May 12, 2020 3:40 a.m. 
Big cuts to state agency budgets could be on the horizon.
On Monday, Governor Kate Brown made a statement regarding the budget and the upcoming budget forecast.
Brown said, “One of the many challenging results of the COVID-19 pandemic is the dramatic impact on our economy”. She said, “with many Oregon businesses restricted or shut down, travel suspended and jobs lost, we expect the revenue we receive to fund services will also be significantly reduced.”.
Brown is anticipating a large budget impact in the state revenue forecast coming on May 20th, “which will lead to some really difficult decisions”. Brown said early discussions indicated this could be a reduction of $3 billion for the current budget period. Brown said all options are being explored to “weather this recession”.  Brown has directed state agencies to prepare prioritized reduction plans equaling a 17 percent reduction for the upcoming fiscal year as a planning exercise to explore all options. She said a potential cut of this magnitude “would be extremely drastic”.
Brown said whether the state will need to implement that level of cuts will be dependent on several factors, most importantly the need for additional federal funding to support state services, including for the K-12 public school system. Brown said she will continue to work with Oregon’s congressional delegation in calling for additional federal support.
Brown said “in this time of crisis, Oregonians rely on state services more than ever, and cutting critical state services will be a last resort”.