The September state general fund revenue forecast, released this morning, has declined by $377.5 million.

In response, Gov. Ted Kulongoski and legislative leaders have announced they intend to rebalance the state budget with across-the-board cuts, rather than convening a special legislative session.  K-12’s share of those cuts would be approximately $150 million, but the governor and legislative leaders have pledged to keep K-12 funding at the level promised in June.  They will do so by utilizing $118 million in recent federal education jobs assistance, and by pledging an additional $34 million of state reserve funds when the legislature convenes in February.

School districts and ESDs can use the most recent (July 12) SSF estimate to determine anticipated total resources for 2010-11.  However, a portion of that money will now come from the federal jobs funding.

Schools and ESDs will also be affected by across-the-board cuts to state agencies, including ODE.  With nine months remaining in the biennium, those cuts will amount to reductions of about 8 percent for each agency.

COSA and OASBO are working to gain greater detail about specific ODE and state agency cuts, as well as other aspects of the state budget rebalance.  We will keep you informed as we learn more.

For more details about the forecast, visit the Office of Economic Analysis state revenue forecast webpage.