Budget cuts put Oregon in jeopardy of losing a half billion dollars | OregonLive.com

Budget cuts put Oregon in jeopardy of losing a half billion dollars | OregonLive.com

Budget cuts put Oregon in jeopardy of losing a half billion dollars

Published: Thursday, June 24, 2010, 5:29 PM Updated: Thursday, June 24, 2010, 5:53 PM

Bill Graves, The Oregonian
Follow

Share this story

Story tools

Gov. Ted Kulongoski's order for state budget cuts this week puts Oregon in jeopardy of losing a half billion dollars in federal stimulus money for education.

State leaders say they will make sure that doesn't happen. But that means they either must get a waiver from federal rules or raise at least $14 million for the state's community colleges and universities and about $3 million for public school special education.

3

0

0Share

Under the U.S. Department of Education's State Fiscal Stabilization Fund Program, Oregon received $570 million for three years ending in June 2011.

View full size

To keep that money, the state must maintain its financial support for public schools and higher education at or above 2006 levels – what government calls a sufficient "maintenance of effort" or MOE.

The governor on Tuesday ordered 9 percent across-the-board budget cuts to adjust to a $577 million hole in the budget resulting from the recession and declining state revenue. His order shaves state support for higher education in next year's budget below 2006 levels by about $32 million.

State funding for special education also dropped about $3 million below federal requirements, said Rep. Peter Buckley, D-Ashland.

State higher education funding this year topped the 2006 federal minimum by about $18 million so the state may be able to shift that much money into next year's allocation for colleges and