Oregon's largest state workers union today released a report suggesting $1 billion in new savings and enhanced revenue to help close the $3.5 billion budget gap that threatens important services.About a third of the savings in the SEIU Local 503 plan come from recommended reforms to state government that would eliminate inefficiencies and save money.
The reforms include weeding out unnecessary middle management; eliminating contracts for services the state could more affordably provide; produce more accurate projections for departmental expenditures; and improve collections for unpaid taxes.
The other two-thirds would come from closing down corporate tax breaks and limiting deductions available to people who earn more than $200,000 a year.
"I want to commend SEIU Local 503 for proactively engaging its members in exploring cost-saving measures for the state in the 2011-2013 biennium," Gov. John Kitzhaber said in response to the SEIU report. "This is a clear statement that in order to be successful, we must all participate in sharing the burden of our difficult budget reality.
"I will ask Michael Jordan, my new Chief Operating Officer, to review the suggestions and identify the most promising options for near-term savings. I look forward to working with all involved parties when we receive the Co-Chairs budget later this month."
