ANOTHER STATE BUDGET DEFECIT PROMPTS AGENCY CUTS

Governor Kulongoski says the 560 million dollar budget shortfall for the rest of the biennium confirms his fears that it will be a long climb out of the recession for Oregon.  Kulongoski said he won’t call the Legislature into session to deal with it, because it would likely feature partisan gridlock in an election year.  So he’s directing state agency heads to come up with plans on how to cut nine percent from their budgets for the rest of the biennium–and he’s ordering them to meet with union officials to minimize layoffs of union workers.

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