Oregon Public Broadcasting

Just two weeks after voters approved more than $700 million in higher taxes, Oregon lawmakers find themselves facing a budget shortfall. But the numbers released Monday wonít immediately lead to major cuts. Chris Lehman reports.

Oregon lawmakers were already counting on the money raised by Measures 66 and 67 when they put together a budget last year.

So this new $106 million gap is a reflection of weaker-than-expected income tax payments.

State economist Tom Potiowsky says last year's stimulus package generated a small bump. But that's wearing away. He compared the infusion of federal cash to a set of jumper cables on a car battery.

Tom Potiowsky: "It's really making the engine run fast, and youíre taking those cables off, and so it doesn't get as much juice as it did before. But the engine's still going to run. It's just going to run a little less RPM's before it starts to kick back in in 2011."

Lawmakers hope to plug part of the $106 million gap by revising some renewable energy tax credits.

House Speaker Dave Hunt says the legislature may also make some targeted spending cuts.

Online:

Revenue Forecast