Oregon Public Broadcasting

Oregon lawmakers are calling Tuesday's budget news 'sobering, difficult and disturbing.'

State economists Tuesday said Oregon now faces a half-billion dollar hole in the current budget. Oregonís governor is already taking action to deal with the shortfall. Salem Correspondent Chris Lehman reports.

$563 million. That's now the size of the gap in the current state spending plan.

It's a result of lower-than-expected income tax revenue from the 2009 tax year.

State economist Tom Potiowsky says itís part of the ongoing effects of the economic downturn. He says this year is looking a little better but warned lawmakers not to expect a dramatic turnaround.Tom Potiowsky: "The technical recession, I think, is over in Oregon. But the feel-good part, where you really start to get job growth, is just starting to come along. But itís going to be relatively mild job growth."

Democratic governor Ted Kulongoski moved quickly to enact across-the-board budget cuts.

He doesn't have the power to make targeted reductions. Only the legislature can do that, and there are no plans for lawmakers to come in for a special session.

State agencies have two weeks to outline how theyíll slice their budgets.

Kulongoski says state worker layoffs are likely.