SALEM, Ore. – Oregon Governor John Kitzhaber's proposed budget relies on cost-cutting measures to public pensions, health care and prisons. The Democrat will unveil his two-year spending plan at the state capitol Friday.
Kitzhaber's plan will divide up about $16 billion in expected state revenue. About half of that would go to education, from pre-school through college.
To help pay for the plan, the governor is proposing changes to the state's pension system for public employees. The most significant change would be a cap on cost-of-living increases for retirees.