain due to potential cuts by the Trump administration. Despite this uncertainty, Lieber and Sanchez project that Oregon will have enough money to maintain state services, invest in housing, mental health, addiction treatment, schools, and more, if federal funding remains stable.
The budget writers also presented potential scenarios in case of reductions in federal funding for education and human services, indicating that Oregon could face a funding gap ranging from $2.6 billion to $9.7 billion. To address this, Lieber and Sanchez highlighted key areas where adjustments could be made, such as $11.4 billion for K-12 schools, $100 million for emergency funds, $300 million for state employee raises, and nearly $2 billion for human services costs.
While the framework outlines significant investments in various sectors, it does not include funding for new measures recommended by Gov. Tina Kotek, such as $3.5 billion for roads and bridges or additional revenues for wildfire prevention. Additionally, final budget decisions will be made based on revenue estimates in May, which could change depending on federal actions and the national economy.
Overall, Lieber and Sanchez emphasized the need to maintain core government functions while avoiding unnecessary new programs that may lead to financial constraints. Despite uncertainties surrounding federal funding and revenue estimates, they believe Oregon is currently in a relatively stable financial position, although the future remains uncertain.
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