Governor Kitzhaber Releases Balanced Budget

Press Release by Governor John Kitzhaber

Laying the Foundation: From Challenge to Change

Governor Kitzhaber today released his 2011-2013 budget, recommending fundamental shifts in service delivery and funding priorities to balance a $14.76 billion General Fund and Lottery budget severely impacted by the recession and the loss of one-time federal revenues. Shifts include funding proven job creation programs, consolidating disparate early childhood programs and restructuring health care delivery to lower costs and improve the quality of care.

“We have an opportunity – this year – to set Oregon on a course to a bright future,” said Governor Kitzhaber. “The budget shortfall represents an opportunity to change and improve the way the state does business. My budget includes ideas that have been advocated by Democrats and ideas that have been advocated by Republicans. Oregon’s success depends on a willingness to develop new partnerships and coalitions, and move beyond the partisan divisions of the past.”

On key priorities – education, health care, public safety and other services – the Governor’s budget marks the first step toward shifting state spending from addressing problems after they’ve developed to preventing them in the first place.

Specifically, the Governor’s budget:

  • Unifies disparate programs, streamlines administrative costs and measures outcomes within an Early Learning Council to ensure that every child enters school ready and able to learn, enters first grade ready to read and leave first grade reading;
  • Establishes a stable funding floor for Oregon’s K-12 public school system, increasing state funding for the 2011-12 school year and identifying cost savings and efficiencies to guard against cuts in the classroom; and
  • Restructures health care delivery to reduce cost and improve care through integration of services; incentives for prevention and moving to community-based management of chronic conditions.“

We must confront hard budget and spending choices. This budget marks the first step to long-term fiscal stability and health for Oregon,” said Governor Kitzhaber.

For budget materials, visit: