Oregon: State faces cuts to fulfill pay promise to unions

By The Oregonian

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According to The Oregonian:

Legislators are expected today to order universities, prisons, human services and other state agencies to come up with $25 million in cuts or savings to help finance promised pay raises for 45,000 state workers.

Union contracts call for state workers to get an average 3.2 percent cost-of-living increase in November and to have their health premiums covered through this year.

They'll get that.

But the Legislature's Emergency Board, which doles out cash when the full Legislature is not in session, is expected to vote to hold back $25 million of $125 million the 2007 Legislature set aside for public employee pay raises. Agencies will have to make up the difference.

Citing "uncertain economic times," legislative leaders recommended Thursday that the Emergency Board keep $25 million to spend for fires or other unexpected expenses that might crop up this year.

"We're very concerned about the future," said Sen. Kurt Schrader, a Canby Democrat and co-chair of the Joint Ways & Means Committee.... click to continue.

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