Oregon Public Broadcasting

In Salem Wednesday, the governor sent a letter to legislative leaders, saying he doesn’t want to use as many reserves to balance the budget as the legislature is contemplating. Kristian Foden-Vencil reports.

The whisper in Salem was that legislators could get out of the building by the end of the month. But the day after their latest plans landed on Ted Kulongoski’s desk, he sent them a letter saying they were taking too much money out of reserve funds to balance the books.

Ted Kulongoski: “Since the very beginning of the legislature I’ve said that I thought that the legislature should take a long term view of our fiscal situation. Not just for this legislative session. And what I worry about is that in February when they come back in, what will be the state of our revenue at that time. And I’ve told them since I gave my inaugural address, that I am going to do every thing I can to protect those reserves.”

He gave the same message in a recent speech to the City Club of Portland too, he says.

The debate is over about $200 milllion -- a relatively small amount compared to the total budget. But Kulongoski says with unemployment at 12.4 percent and rising, he wants to hold onto  reserve funds.

Ted Kuliongoski: “The $200 million doesn’t do anything for the first year of the biennium, it’s the second year. Which means they can come in in February, look at the financial picture and make a better and more informed decision based on what the actual revenues are at that time. I think it’s just the fiscally responsible thing to do.”

The Speaker of the House, Dave Hunt, responded to Kulongoski’s letter. 

Dave Hunt: “This has been a multi-month budget process that has had lots of input from the governor, lots of input from Oregonians. We are continuing to move forward, we think we have the right balance -- between cuts and revenue and federal stimulus and state reserves. And that we are moving forward with the plans we’ve got to protect critical services. And at the end of the day, I’m confident the governor will sign the budgets.”

The governor too says he thinks they can still make it out of the building by July 1st.