1990s: State enjoyed huge economic growth and

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• 1990s State enjoyed huge economic growth and
• diversification
• Total gross state product increased by 98 from
  1991-2001.
• High-tech industry growth.
• Population growth 11th fastest growing state.
• Personal income grew at annual rate of 5.6,
  exceeding the nation.
• Exports increased by a compound annual rate of
  5.8.
• State General Fund grew from 4,628.1 million in
  1989-91 to 10,121.8 million in 1999-2001
  dollars primarily went to K-12, Oregon Health
  Plan, and Public Safety.
• Kicker returned for personal income tax filers 7
  times, totaling over 1.5 billion for corporate
  tax filers 5 times, totaling over 400 million.

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2003-05 All Funds
Resources Total 84,451.0 Million
Expenditures Total 40,809.3 Million
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All Funds Expenditures
1989-91 Legislatively Adopted Total 14,360.4
Million
1999-2001 Legislatively Adopted Total 29,576.8
Million
2001-03 Close of Session Total 34,077.0 Million
2001-03 Final Total 37,836.3 Million
Includes Consumer and Business Services
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General Fund Forecast ComparisonFiscal Years,
in Millions
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Lottery Resources Available to the State
Note Resources do not include Video Lottery
proceeds dedicated to the Counties. Beginning
balance is included.
Office of Economic Analysis
2003-09 debt service figures do not reflect any
Education Endowment Fund or reserve earnings
designated for debt service on education bonds.
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Approved General Fund Lottery Funds
2 of 2
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2003-05 Legislatively Adopted General Fund and
Lottery Funds Budget
Revenues Total 10,974.3 Million
Expenditures Total 10,951.4 Million
Includes Oregon Health Sciences University
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General Fund and Lottery Funds by Program Area
State School Fund Level
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What has caused the General Fund expenditure
growth since 1989?

• Primary
• Population
• Initiatives
• Policy decisions
• Secondary
• Inflation
• Lawsuits

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State and Local Resources for K-12 School Funding
Billions of Dollars
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Estimated Impact of Measure 11 on Oregons Prison
System
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Department of State Police2003-05 Governors
Balanced BudgetSworn Positions
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Policy Decisions

• Oregon Health Plan (OHP)
• The Office of Medical Assistance Programs budget
  has increased significantly since 1989-91. The
  General Fund and tobacco funded portion has
  increased from approximately 201 million to
  1.21 billion.

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Other Issues

• General Risk
• Reserves/Other Fund Balances
• PERS/Labor
• Kicker
• Additional Lawsuits
• Bond Rating
• Annual Sessions

• Accountability/oversight vs. Reduced
  Administration
• Regulatory Reform
• Economic Recovery
• Pent-up Budget Demand
• Potential Initiatives
• One-time Revenues