Oregon Public Broadcasting

The sobering budget news continued in Salem Friday. State economists announced that the Legislature is now facing a $3 billion gap for the next budget cycle that starts in July.

 That’s more than twice as big as they thought just a few months ago.  And it means represents one-fifth of the current spending levels.

Senate President, Democrat Peter Courtney, says there are no easy solutions to the shortfall.

Peter Courtney:  “You can’t just cut your way out of these things and you can’t just tax your way out of these things.  You’re going to have to do both, we know that.  The magnitude of those two we can’t read right now, or the structure we’re going to use we can’t read right now.  But it’s real.  I mean, it’s real.”

Lawmakers are already trying to bridge the gap in the current year’s budget.  

That shortfall grew by another $55 million with Friday’s revenue forecast.  The news makes it more likely that Oregon schools will have to cut a week or more from their calendars this spring.