New analysis finds Oregon hit hard
by cuts in president’s budget for ‘08
Oregon would lose $123 million in
federal funding next year for a wide
range of public structures, including
K-12 education and Head Start, under
President Bush’s budget for 2008, ac-
cording to a report released by the
Washington, D.C.-based Center on
Budget and Policy Priorities.
The funding cuts, scheduled to
deepen in future years under the presi-
dent’s proposal, would force Oregon
to either raise taxes to compensate for
the lost federal funds, or reduce basic
public services. The analysis prompted
criticism of the president’s budget by
Governor Ted Kulongoski, advocates
for Oregon children, and a local re-
search institute.
Janet Bauer, a policy analyst at the
Oregon Center for Public Policy who
reviewed the analysis, expressed dis-
appointment at the president’s priori-
ties. “This budget says that maintain-
ing critical infrastructure in Oregon
such as education, safe drinking water
and public safety is not as important as
extending tax breaks, including tax
giveaways for millionaires. These pri-
orities would send Oregon and the
country in the wrong direction,” she
said.
Bauer also noted that the presi-
dent’s budget worsens the federal
deficit by including massive tax cuts
along with the program cuts. “The
president’s budget would worsen the
federal government’s fiscal situation,
because the tax cuts would cost much
more than the program cuts would
save,” she said.
“This budget is a roadmap toward
greater inequality in Oregon,” Bauer
added. Under the president’s budget,
the average millionaire nationally
would receive $162,000 in 2012 alone,
while funding cuts would harm low-
and moderate-income families across
the country, including in Oregon.
The new Center on Budget and Pol-
icy Priorities report estimates, for ex-
ample, that the President Bush’s
budget would:
• Cut federal K-12 education fund-
ing to Oregon by $70 million over the
next five years, relative to the 2007
level. The president’s proposal would
take back much of the additional fund-
ing Congress provided to help states
implement the federal No Child Left
Behind law.
“We simply can’t produce the re-
sults everyone wants for our students if
the federal government is going to re-
duce its investment,” said Jonah Edel-
man of Stand for Children.
• Cut Oregon’s child care funding
by $5 million over the next five years
relative to the 2007 level. Today, fed-
eral child care funding is already be-
low the 2002 level.
“If we want to support working
parents and ensure that our kinder-
garteners are ready to learn, then we
need to invest in quality child care and
early education. This budget goes in
the opposite direction, leaving more
children without the child care help
they need,” said Cathy Kaufman, of
the nonpartisan advocacy group, Chil-
dren First for Oregon.
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PAGE 10
• Cut Oregon’s Head Start funding
by $2 million in 2008 and by $22 mil-
lion over the next five years relative to
the 2007 level. These cuts would come
on top of cuts already made to the pro-
gram.
Faced with these funding cuts, Ore-
gon’s Head Start programs have sev-
eral choices. They can serve fewer
children; cut back on teachers’
salaries, classroom materials, and the
specialized services they provide to
children; or they can try to raise
money from other sources. The federal
funding Oregon would receive in 2008
would serve 1,000 fewer children than
we would serve if funding had kept
pace with inflation since 2002.
The president’s proposal is incon-
sistent with the priority outlined by
Gov. Kulongoski to fully fund Head
Start so that all eligible Oregon chil-
dren can benefit.
“Head Start is critical to ensuring
every Oregon child enters kindergarten
ready to learn. Now is the time to
move forward to make early childhood
education available to all eligible kids
— not take steps backward with
budget cuts and reduced enrollment,
which is what the president’s budget
would deliver,” said Kulongoski.
• Cut Oregon’s funding for low-in-
come energy assistance by $5.5 mil-
lion next year and by $31 million over
the next five years. The Low-Income
Home Energy Assistance Program
(LIHEAP) provides funding to states
to help vulnerable households pay
their home heating bills. Most house-
holds that receive LIHEAP include
someone who is elderly or a person
with disabilities. The increase in en-
ergy prices over the past few years has
made LIHEAP more important than
ever.
• Cut Oregon’s funding for clean
and safe drinking water by $5 million
next year and by $29 million over the
next five years. Some of the biggest
cuts in the president’s budget would
come in environmental programs. Ore-
gon relies on federal resources for
sewage treatment plants and clean
drinking water programs. Wastewater
infrastructure projects would be cut
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