Oregon Governor Vetoes Budget Legislation

Governor believes state must maintain reserves during period of economic uncertainty

June 23, 2009 -- (Salem) – Oregon Governor Ted Kulongoski today vetoed the legislature’s decision to raid the state reserve funds, putting the economic and financial stability of the state at risk. The veto follows months of public statements and letters from the Governor expressing his position that the state should maintain a fiscally responsible level of reserve funds during this period of record unemployment and economic uncertainty.

Article continues below...

“At this time of great economic uncertainty, I cannot support any bill that reduces our reserves to a level that puts the economic and financial stability of our state at risk,” the Governor stated in his veto letter. “With a record setting unemployment rate of 12.4% and a significant risk that state revenues will continue to decline throughout the course of the 2009-11 biennium, it is critical to providing certainty and stability for our schools to maintain our reserves until the legislature reconvenes in February 2010.”

The point of disagreement is not about the level of funding for K-12 education. The Governor agrees with the legislature that schools should receive $6.0 billion for the 2009-11 biennium. The issue is the Legislature’s attempt to raid state reserves today for the budget in the second half of the biennium, which is not necessary to provide schools certainty for the 2009-10 school year.

The Governor supports the K-12 education budget proposed by the co-chairs of the Ways and Means Committee on May 18, 2009. It made targeted investments in K-12 education, while maintaining a reserve fund of more than $700 million, $400 million of which was targeted for K-12 education in the second half of the biennium, reaching the goal of a $6 billion budget for K-12 education.

“I believe very strongly that we must preserve our funds and use them wisely when we have more certainty around an economic recovery and state revenues,” Governor Kulongoski said. “I do not want to be in a position of giving a false sense of certainty to our schools only to be forced to take it away when the legislature reconvenes in 2010.”

The vetoed bills now go back to the Senate first for consideration. It takes a 2/3 vote of both chambers to override the Governor’s veto.

Source: Oregon Governor