House Democratic leadership blames Bush, looks to tackle state budget crisis

State House Democratic leaders blamed Oregon’s worsening economy on a bleaker national picture Wednesday and began prioritizing the state’s diminishing state budget to get through the economic crisis.

“This nation has been battered by the failed economic policies of the Bush Administration and Oregon is now feeling that pain,” newly elected House Majority Leader Mary Nolan (D-Portland) said. “The cuts requested by the Governor will affect every Oregonian and every Oregon business. But this downturn also provides us with an opportunity to look anew at how we do things in Oregon and to make sure that Oregonians are receiving real value from every dollar we spend on public service.”

House Democrats said they would follow Gov. Ted Kulongoski’s orders to immediately cut all budgets by five percent across the board, which will mean an $850 million reduction in funds when the legislature meets in January. They also said that job creation, education, and caring for the elderly during tough economic times would be focused on during the next legislative session, which begins in January.

Speaker of the House Dave Hunt (D-Clackamas County) also praised Democrats for creating a Rainy Day fund last session to help the state through the latest economic hardships.

“Because of our work last session in creating the Rainy Day Fund and strong reserves, we’ve managed to avoid the fate of many other states so far. And we are still better positioned than ever before to withstand this downturn, difficult as it will be,” Hunt said. “As President-elect Obama has said, these are tough times. We all will feel some pain and struggle over the coming months. But now is not the time to panic. Now is the time to redouble our efforts to work together and solve these problems.”