Oregon Watchdog: Ferrioli says first cuts should be the $312M in pay increases

Senator Ted Ferrioli
Oregon State Capitol

FOR IMMEDIATE RELEASE: February 24, 2009
CONTACT: Michael Gay, 503.986.1950, 503.781.8559

First cuts on Senate floor should be $312 million in pay increases
As Legislature prepares to make cuts, pay increases should be the first to go

Salem, OR – Senator Ted Ferrioli (R-John Day) said Tuesday that the first cuts considered by the
Legislature next week should be the $312 million in pay increases handed out to state managers and
employees last year. The Legislature, under Democrat control, is expected to make drastic cuts to
education, public safety and human services next week.

“The suggestion that the Legislature should start cannibalizing basic citizen services that Oregonians are relying on while state employees continue to enjoy salary increases is utterly irresponsible,” said Ferrioli. “Oregon citizens know what it means to tighten their belts and get by on less, public employees should do the same. Government needs to undertake serious reprioritization, and salary increases don’t pass the smell test.”

After raiding $455 million in other funds and federal stimulus, the Legislature is poised to cram $311 million of cuts into the last four months of the two year budget cycle that ends June of 2009. Instead of cutting last year’s pay increases, Democrat have chosen to:
• Cut from 3 to 7 school days
• Reduce foster care payments
• Reduce Employment Related Day Care
• Not hire 39 new state troopers

“Amazingly,” said Ferrioli, “the average public employee is compensated at a rate of $68,131 a year, including benefits.”

“Two years ago the Governor and Legislature spent money like they had found the pot of gold at the
end of the rainbow,” said Ferrioli. “They didn’t save, and now they want to cut where it hurts the
most: Oregon kids, elderly and the infirm.”

The Legislature took a $2 billion surplus in the 2007 legislative session and spent almost every penny, increasing the size of government by 20% and leaving little in reserves for a recession. The
Legislature faces a deficit of $974 million in this budget cycle and a deficit approaching $2 billion for the next budget cycle.

There are more than 180,000 Oregonians without work. The longer and deeper the recession goes, the
greater the number of Oregonians relying on state services.
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