Legislators Say Prospects Improve For a Successful Session

New Reports from DHS and PPS Clarify Need, Highlight Opportunity

Photo By: Tim King

(SALEM) - Two new reports make clear that the Oregon Legislature is now in a position to help close emergency funding gaps at both the Department of Human Services and Portland Public Schools without raising taxes or making painful cuts to other public services.

The first report, delivered Friday afternoon to the legislative Emergency Board, reveals that the DHS budget shortfall is smaller than originally estimated. Once forecast to be $172 million, the shortfall now stands at $136.2 million. The import of the updated figure is clear: the Legislature can now close the gap using ending balance funds and other existing resources.

`There was bipartisan agreement among legislative leaders in January that decisions about special session should await this update from DHS," said Senate Majority Leader Kate Brown (D-Portland). `We expected the updated report to show a drop in the shortfall. Now that our expectation has been confirmed, we are in a position to convene a special session and prevent cuts to vital services without using controversial kicker money."

The second report comes from the Short Term Committee of the Children`s Education Coalition, which has put together a plan to provide $31.7 million in emergency funding for Portland-area schools. As a critical component of the plan, the committee relies on $6.3 million in state funds that will only be available if the Legislature acts during special session to dedicate $42 million in unanticipated lottery revenue to schools statewide.

Even with the lottery funds, the committee`s plan leaves Portland Public Schools far short of a balanced budget for the coming school year. That is why Senate Democrats have proposed a two-part school plan for special session dedicating the lottery funds and authorizing an extension of the Portland gap authority. The latter move would make an additional $15.8 million available for PPS, which could allow the district to moderate its current plan to make $24 million in cuts.

`With yesterday`s news that district officials are contemplating widespread school closings, it is only more apparent that the Legislature has an obligation to do everything it can to help," said Brown. `We have an opportunity to make a difference in special session, and it is an opportunity that legislators on both sides of the aisle should seize on behalf of our children."