SALEM, Ore. -- The Oregon revenue shortfall was described as "shocking" by legislators earlier this week, but it's actually even worse than originally thought.
A press release from the State of Oregon late Thursday morning said that the original estimate of a $562.6 million shortfall was wrong. The state is actually $577.1 million in the red.
"The original forecast overstated general fund revenues from the cigarette tax by approximately $14.5 million," explained Lonn Hoklin, DAS Public Affairs Manager.
On Tuesday, Gov. Ted Kulongoski said cutting the state's budget nine percent across the board won't be the prettiest way to handle this. But, he said, it will be the quickest and most responsible way.
That means a likely combination of public worker layoffs and furlough days.
The Governor warned that there will be painful cuts in state services, including public schools.
The projected shortfall came out of nowhere, thanks -in part- to an unexpected drop of 80 percent in revenue generated from taxable capital gains across the state.
"There is no easy answer to this," said Kulongoski. "The government provides services with the revenues that it has. We don't have the revenue."
Republican Senator Ted Ferrioli -the minority party leader- wants to hold a special session to prioritize cuts.
"The governor doesn't want a special session because he doesn't want Democrats to come in here and have to face up to the fact that they've been overspending," said Ferrioli.
There is agreement from both parties about the need to be reform how revenues are forecast and how often budgets are made.
Both parties expressed surprise and shock over how far off the revenue projections were.
