Oregon Public Broadcasting

Oregon's latest budget forecast shows a $560 million shortfall for the current two-year budget cycle.

Governor Ted Kulongoski has responded by requesting that state agencies draft new spending plans, with nine percent budget cuts in mind.

In remarks Tuesday, Governor Kulongoski reminded school leaders that he vetoed the original public school budget for the state, because he thought it spent too much out of reserve funds. Legislators overrode his veto.

Ted Kulongoski: "Our reserve funds have been depleted. We falsely heightened expectations for schools, and here we are left with just one option: cuts."

Portland Public School officials are expecting cuts of close to $19 million. In Salem-Keizer, the figure is about $17 million.

Some districts budgeted reserves for the current school year, so they could absorb potential cuts to the fall budget. Others didn't, and are looking to cut staff, or reduce the school calendar.