May 8, 2020 4:00 a.m.
On Thursday, Oregon Lottery Director Barry Pack announced significant measures the agency is taking in response to the sharp revenue decline sparked by the response to COVID-19.
An Oregon Lottery release said the reductions help the Lottery address two major issues: the immediate reduction in cashflow and a projected long-term contraction of the retail market.
The reductions total about $7.4 million and impact every lottery employee in one of the following ways:
*There is a permanent layoff and position elimination for 60 positions, or 13 percent of the workforce.
*290 positions or 61 percent of the workforce are receiving a 30 day or longer furlough
*A three-month salary reduction will be in place. It will be a 15 percent cut for the Executive Team and a 10 percent cut for remaining staff.
The release said Lottery has a constitutional mandate to maximize revenue for other businesses in Oregon, commensurate with the public good. When paired with the roughly $20 million in one-time savings, and deferred costs announced in April, the reductions allow lottery to maintain its financial footing in the short-term and respond to long-term changes in the retail market.
Pack said “Lottery is facing many of the same challenges as other businesses in the state”. He said “today is a hard day, but these reductions will help ensure Lottery continues to deliver needed dollars to Oregon now and in the long run”. However, he said its little consolation to the employees negatively impacted, and “my heart goes out to each and every one of them”.