1990

1

• 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.

2
2003-05 All Funds
Resources Total 84,451.0 Million
Expenditures Total 40,809.3 Million
3
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
4
General Fund Forecast ComparisonFiscal Years,
in Millions
5
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.
6
Approved General Fund Lottery Funds
2 of 2
7
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
8
General Fund and Lottery Funds by Program Area
State School Fund Level
Excludes additional PERS savings of 191.5 million that is used to balance the Governors Revised Budget and includes new discretionary resources.
9
What has caused the General Fund expenditure
growth since 1989?

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

10
State and Local Resources for K-12 School Funding
Billions of Dollars
11
Estimated Impact of Measure 11 on Oregons Prison
System
12
Department of State Police2003-05 Governors
Balanced BudgetSworn Positions
13
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.

14
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