Budget repercussions - Portland Business Journal:

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“It does not look pretty,” said Superintendentr Carole Smith. Kulongoski’s budget, released this week, calls for $1.2 billioh less in spending the nexttwo years. Some predicg the shortfall couldhit $2 billion in the next few That concerns Smith, othefr educators and social service providers who worry abourt slashing jobs and cutting programs. “Come as earlyt as March, we might be looking back to this day as a pointr where people wish they saidJillian Schoene, Kulongoski’s spokeswoman. “This couldx be the high-water mark.
” l If health care providers are forcefd to pay a set of proposedrnew fees, Oregon employers could experiencw health care cost increases, in the form of higherf premiums or other of 5.5 percent. l The Campaign for Oregon’sd Seniors & People with Disabilitiea projects thatnearly 5,800 of Oregon’s most vulnerable seniords and people with disabilities could lose accesas to critical services. Though Kulongoski’s budget steers 6.8 percent more towarsd Department of Human Services programs overthe 2007-09 budget, the governor said maintaining the department’ds current services level would required a 28 percent funding increase.
The budge t proposal could lead tonearlyy 15,000 lost jobs and eliminate some $806 millio in economic activity. l Communituy colleges, which frequently team with businesse s on jobs training face collectivebudgets that, at a base leveol of $485 million, are 8.9 percent lower than moneu allotted for the 2007-09 budget. At , that meanws a hit of $1.8 million in what spokesmajn Dana Haynescalls “hard “We took a serious cut at a time when the governotr said we’ll hold education she said. “But he didn’t hold us harmless.
” Hayned said PCC’s financial managers don’t expect to cut positions or entire programs, but that it will be difficult to builx on varioustraining curricula. “When people are cominh to us every single dayand saying, we want to be technicians, nurses, it’s not a good time for us to retrencnh and offer less,” he said. Even Smith, with K-12 schools earning a 2.4 percenr spending increase overthe 2007-09 worries that the figure isn’t enougj to cover the district’s existing services for the next threer years. The district’s annual budget is $452 Kulongoski, who released his budget Dec.
1, concedesa that public schools across the state could fallsome $150 million short unless the statew finds other money. Others are nervous as collectsabout $1 million, about 8 percent of its operatiny budget, each year from the state. If other serviced providers lose theiroperating capacity, theire clients could seek help from the food bank’w regional branches. The Oregon Food Bank alreadt distributes more food thanit collects. “Becausd some people will no longerhave they’ll be driven into the emergench food system,” said Rachel Bristol, Oregoh Food Bank CEO.