Likely Layoffs in Oregon to Balance Budget

Facing a $560 million budget deficit, Oregon Governor Ted Kulongoski on Thursday ordered a nine percent spending cut throughout the state. According to state law, budget cuts must be applied evenly to all state agencies. State agencies expected to face layoffs in order to meet the required cuts include the Department of Human Services and the Oregon State Police.

State agencies have until June 10th to determine how they will implement that mandated budget cuts. They must then present their plans to Kulongoski.

Oregon’s unemployment rate was higher than 12 percent in 2009, which depressed personal incomes and state income taxes, leading to the current deficit.