Oregon's revenue shortfall jumps even higher

Oregon's revenue shortfall jumps even higher

SALEM, Ore. - After Gov. Ted Kulongoski released a grim revenue forecast earlier this week, the state's Office of Economic Analysis has corrected the numbers and the news is worse than originally thought.

The original estimated shortfall was $562.6 million but it has now been raised to $577.1 million. According to the Office of Economic Analysis, the change was made because the original forecast overstated general fund revenues from the cigarette tax by approximately $14.5 million.

The news about the revenue shortfall earlier this week also came with news from the governor that some state workers will lose their jobs as a result of a 9 percent budget cut he has ordered.

"There will be layoffs," Kulongoski said at a Tuesday news conference as shocked state officials absorbed the jolt of bad budget news. Details of job cuts and other budget reductions are expected in the next two weeks, Kulongoski added.

Kulongoski said there's hope that Congress will send states money to help with widespread shortfalls. Any such money would be targeted to schools and human services.