Rep. Richardson on Oregon's Stimulus Package

Oregon’s $177 Million Stimulus Package: Jobs Bill Or Boondoggle
January Newsletter
Rep. Dennis Richardson
Republican State Representative, Dist. 4

The severity of Oregon’s financial crisis worsens daily. In last week’s newsletter I stated the proposed shortfall to pay Oregon’s expenses through fiscal year-end, June 30, 2009, was $278 Million (the $140 Million promised payment to the Rainy Day Fund that will not be paid, plus $139 Million in budgeted expenses that must be cut before then). Now Oregon State Economist Tom Potowski is warning that Oregon’s financial condition is deteriorating much faster than expected when the December ’09 Revenue Forecast was published. Dr. Potowski candidly stated for the current 2007-09 budget that in addition to the December Forecast deficiency, “…a further decrease of $300 to $600 million is possible. The risks are on the downside with decreases that could exceed $600 million.” Thus, in addition to the $140 Million missed payment to the Rainy Day Fund, in the next five months, the current budget faces a $739 Million shortfall.

Oregon’s current financial crisis was inevitable. Back in the August 1, 2007 edition of this newsletter, entitled, “Oregon’s Revenues, Fees, Debt: Cycles for Boom & Bust” the following warning was given: Read more at www.dennisrichardson.org