Oregon Watchdog: Merkley praises E-Board, urges fiscal responsibility

Office of the Speaker
Representative Jeff Merkley

PRESS RELEASE: June 27, 2008
CONTACT: Russ Kelley (503) 986-1210

Merkley Praises E-Board, Continues to Urge Fiscal Responsibility

SALEM— Oregon House Speaker Jeff Merkley (D-Portland) today commended the work of the Legislative Emergency Board for their diligence and careful stewardship of the state budget in uncertain economic times. The E-Board met today to approve funding for several key investments, but continued the fiscally cautious example set by the legislature in 2007 and 2008.

“The entire E-Board has worked hard to address the financial challenges facing our state, and they have done a superb job,” Merkley said. “While other states are facing serious economic challenges, our fiscally responsible budgeting has kept us in a better than average position. But we must continue to be cautious so that Oregonians aren’t burdened by a loss of state services if the national economy continues to falter.”

Because spending in other areas was restrained, the E-Board was able to release funds to strengthen early childhood education, seniors programs and fund several projects in rural Oregon:

Approval to move forward with grant requests by the military department to offer drug and alcohol treatment to returning veterans and their families, which will be based in Umatilla County
Approval of grants to aid the Housing and Community Services Department in providing foreclosure relief and weatherization programs for qualified Oregonians ($400,000 in federal funds and $1 million in other funds).
Aid to coastal communities totaling $500,000 which will be matched by an appropriation from the Governor’s strategic reserve funds.
Another $500,000 to study two agricultural issues – a potentially dramatic decline in bee populations across the state, and the spread of Sudden Oak Death through Southern Oregon.

“Although we’re in better shape than many states, Oregon hasn’t been immune to the downturn in the economy,” Merkley said. “But because we created the state’s first rainy day fund, made major investments in the education stability fund, and exercised fiscally responsible budgeting, Oregon has so far been able to weather the storm.”

Merkley said concerns about future budget shortfalls were not out of line, but for the moment, the state’s fiscal picture remains sound. “Gas prices are at record levels, foreclosures are on the rise and unemployment threatens state revenues. We’ll keep a close watch on the economy and will be prepared to make adjustments as necessary in the coming months.”
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