BUDGET Full Budget

LAYING THE FOUNDATION
GOVERNOR’S BUDGET MESSAGE

To the Citizens of Oregon –
We have an opportunity – this year -- to set Oregon on a course to a bright future.
It won’t be easy. I believe the next biennium will be our most difficult, which is why we have to
approach it together and approach it correctly. We are at or near a low-point in state revenues,
but we are at or near the highpoint in terms of human need. Balancing the next budget will
require some very difficult choices. It will require managing to a clear set of priorities and in a
way that reflects our long-term vision. And it will require leadership with the courage and
discipline to look beyond the next two years to where we want Oregon to be in 2020 and beyond.
This budget marks the first step in shifting state investment from addressing problems after they
have developed to preventing them in the first place. It funds proven job creation programs to
get Oregonians back to work in the short-term and supports early childhood investment as the
foundational element to achieving long-term education and economic objectives for Oregon.
Think of our state government as a house that was built many years ago, and Oregonians as the
family that has been living in it for generations. Its design may have made sense when it was
built, but the family -- its needs and the way it lives -- are different now. The rooms are the
wrong size and there are too many of them. There is no insulation and the windows are drafty, so
it costs more than our family can afford to keep it up. The foundation is cracked and the roof
needs a complete replacement. There comes a point when patching things up just won’t work
anymore: we need to rebuild a house that is affordable and is built for the way we live.
Early Childhood
If our central challenge is to rebuild the house of Oregon, then successful investment in the
developmental needs of children is the foundation on which our house will be built.
My budget will ensure our children enter school ready to learn by unifying disparate programs,
streamlining administrative costs and measuring outcomes.
Job Creation
This budget continues proven programs and services that are vital to creating, retaining and
attracting small and large businesses that provide sustainable, living-wage jobs for Oregonians.
It includes additional investment in the Oregon Innovation Council (Oregon InC), an effective
public/private partnerships that converts university research into market-ready products and jobs.
Education
This budget establishes a stable funding floor for Oregon’s K-12 public school system. It
provides $5.56 billion for the biennium. However, fifty-two percent ($2.9 billion) will be
distributed during the first school year of the biennium, equivalent to a $5.8 billion budget for
school funding. The effect is to provide an increase in state funding for the 2011-12 school year.
Front-loading the funding also provides a year to find cost savings through consolidation and
other efficiencies to maintain this level of classroom support during the 2012-13 school year. In
post-secondary education, this budget focuses on undergraduate education and access.
Health Care
The Oregon Health Plan and long-term care services are profoundly impacted by the loss of one-
time funding sources, like federal stimulus revenue. This budget builds a platform to transform
our health care delivery system in the second year of the biennium through integration of
services; incentives for prevention; and community-based management of chronic conditions.
Public Safety
The cost of corrections has grown dramatically over time and now comprises 53 percent of
public safety spending. Despite reduced funding levels, this budget funds Measure 73
reimbursements to counties, and avoids early release of adult offenders. However, such cost
increases are not sustainable, and I am recommending a comprehensive review of sentencing
guidelines for consideration during the 2012 legislative session.
We should not underestimate the magnitude of these challenges; but at the same time, we should
never question our ability to successfully meet them. If we do this right – and if we do it
together – the 2011-13 biennium can become the “floor,” the foundation on which we will
rebuild Oregon.
Together we can rebuild a state where our children are ready to learn before they get to school;
where they have the resources and attention to learn and our teachers have the time and support
to teach; where drop-out rates are steadily falling and graduation rates are steadily rising; where
all Oregon high school graduates are prepared to pursue a post-secondary education without
remediation; and where 80 percent of them achieve at least two years of post-secondary
education or training. We should live in a state that creates family wage jobs and career
pathways that lead to those jobs, and where the average per capita income exceeds the national
average in every region.
In short, we must view the upcoming biennium as the first step toward our vision for the future –
a more prosperous and sustainable Oregon.
Sincerely,
John A. Kitzhaber, M.D.

Governor, State of Oregon
Table of Contents
GOVERNOR’S MESSAGE
INTRODUCTION
THE ECONOMIC AND REVENUE ENVIRONMENT .................................................................................................. A-1
2011-13 GENERAL FUND/LOTTERY BUDGET (Graphs) ..................................................................................... A-12
2011-13 ALL FUNDS BUDGET (Graphs) .............................................................................................................. A-13
STATE OF OREGON ORGANIZATION CHART ...................................................................................................... A-14
PROGRAM AREA AND AGENCY INFORMATION

EDUCATION ..............................................................................................................................................................B-1
Community College and Workforce Development, Department of.................................................................B-6
Early Learning Council ......................................................................................................................................B-9
Education, Department of.................................................................................................................................B-12
Student Assistance Commission, Oregon........................................................................................................B-16
Oregon University System ...............................................................................................................................B-18
Teacher Standards and Practices Commission ................................................................................................B-21
HUMAN SERVICES ...................................................................................................................................................C-1

Blind, Commission for the .................................................................................................................................C-5
Human Services, Department of ........................................................................................................................C-7
Health Authority, Oregon.................................................................................................................................C-12
Long Term Care Ombudsman..........................................................................................................................C-17
Private Health Partnerships, Office of .............................................................................................................C-19
Psychiatric Security Review Board..................................................................................................................C-20
PUBLIC SAFETY ...................................................................................................................................................... D-1

Corrections, Department of ............................................................................................................................... D-4
Criminal Justice Commission, Oregon ............................................................................................................. D-8
District Attorneys and Their Deputies ............................................................................................................ D-10
Justice, Department of ..................................................................................................................................... D-11
Military Department, Oregon.......................................................................................................................... D-14
Oregon Youth Authority.................................................................................................................................. D-16
Parole and Post-Prison Supervision, State Board of ...................................................................................... D-18
Police, Department of State............................................................................................................................. D-19
Public Safety Standards and Training, Department of ................................................................................... D-22
Table of Contents
ECONOMIC AND COMMUNITY DEVELOPMENT .....................................................................................................E-1

Business Development Department, Oregon.....................................................................................................E-3
Employment Department....................................................................................................................................E-6
Housing and Community Services Department ................................................................................................E-9
Veterans' Affairs, Department of .....................................................................................................................E-11
NATURAL RESOURCES ............................................................................................................................................ F-1

Agriculture, State Department of ....................................................................................................................... F-4
Columbia River Gorge Commission.................................................................................................................. F-6
Energy, Department of ....................................................................................................................................... F-7
Environmental Quality, Department of.............................................................................................................. F-9
Fish and Wildlife, Department of.....................................................................................................................F-11
Forestry Department, State...............................................................................................................................F-13
Geology and Mineral Industries, Department of.............................................................................................F-15
Land Conservation and Development, Department of....................................................................................F-17
Land Use Board of Appeals .............................................................................................................................F-19
Lands, Department of State ..............................................................................................................................F-21
Marine Board ....................................................................................................................................................F-23
Parks and Recreation Department....................................................................................................................F-25
Water Resources Department...........................................................................................................................F-27
Watershed Enhancement Board, Oregon.........................................................................................................F-29
TRANSPORTATION .................................................................................................................................................. G-1

Aviation, Oregon Department of....................................................................................................................... G-3
Transportation, Department of .......................................................................................................................... G-5
CONSUMER AND BUSINESS SERVICES ................................................................................................................... H-1

Accountancy, Oregon Board of......................................................................................................................... H-3
Chiropractic Examiners, Board of..................................................................................................................... H-4
Clinical Social Workers, State Board of ........................................................................................................... H-5
Construction Contractors Board........................................................................................................................ H-7
Consumer and Business Services, Department of............................................................................................ H-8
Counselors and Therapists, Board of Licensed Professional......................................................................... H-10
Dentistry, Oregon Board of ............................................................................................................................. H-11
Health Licensing Agency, Oregon.................................................................................................................. H-12
Health-Related Licensing Boards
Dietitians, Board of Examiners of Licensed.............................................................................................. H-14
Mortuary and Cemetery Board, Oregon .................................................................................................... H-15
Naturopathic Examiners, Board of............................................................................................................. H-16
Occupational Therapy Licensing Board .................................................................................................... H-17
Radiologic Technology, Board of.............................................................................................................. H-18
Speech-Language Pathology and Audiology, Board of Examiners for ................................................... H-19
Veterinary Medical Examining Board, Oregon State ............................................................................... H-21
Labor and Industries, Bureau of...................................................................................................................... H-22
Table of Contents
CONSUMER AND BUSINESS SERVICES (cont.)

Medical Board, Oregon ................................................................................................................................... H-24
Nursing, Oregon State Board of...................................................................................................................... H-25
Pharmacy, Oregon Board of............................................................................................................................ H-27
Psychologist Examiners, Board of .................................................................................................................. H-28
Public Utility Commission ............................................................................................................................. H-29
Real Estate Agency.......................................................................................................................................... H-31
Tax Practitioners, State Board of .................................................................................................................... H-32
ADMINISTRATION .....................................................................................................................................................I-1
Administrative Services, Department of.............................................................................................................I-3
Advocacy Commissions Office, Oregon ............................................................................................................I-6
Employment Relations Board .............................................................................................................................I-7
Government Ethics Commission, Oregon ..........................................................................................................I-9
Governor, Office of the......................................................................................................................................I-11
Liquor Control Commission, Oregon ...............................................................................................................I-13
Public Employees Retirement System..............................................................................................................I-15
Racing Commission, Oregon ............................................................................................................................I-18
Revenue, Department of....................................................................................................................................I-19
Secretary of State ...............................................................................................................................................I-21
State Library.......................................................................................................................................................I-23
Treasurer, Office of State ..................................................................................................................................I-24
LEGISLATIVE BRANCH ............................................................................................................................................J-1

Indian Services, Commission on.........................................................................................................................J-2
Legislative Administration Committee...............................................................................................................J-3
Legislative Assembly...........................................................................................................................................J-4
Legislative Counsel Committee ..........................................................................................................................J-5
Legislative Fiscal Officer ....................................................................................................................................J-6
Legislative Revenue Officer................................................................................................................................J-7
JUDICIAL BRANCH.................................................................................................................................................. K-1

Judicial Department, Oregon............................................................................................................................. K-3
Judicial Fitness and Disability, Commission on............................................................................................... K-5
Public Defense Services Commission .............................................................................................................. K-6
MISCELLANEOUS
Emergency Board ...............................................................................................................................................L-1
Tax Expenditure Report .....................................................................................................................................L-2
State and Local Shared Services ........................................................................................................................L-6
Table of Contents
CAPITAL BUDGETING
Capital Construction ..........................................................................................................................................M-1
Program Funding Request Summary...........................................................................................................M-2
2011-13 Recommended Projects .................................................................................................................M-3
2013-15 Estimated Requirements ................................................................................................................M-5
2015-17 Estimated Requirements ................................................................................................................M-7
Bonded Indebtedness.........................................................................................................................................M-9
Borrowing Authorizations..........................................................................................................................M-13
Private Activity Bond Volume...................................................................................................................M-15
Table A - Recommended State Bond Issuance Authorization .................................................................M-23
Table B - Long Term Obligations and Authorities ...................................................................................M-24
Table C - General Obligation Debt Summary...........................................................................................M-25
Table D - Summary of General Obligation Debt Service.........................................................................M-26
Table E - Summary of Debt Service Requirements for State Bonded Indebtedness by Fund ................M-27
Table F - Capital Financing Six-Year Forecast Summary........................................................................M-29
APPENDIX
GLOSSARY............................................................................................................................................................... N-1
REVENUE SECTION
Revenue Summary............................................................................................................................................. O-1
General Fund Revenues (Schedule I) ............................................................................................................... O-3
General Fund Summaries .................................................................................................................................. O-4
Lottery Funds ..................................................................................................................................................... O-6
Combined General Fund and Lottery Funds Summary ................................................................................ O-10
Non-General Fund Summaries........................................................................................................................ O-11
Other Funds and Lottery Funds Revenue by Source (Schedule II) ............................................................... O-14
Receipts from the Federal Government (Schedule III) ................................................................................. O-15
All Funds Summaries ...................................................................................................................................... O-20
Summary of Detail Revenues by Program, Agency, Fund (Schedule IV)............................................... O-21
Education Program Area ............................................................................................................................ O-21
Human Resource Program Area ................................................................................................................ O-29
Public Safety Program Area....................................................................................................................... O-36
Economic and Community Development Program Area ......................................................................... O-46
Natural Resources Program Area............................................................................................................... O-52
Transportation Program Area..................................................................................................................... O-70
Consumer and Business Services Program Area ...................................................................................... O-74
Administration Program Area .................................................................................................................... O-86
Legislative Branch Program Area.............................................................................................................. O-98
Judicial Branch Program Area ................................................................................................................. O-103
Miscellaneous Program Area ................................................................................................................... O-105
Table of Contents
EXPENDITURE SECTION
Current Service Level.................................................................................................................................... O-107
Schedule of Total Expenditures by Program, Agency, Fund (Schedule V)................................................ O-108
Summary of Expenditures by Category by Fund (Schedule VI) ................................................................. O-124
Number of Full-Time Equivalent Positions (Schedule VII) ........................................................................ O-125
Statutory Limits (Narrative) .......................................................................................................................... O-129
INDEX ..................................................................................................................................................................... Q-1
STAFF PAGE
The Economic and Revenue Environment
ECONOMIC PERFORMANCE AND OUTLOOK

Recent Performance
• As of fall 2010, the number

of nonfarm jobs in Oregon Figure 1: No Job Gains this Decade
was the same as when the
decade began. Labor Nonfarm employment
markets in other states have
1.75 1.27%
not fared any better. Millions (left axis)
Although job growth over Share of U.S., % 1.26%
the decade as a whole has
1.70
matched that seen 1.25%
elsewhere, employment in
1.24%
Oregon has gone through 1.65
relatively large swings— 1.23%
similar to the state’s typical
experience during past 1.60
1.22%
business cycles. Large local

1.21%
job gains during the middle
of the decade were 1.55 1.20%
sandwiched between two 2000 2001 2003 2005 2006 2008 2010
relatively severe downturns
that fully offset them
(see Figure 1).
• Per capita personal income

grew at a modest 2.6 Figure 2: Disappointing Income Growth
percent annual rate between
2000 and 2009. Adjusting Personal income, annualized % change
for inflation reduces these
12%
income gains by half. The Oregon Washington Idaho California Utah United States
1930’s is the only decade 10%
on record when income
gains were slower 8%
(see Figure 2). Oregon’s 6%

income gains of recent
years have lagged behind 4%
those seen in all
neighboring states. 2%
0%
• The recession that began at
the end of 2007 was -2%
particularly painful. By 1930's 1940's 1950's 1960's 1970's 1980's 1990's 2000-09
mid-2009, employment in
Oregon had fallen by more
2011-13 Governor’s Balanced Budget A-1 The Economic and Revenue Environment
than 8 percent from its pre-recession peak level. Of all the downturns on record, only the 1980 recession
was harder on the local labor market. At that time, statewide employment fell by nearly 12 percent.
• Oregon’s severe recession

and lackluster recovery
have been characterized by Figure 3: Housing Hits Bottom
a credit crunch among
many of its firms together 50 25%
with sharp corrections in Housing permits issued, ths (left axis)
45
the state’s largest housing 20%
Median sales price (existing homes, y/y % change)
40
markets. Residential 15%
construction activity and 35
house price appreciation 10%

30
have fallen to levels not 25 5%
seen since the timber 20 0%
industry restructured during
15
the early 1980’s (see Figure -5%
3). 10
-10%
5
0 -15%
1975 1980 1985 1990 1995 2000 2005 2010
• Across Oregon’s industries,

local manufacturing firms Figure 4: Expanding & Contracting Industries
have suffered through the
largest net job reductions Employment, percent change Jan 2000 to Oct 2010
over the decade. Sharp Education & Health Svcs
recessionary job losses Leisure & Hosp itality
exacerbated the long-run State Go vernment
structural decline of Local Go vernment
domestic manufacturing Other Services
operations, resulting in a T otal Nonfarm

Prof essional & Business Svcs
28 percent employment
Wholesale T rade
decline in the industry. Financial Activities
Despite these large losses, Re tail T rade
Oregon’s manufacturing F ederal Go vernment
payrolls have performed T ransportation & Utilities
better than those elsewhere Construction
in the U.S. Nationwide, Manufacturing
manufacturing employment -30 % -2 0% -10 % 0% 10% 2 0% 30% 40 %
has fallen by 33 percent this

decade with old-line textile
and vehicle operations in the Midwest and South being hit harder than Oregon’s relatively diverse and
modern mix of producers (see Figure 4).
• In addition to manufacturing operations, construction firms have also suffered from extreme job losses
during the most recent business cycle, which has been characterized by imbalances in residential and
commercial real estate markets. Over the decade as a whole, the number of construction jobs has fallen
by 21 percent statewide. Relative to its 2007 peak level, construction employment has fallen by 37
percent.
• In general, consumer-oriented service industries and retailers for which demand is tied to population
growth have fared the best over the decade. In particular, employment in education and health services
has risen by 32 percent. Demand growth in education and health firms can largely be tied to
demographic shifts. The baby-boom population cohort is spending an increasing amount on health
services while their children are now enrolling in colleges and universities en masse.
• Although not as successful as health and education firms, most of Oregon’s consumer service industries
also added jobs during the decade. Employment among leisure and hospitality firms has risen by 13
percent. Wealth losses, a weaker dollar and the terrorist attacks of 2001 have resulted in a larger share
of entertainment budgets being spent close to home.
• Statewide, the unemployment rate more than doubled over two years from a low of 5 percent in May
2007 to 11.6 percent in May 2009. The regional pattern of job losses across the state largely matches the
pattern of weakness in housing markets. Labor market conditions deteriorated the most in Central and
Southern Oregon where housing corrections were most severe. In particular, the unemployment rates in
Deschutes and Crook counties more than tripled during the downturn (Figure 5). Labor markets have
typically held up better in counties with smaller housing bubbles and those with a large degree of
exposure to agriculture. As such, many of the top performing labor markets are located in Eastern
Oregon. Within the Willamette Valley, Benton and Polk counties saw the smallest increases in
unemployment.
Figure 5: Rise in Joblessness Across Regions

Unemployment rate: Percentage point increase trough to peak
C LAT SOP C OLUM B IA OR average=6.6%
6. 0% 8.6%
WASHINGTON HOOD
R IVER SHER M AN
M UL TNOM AH
TILL AMOOK 5.7% UM AT ILLA WALL OWA
6.3 % 5.3%
5.7% 5. 2% 6.8 % 7.6%
GILLIAM M ORR OW
7 .5% UNION
C LAC KAM AS 5.2 % 8. 0% 7.2 %
YAM HILL
6. 3%
W ASC O
5. 7%
POL K M AR ION
5. 4% 6.5 % W HEELE R BAKE R
JEFFE RSON 7 .4%
6 .2%
LINC OLN 10.5 % GRANT
BENT ON
6 . 3% LINN 8 .3%
4.7% 8 .6%
C ROO K
16.2 %
LANE DESC HUTE S
7 .9% 11. 8%
C OOS DOUGLAS
8.0 % 9. 5%
JOSE PHINE JAC KSON KLAM AT H LAKE HAR NEY M AL HEUR

9.0 % 8.2% 8.4 % 8.2% 11 .6% 7 .3%
C URR Y
8 .5%
Below 6% 6 to 7.5% 6.5 to 8% Over 8 %

Source: Oregon Employment Department
Outlook
Key Assumptions
• Technically, economic recovery began in both Oregon and the U.S. as a whole during the summer of
2009. At that time, growth in output and consumption resumed, and mass layoff announcements became
rare. Despite these improvements, the economy is still growing beneath its potential more than one year
into the recovery, with significant job gains yet to materialize.
• As is usually the case in the aftermath of financial crises, the current economic recovery is expected to
be a slow one by historical standards. Demand growth among interest rate-sensitive industries such as
housing, vehicles and other durable goods often lead the way during rapid economic recoveries. This
time around, relatively little boost is expected while consumers make long overdue corrections to their
savings behavior, and the housing sector returns to balance.
• Consumers will not lead during the recovery. Instead, exports and business investment will fuel demand
growth. Among the first industries likely to come back are professional and business services, health
care services, technology manufacturing and retail trade.
• The housing sector will remain weak well into the economic expansion, and will do little to fuel growth
going forward. That said, housing is no longer creating the same headwind as in recent years.
Residential permitting and construction activity have likely hit bottom, as has the volume of home sales.
However, house prices still have some room to fall. Prices will remain soft until excess inventories of
homes are worked off. Despite a slow pace of homebuilding, inventories remain stubbornly high due
largely to a growing supply of foreclosed, bank-owned, and other distressed property sales.
• In addition to housing-related industries, state and local governments will represent a drag on growth
going forward. It takes several months for changing economic conditions to be fully reflected in
government finances. With tax revenues still depressed, and the aid to states and localities associated
with federal fiscal stimulus programs now being phased out, further contractionary state and local
spending and tax policies will be required going forward.
• The impact of federal fiscal and monetary policies on the economic outlook is mixed. Federal fiscal
policies are providing a decreasing amount of support to private sector growth. Federal home buying
incentives and hiring of 2010 Census workers are now a thing of the past, and stimulus spending
associated with the American Recovery and Reinvestment Act will fade over the next few months.
While fiscal policy is no longer supporting growth, monetary policy remains very accommodating, with
real interest rates near 0 percent and a second round of quantitative easing underway.
• Growth in the global economy and favorable terms of trade will help fuel U.S. exports. Exports to Asia
are of particular importance to Oregon’s producers. With developing countries in Asia expected to
maintain above-average rates of growth, and the dollar expected to depreciate vis-à-vis the Chinese
yuan, trade will continue to support the recovery going forward.
Oregon Outlook
• Oregon’s economic recovery will persist, albeit at a painfully slow rate. Job gains will remain below
trend through most of 2011. After next year, trend-like job growth on the order of 2 percent per year is
expected throughout the medium term. Under these assumptions, total employment will not return to its
pre-recession peak level until late 2014.
• In keeping with the outlook for employment, personal income gains will remain below trend for several
more months. In 2012 and beyond, personal income will grow at annual rates between 4 percent and
6 percent, matching what has been seen during past expansions.
• Oregon’s industrial structure and ties to rapidly growing Asian markets position the state to join in the
nationwide economic recovery. The recovery will be led by business investment and export growth.
Many of Oregon’s firms produce investment goods and other business inputs rather than serving
consumer demand. Examples include Oregon’s technology manufacturers, metal makers and commodity
firms, transportation equipment producers, utilities, and its warehousing and transport firms.
• Although Oregon’s labor market recovery will be a slow one relative to past business cycles, once the
state gets back on its feet, it is expected to grow faster than the national average over the extended
forecast horizon. Oregon’s primary long-run growth advantage remains its healthy migration trends.
Oregon is expected to continue to enjoy above-average population gains, including an ample flow of
skilled labor to supply its growth industries.
• Oregon can be expected to Figure 6: Housing Is Affordable Once

attract many migrants from
other states as job Again
opportunities become more Housing opportunity index: percent of sales affordable by
plentiful. In particular, median income household
80
Oregon has traditionally Portland metro area US
netted thousands of 70
households from California
whenever the local 60
unemployment rate is lower
than California’s, as it is 50
now. Oregon’s relatively
affordable housing remains 40
a draw for migrants. During
the peak of the housing 30
boom, only 22 percent of Sources: NAHB, OEA
houses sold in the Portland 20
metropolitan area could be 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
afforded by a household
earning the median income
level. Now, nearly 70 percent of houses sold in the area are affordable for the typical household
(see Figure 6).
Risks
• Oregon’s economic recovery remains fragile, and there is a significant risk that the state will slip back
into recession before job growth becomes self-sustaining. Firms have remained lean following the
return of sales growth. As a result, most have seen strong growth in profits for several months. Despite
widespread profitability, many firms remain unwilling or unable to expand their operations through
investment or hiring. In part, small businesses are having difficulty getting access to credit. Small
businesses depend on small regional banks, many of which are still repairing their balance sheets and
therefore remain unwilling to lend.
• Oregon’s ties to foreign markets also put it at risk. In the near term, Oregon’s relatively small amount of
exposure to Europe provides some degree of protection from the currency risks facing the euro zone.
Longer-term, Oregon faces a good deal of risk associated with the overvalued Chinese currency and
future Asian demand conditions. The local impact of the Asian financial crisis during the 1990’s
highlights this risk, with Oregon now even more closely tied to Asia than it was at that time.
• The performance of the housing sector remains a downside risk to the outlook. Until the wave of
foreclosures plays itself out, and housing inventories return to normal, the potential for further wealth
losses exists.
• A persistent lack of job opportunities puts Oregon’s healthy migration trends at risk. In addition to jobs,
migrants care about a wide range of factors including the quality of school systems, public safety
operations and the overall cost of living. As such, any tax increases or reductions in public services that
result from state and local budget problems threaten to deter migrants. Also, a lack of household
mobility due to dysfunctional housing markets further threatens future population gains.
• Following the economic recovery, the reemergence of inflation poses a risk to growth. The
unprecedented amount of monetary and fiscal stimulus seen in recent years will generate upward
pressure on prices going forward. If these policies are combined with growth in aggregate demand and
wages, inflation will once again become a significant threat.
DEMOGRAPHIC CHANGE
• Oregon’s population reached 3.844 million on July 1, 2010, as estimated by Population Research Center
of Portland State University. This is an increase of nearly 423,000 or 12.4 percent since the 2000
Census. Oregon’s population growth between 2000 and 2009 was 13th highest in the nation. However,
with the exception of California, Oregon’s growth rate was still slower than its neighboring states. Over
a long run, Oregon has retained a distinction of major destination for migrants in the United States.
During the 2000 to 2009 period, nearly 68 percent of the population growth in Oregon was due to net
in-migration. Oregon’s population growth changes with its economic and employment outlook.
Economic slowdown associated with recent recession has caused slow population growth. Population
growth in the near future is expected to continue the path of slow growth in sync with the slow pace of
economic recovery. Its population is expected to reach 4.142 million in 2017 with an annual rate of
growth hovering around 1.1 percent.
Geographic Variations
• Figure 7 shows population growth by county between April 1, 2000, and July 1, 2010. Overall state
growth was 12.4 percent during this period. However, there are large variations by region and county.
High growth counties (exceeding 18 percent increase) in order of magnitude were Deschutes, Crook,
Jefferson, and Washington. All three central Oregon counties experienced very rapid population growth.
The moderately growing counties (between 10 and 18 percent increase) were Jackson, Morrow,
Yamhill, Clackamas, Marion, Columbia, Benton, Polk, Multnomah, and Josephine. The slow growing
counties (between zero and 10 percent increase) were Linn, Lane, Tillamook, Hood River, Clatsop,
Douglas, Klamath, Union, Umatilla, Wheeler, Wasco, Lake, Harney, Malheur, Lincoln, Coos, and
Curry. Five counties losing population (negative growth) were Gilliam, Baker, Wallowa, Grant, and
Sherman. Population growth by county reflects the local economic environment. The differential
population growth rates will have real geo-political consequences when 2010 Census results are released
for legislative redistricting.
Figure 7: County Population Growth, April 1, 2000 – July 1, 2010

(Oregon: 12.4 percent)
CLATSOP COLUMBIA
WASHINGTON
HOOD
MULTNOMAH RIVER SHERMAN
TILLAMOOK UMATILLA WALLOWA
GILLIAM MORROW
UNION
YAMHILL CLACKAMAS
WASCO
POLK
MARION WHEELER BAKER
JEFFERSON
LINCOLN GRANT
BENTON LINN
CROOK
LANE DESCHUTES
COOS DOUGLAS
JOSEPHINE KLAMATH LAKE HARNEY MALHEUR

JACKSON
CURRY
Below 0% 0 to 10% 10 to 18% Over 18%

Sources: U.S. Bureau of Census 2000, and Population Research Center, Portland State University 2010 (priliminary)
Change in Age Structure

Figure 8 shows that population growth differs by age group with budgetary implications.
Children
• Under five years: The size of this age group directly affects demand for childcare, Head Start, and
Temporary Assistance for Needy Families (TANF). Between 2011 and 2013 the number of children
under age five will decline by 2.4 percent due to the recent decline in the annual number of births
associated with an increasing tendency towards smaller family-size and slowdown in the net in-
migration of children and young adults at the early stage of family formation.
• School Age: This age group drives demand for K-12 public school enrollment. Nearly 90 percent of
five to 17 year-olds are enrolled in public schools. After growing rapidly during the early 1990’s,
population growth in this age group has slowed for nearly a decade. After about four years of negative
growth, the growth in the number of school-age children will turn positive starting in 2011. However,
the percentage increase will remain well below the state’s overall population rate of change. Between
2011 and 2013, the number of school-age children is expected to grow by 1.4 percent. During
economic hardship the public schools feel added pressure when parents cannot afford private school
expenses.
Figure 8: Population by Age Groups

Children Adults and Elderly
700,000 1,200,000
600,000 25-44
5-17 1,000,000
500,000
800,000 45-64
n
oni400,000 o
ta tia
lu lu600,000
p p
o
o 65+
P300,000 P
0-4
400,000
200,000
18-24
100,000 200,000 Forecast

Forecast
0 0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Year Year
Adults
• Ages 18 to 24: This age group drives demand for post-secondary education and entry-level jobs. Nearly
three-fourths of all undergraduate students in Oregon public universities are 18 to 24 years old.
However, college enrollment in Oregon has increased at a much faster rate than the 18-24 age
population due to the lack of competing employment opportunities. Also, males in this age group are the
criminally “at risk” population with the highest arrest rate of all adults. Consequently, population
increase in this age group can raise demand for prison and jail beds and probation services. The growth
in this population group, however, has slowed and will continue to taper off to negative territory as the
“baby-boom-echo” cohort exits this age group. Between 2011 and 2013, this population will remain
virtually unchanged.
• Ages 25 to 64: Working-age adults comprise 55 percent of the total population. The nature of this group
is heavily influenced by baby-boomers. The working-age population is the major contributor to the
state’s tax revenue and puts very little direct pressure on state services. However, younger adults need
entry-level jobs and older adults require continued training in a changing technological environment. All
of them, especially young adults, need affordable housing, childcare, and schools for their young
children. Overall, this population group will grow by 1 percent between 2011 and 2013, with older
working age adults 45 to 64 remaining unchanged as the early baby-boomers mature out of this age
category.
Elderly
• Since 1950, Oregon’s elderly (ages 65 and over) have more than tripled, while the total population has
nearly doubled. Growth in this group was slow until 2004, largely due to the depression era birth-cohort
reaching retirement age. However, the trend has already started to reverse and will continue its faster pace
of growth. Beginning in 2011, this population group will consistently exceed four percent annual growth
rate. Between 2011 and 2013, the number of young elderly (aged 65 to 74) will increase by 15.1 percent as
the early baby boomers enter this age group, far exceeding the state's overall growth rate and at the fastest
pace of all age groups. During the same period, the number of oldest elderly (85 plus) will increase by
3.9 percent. The number of persons aged 75-84 has just transitioned from a period of negative growth to
slow but steady growth. The young elderly require relatively little government assistance, while persons
aged 85 and over tend to require more public assistance. Many members of the senior population require
health care, pension support, and special housing. They are highly dependent on state long-term care
services. Different age groups of elderly population will manifest the effects of people born during the
depression era and baby-boom period.
Race and Ethnic Composition

• Oregon has become more racially and ethnically diverse. A more diverse population entails meeting the
needs of increasing racial and ethnic minorities. Oregon's population is overwhelmingly White. The Census
Bureau estimated 89.8 percent of Oregon’s population as of the White racial group in 2009. However, only
79.6 percent were non-Hispanic White in 2009, down from 83.9 percent in 2000 Census. Each of the other
racial categories accounted for less than four percent of the population. Between April 1, 2000, and July 1,
2009, the Asian population grew by 37.2 percent and the African-American or Black racial group increased
by 34 percent, much faster than 9.9 percent growth of the White population.
• The Hispanic or Latino ethnic group, which can be of any race, reached 11.2 percent of Oregon’s population
in 2009. This ethnic group has been increasing very rapidly. The Hispanic population increased from
112,707 in 1990 to 275,314 in 2000 Census. This ethnic group had grown to 428,469 in 2009. Between
April 1, 2000, and July 1, 2009, the Hispanic population increased by 55.6 percent whereas the non-
Hispanic population increased by 8.0 percent.
Figure 9: Population by Race and Ethnicity, 2009

Race Ethnicity
89.8% 88.8%
2.0% 1.6% 4.0% 2.6% 11.2%
White alone African- Native Indian Asian & Pacific Two or more All non- All Hispanic
American alone alone Islander alone races Hispanic
one race
Source: U.S. Bureau of Census.
Figure 10: Oregon’s Population Growth by Race & Ethnicity, 2000-2009

All 11.8%
White alone 9.9%
African American alone 34.0%

Non-Hispanic
Native American alone 25.3%
Asian & Pacific Islander alone 36.8%
Two or more races 29.8%
Hispanic (of any race) 55.6%
Source: U.S. Bureau of Census.
2011-13 General Fund/Lottery
Resources
Total: $14,760 Million
Personal
Income Tax
$11,995
82%
All Other
$541
4%
Corporate
Income Tax
$945
6% Estate Tax
Lottery $204
Cigarette/ (including 1%
Tobacco Beginning
Taxes Balance &
$126 Carry Forward)
1% $949
6%
Expenditures
Community
Higher
Colleges
Education
$446
Other $924
3% Public
Education 6%
Safety/Judicial
$513 $2,401
4% 17%
State School
Funding
$5,557
38%
Human
Services
Natural $3,795
Resources 26%
$316
2% All Other Economic &
$408 Comm. Dev.
3% $190
1%
2011-13 Governor’s Balanced Budget A-12 2011-13 General Fund/Lottery

2011-13 All Funds
Resources
General Fund
$14,760
13%
Other Funds &
Federal Funds
Beginning
Balance
$53,468
48%
Lottery (including
Beginning
Balance & Carry Other Funds
Forward) $30,936
$949 Federal Funds 27%
1% $12,555
11%
Expenditures
Human Services
$18,170
34%
Public Economic &
Safety/Judicial Comm. Dev.
$3,554 $4,454
6% 8%
Higher Education
$5,387 Natural
10% Resources
$1,759
3%
Other Education
$2,665 All Other
5% State School Administration Transportation
$711 $3,992
Funding $9,035
1% 7%
$5,557 16%
10%
2011-13 Governor’s Balanced Budget A-13 All Funds

STATE OF OREGON -- ORGANIZATION CHART
The People
of Oregon
2011-13 Governor’s Balanced Budget

Legislative Branch Executive Branch Judicial Branch
Superintendent
House of Secretary Attorney Labor Treasurer Chief Justice of
Senate Governor of Public
Representatives of State General Commissioner of State Supreme Court
Instruction
A-14
Bureau of
Department Department Treasury Judicial
Labor &
of Justice of Education Department Department
Industries
Economic & Consumer &

Human Natural Public
Community Education Transportation Administration Business
Resources Resources Safety
State of Oregon Organization Chart
Development Programs Programs Programs Services

Programs Programs Programs
Programs Programs
State of Oregon Organization Chart

Education
PROGRAM AREA AGENCIES

DEPARTMENT OF COMMUNITY COLLEGES AND WORKFORCE DEVELOPMENT ......................................... B-6
EARLY LEARNING COUNCIL ..................................................................................................................... B-9
DEPARTMENT OF EDUCATION ................................................................................................................ B-12
OREGON STUDENT ASSISTANCE COMMISSION ....................................................................................... B-16
OREGON UNIVERSITY SYSTEM ............................................................................................................... B-18
TEACHER STANDARDS AND PRACTICES COMMISSION ............................................................................ B-21
2007-09 2009-11 2011-13

Actuals Legislatively Approved Governor's Balanced
General Fund $6,751,674,571 $6,985,122,644 $6,974,389,113
Lottery Funds $1,145,146,747 $590,293,238 $466,031,778
Other Funds $2,384,804,026 $2,514,869,284 $2,328,198,233
Federal Funds $1,053,645,676 $1,463,327,743 $1,071,033,212
Other Funds (Nonlimited) $2,329,391,474 $2,366,021,317 $2,356,976,754
Federal Funds (Nonlimited) $288,535,152 $297,661,250 $412,000,212
Total Funds $13,953,197,646 $14,217,295,476 $13,608,629,302
Positions 18,712 18,756 19,249

Full-time Equivalent 13,196.47 13,394.79 13,604.78
Overview
Agencies and expenditures in this program area operate or support all public educational activities from
pre-kindergarten to post-secondary and life-long learning. Specific agencies are the Department of
Community Colleges and Workforce Development, the Department of Education, the Oregon University
System, the Oregon Student Assistance Commission and the Teacher Standards and Practices Commission.
State support of the Oregon Health Sciences University public corporation is also included in this program
area. The newly created Early Learning Council is included in the Education program area.
The Department of Community Colleges and Workforce Development coordinates the efforts of
17 community colleges statewide and maintains educational opportunities and workforce development
capacity in the state. This agency’s budget includes funding to support general community college
operations. The agency administers federal Workforce Investment Act programs, supporting local workforce
investment boards and service providers.
The Department of Education supports pre-kindergarten through 12th grade (Pre-K-12) education. This
agency includes support for school districts in the areas of school improvement, assessment, special
education, professional/technical education, legal requirements, nutrition and transportation. This budget
funds the following programs:
2011-13 Governor's Balanced Budget B-1 Education

Education
• Oregon State School for the Blind and School for the Deaf.
• Education services at youth corrections facilities and youth detention centers.
• Special education.
• Professional/technical education.
• Child nutrition.
• Early intervention programs.
• Educational programs for children of low-income families.
• State school funding for the state’s public elementary and secondary school districts and education
service districts.
The Oregon University System is the state agency name for the educational institutions, governing board,
central administration, support services and public services that make up Oregon’s public university
system. The institutions include the University of Oregon, Oregon State University, Portland State
University, the three regional universities (Eastern, Western and Southern Oregon universities) and the
Oregon Institute of Technology. Oregon State University also operates the Cascades campus in Bend and
the statewide public service programs, the Agricultural Experiment Station, the Extension Service and the
Forest Research Laboratory.
The Oregon Student Assistance Commission helps Oregon students obtain post-secondary education by
administering, evaluating, coordinating and promoting financial aid programs. The commission administers
over 400 state-funded and privately-funded grant and scholarship programs, including the Oregon
Opportunity Grant.
The Teacher Standards and Practices Commission works to ensure that every student in Oregon receives
instruction from skilled and ethical educators. The agency establishes rules for licensing and issues licenses
to educators. The commission must approve college and university teacher education programs.
The state provides Oregon Health and Science University a subsidy to assist with funding a number of
programs, including the Schools of Medicine, Nursing and Dentistry. State funds also provide support to
Area Health Education Centers, the Child Development Research Center and the Allied Health Training
Programs. It also supports operation of the Oregon Poison Center.
The newly created Early Learning Council provides a single point of accountability for programs related
to early childhood and school readiness. The programs were previously operated by the Commission on
Children and Families, the Employment Department’s Child Care Division, the Department of Human
Services, the Oregon Health Authority, the Department of Education and the Oregon State Library. The
agency serves as a focal point for re-engineering the state’s early childhood system to focus efforts on
three goals: readiness to learn at kindergarten, readiness to read entering first grade, and reading when
leaving first grade.
Transforming Public Education in Oregon In order to successfully transform Oregon’s economy, it is

necessary for more Oregonians to attain high levels of education, as envisioned in the Oregon Business
Plan’s 40-40-20 goal: that 40 percent of Oregon adults have a four year college degree or higher; 40

Education
percent have an Associates degree, professional certificate or equivalent; and the remaining 20 percent
have at least a high school diploma or equivalent.
Achieving this goal will require a more integrated operation of the education enterprise, from early
childhood to post-secondary education. It will also require a unified, transparent, student-centered budget
framework that improves understanding of existing and planned expenditures, allows more informed
policy and budget choices, and holds institutions accountable for results.
The Governor’s balanced budget begins the process of transforming the way education is funded in the
state. It consolidates programs from across state government that serves children from the time they are
born to the time they reach kindergarten, to improve coverage and maximize investments in health care,
family support, child care, and pre-kindergarten programs. For Oregon’s public education system it
establishes a stable funding floor with more flexibility for schools to direct money into the classroom. It
redirects the efforts of the Oregon University System to focus on undergraduate education and key
economic development programs. It preserves funding for the Oregon Opportunity Grant program to
maintain the state’s commitment to access to post-secondary education.
In other actions, the Governor will establish the Oregon Education Investment Board to replace the
current segmented budget development and governance process with one that recognizes the
interdependent nature of the entire enterprise of education. Legislation will be introduced to move the
position of the State Superintendent of Public Education to an appointed position within the Executive
Branch as the state’s Chief Education Investment Officer. And the state will begin the process of moving
to a long-term budget framework to better account for link investments with results.
Balanced Budget
The budget for the Education Program Area is $13.6 billion total funds, a 4.2 percent reduction from the
2009-11 Legislatively Approved Budget. General Fund and Lottery Funds total $7.4 billion, a 2.6 percent
decrease from 2009-11 levels. Compared with the 2011-13 Current Service Level, total funds are reduced
by 4.0 percent while General Fund and Lottery Funds are reduced by 15.2 percent.
The budget includes $6.848 billion for the Department of Education. This is $441 million General Fund
and Lottery Funds less than the current biennium. About half of this reduction is because early childhood
programs have been moved out of the Department of Education and into the Early Learning Council.
Key elements of the 2011-13 Governor’s Balanced Budget are:
• The Governor’s Balanced Budget establishes a stable funding floor for Oregon’s public school
system. It provides $5.56 billion for the biennium. However, 52 percent ($2.9 billion) will be
distributed during the first school year of the biennium, equivalent to a $5.8 billion budget for
Front-loading the funding also provides a year to find cost savings through consolidation and other
efficiencies to maintain this level of classroom support during the 2012-13 school year.
• The General Fund budget for programs within the Early Learning Council was increased by 3.3
percent from the 2009-11 LAB to preserve the programs for early childhood system redesign. The
budget also includes Lottery Fund bonding authority to invest in a coordinated early care and
education data system.
Education
• The General Fund and Lottery Funds budget for the Oregon University System is reduced by 4.9
percent from the 2009-11 LAB. Including federal revenues received under the American
Recovery and Reinvestment Act in the 2009-11 LAB, the reduction is 11.9 percent.
• With reduced funding, OUS is expected to prioritize undergraduate education and graduate
programs directly related to state workforce goals such as health care engineering, and teacher
education. Research funding in areas related to state economic development goals, is expected to
be maintained.
• Reductions in graduate and professional schools, public service programs, and the Oregon State
University statewide public service programs will require redesign and business planning around
efficiency and effectiveness. Graduate and professional programs will need to be given more
flexibility in raising tuition and seeking grant funds.
• A total of $406.9 million is included for 27 OUS Capital Construction projects and reserves at all
seven universities. This includes $41.4 million for three deferred maintenance projects; the
department’s deferred maintenance backlog is estimated in excess of $640 million. The budget
also includes $51.4 million for capital repair, code compliance, and safety projects to keep the
$640 million deferred maintenance backlog from growing.
• Other higher education Capital Construction projects include construction of a new business
education building at Oregon State University and funds to complete the purchase of a building in
Wilsonville for consolidation of the Oregon Institute of Technology’s Portland area programs.
The budget also includes a variety of housing, dining, parking, athletics, and student activities
projects.
• Debt service on General Fund and Lottery Funds backed debt for OUS capital projects increased
by 38.2 percent, to $113.6 million.
• Funding for the Community College Support Fund is reduced by nine percent from the 2009-11
biennium to $410 million. State support per full-time student is estimated to drop from $1,744 in
the current biennium to $1,559 per full-time student in 2011-13, a 10.6 percent reduction.
• The CCWD budget includes investment in the Getting Oregon Back to Work program and in
incentives for colleges and universities to improve progression towards, and completion of,
certificates and degrees.
• No state funds are recommended for community college capital construction projects in 2011-13,
due to constrains on debt capacity. Over the past three biennia, the state has authorized $207.3
million in general obligation and Lottery-backed bonds for college projects, with each college
being authorized for at least two projects. Debt service on these bonds in the 2011-13 biennia is
$24 million, a 39.2 percent increase from 2009-11.
• Total funding for the Opportunity Grant program is increased from $101.8 million to
$115 million. This amount is expected to allow the Student Assistance Commission to make as
many as 17,000 more awards in 2011-13 than in 2009-11.
Education
• Funding for the Access to Student Assistance Programs in Reach of Everyone (ASPIRE)
Volunteer Advisory Program is shifted primarily to Other Funds. A program coordinator is
supported with General Fund for fund raising and program management.
• State support for the Oregon Health and Science University is reduced from the 2009-11 biennium
by 20 percent. Within the lower funding level, education and rural health programs are prioritized.
The funding directs state resources to education programs, that traditionally operate in a deficit
situation, from hospital operations, which traditionally generate a surplus. Funding to support the
Oregon Poison Center is reduced slightly from the 2009-11 biennium.

Education
DEPARTMENT OF COMMUNITY COLLEGES AND

WORKFORCE DEVELOPMENT
2007-09 2009-11 2011-13
General Fund $504,017,927 $464,644,408 $438,058,756
Lottery Funds $0 $8,929,603 $7,469,632
Other Funds $156,201,246 $137,864,296 $6,874,666
Federal Funds $120,549,268 $163,149,805 $116,785,442
Other Funds (Nonlimited) $0 $0 $0
Total Funds $785,875,226 $793,556,944 $588,157,328
Positions 57 61 68
Full-time Equivalent 56.06 60.06 67.45
Overview
The Department of Community Colleges and Workforce Development (CCWD) provides leadership,
accountability, and technical assistance to Oregon’s 17 community colleges and seven local workforce areas.
The agency’s goal is to help Oregonians achieve the skills and knowledge needed to combine careers and
lifelong learning.
The department administers the Community College Support Fund, the state’s contribution to community
college operating costs. Funds are distributed primarily based on the number of full-time equivalent
students at each college. The colleges combine state funding with property tax and tuition revenues to
provide professional and technical education programs; lower division transfer classes equivalent to those
offered in the first two years at a four-year university; training for displaced workers and skill
enhancement for workers who already have jobs; training tailored for particular businesses; and adult
literacy, including General Educational Development (GED) course work. The department also manages
the state’s participation in community college construction projects.
The agency supports local workforce investment boards and service providers. It administers the Federal
Workforce Investment Act programs. These programs assist youth, adult and dislocated workers by
providing education and workforce development services. The funds are targeted to people who face
serious barriers to employment.
Department programs also include GED tests and program coordination; Adult Basic Education tests; and
the Oregon Youth Conservation Corps.

Education
Balanced Budget
The Governor’s Balanced Budget of $588.2 million total funds is a 25.9 percent reduction from the 2009-
11 Legislatively Approved Budget (LAB). The total funds reduction is primarily due to the phase-out of
federal grants received under the American Recovery and Reinvestment Act and the elimination of Other
Funds for community college capital construction projects. Due to the state revenue shortfall, no new
capital projects are recommended for the 2011-13 biennium.
General Fund and Lottery Funds are reduced by 5.9 percent from the 2009-11 LAB. Debt service on
bonds sold to finance community college capital construction projects is increased by 39.2 percent.
The budget includes $410 million for the Community College Support Fund, reduced by nine percent
from the 2009-11 LAB. Based on the department’s enrollment estimate of 263,000 full-time equivalent
students, General Fund support would decline from $1,744 per student in 2009-11 (after the June and
September 2010 allotment cuts) to $1,559 per student in 2011-13, a 10.6 percent reduction.
Community College Support Fund

$4,000 per Student FTE 270,000
262,976
$3,500 General Fund per Student FTE Student FTE 239,419 238,527
220,000
$3,000
196,969 196,969 196,969 191,984
183,894 170,000
179,285 176,072
$2,500 169,307
157,347
$2,000 120,000
$1,500
$2,604 70,000
$2,371 $2,435
$2,310 $2,330 $2,293
$2,189
$2,074
$1,000 $1,905 $1,882
$1,744
$1,559
20,000
$500
$0 -30,000
1995-97 Actuals1997-99 Actuals1999-01 Actuals 2001-03 Close 2001-03 Post 2001-03 Post 2003-05 Post 2005-07 LAB 2007-09 LAB 2009-11 LAB 2009-11 LAB 2011-13
of Session Special SS w/ Shift * M30 with allotment Governor's
Sessions reductions recommended
* 2001-03 LAB after 5th Special Session w/o $56 million that was shifted to the first quarter of 2003-05
The Governor’s Balanced Budget includes a $3.4 million investment in the Getting Oregon Back to Work
program to help recovering Oregon companies resume hiring while helping Oregonians get back to work
in sustainable jobs. The investment will allow local Workforce Investment Boards to put 626 Oregonians
back to work in the first year of the biennium. An additional $2 million is invested in incentives for
progression towards, and completion of, degrees and certificates. Funding for healthcare workforce
programs and two skills centers is eliminated.

Education
Increases in Other Funds and Federal Funds will allow the department to participate with the Department
of Education, the Oregon University System, and the Employment Department in development of a
longitudinal data system and continue workforce and youth employment programs.
In the 2005-07 biennium, the state resumed issuing bonds to support community college capital
construction projects. This was the first state bond issuance for college projects since the 1979-81
biennium. In the past three biennia, $207.3 million in general obligation bonds and Lottery-backed bonds
have been authorized to support community college capital construction. Each college has had at least
two projects authorized. Debt service in the 2011-13 biennium will be $24 million General Fund and
Lottery Funds. Due to constraints on the state’s bonding capacity in the current economic climate, no
new college projects are recommended for the 2011-13 biennium.
Revenue
General Fund resources finance the Community College Support Fund, debt service on Article XI-G
bonds, and a portion of office operations costs. Lottery Funds pay the debt service on Lottery-backed
bonds.
Other Funds revenue sources include fees for the GED and adult education tests; charges to community
colleges for Adult Basic Education materials and training, funds from the Department of Education for
Carl Perkins program support and amusement device taxes for the Oregon Youth Conservation Corps
program. The department continues to receive a small amount of timber tax revenue that is transferred to the
colleges as part of the Support Fund.
Federal Funds revenue sources include Workforce Investment Act Title II for Adult Basic Education and
Workforce Investment Act Title IB for job training. The department also receives National Emergency
Grants following economic or other dislocations; these funds are included in the budget as Nonlimited
Federal Funds.

Education
EARLY LEARNING COUNCIL

2007-09 2009-11 2011-13
General Fund $0 $0 $361,581,626
Lottery Funds $0 $0 $0
Other Funds $0 $0 $34,231,904
Federal Funds $0 $0 $231,294,898
Other Funds (Nonlimited) $0 $0 $40,000,000
Federal Funds (Nonlimited) $0 $0 $102,729,051
Total Funds $0 $0 $769,837,479
Positions 0 0 [185]*
Full-time Equivalent 0.00 0.00 [174.14]*
*The positions and FTE listed above are not new positions but are existing position transferred in to the Early Learning
Council from other state agencies. The goal of the Early Learning Council redesign is to streamline services and reduce
administrative overhead.
Overview
If our central challenge is to rebuild the House of Oregon, then successful investment in the
developmental needs of children is the foundation on which the house will be built.
The Governor has proposed the creation of a single transparent 0-20 education investment budget – the
Oregon Education Investment Fund – which will be administered by a new Oregon Education Investment
Board. Under this board will be created a Council of Early Learning which will focus on ensuring that
children enter school ready to learn, enter the first grade ready to read, and leave the first grade reading.
Research has demonstrated that children who achieve these three goals are more likely to progress
successfully through the remaining school years and become productive, employed adults. It is also
during the early years that the family and community have a significant impact on children’s ability to
achieve these goals. The state can help families who need and want support in addressing the very early
precursors to learning – which left unattended, later place a much larger burden on the K-12 education
system and other social services programs.
Although the state has a range of programs and significant public investment for these children, the goals
and efforts have not been sufficiently unified across agencies, nor have the results of these efforts been
consistently documented at the child/family level. This budget moves to a model that focuses on
outcomes for children and their families, not resources for programs. Unifying efforts, streamlining
administrative costs, and committing resources to a sustained strategy of early childhood investment, with
measurable results, will be the foundational element in achieving long term educational and economic
objectives for Oregon. The Council of Early Learning is created in this budget to bring together those
programs focused on primary and secondary prevention. The following programs are included:

Education
• Early Intervention and Early Childhood Special Education; Headstart and Early Headstart; Oregon
Pre-kindergarten; Even Start; and Special Education for infants with disabilities, and pre-school
grants from the Department of Education;
• Healthy Start; Relief Nurseries; Community Schools; Children, Youth and Families; Great Start;
Family Preservation and Support; and statewide system development and planning from the State
Commission on Children and Families;
• The Childcare Division and Childcare Commission from the Employment Department;
• Ready to Read from the Oregon State Library;
• Maternal and Child Health Programs; and Women Infants and Children from the Oregon Health
Authority; and
• Employment Related Daycare and the Children’s Wrap-around Initiative from the Department of
Human Services.
In the first year of the biennium, the Governor’s Early Childhood System Director will oversee a design
team to re-engineer and transform the early childhood system to produce measurable outcomes and cost-
benefit analyses on a regional basis through performance-based contracting with local providers. The
design team will also recommend a process to transition to the new delivery model in the second year of
the biennium. Although the budget and positions for the existing programs are moved to the Council of
Early Learning, the programs themselves will continue to operate in their current form for this first year of
the biennium. Beginning the second year of the biennium, the programs will operate under the new
system design with unified efforts and streamlined administrative services.
In addition to the programs directly focused on early learning, the following programs from the State
Commission on Children and Families have been transferred to the Council of Early Learning: Court
Appointed Special Advocates; Youth Investment; the Runaway and Homeless Youth Initiative; and
Juvenile Crime Prevention.
Balanced Budget
The Governor’s Balanced Budget totals $770 million total funds, with $362 million General Fund. For
programs relating to early childhood, this is a General Fund increase of 7.4 percent from the 2009-11
Legislatively Approved Budget. Total fund expenditures remained flat from the 2009-11 Legislatively
Approved Budget.
Investments were made in the early childhood programs to the extent possible to foster system re-
engineering and produce the desired outcomes. Funds will be spent at the direction of Governor’s Early
Childhood System Director, who will provide the single point of accountability.
The budget also includes Lottery Fund bonding authority to invest in a coordinated early care and
education data system. This system will be a statewide, child-based data system to track expenditures
(including the return on investment) and outcomes. The system should ultimately be integrated across the
health and education system.
Education
The programs transferred from the State Commission on Children and Families, mentioned earlier, that
are not specifically focused on early childhood issues are funded at the level of the 2009-11 Legislatively
Approved Budget less allotment reductions.
Revenue
Approximately 47 percent of the Department of Early Learning budget is General Fund, 10 percent Other
Funds, and 43 percent Federal Funds. The primary sources of Federal Funds are the Child Care and
Development Block Grant, the Maternal and Child Health Grant (Title V) and Women Infants and
Children. Other Funds mostly consist of Federal revenues transferred to the Department from other
agencies. These include Title XX (Social Services Block Grant), Title IV-B(2) (Safe and Stable Families)
received from the Department of Human Services and Title XIX Medicaid funds received from the
Oregon Health Authority.

Education
DEPARTMENT OF EDUCATION
2007-09 2009-11 2011-13
General Fund $5,272,290,511 $5,594,170,040 $5,281,669,587
Lottery Funds $1,117,673,277 $549,318,319 $427,416,330
Other Funds $60,883,458 $60,411,670 $47,585,138
Federal Funds $875,676,402 $1,229,435,317 $722,225,628
Other Funds (Nonlimited) $140,351,340 $100,687,342 $84,024,055
Total Funds $7,750,303,355 $7,812,715,105 $6,848,300,992
Positions 481 393 385

Overview
The Oregon Department of Education is the lead agency for Oregon’s Pre-Kindergarten through grade 12
public education system. Its mission is to improve the achievement of all students. The Superintendent of
Public Instruction is elected to lead the agency. The agency provides support to the State Board of Education
and the Superintendent in carrying out their responsibilities, including:
• Adopting rules for general governance of schools and distributing funding for all public schools.
• Implementing statewide standards for schools.
• Establishing rules for schools and ensuring that they are followed.
• Administering Oregon’s statewide assessment testing system.
• Acting as a liaison and monitoring implementation of federal programs.
• Working in partnership with all education stakeholders. This includes local school districts, education
service districts, community colleges, parents, teachers, administrators, businesses and community
members.
The agency also contracts for services for certain education programs such as services to infants and young
children with disabilities, preschool programs, compensatory education programs and professional/technical
education programs. Through regional programs, the department provides special education services to
children with disabilities such as autism, hearing impairments and vision impairments.
The agency provides direct educational services at the School for the Deaf. In addition, the department
contracts for most educational services at Oregon Youth Authority work-study camps and correctional
facilities.

Education
Balanced Budget
Investment in education is a top priority in the Governor’s Balanced Budget. However, the loss of
significant one-time revenues and the weak economic recovery, limits the state’s ability to invest in
“business-as-usual”.
• State School Funding. The State School Fund accounts for about 94 percent of the General Fund
and Lottery Funds resources in the Department of Education. Currently it is distributed to all
public elementary and secondary school districts and education service districts throughout the
state. State funds, including federal stimulus dollars, contributed about 65 percent of total school
funding for the 2009-11 biennium. Local property taxes and other local revenues contributed the
remaining 35 percent.
The Governor’s Balanced Budget establishes a stable funding floor for Oregon’s K-12 public
school system. It provides $5.56 billion for the biennium. However, 52 percent ($2.9 billion) will
be distributed during the first school year of the biennium, equivalent to a $5.8 billion budget for
Front-loading the funding also provides a year to find cost savings through consolidation and other
efficiencies to maintain this level of classroom support during the 2012-13 school year.
In addition, the Governor is recommending shifting funding for State Police patrol officers from
the General Fund to the State Highway Fund, freeing up an additional $93 million in General Fund
support for 2012-13 school funding. The shift would require voter approval.
This budget includes significant governance changes that direct a greater share of available
resources to the classroom and give schools more flexibility in how they provide education
services to their children.
• Rather than diverting 4.75 percent of school funding to education service districts, the
Governor’s proposal will distribute all of the funds to school districts, allowing them to
shop for the regional services that best meet their needs. In addition, a portion of these
funds will be used to target assistance to schools facing challenges, develop and
disseminate teaching practices that enhance student success, improve teacher quality and
evaluation, and smooth the change in regional service delivery.
• The formula for calculating student transportation grants will be revised to emphasize
efficiency as well as safety, thereby freeing additional funds for direct classroom activities.
• Incentives will be developed to encourage consolidation of school districts and schools.

The cost of providing educational services is less in larger districts and the quality and
variety of those services is generally greater in the larger districts. Likewise, it is less
costly to operate school buildings that are at or near capacity. These consolidation efforts
will liberate additional funds for direct teaching activities.
• The facilities grant portion of the school fund formula will be eliminated, thereby giving
schools the flexibility to direct an additional $25 million into helping students be
successful.
Education
• Finally, the Governor will direct the Department of Education to encourage school districts
to make comprehensive online options available to their students and to work toward the
ultimate goal that any student can have access to a full-time virtual school. A recent Reset
Cabinet report states that, “the cost of providing these online options has been calculated to
be 70 to 80 percent of the cost in a traditional bricks and mortar setting.” The savings
generated from an increase in virtual education technology can be reinvested into students
who benefit more from the classroom experience and other more intensive services.
• Department Operations. Department Operations provides leadership, accountability, and support

to schools statewide in several areas, including school improvement, assessments, special
education, professional/technical education, legal requirements, nutrition, and transportation. The
budget funds operations at 3.5 percent below the 2009-11 level, for a total budget of $120.3
million. It maintains most current programs without inflation adjustments. Selected reductions
will limit the agency’s ability to advance current initiatives. The Office of Early Childhood is
moved to the Early Learning Council.
• Special Schools. The department operates the Oregon School for the Deaf. This is an educational
facility designed to meet the needs of hearing-impaired children whose needs cannot be met by
their local school district. The school provides comprehensive education and training services to
115 residential and day-program students, kindergarten through 12th grade. About 30 percent of
these children have learning problems in addition to their hearing impairment.
The Oregon School for the Blind was closed in 2009. Funding was set aside to establish a Blind
and Visually Impaired Student Fund to assist former School for the Blind students as they
transition and complete their schooling, as well as to provide services to visually impaired students
across the state. In addition, proceeds from the sale of the School for the Blind property are
dedicated as follows: 50 percent for repair and maintenance on the School for the Deaf campus
and 50 percent to the Blind and Visually Impaired Student Fund.
This balanced budget includes use of some of these funds to work down the backlog of deferred
maintenance items that are affecting the health, safety, and education of Oregon’s deaf and hard of
hearing students at the School for the Deaf. No additional General Fund is needed for the Blind
and Visually Impaired Student Fund. The current balance in this fund should be sufficient.
• Lottery Bond Debt Service. The budget includes $55.5 million Lottery Funds and $2.5 million
Other Funds to pay the 2011-13 debt service costs on Lottery-backed Revenue Bonds for
education that were originally issued in the 1997-99 and 1999-2001 biennia.
• Youth Corrections Education Program. The department funds education for young offenders at
the Hillcrest and MacLaren schools, juvenile work-study camps, and at other Oregon Youth
Authority facilities. The funding comes from the State School Fund on a per-student basis. Most
educational services are provided through contracts with local schools and education service
districts. The department is also responsible for the Juvenile Detention Education program, which
provides education services for youth in county detention centers around the state. The budget for

Education
these programs reflects a significant decrease in the number of incarcerated youth at the Oregon
Youth Authority. It is $11.5 million total funds, a 45.2 percent decrease from 2009-11.
• Grant-in-Aid. This program serves students with specific educational needs. School districts or
other entities outside of state government administer these services. Services include pre-
kindergarten, child nutrition programs, special education, early intervention services,
compensatory education, vocational and workforce development and education reform
implementation. The Governor’s Balanced Budget moves Oregon Pre-Kindergarten grant
funding and Early Intervention/Early Childhood Special Education grant funding to the Early
Learning Council. The remaining General Fund grants have been prioritized, with the breakfast
and lunch programs being continued at the current service level. Special Education programs are
maintained at a level that is at least equal to the average percentage reduction from current service
level in other programs statewide. Other General Fund grant programs are funded at 25 percent
below the current service level.
K-12 School Funding - State & Local
5
4.5
4
3.5
$ Billions
3 Add'l
2.5 State
2 Local
1.5
1
0.5
0
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY12 est FY 13
est
Revenue
General Fund supports the primary K-12 education infrastructure in the state. The State School Fund
allocates General Fund to districts. General Fund also finances department operations, Special Schools
and Grant-in-Aid programs. Lottery Funds finance a portion of the State School Fund and Lottery
Revenue Bonds debt service.
Other Fund revenues include revenues passed from other agencies, as well as fees paid by regulated
industries, county school fund revenues and charges for services to local school districts.
Federal Fund revenues include funding for compensatory education programs, school improvement, child
nutrition and special needs education.

Education
OREGON STUDENT ASSISTANCE COMMISSION

2007-09 2009-11 2011-13
General Fund $101,610,245 $95,040,451 $114,970,615
Lottery Funds $4,183,739 $8,940,885 $2,630,172
Other Funds $5,749,294 $6,576,994 $21,313,784
Federal Funds $1,783,654 $1,791,006 $727,244
Other Funds (Nonlimited) $9,546,744 $11,651,051 $0
Federal Funds (Nonlimited) $0 $0 $0
Total Funds $122,873,676 $124,000,387 $139,641,815
Positions 33 27 28
Overview
The Oregon Student Assistance Commission administers financial aid programs to help Oregon students
obtain a post-secondary education. The commission manages a variety of state-funded and
privately-funded grant and scholarship programs, including the Oregon Opportunity Grant. The Office of
Degree Authorization is also part of the agency.
The commission administers the Oregon Opportunity Grant program for financially needy undergraduate
students; the Oregon Nursing Services program for nurses working in nursing shortage areas; the Nursing
Faculty Loan Repayment program for nurse educators; over 400 privately-funded scholarship programs;
Individual Education Accounts in the JOBS Plus program; the federal Robert C. Byrd Scholarship
program; and the Access to Student Assistance Programs in Reach of Everyone (ASPIRE) Volunteer
Advisory Program.
The Office of Degree Authorization (ODA) reviews proposals by Oregon private institutions, non-Oregon
colleges, and educational organizations seeking to offer academic degrees in the state. It also reviews
proposals for new publicly-funded post-secondary education programs to ensure that publicly subsidized
programs do not detrimentally impact other public or private institutions. ODA enforces state laws
against presenting fraudulent or substandard academic degrees as a public credential.
Balanced Budget
The Governor’s Balanced Budget of $139.6 million total funds is a 12.6 percent increase over the 2009-11
Legislatively Approved Budget (LAB). General Fund and Lottery Funds total $117.6 million, a 13.1
percent increase from the LAB.

Education
Total funds for the Opportunity Grant program are increased from $101.8 million in the 2009-11
biennium to $115 million. Maintaining support for need-based aid is a priority in the Governor’s
Balanced Budget, despite General Fund constraints, the ongoing decline in Lottery Fund revenues, and
reduction in federal programs that have historically supported the Opportunity Grant program. The
Commission estimates that the Governor’s budget would fund about 80,000 awards during the 2011-13
biennium, an increase from approximately 63,000 awards made during 2009-11. The exact number of
awards will depend on increases in tuition and living costs, federal funding of Pell grants, calculation of
expected family contribution for individual students, and policy decisions made by the Commission about
maximum and minimum awards, distribution of funds among the academic sectors, and other issues.
Funding for the ASPIRE program is shifted from General Fund to Other Funds with the exception of a
coordinator that will seek grant funding and administer the program. Support for the Nursing Services
and Nursing Faculty Loan Repayment programs are reduced to the amounts needed to honor existing
commitments to specific individuals. No new awards will be made in 2011-13. The Student Childcare
program is funded at the 2009-11 LAB less June 2010 and September 2010 allotment reductions. Total
funds for the Office of Degree Authorization are 10.4 percent lower than the 2009-11 LAB.
The Balanced Budget shifts all Other Funds Non-limited to Other Funds limited. This shift involves
private scholarship and JOBS Plus funds.
Revenue
General Fund is used to support Opportunity Grants, the ASPIRE program, the Student Childcare
program, the Nursing Faculty Loan Repayment programs, and the Nursing Services program. It also
provides support to the Office of Degree Authorization and agency administration. Twenty-five percent
of Lottery Funds interest earnings from the Education Stability Fund are allocated for Opportunity Grants.
The commission’s largest source of Other Fund revenues is donations from individuals and organizations
to fund scholarship awards. The commission also receives transfers from other agencies to provide
student assistance. These include Jobs Plus Individual Education Account funds transferred from the
Department of Human Services and federal Robert C. Byrd funds transferred from the Department of
Education. The Office of Degree Authorization charges fees for reviewing degrees from private post-
secondary institutions. Federal Funds received from the Leveraging Educational Assistance Partnership
(LEAP) and Special Leveraging Educational Assistance Partnership (SLEAP) programs are included in
the Opportunity Grant.

Education
OREGON UNIVERSITY SYSTEM

2007-09 2009-11 2011-13
Actuals Leg Approved Budget Governor's Balanced
General Fund $791,522,349 $751,886,139 $714,708,529
Lottery Funds $23,289,731 $23,104,431 $28,515,644
Other Funds $2,125,040,457 $2,272,919,279 $2,180,818,964
Federal Funds $55,636,352 $68,951,615 $0
Total Funds $5,174,982,279 $5,370,544,389 $5,161,917,911
Positions 18,113 18,250 18,557

Overview
The Oregon University System (OUS) includes the educational institutions, governing board, central
administration, support services and public services constituting Oregon’s public university system. The
institutions consist of the University of Oregon (UO), Oregon State University (OSU), Portland State
University (PSU), the three regional universities, Eastern (EOU), Western (WOU), and Southern Oregon
(SOU) universities, and the Oregon Institute of Technology (OIT). Oregon State University also operates
the Cascades campus in Bend and three statewide public service programs, the Agricultural Experiment
Station, the Extension Service and the Forest Research Laboratory.
Balanced Budget
The Governor’s Balanced Budget of $5.2 billion total funds is a 3.9 percent reduction from the 2009-11
Legislatively Approved Budget (LAB). Increases in campus operational expenses largely funded with
tuition and fee revenues are offset by a reduced capital construction recommendation and phase-out of
federal revenues received under the American Recovery and Reinvestment Act.
General Fund is reduced by 4.9 percent while Lottery Funds are increased by 23.4 percent. Included in
these amounts are costs for debt service on general obligation bonds, Lottery-backed bonds, Certificates
of Participation, and energy loans paid with General Fund and Lottery Funds. Debt Service has increased
by 39.2 percent over the previous biennium.
General Fund for Education and General Services, which includes operations of the seven universities and
the Chancellor’s Office, is reduced by 7.8 percent from than the 2009-11 LAB while the three OSU
statewide programs each are reduced between 18 and 20 percent. With the remaining funds, the system
and the campuses are expected to prioritize undergraduate education and graduate programs directly
related to state workforce goals such as health care, engineering, and teacher education. Funding needs to

Education
be redirected from rewarding enrollment growth to promoting progress toward and completion of degrees
and certificates. Research funding, particularly in areas that support economic development, needs to be
maintained. Current investments in campus and statewide public services and other targeted programs
will need to be reviewed to determine their contribution to core outcomes.
Achieving these goals will require that state resources are directed away from graduate and professional
schools, public service programs, and the statewide public services. All these programs will need to
engage in redesign and business planning regarding their efficiency and effectiveness. Additional
flexibility will need to be given to these programs to allow them to obtain additional funding from tuition
and grants. Revisions may be required in the Resource Allocation funding model.
The balanced budget includes sufficient Other Funds expenditure limitation to accommodate the cost of
projected enrollment growth in the 2011-13 biennium. Planned tuition increases of 5.5 percent to
7.7 percent in each year of the biennium are not included in the balanced budget. Revenues from these
increases and corresponding expenditure adjustments will be made during the legislative session.
Funding for the Sports Action Lottery program, which receives one percent of Lottery proceeds to support
intercollegiate athletics and scholarship, is continued at the statutory level. By statute, 88 percent of the
revenues support athletics and the remaining 12 percent is used for scholarships.
A shift of $7 million from General Fund to Other Funds is included in the balanced budget in anticipation
of a legislative concept to allow the department to retain interest earnings on its cash balances. Interest
earned on General Fund accounts would continue to revert to the General Fund.
A total of $406.9 million is included for 27 Capital Construction projects and reserves at all seven
campuses. Due to General Fund constraints resulting from current economic conditions, no General
Fund-backed debt is recommended. All projects on which the state would pay debt service are funded
with Lottery-backed bonds. Bond projects on which the campuses would pay debt service with housing,
dining, parking, or other revenues are financed with Article XI-F (1) general obligation bonds.
Remaining costs in the recommended capital budget would be paid with gifts, grants, and donations.
The budget includes $51.4 million in Lottery-backed bonds for capital repair, code compliance, and safety
projects to keep the $640 million deferred maintenance backlog from growing. Another $41.4 million in
Lottery bond projects are recommended for deferred maintenance projects at EOU, SOU, and WOU. An
additional $24.1 million in Lottery-backed bonds are recommended for construction of a new business
education building at OSU; the university has received donations and pledges to pay the remaining costs
of this $56 million project.
The balanced budget also includes $20 million in Lottery-backed bonds and $10 million in other revenues
to complete the purchase and remodeling of a building in Wilsonville to consolidate OIT’s Portland area
programs. OIT signed a lease/purchase agreement in April 2010, without legislative review, that calls for
annual payments of nearly $2 million from September 2012 through August 2022. The university plans
to use donations and proceeds from the sale of its interest in a building in Milwaukee that is co-owned
with Clackamas Community College to pay its cost of the project. If state funds are not approved to
complete the sale, OIT will be unable to pay the lease costs beyond August 2018 without imposing
differential tuition increases on students attending classes or leasing out portions of the building to other
tenants, limiting OIT’s use of the facility.

Education
Sale of $8.2 million in Certificates of Participation is included for campus information technology and
equipment projects. Debt service will be paid by the campuses.
Revenue
The department’s General Fund appropriation is distributed to the campuses and centralized services by
the Resource Allocation Model (RAM). The RAM distributes the majority of the General Fund that
campuses receive for their Education and General programs based on full-time equivalent student
enrollment.
Remaining General Fund support to campuses, and all General Fund support for centralized services, is
distributed in the RAM through targeted programs. Targeted programs are established by the Legislature
or the Board of Higher Education to address specific academic, institutional, research, or state economic
concerns.
Lottery revenues pay debt service on Lottery-backed bonds and support intercollegiate athletics.
The primary sources of Other Funds for the Education and General Program are tuition and fees. Other
sources include sales and charges for services, indirect cost recovery on grants, and other miscellaneous
revenues. Federal grant funds received by the department are expended as Other Funds.
The Oregon State University statewide public service programs receive Other Fund revenues from sales
and service fees, indirect cost recovery on federal grants, interest earnings, donations, research contracts
with private entities and miscellaneous income.
Nonlimited revenues are dedicated to a specific purpose and are independent of programs supported by
General Fund and limited Other Funds. Sources include student aid funds, food service and other
enterprise sales, dormitory fees, health service fees and course fees for non-credit continuing education
programs, among others. Nonlimited funds also include gifts and sponsored research financed by the
federal government, private industry and other private groups. These nonlimited funds, the major source
of support for research, also directly benefit and enhance the instruction and research programs supported
by the General Fund and tuition revenue.
In the balanced budget, the construction, renovation and acquisition of instructional and public service
buildings are financed by Lottery-backed bonds. Debt service on these bonds is paid with Lottery Funds.
Bond sales will be scheduled towards the end of the biennium, deferring debt service on these bonds until
the 2013-15 biennium.
Construction of student unions, dormitories, parking structures and similar projects are generally financed
from auxiliary enterprise balances and the proceeds of Article XI-F(1) bonds. In addition, revenue from
self-supporting projects, gifts, grants and donations are a major funding source for Capital Construction.
Debt service on Article XI-F(1) bonds is generated from revenues from self-supporting programs and
student building fees.
Revenues from COPs also fund information technology and equipment purchases. Debt service is paid
with campus revenues.

Education
TEACHER STANDARDS AND PRACTICES COMMISSION

2007-09 2009-11 2011-13
General Fund $0 $0 $0
Other Funds $5,008,724 $5,118,071 $5,739,017
Federal Funds $0 $0 $0
Total Funds $5,008,724 $5,118,071 $5,739,017
Positions 28 25 26
Overview
The Teacher Standards and Practices Commission ensures that every student in Oregon receives
instruction by caring, competent and ethical educators. The Commission:
• Establishes rules and standards for licensure and charter school registration; issues licenses or
registrations to public school teachers, administrators, school counselors, school psychologists and
school nurses.
• Maintains professional standards of competent and ethical performance and proper assignment of
licensed educators.
• Adopts standards for approval of college and university teacher education programs that lead to
licensure, and approves such programs that seek to license educators in the state of Oregon.
Balanced Budget
The Governor’s Balanced Budget for the Commission is $5.7 million Other Funds, which is a
12.1 percent increase over the 2009-11 Legislatively Approved Budget. The budget establishes a half-
time school district liaison position and continues three limited duration positions for investigating
complaints. Expenditure authority is included to allow moving the office to a more appropriately sized
space.

Education
Revenue
The Commission is funded solely by Other Funds supported by fees from the regulated organizations and
professionals. These include application fees, fingerprinting fees, initial license fees, renewal license fees,
and delinquent fees.

Human Services

COMMISSION FOR THE BLIND ................................................................................................................... C-5
DEPARTMENT OF HUMAN SERVICES ........................................................................................................ C-7
OREGON HEALTH AUTHORITY ...................................................................................................... …….C-12
LONG TERM CARE OMBUDSMAN ........................................................................................................... C-17
OFFICE OF PRIVATE HEALTH PARTNERSHIPS ......................................................................................... C-19
PSYCHIATRIC SECURITY REVIEW BOARD ............................................................................................... C-20
2007-09 2009-11 2011-13

General Fund $3,195,651,005 $3,523,726,005 $3,783,944,401
Lottery Funds $12,637,762 $10,903,639 $11,142,377
Other Funds $1,326,034,573 $1,994,067,243 $1,841,196,973
Federal Funds $5,982,860,446 $8,143,161,682 $6,890,822,917
Other Funds (Nonlimited) $38,384,054 $40,000,000 $3,254,911,521
Federal Funds (Nonlimited) $1,351,240,667 $2,292,650,191 $2,388,355,948
Total Funds $11,906,808,507 $16,004,508,760 $18,170,374,137
Positions 10,517 11,723 11,860

Overview
The Governor’s Balanced Budget for Human Services seeks to protect and promote the health and safety
of all Oregonians. The agencies within this program area provide services, such as physical health,
mental health and addiction treatment, as well as public health services, employment and family support
services that promote self-sufficiency and economic stability, child protective services for abused or
neglected children and long-term care services for Oregon’s seniors and people with disabilities.
The budget includes a new agency – The Oregon Health Authority (OHA) which the 2009 Oregon
Legislature created to bring most health-related programs into a single agency in order to maximize its
purchasing power, and to contain rising health care costs statewide. The OHA is overseen by a nine-
member, citizen-led board appointed by the Governor and confirmed by the Senate.
The Health Authority combines the Public Employees Benefit Board (PEBB), the Oregon Educators
Benefit Board (OEBB), and the Office of Private Health Partnerships (OPHP) with the health services
programs from the Department of Human Services: Addictions and Mental Health (AMH) programs,
Medical Assistance programs and Public Health programs.
The remaining Department of Human Services includes programs for children, adults and families,
coupled with services to seniors and people with disabilities. The new Health Authority will continue to
share many common business services with the Department of Human Services.
2011-13 Governor's Balanced Budget C-1 Human Services

Human Services
Balanced Budget
The Governor’s Balanced Budget includes $18.2 billion total funds for the Human Services Program
Area. This represents a 13.8 percent increase from the 2009-11 biennium Legislatively Approved Budget
(LAB), but this increase is misleading because the 2009-11 budget does not include the Oregon Educators
Benefit Board, Public Employees Benefit Board and the Oregon Medical Insurance Pool with $2.8 billion
in Other Funds expenditures. The budget includes $3.8 billion General Fund, which is 8.6 percent above
the 2009-11 LAB, due mainly to replacing one-time federal stimulus funds with General Fund.
The Governor’s Balanced Budget for the Human Services Program Area includes two initiatives. First, it
begins to transform Oregon’s health care delivery system. Second, it sets the stage to re-engineer the
delivery model for programs within the Department of Human Services. It also moves all early childhood
programs to the new Early Learning Council within the Education Program Area.
Health Care Reform: The Governor envisions a health care delivery system in Oregon that achieves
world-class outcomes and delivers better value for the tax dollars being spent. To do this, the system
must achieve three objectives simultaneously:
• Improve the lifelong health of Oregonians.
• Increase the quality, reliability, and availability of care for all Oregonians.
• Lower or contain the cost of care, so it’s affordable to everyone.
The current delivery system does not achieve any of these “Triple Aim” objectives. Health care has
become increasingly unaffordable for individuals, for businesses and for the state in providing services to
the most vulnerable.
To reverse that trend, the Governor’s Balanced Budget assumes substantial payment and benefit
reductions in the first year of the biennium to allow time for federal approvals and provider planning.
System change will begin in the first year and expand throughout the biennium. Key concepts in this
transformation include:
• All health care services are coordinated, including physical health, mental health, addictions
treatment, oral health and long-term care. Although the budget for long-term care for seniors and
people with disabilities stays within the Department of Human Services, these services will be
integrated into the transformation plan.
• Long-term care services will promote and encourage greater utilization of home care and
community-based care, with nursing facility care used for transition services only. Case
management would also change under a capitated system.
• Services for all Medicaid eligible people are included in the transformation, including low-income
Oregonians who are also eligible for Medicare.
• Shift to a single (capitated) payment for all services that incents preventive care and best practices.
• Create a framework within which local/community-based health entities can assume increasing
responsibility for health in their communities.

Human Services
Implementing these key changes will begin to remove the inefficiencies in the current health care system
in Oregon. Generally, these inefficiencies fall into four categories: lack of coordinated care, lack of
preventive care, provider inefficiencies or error, and unwarranted use of medical treatment options.
Together, these system changes are expected to reduce health care costs by 7.0 percent, beginning part-
way through the first year of the biennium, with long-range savings approaching 30 percent or more.
Although the concepts of the transformation are clear, the details of the implementation are pending. The
Governor’s Balanced Budget assumes a workgroup will continue planning efforts with providers,
followed by approvals from federal partners to achieve the expected long-term results. This effort will
extend beyond the 2011-13 biennium.
Department of Human Services Reforms: The balanced budget prioritizes programs that focus on
prevention, use evidence or outcome-based research, and encourage more strategic community
connections to align the efforts of state and local government with local business, non-profits, faith-based
and volunteer networks. This sets the stage to re-engineer the current delivery model from a reactive
system to a more preventive, proactive set of services.
In Children, Adult and Families division (CAF), the budget includes an investment in a new, community-
based and culturally-specific “differential response” model that will, over time, reduce the number of
children who enter the foster care system and reduce the time spent in foster care for those who do. In
addition, the budget also continues basic Temporary Assistance to Needy Families (TANF) supports for
as many families as possible for the first 18 months of the biennium, while taking a strategic approach to
the TANF employment (“JOBS”) program, focusing on enhancements to services in that program in the
second year of the biennium when the economy will likely show a stronger recovery.
In the Senior and People with Disabilities division, the budget focuses on efforts to preserve as much as
possible the ability to serve those individuals with their families and in community-based settings. These
efforts are also intended to reduce the use of higher-cost supports and avoid placing of children with
developmental disabilities into higher-cost foster care and residential services. The budget also makes an
investment in adult protective services staff, to enable the state to more adequately respond to reports of
abuse or neglect, and to better ensure the safety and health of aging and physically disabled Oregonians.
Other highlights of the budget include:
• The budget makes reductions in funding to mental health institutions, while mostly preserving funding
for community-based mental health care and addictions treatment provided outside the Oregon Health
Plan. It continues planning for construction of the Junction City facility.
• The Commission for the Blind budget continues all current programs. It also establishes a new quality
assurance program within the agency.
• The budget maintains the Long Term Care Ombudsman core programs at current levels, but shifts the
agency from General Fund to a fee-based agency.
• The Psychiatric Security Review Board’s budget continues all current programs. It provides funds to
manage the new Gun Relief Program and to keep up with increased workload demands.

Human Services
• All programs within the State Commission for Children and Families move to the new Early Learning
Council within the Education Program Area. Employment-related Day Care will move from CAF.
Babies First, Maternal and Childhood Block Grant, and Women, Infants and Children (WIC) will
transfer from Public Health within Public Health.
• The Budget for the Oregon Educators Benefit Board and Public Employees Benefit Board are held
constant, pending negotiated settlements with affected employees within the state, school districts,
education service districts and community colleges.

Human Services
COMMISSION FOR THE BLIND
2007-09 2009-11 2011-13

General Fund $1,519,859 $1,449,953 $1,208,534
Other Funds $2,497,347 $2,525,619 $2,799,193
Federal Funds $11,358,009 $11,651,863 $11,727,961
Total Funds $15,375,215 $15,627,435 $15,735,688
Positions 51 51 50
Overview
The Commission for the Blind administers programs for the blind in Oregon. The agency provides
vocational rehabilitation services, blind vendor management training and assistance, and employment
experience through its work activity center and the Industries for the Blind. The agency is broken into
five program units:
• The Administrative Services program provides central oversight, accounting and human resource
services for the agency’s other programs.
• The Rehabilitative Services program provides training, counseling and guidance and technology
services for eligible legally blind clients who want to go to work or maintain their job. In addition
to basic vocational rehabilitation services, this unit includes the teaching of independent living
skills and the provision of transitional programming for students before they leave school. The
program unit also includes services for the older blind that are intended to maintain their
independence.
• The Business Enterprises program provides opportunities for the blind to become self-employed
and obtain management experience. The blind vending program involves training in vending
management. Clients who successfully complete the training then apply to manage a vending site.
After placement, the blind vendors continue to receive technical assistance from the agency and
are required to pay a percentage of their income into a fund, which pays for training and
improvements for vendors.
• The Industries for the Blind program unit provides work experience through sheltered workshops
and work activity centers. Contracts with Multnomah County provide most of the funding for the
program. Clients who use the centers are blind and often have another disability.

Human Services
• The Orientation Center for the Blind program provides skills training for newly blind adults so
they may remain as independent as possible. It also operates a Summer Work Experience program
for students to gain work experience and to provide an opportunity for students to have an
independent living experience.
Balanced Budget
The Governor’s Balanced Budget for the agency is $15.7 million total funds. This is a 0.7 percent
increase over the 2009-11 Legislatively Approved Budget. The budget continues current programs
without adjusting for inflation. It establishes a quality assurance program within the agency. Five
positions are reclassified to more appropriately reflect their job descriptions. One limited duration
instructor for the blind position is continued. The funding source for a portion of the agency’s
expenditures is shifted from state General Fund to the agency’s donation account.
Revenue
General Fund and part of the agency's Other Funds are used to match Federal Funds. The principal source
of Federal Funds is the Section 110 grant under the Vocational Rehabilitation Act of 1973. These funds
are matched at a 21.3 percent state funds to 78.7 percent Federal Funds rate. Funds for the Older Blind
programs and in-service training grants are matched at a 10 percent state funds to 90 percent Federal
Funds rate.
The agency receives Other Funds from a contract with Multnomah County for operation of the Industries
for the Blind program, cooperative agreements with school districts, transfers from the Business
Enterprise set-aside fund, donations and interest gained from those donations. Other Funds resources
from cooperative agreements and the Business Enterprise set-aside fund are restricted in their use.

Human Services
DEPARTMENT OF HUMAN SERVICES

2007-09 2009-11 2011-13
General Fund $3,112,374,617 $3,448,379,929 $2,053,376,565
Lottery Funds $12,637,762 $10,903,639 $0
Other Funds $1,253,920,434 $1,847,704,559 $321,132,891
Federal Funds $5,967,951,320 $8,126,673,525 $3,030,655,425
Other Funds (Nonlimited) $38,384,054 $40,000,000 $0
Total Funds $11,736,508,854 $15,766,311,843 $7,789,146,418
Positions 10,363 11,543 8,166

Overview
The Department of Human Services (DHS) is responsible for services to Oregon’s low-income and
vulnerable citizens, including public assistance, protective services, vocational rehabilitation and long-
term care for seniors and people with physical and/or other disabilities. These services are delivered
through a network of state offices, county and local governments, and private non-profit entities.
The Oregon Health Authority (OHA) was created through House Bill 2009 (2009). The Health Services
Division of DHS, which includes the Division of Medical Assistance, Addictions and Mental Health, and
Public Health, moved to the Oregon Health Authority. This move focuses DHS programs in two
divisions:
• Children, Adults, and Families (CAF): This division includes services and benefits to low-
income families working to become self-sufficient, child protection services for abused and
neglected children and vocational rehabilitation services to individuals with disabilities seeking
employment. In addition, CAF determines eligibility for the services it provides as well as the
Oregon Health Plan and other medical assistance programs.
• Seniors and People with Disabilities (SPD): This division serves Oregon’s most vulnerable, low-
income seniors and people with physical disabilities through a continuum of long-term care
services, ranging from in-home supports to facility-based, residential care. This division also
facilitates services for adults and children with developmental disabilities in a variety of in-home
and residential facilities. The division budget includes field office staff that provides these
services.
One of the unique outcomes from the transition into two agencies is a new model in state government in
which DHS and OHA share services to save dollars, time and workforce. Shared services include
centralized administrative services and programmatic services used by both agencies. The Central and

Human Services
Shared Services Division in DHS provides all the administrative functions internal to the agency as well
as many business services shared with OHA, most notably audits and consulting, contracts and
procurement, facilities, financial services, forecasting, and investigations and training. The major
information technology information systems and security services reside in OHA.
The mission of the new DHS is to help Oregonians in their own communities achieve well-being and
independence through opportunities that protect, empower, respect choice and preserve dignity.
Achieving this will require increased focus on early intervention, preventive and in-home services that
keep children and adults in safe and stable family settings. These local, community-based services would
preserve families and strengthen individuals’ self sufficiency and independence.
Balanced Budget
The following display is included to show the estimated historic values for only those programs that are
included in DHS. It is included for comparison purposes.
2007-09 2009-11 2011-13

General Fund $1,581,574,206 $1,803,904,661 $2,053,376,565
Other Funds $349,926,421 $310,939,995 $321,132,891
Federal Funds $2,784,298,884 $3,361,194,382 $3,030,655,425
Total Funds $5,965,043,492 $7,665,960,178 $7,789,146,418
Positions 7,121 7,695 8,166
The Governor’s Balanced Budget for DHS is $2,053 million General Fund and $7.8 billion total funds,
which are 13.8 percent and 1.3 percent greater than the 2009-11 Legislatively Approved Budget,
respectively. The General Fund increase is due mainly to the backfill of one-time federal stimulus funds.
Nonlimited Federal Funds are up 8.9 percent due to the increase in Supplemental Nutritional Assistance
Program (SNAP, formerly Food Stamps) benefits being paid to low income Oregonians.
The Governor’s Balanced Budget prioritizes programs that focus on prevention, use evidence or outcome
based research and encourage more strategic community connections to align the efforts of state and local
government with local business, non-profits, faith-based and volunteer networks. This sets the stage to
re-engineer the current delivery model from a reactive system to a more preventive, proactive set of
services.

Human Services
While the budget is essentially flat, it represents about a 10 percent reduction to continuing current
programs and is intended to:
• Build on what’s currently working while prioritizing strategic investments that protect our most
vulnerable citizens;
• Limit increased demand for public services and shift spending priorities to prevention and/or
lower-cost services;
• Maximize the use of evidence and outcome-based programs and services;
• Focus on equitable and culturally-appropriate services;
• Encourage more strategic community connections aligning the efforts of state and local
government with local businesses, non-profits, faith-based and volunteer networks; and
• Maintain and maximize federal funding while avoiding federal penalties.
In CAF, the budget includes an investment in a new, community-based and culturally-specific

“differential response” model that will, over time, reduce the number of children entering the foster care
system and reduce the time spent in foster care for those who do. In addition, the budget also continues
basic TANF supports for as many families as possible for the first 18 months of the biennium while
taking a strategic approach to the TANF employment (“JOBS”) program, focusing on enhancements to
services in that program in the second year of the biennium when the economy should be moving into a
stronger recovery. This budget provides services to:
• About 748,000 individuals, approximately one out of every five Oregonians, in roughly 400,000
Oregon households with SNAP benefits each month.
• More than 30,000 families, including approximately 53,000 children, who are currently living in
extreme poverty (with incomes under 40 percent of the poverty level) through the Temporary
Assistance for Needy Families (TANF) program.
• An estimated 9,500 clients who will receive services through the Vocational Rehabilitation
program.
• About 8,100 children, on an average daily basis, in foster care. This caseload has decreased
significantly since 2006. However, reports of child abuse and neglect have increased by
5.9 percent over the last year.
• About 11,500 kids, on an average daily basis, supported under the Adoption Assistance program.
In SPD, the budget focuses on efforts to preserve as much as possible the ability to serve those individuals
with their families and in community-based settings. These efforts are also intended to reduce the use of
higher-cost supports and avoid the placement of children with developmental disabilities into higher-cost
foster care and residential services. The budget also makes an investment in adult protective services

Human Services
staff, to enable the State to adequately respond to reports of abuse or neglect and to better ensure the
safety and health of aging and physically disabled Oregonians.
Long-term care services are budgeted in SPD, but the program is part of the Health Care Reform
transformation plan in OHA where all health care services are coordinated, including physical health,
mental health, addictions, oral health and long-term care under a capitates managed care plan. The new
model uses home and community based care as the guaranteed Medicaid benefit instead of nursing
facilities. Nursing home services are used only for skilled rehabilitation and stabilization from
hospitalization. The department continues to perform eligibility determinations and licensing, but all
other case management functions are transferred to the managed care plan.
This budget provides services to:
• Approximately 27,500 seniors and people with disabilities, each month, with long-term care services.
These clients can continue to choose between receiving their services in their own home or from a
variety of residential service providers.
• Over 18,500 people, about 70 new children and adults each month, with Developmental Disability
Services. These services include case management, medical assistance, in-home supports, and
residential group homes.
The Governor’s Balanced Budget transfers programs related to early childhood services to the new Early
Learning Council, namely the Employment Related Daycare program.
Revenue
The Division’s recommended budget is 26 percent General Fund, four percent Other Funds and
70 percent Federal Funds. The largest sources of Other Fund revenues are:
• Overpayment Recoveries: Overpayment recoveries are recovered program dollars incorrectly paid
to clients through client error or fraud. There are three different areas of recoveries: SNAP,
Public Assistance cash and Public Assistance grant reductions. Under federal regulations,
35 percent of fraud overpayment collections, and 20 percent of non-fraud overpayment
collections, may be retained by the state to offset administrative expenditures incurred by the
SNAP. Public Assistance recoveries are applied against program expenditures during the month
of recovery.
• Nursing facilities provider tax: Taxes are matched with federal Medicaid funds and used to pay an
enhanced nursing facility rate.
• Trust Recoveries: Client funds are used to reimburse the state for the maintenance cost of children
in care.
• Fees and licensing revenue: for nursing facilities, marriage, adoption, trust and agency receipts;
and criminal fines and assessments.

Human Services
The primary sources of Federal Funds include:

• Title IV-A Temporary Assistance for Needy Families: This annual block grant funds Cash
Assistance for single and two parent families, Emergency Assistance and Employment and
Training services (JOBS program). Some childcare services and other support services, like
transportation, are also funded with TANF.
• Title IV-B Child Welfare Services: Protects and promotes the welfare of children, family
preservation services, reunification and adoption services.
• Title IV-E Child Welfare: Provides for foster care and adoption assistance.
• Title XIX Medicaid: Provides reimbursement for medical care of low-income and other medically
needy individuals. Medicaid is the primary source for funding SPD long-term care programs.
Under a federal waiver, Oregon may use federal Medicaid funds to provide either institutional or
community-based care. These expenditures require state matching funds. This matching rate is
based on the strength of the state’s economy compared to the national average.
• Title XX Social Services Block Grant: In addition to the Child Care Development Fund, Oregon
also applies Social Services Block Grant revenues to meet childcare costs, employment-related
day care, Crisis Nurseries and Pre-Delinquent/Level 7 Youth.
• Title XXI Children’s Health Insurance Program: Provides reimbursement for medical care of
children and teens through age 18 whose parents earn too much for traditional Medicaid, but do
not have employer-based insurance. These services are covered through the Oregon Health Plan.
• Supplemental Nutrition Assistance Program (SNAP): Food subsidy benefits determined by
household size and income. The SNAP program also provides limited employment and training
services for unemployed family members. SPD completes SNAP eligibility for elderly and
disabled clients who qualify for these services. State contributions to administer eligibility
determinations are matched 50/50 with federal dollars.
• Medicare: SPD receives Medicare funding to survey and certify nursing homes.
• Older Americans Act: The Older Americans Act provides support services for clients who are
60 years of age or older. These funds pass through SPD on their way to AAAs. The AAAs
provide the required non-federal match, which ranges between 10 and 25 percent.

Human Services
OREGON HEALTH AUTHORITY

2007-09 2009-11 2011-13
General Fund $0 $0 $1,727,653,691
Lottery Funds $0 $0 11,142,377
Other Funds $0 $0 1,514,812,956
Federal Funds $0 $0 3,848,439,531
Other Funds (Nonlimited) $0 $0 3,254,911,521
Federal Funds (Nonlimited) $0 $0 4,374,411
Total Funds $0 $0 $10,361,334,487
Positions 0 0 3,625
Full-time Equivalent 0.00 0.00 3,563.19
Overview
The Oregon Health Authority (OHA) was created by the 2009 Oregon legislature to bring most health-
related programs into a single agency to maximize its purchasing power and to contain rising health care
costs statewide. The OHA is overseen by the Oregon Health Policy Board, a nine-member, citizen-led
board.
OHA’s mission is to help people and communities achieve optimum physical, mental and social well-
being through partnerships, prevention and access to quality, affordable health care. It has three goals to
transform the health care system in Oregon:
• Improve the lifelong health of Oregonians
• Increase the quality, reliability, and availability of care for all Oregonians
• Lower or contain the cost of care so it's affordable to everyone
OHA combines the Public Employees Benefit Board (PEBB), the Oregon Educators Benefit Board
(OEBB), and the Office of Private Health Partnerships (OPHP) with the health services programs from
the Department of Human Services: Addictions and Mental Health (AMH) programs, Medical Assistance
programs and Public Health programs.
PEBB provides health, dental and other benefits for 128,000 state and university employees and their
families.
OEBB provides health, dental and other benefits to over 150,000 employees and their families in 197
school districts and charter schools, 19 education service districts and 16 community colleges.
OPHP administers the Family Health Insurance Assistance Program (FHIAP), which pays health
insurance subsidies for Oregonians that meet income and other eligibility guidelines. The subsidies are

Human Services
used to pay for insurance through work or to buy individual plans if not available through an employer.
Similar to FHIAP, OPHP administers Healthy Kids Connect, a program that provides premium assistance
for families who earn too much to qualify for the Oregon Health Plan (OHP) but can’t afford private
insurance. OPHP also administers the Oregon and Federal Medical Insurance Pools, which provide
health insurance coverage to Oregonians that have been denied individual health coverage because of
their medical conditions. This coverage is funded by member premiums and assessments received from
insurance carriers. OPHP also provides outreach to insurers, producers, and the public to educate them on
state run programs and resources available to Oregonians.
AMH programs provide prevention and treatment services to reduce the negative effects of alcohol, other
drugs, gambling addiction and mental health disorders.
Medical Assistance programs provide health care services to over 550,000 low-income Oregonians
through a network of community providers. Most services are provided through the OHP.
Public Health supports the local delivery of preventive health services and protects Oregonians from both
acute and chronic health effects of environmental hazards. It supports state and local public health
programs to control communicable diseases, identifies metabolic disorders in newborn infants and
oversees the quality of testing in the state’s clinical and environmental laboratories. It also ensures that
hospitals and other institutions providing medical care meet state standards.
The Governor’s Balanced Budget builds a platform to deliver better value for the tax dollars being spent
on health care by changing the health care delivery system in Oregon. It begins by transforming service
delivery for Oregonians receiving services through the OHP. The Governor’s vision for the 2011-13
biennium is encapsulated in the following seven concepts.
• Coordinate all benefits, including physical health, mental health and addiction services, oral health and
long-term care services, through integrated care and service entities serving geographic areas reflective
of natural communities of care. In addition, begin to include coordination of social supports that
promote health and keep individuals out of high cost medical care.
• Include all Oregonians eligible for Medicaid, and those eligible for both Medicaid and Medicare (dual
eligibles).
• Pool Medicare and Medicaid funding for dual eligibles to create more efficient use of resources, care
management, and to align incentives.
• Eliminate fragmentation of mental, physical, and oral health and long-term care.
• Set capitation payments and/or global budgets at levels sufficient to achieve best-practices, provide
incentives for prevention efforts, and address unsustainable growth in health care costs.
• Create a framework within which local/community-based health entities can assume increasing
responsibility for health in their community.
• Build upon best practices that exist in communities.

Human Services
Although the budget for long-term care to seniors will continue within the Department of Human
Services, Seniors and People with Disabilities division, these services are integrated into the health care
transformation plan.
Balanced Budget
The following display shows the estimated 2007-09 actual and 2009-11 Legislatively Approved values for
only those programs currently in the OHA budget. They are included for historical comparison purposes.
2007-09 2009-11 2011-13

General Fund $1,553,376,197 $1,665,766,407 $1,727,653,691
Lottery Funds $12,637,762 $10,903,639 $11,142,377
Other Funds $1,444,908,082 $1,692,630,989 $1,514,812,956
Federal Funds $3,183,652,436 $4,765,479,143 $3,848,439,531
Other Funds (Nonlimited) $484,649,262 $2,797,783,285 $3,254,911,521
Total Funds $6,781,220,425 $11,035,292,514 $10,361,334,487
Positions 3,351 3,981 3,625
The Governor’s Balanced Budget for OHA is $1.73 billion General Fund and $10.36 billion total funds.
General Fund increases by four percent from the 2009-11 Legislatively Approved Budget due mainly to its
replacing one-time federal stimulus funds. Total spending is lower by six percent because of General Fund
revenue constraints. Staffing is slightly lower.
The budget includes significant provider payment and benefit reductions. Provider payments are reduced by
16 to 19 percent from the 2011 rate levels. Benefit changes include restricting service access through prior
authorization, changes to reimbursement methods and restrictive contracting. Prioritized conditions paid for
by the OHP are reduced. Administrative savings are expected within OHA and among community providers.
System transformation needs to be implemented as quickly as possible, with a goal of implementing

substantial changes no later than January 1, 2012. In addition to reductions that began in the first year, the
budget assumes system change early in the biennium to avoid further benefit and payment reductions by
removing inefficiencies in the delivery of health care. These inefficiencies fall into four specific categories.
• Lack of coordinated care that results in duplicate tests and inappropriate treatment, increased use of
emergency rooms for non-emergent conditions, and avoidable hospitalization, especially for the
elderly.

Human Services
• Lack of preventive care that results in unnecessary hospitalizations and advanced treatment. An
estimated 60 to 70 percent of health care is for chronic conditions that without proper treatment result
in more expensive crisis or hospital care. Examples of chronic conditions include asthma, diabetes,
epilepsy, multiple sclerosis, Parkinson’s disease and Chronic Obstructive Pulmonary Disorder.
• Delivery system inefficiencies or errors that include unnecessary one-day hospital stays, over-
utilization of hospitalized patients, over-utilization of Intensive Care Units (ICUs), inefficient use of
provider extenders (i.e. nurse practitioners, physician assistants, community health workers), and
avoiding medical procedure and medication errors.
• Unwarranted use includes the failure to use conservative treatment protocols, unnecessary use of
brand name drugs, inappropriate use of antibiotics, diagnostic testing when test results will not affect
the course of treatment, and high-cost diagnostic procedures for patients at low risk of conditions.
A single payment model is planned that will integrate long-term care, mental health, addiction, and Oregon
Health plan services into local entities. Long term care services will promote and encourage greater
utilization of home care and community based care, with nursing facility care used for transition services
only. Case management would also change under a capitated system.
The Governor’s Balanced Budget for OHA will require significant federal support, health care industry
innovation and client engagement for a successful transition to a more effective and efficient health care
delivery system in Oregon.
The budget makes reductions in funding to mental health institutions, while mostly preserving funding for
community based mental health care and addictions treatment provided outside the Oregon Health Plan. It
continues planning for construction of the Junction City facility.
The budget for Public Health reduces support in the immunization program, school-based health centers,
the Family Planning Expansion Project, and the Seniors Farm Direct nutrition program. It supports the
establishment of a new fee to avoid further program reductions. It also transfers Babies First, Maternal
and Childhood Block Grant, and Women, Infants and Children (WIC) to the new Early Learning Council.
The budget for OEBB and PEBB are held constant pending negotiated settlements with affected employees
within the state, school districts, education service districts and community colleges.
Revenue
About 17 percent of the OHA budget is General Fund, 46 percent Other and Lottery Funds and
37 percent Federal Funds. The agency receives Federal Fund revenues from a variety of sources. The
primary source of Federal Funds is the Medicaid program. Other smaller federal sources include the
Children’s Health Insurance Program, the Center for Mental Health Services Block Grant and the
Substance Abuse Prevention Treatment grant.
Lottery Funds support gambling addiction treatment programs.

Human Services
Other Fund revenues come from the following:

• Premiums charged to all state agencies and participating school districts, education service
districts and community colleges.
• Provider taxes assessed to hospital, managed care organizations and insurers that finance the
OHP-standard program, supplement the OHP Plus program and expansion of the Healthy Kids
program.
• Tobacco taxes for the OHP and the Tobacco Use Reduction Account.
• Client contributions where clients are required to pay a variety of co-payments and premiums that
help finance the costs of providing their health care.
• Drug rebates from current drug pricing practices which include rebates from pharmaceutical
companies. The level of these rebates is negotiated with the individual supplier.
• Third party recoveries where some OHP clients have other groups that are liable to pay some of
their health care costs. OHP then re-coups some of its costs from these third-party payers.
• Beer and Wine Taxes to finance substance abuse prevention and treatment programs.
• WIC food vouchers where the WIC program is given rebates from grocery supplier.
• OPHP receives premium payments and health insurer assessments to finance the Oregon Medical
Insurance Pool.

Human Services
LONG TERM CARE OMBUDSMAN

2007-09 2009-11 2011-13
General Fund $947,535 $1,174,082 $0
Other Funds $1,769,012 $1,932,156 $2,449,877
Total Funds $2,716,547 $3,106,238 $2,449,877
Positions 11 11 11
Overview
The Long Term Care Ombudsman (LTCO):

• Investigates and resolves complaints made by, or on behalf of, long-term care facility residents.
• Monitors the implementation of federal, state and local laws, rules and policies that affect long-
term care residents.
• Promotes quality long-term care.
• Protects resident rights.
• Makes recommendations to the Legislature and the Governor about long-term care issues.
The LTCO relies on a network of about 240 volunteers statewide to deliver the program’s services to the
more than 42,600 long-term care beds licensed in Oregon. Currently, this includes approximately
140 certified volunteer ombudsmen who are trained and supervised by LTCO’s full-time staff to protect
the resident’s rights and assist the resident in resolving complaints. In addition to training and supporting
the volunteer network, the full-time staff also carries their own caseload and helps to resolve the most
complex resident complaints.
Balanced Budget
The Governor’s Balanced Budget for LTCO is $2.4 million , all of which is Other Funds. Approximately
$560,000 is federal OAA funds which are classified as Other Funds because they are transferred in from the
Department of Human Services (DHS). While this appears to be 21 percent less than the Legislatively
Approved Budget (Total Funds), it is actually an eight percent increase in total Personal Services and
Services & Supplies expenditures. The Special Payment to DHS that is matched by federal dollars and

Human Services
returned as Other Funds skews the Total Funds budget by being double-counted as an expenditure. The
recommended budget maintains the agency’s core programs at current levels, which includes increasing
one support position from half time to three quarter time, but shifts the agency from General Fund to a fee
based agency.
Revenue
In past biennia the agency received federal Title XIX Medicaid match funding, which was received through
DHS as Other Funds (LTCO would send General Fund to DHS, DHS as the State’s Medicaid agency would
match it with Federal Funds at the Medicaid match rate and send it back as Other Funds). DHS has
determined, through consultation with the Centers for Medicare & Medicaid services (CMS), that the LTCO
expenditures are not an appropriate use of Medicaid funds and consequently, the agency’s Federal Funds
revenue (classified as Other Funds) will drop from over $2 million to about $560,000. The agency will
continue to receive federal Older Americans Act funds from DHS as Other Funds.
The balanced budget shifts the LTCO revenue from essentially General Fund/Federal Funds to Other
Funds/Federal Funds supported by fees charged to the long-term care providers. Currently there are
approximately 42,600 licensed beds in 2,274 long-term care facilities. A fee as low as $25 per bed per year
would produce enough revenue (approximately $2.1 million) to fund the agency as currently staffed.

Human Services
OFFICE OF PRIVATE HEALTH PARTNERSHIPS

2007-09 2009-11 2011-13
General Fund $22,575,786 $21,291,139 $0
Other Funds $49,832,403 $123,025,624 $0
Total Funds $72,408,189 $144,316,763 $0
Positions 53 82 0
Overview
The Office of Private Health Partnerships is included in the Oregon Health Authority budget, per
legislative direction in House Bill 2009 (2009).

Human Services
PSYCHIATRIC SECURITY REVIEW BOARD

2007-09 2009-11 2011-13
General Fund $1,045,916 $1,368,232 $1,705,611
Other Funds $0 $111,818 $2,056
Total Funds $1,045,916 $1,480,050 $1,707,667
Positions 5 8 8
Overview
The Psychiatric Security Review Board has jurisdiction to manage two classes of criminals. Both classes
involve criminals who have severe mental health ailments. The first group includes those who have
committed a crime, but are so mentally impaired that they are not capable of standing trial. The second group
includes those who have committed a crime and were found guilty, except for insanity. The Board is also
responsible, through its juvenile panel, for the disposition of youth who have a serious mental condition
or who present a danger to themselves or others.
The Board manages this population through placement at either the Oregon State Hospital or through
conditional releases to the community. The Board conducts hearings to decide the best place for these
people. The Board may revoke a conditional release and order a person’s return to the Oregon State
Hospital. It may also discharge people from the Board’s control.
The 2009 Legislative Assembly (House Bill 2853) expanded the Board’s responsibilities to include
conducting gun relief hearings. The Board will only hear relief hearings from individuals who are barred
from possessing a firearm due to a mental health determination, including civil commits, persons found
guilty, except for insanity and persons who lack fitness to proceed.
Balanced Budget
The Governor’s Balanced Budget for the Board is $1.7 million total funds. This is a 15.4 percent increase
from the 2009-11 Legislatively Approved Budget. The balanced budget continues all current programs. It
provides funds to manage the new Gun Relief program and to keep up with increased workload demands.

Human Services
Revenue
The Board is funded with General Fund. Minimal Other Funds expenditure limitation is for staff and
board member training. This is funded with money left over from an earlier award from the American
Psychiatric Association.

Public Safety

DEPARTMENT OF CORRECTIONS ............................................................................................................... D-4
CRIMINAL JUSTICE COMMISSION ............................................................................................................. D-8
DISTRICT ATTORNEYS AND THEIR DEPUTIES ......................................................................................... D-10
DEPARTMENT OF JUSTICE....................................................................................................................... D-11
OREGON MILITARY DEPARTMENT ......................................................................................................... D-14
OREGON YOUTH AUTHORITY................................................................................................................. D-16
STATE BOARD OF PAROLE AND POST-PRISON SUPERVISION .................................................................. D-18
DEPARTMENT OF STATE POLICE............................................................................................................. D-19
DEPARTMENT OF PUBLIC SAFETY STANDARDS AND TRAINING .............................................................. D-22
2007-09 2009-11 2011-13

General Fund $1,828,402,570 $1,858,464,897 $1,887,266,907
Lottery Funds $6,669,667 $7,223,958 $6,680,937
Other Funds $640,526,822 $577,095,083 $593,441,145
Federal Funds $433,912,064 $545,617,698 $460,368,987
Total Funds $2,930,768,881 $3,121,064,514 $2,974,928,576
Positions 9,478 9,308 8,678

Overview
Agencies within this program area are responsible for ensuring the public safety of Oregon’s people,
property and natural resources, through trained militia, law enforcement, prosecution, and incarceration of
juvenile and adult offenders. Other major program objectives include legal representation of state
agencies and consumer protection.
The budget balances limited resources among the public safety partners by funding the recently passed
Ballot Measure 73, which relates to repeat sex and DUII (Driving Under The Influence of Intoxicants)
offenders, maintaining daily, around the clock, patrol trooper coverage across the state, enhancing
community resources for adjudicated youth, and maintaining funding for public safety training. Due to
inadequate General Fund revenue to fund all programs at current service levels, some program reduction
decisions were necessary to offset the prioritized funding.
2011-13 Governor's Balanced Budget D-1 Public Safety

Public Safety
Balanced Budget
The Governor’s Balanced Budget for Public Safety agencies for 2011-13 is $3.0 billion total funds, a
4.7 percent decrease from the 2009-11 Legislatively Approved Budget (LAB). General Fund, at
$1.9 billion, is an increase of $28.8 million, or 1.5 percent over the 2009-11 LAB.
The Governor’s Balanced Budget reflects his commitment to prioritizing the most critical public safety
services provided by state government. The budget also includes the consequences of difficult choices
that must be made while implementing the voters’ will regarding sentencing of criminal offenders.
Specifically, the balanced budget funds 14 basic police courses at the Public Safety Academy. Fire
training courses are funded at 2009-11 levels. The budget also invests resources in regional and
leadership training.
Also, the budget continues current patrol staffing levels and maintains basic around-the-clock coverage on
major highways. This trooper level will insure life-saving response to accidents, help stop the flow of
illegal drugs, including meth, into Oregon and deter hazardous driving that leads to accidents.
In this budget, patrol troopers are shifted from General Fund to the State Highway Fund. The value of this
fund shift is $93 million and would become effective January 2012. The patrol function was originally
funded with Highway dollars prior to 1981, and this budget reinstates that relationship.
State programs that serve local law enforcement partners throughout the state, including criminal
investigation, forensics, medical examiners, and law enforcement data systems, are continued at existing
service levels. The budget also maintains funding for the central services and infrastructure that support
officers in the field and provides for their safety.
The balanced budget contains funding to incarcerate the projected inmate population throughout the
2011-13 biennium, including housing the population affected by Measure 73. This means that no
offenders will be released before serving their full sentences. Other budgeted services include supervising
felons on parole, probation, or post-prison supervision, as well as those sentenced to less than 12 months
in jail.
The Department of Justice is mandated to defend the state in criminal convictions that are appealed by
offenders who have been convicted in criminal court. This budget maintains staffing for this function at
the 2009-11 level. The agency also defends the state’s interests in the Tobacco Master Settlement
Agreement with tobacco manufacturers. This budget provides resources for the state’s participation in
arbitration, which is expected to be resolved in 2011. The budget also provides resources to support a
pilot program for addiction prevention. State funding of the enforcement of child support orders is also
increased.
The Governor’s budget increases funding for residential treatment and county diversion services in the
Oregon Youth Authority. These services are intended to partially offset the impact of a reduction to close
custody capacity.
The Governor’s budget reduces state funding and staffing of the Oregon Military Department’s
administration and operations divisions but these reductions are offset in large part by increased Federal
Public Safety
Funds. The budget provides for the ongoing costs of three-quarters of the planned 2009-11 seismic
rehabilitation grants. It also continues the Youth Challenge Program, which provides structured
educational services to at-risk youth who have dropped out of school.

Public Safety
DEPARTMENT OF CORRECTIONS
2007-09 2009-11 2011-13

General Fund $1,258,729,939 $1,252,084,141 $1,403,994,352
Other Funds $82,826,944 $87,488,168 $31,237,396
Federal Funds $17,625,085 $109,903,838 $6,171,725
Other Funds (Nonlimited) $0 $105,761,270 $0
Total Funds $1,359,181,968 $1,555,237,418 $1,442,666,299
Positions 4,782 4,734 4,482

Overview
The Department of Corrections (DOC) manages adult and juvenile offenders whom courts sentence to
prison. DOC distributes funds to counties for management of offenders on parole, probation, or post-
prison supervision, or who have been sentenced to incarceration for one year or less.
DOC includes the following divisions:
• Operations, including administration of all institutions; intake of inmates; security; work

programs; emergency inmate beds, temporary beds and rental beds; and all health-related services
including medical, mental health and pharmacy.
• Transitional Services, connecting the services that directly affect the ability of an offender to
successfully move back into the community. This division also includes Community Corrections,
which provides grants to Oregon counties for supervision of inmates released, but under parole or
post-prison supervision or convicted felons serving a sentence of 12 or fewer months. Two county
programs are operated by the DOC.
• Public Services Division providing external and internal communications.
• Central Administration, General Services and Human Resources together providing leadership,
direction and administrative support to the department. Central Administration includes the Office
of the Inspector General.

Public Safety
Prison Population. The prison population was 14,016 on July 1, 2010, having grown by 0.6 percent
(90 beds) during Fiscal Year 2010. The July 1, 2011 population is expected to be 14,087, which is
0.5 percent (71 beds) higher than July 1, 2010. Growth in the 2011-13 biennium is projected at
494 inmates. Thereafter, the forecasted increase of prison population gradually slows to less that half a
percent annually in the outer years, as shown in the following display.
October 2010 Prison Population Forecast

July 2010 - June 2019
(baseline = 13,000)
16,500
16,000
15,500
15,000
14,500
14,000
13,500
13,000
2
8
0
l-1
l-1
l-1
l-1
l-1
l-1
l-1
l-1
l-1
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
To address population growth, the department maintains a long-range prison construction plan that looks out
a minimum of 10 years. DOC modifies the plan with each new population forecast, which occurs every
April and October. The most recent update anticipates the need for additional construction in 2011-13, with a
completion date in late 2013-15. Driving the increase in population is the passage of Ballot Measure 57 in
November 2008 and Ballot Measure 73 in November 2010. These measures increase sentences for drug
trafficking, theft against the elderly, specific repeat property and identity theft crimes, and repeat sex and
DUII crimes. Measure 57 was effective for crimes committed on or after January 1, 2009. However, the
2009 legislature suspended implementation of the measure until January 1, 2012. If the measure is
suspended further, as assumed in this budget, construction of a new prison could be delayed until after the
2011-13 biennium. Measure 73 is assumed to be in effect for the 2011-13 biennium; however, the
department can manage the affected population within existing capacity.
Community Corrections. The department focuses on transition from prison and re-entry into the
community in an effort to enhance public safety by reducing recidivism. The felony probation caseload
was 18,078 on July 1, 2010, and is expected to grow to 18,502 by July 2013. The parole and post-prison
supervision caseload was 13,600 on July 1, 2010, and is expected to reach 14,687 by July 2013. The local
jail population is expected to increase from 695 on July 1, 2010, to 899 by July 2013.

Public Safety
October 2010 Forecast Parole, Probation, and Post-Prison population

(baseline = 32,000)
34,500
34,000
33,500
33,000
32,500
32,000
l-1
0 11 l-1
1 12 l-1
2 13
Ju n- Ju n- Ju n-
Ja Ja Ja
Balanced Budget
The Governor’s Balanced Budget is $1,442.7 million, which is 7.2 percent below the 2009-11
Legislatively Approved Budget (LAB). General Fund is increased by 12.1 percent from the LAB. The
budget funds Measure 73 reimbursements to counties, as well as the expected base inmate population
increase. There is also an $11.1 million increase in General Fund debt service on existing Certificates of
Participation (COP) borrowing.
The recommended budget for Operations, including health care, is $852.3 million General Fund and
$869.9 million total funds. The Operations Division budget supports incarcerating the projected
population throughout the biennium.
In Community Corrections, $193.4 million total funding, including $191.2 million General Fund, is
provided to support the costs of DOC’s community partners to provide supervision, sanction and
incarceration services for the state. The amount budgeted is 3.4 percent under the level of funding that
would be required to continue to provide services at the current level. Reductions were taken in light of
the current fiscal situation.
Debt Service totals $142.0 million General Fund, an increase of 8.5 percent over the 2009-11 LAB. The
increase is a roll-up of borrowing in the 2009-11 biennium. Debt service is 10.1 percent of the
Department’s total General Fund budget.

Public Safety
Revenue
The agency is mainly supported by a General Fund appropriation. For the 2011-13 Recommended
Budget, the General Fund at $1.4 billion is 97.3 percent of the balanced budget.
Other Fund revenues come from the Inmate Welfare Fund (telephone revenues, canteen profits, fines,
confiscations and vending machines), payment for inmate work crews, proceeds from sales of Certificates
of Participation and grants. The recommended budget includes just over $44.0 million Other Funds for
operations, exclusive of Capital Construction funding.
The recommended budget includes $6.0 million from the U.S. Department of Justice for reimbursement
of the expense associated with incarcerating illegal aliens. Congress has not yet approved these funds.
Should this money not materialize, the department will need to find funding internally and identify that
source at its Ways and Means hearing, or in a rebalance action, depending on the timing.

Public Safety
CRIMINAL JUSTICE COMMISSION

2007-09 2009-11 2011-13
General Fund $6,287,416 $5,364,461 $4,954,312
Other Funds $67,003 $196,866 $123,616
Federal Funds $178,872 $12,513,937 $12,512,260
Total Funds $6,533,291 $18,075,264 $17,590,188
Positions 7 10 11
Overview
The Criminal Justice Commission’s primary duty is to provide an impartial forum for criminal justice
policy planning. The Commission is uniquely positioned to develop criminal justice policy because of the
Commission’s analytical ability and independence from other agencies. The Commission’s focus on
sentencing, specifically analyzing the use of incarceration and services to reduce recidivism, strives to
make the criminal justice system effective and efficient in preventing crime. To that end, the commission
analyzes and evaluates sentencing policy and prospective sentencing practices. In addition to this central
mission, the commission has several other duties:
• Sentencing Guidelines: The Commission administers Oregon’s sentencing guidelines, which

establish sentences for felony crimes. The Commission provides analysis and data to agencies, the
Legislature and the public. It assists local public safety coordinating councils. Each interim, the
Commission adopts rules necessary to conform the guidelines to the activity of the legislature
during the prior session.
• Statistical Analysis: The Statistical Analysis Center serves as a criminal justice system
information resource and clearinghouse for local, state and federal agencies. The center’s mission
is to provide, promote and maintain reliable and valid criminal justice system data. The center
serves as a repository of federal criminal justice analytical and statistical information, conducts
research, provides technical assistance, publishes reports on criminal justice system and policy
issues and assists in providing Oregon information to federal agencies.
• Grant Programs: The Commission’s staff administers federal grants and Oregon’s drug court
program. Commission funds are allocated to programs in Oregon’s counties in the following
areas: drug courts, prisoner reentry services, and multi-jurisdictional narcotics taskforces.

Public Safety
• Asset Forfeiture: Established in 1989, the Asset Forfeiture Oversight Advisory Committee
(AFOAC) collects data on asset forfeiture in Oregon and makes recommendations to the
Legislature on modifications of statutory authority. Since 1997, the Commission has provided
staff support for AFOAC. Uncertainty arising from the passage of a ballot measure and a
subsequent constitutional challenge to the measure virtually eliminated funding for the AFOAC.
A Supreme Court ruling in 2006 declared the measure constitutional. In May of 2008 Ballot
Measure 53 passed; it clarifies how civil forfeitures can be handled and the Commission reinstated
the AFOAC. Also under the new law, funds from asset forfeiture are available for the
Commission to distribute to drug courts.
Balanced Budget
The Governor’s Balanced Budget at $17.6 million total funds is a decrease of 2.7 percent from the
2009-11 Legislatively Approved Budget. It continues the commission’s statistical and research programs
as well as grant administration begun in 2005. General Fund at $5.0 million is reduced by 7.6 percent.
General Fund continues to support county drug court programs at a slightly reduced level from the
2009-11 Legislatively Approved Budget.
Corrections and Youth Corrections Population Forecasts: The balanced budget moves the population
forecasting function from the Department of Administrative Services to the Commission. The
Commission will be responsible for publishing forecast updates in April and October of each year.
The Criminal Justice Commission’s budget is 28.2 percent General Fund. Asset Forfeiture revenues are
the primary source of Other Funds. The commission receives $100,000 federal grant revenues from the
U.S. Department of Justice to support the Statistical Analysis Center. The remaining Federal revenues of
$11.3 million are public safety Byrne and Justice Assistance Grant revenues.

Public Safety
DISTRICT ATTORNEYS AND THEIR DEPUTIES
2007-09 2009-11 2011-13

General Fund $10,481,366 $10,359,927 $9,852,919
Other Funds $0 $0 $0
Total Funds $10,481,366 $10,359,927 $9,852,919
Positions 36 36 36
Overview
The District Attorneys and their Deputies prosecute criminal offenses and civil forfeitures, assist juvenile
courts, advise and represent county officers and enforce child support orders. The Oregon Constitution
establishes district attorneys as state officers. Their duty is to ensure that the laws of the state are
enforced and executed faithfully. Overall, the state funds a portion of the total operating expenses of
district attorney offices. Local governments provide the additional support required for state criminal
prosecutions. State funds are provided for the following purposes:
• Salaries and benefits of the 36 elected district attorneys.

• State government service charges.
• Office expenses.
The Department of Justice provides some administrative support and budgeting services.
Balanced Budget
The Governor’s Balanced Budget for the agency is $9.9 million General Fund, which is 4.9 percent less
than the 2009-11 Legislatively Approved Budget. The budget funds District Attorney salaries less the
statewide 5.5 percent reduction in personal services costs.
Revenue
The budget is funded entirely with General Fund. The state’s budget does not reflect other county
funding for this function.

Public Safety
DEPARTMENT OF JUSTICE
2007-09 2009-11 2011-13
General Fund $49,089,856 $54,646,022 $57,936,559
Other Funds $212,129,591 $220,351,243 $220,424,143
Federal Funds $96,755,005 $113,790,396 $114,083,393
Total Funds $379,232,210 $415,251,766 $418,351,868
Positions 1,331 1,345 1,322

Overview
Under the leadership of the Attorney General, the Department of Justice is responsible for providing legal
counsel to state officials and agencies. It also:
• Represents the state in court actions, appeals and legal proceedings.
• Assists Oregon’s district attorneys in the investigation and prosecution of crimes, and defends
criminal convictions against challenges.
• Establishes and enforces child support obligations.
• Enforces antitrust, racketeering and other laws.
• Coordinates consumer protection services.
• Works with law enforcement to investigate and prosecute organized crime.
• Protects the state’s interest in continued receipt of Tobacco Master Settlement Agreement funds.
• Administers victims’ assistance programs.
• Investigates and prosecutes fraud in Oregon’s Medicaid program.
• Regulates charitable corporations and conduct of charitable solicitations and nonprofit gaming.
The Department is organized into functional divisions.
Balanced Budget
The Governor’s Balanced Budget for the Department is $418.4 million total funds. This is less than a one
percent increase from the 2009-11 Legislatively Approved Budget. The balanced budget continues all

Public Safety
department programs, with some programs at a reduced level of service and others increased, as outlined
in the following summary.
General Fund increases by 6.0 percent. The increase provides funds for two addiction prevention pilot
programs and additional resources for the Division of Child Support. Other Funds and Federal Funds
remain essentially unchanged.
The Department defends the state in legal cases brought by sentenced offenders to challenge their
conviction or sentence. This budget maintains staffing for such defenses at close to the 2009-11 biennium
level.
Crime victims’ programs provide financial compensation to injured victims and provide grants to
nonprofit agencies that serve victims of violent crimes. The programs also fund multidisciplinary
approaches to child abuse cases. General Fund and Other Funds arising from Criminal Fine and
Assessment revenues are reduced. The reductions will affect core consultation, forensic peer review, and
victims’ medical assessments, referrals and outreach services.
Oregon is currently in litigation with major tobacco companies over provisions of the Master Settlement
Agreement (MSA). Defending the state’s interests under the MSA is important for the promotion of
public health and to protect the state’s revenue under the MSA. Through the MSA, the state receives
about $150 million each biennium, which is at risk. The state is litigating to preserve the revenue streams
year by year. The budget reduces General Fund money available to the Civil Enforcement program, but
maintains staffing at close to the 2009-11 biennium level.
Since 2005, the federal Budget Deficit Reduction Act has reduced matching funds in stages to states for
child support enforcement efforts. The major reduction became effective October 1, 2010, when the
federal government no longer allowed federal incentive funds to be used as match for additional federal
funding. This reduces the program’s total federal funding. Entry and enforcement of child support orders
are beneficial to Oregon’s children. Despite the poor General Fund revenue outlook for the
2011-13 biennium, this budget increases General Fund resources over the 2009-11 level to offset the
decline in federal funds. This increases by 6 percent the number of staff to collect the funds owed to
custodial parents for vulnerable children.
Revenue
General Fund supports the state match for federal child support enforcement funds and federal Medicaid
Fraud funds. It also finances public safety programs and services in the areas of defense of criminal
convictions in the trial and appellate courts, district attorney assistance, prosecution of organized crime
and criminal intelligence. General Fund supports coordination and support of victims of child abuse,
domestic violence, and the Crime Victims Assistance Program.
The major source of Other Funds is billing to other state agencies for legal services. Billings are based on
total billable hours and hourly rates for attorneys and certain other personnel, such as law clerks and
investigators. This portion of the budget is structured to generate about $130 million in revenue, the same
as in 2009-11. All other state agency budgets for Attorney General services are set to provide no more
than $130 million in 2011-13.

Public Safety
There are a variety of other types of Other Fund revenues that help support specific parts of the
department. In part, this includes child support payments used to administer the child support program,
Criminal Fine and Assessment Account funds that support crime victims’ programs and registration and
filing fees charged to charitable organizations for the consumer protection program. Federal High
Intensity Drug Trafficking Area grant funds support drug enforcement activities.
Federal Funds support Crime Victims’ programs. Child Support collection costs earn federal (Title IV-D
of the Social Security Act) matching funds that pay partial program costs, as well as incentives based on
the program’s performance. Federal Funds also support Medicaid fraud investigations. Medicaid fraud
grants are based upon a 75 percent federal and 25 percent state matching funds ratio.

Public Safety
OREGON MILITARY DEPARTMENT

2007-09 2009-11 2011-13
Actuals Leg Approved Budget Governor’s Balanced
General Fund $24,068,731 $26,070,650 $24,624,329
Other Funds $126,912,134 $124,127,308 $107,548,338
Federal Funds $274,234,096 $270,313,859 $286,549,849
Other Funds (Nonlimited) $0 $437,500 $0
Total Funds $425,214,961 $420,949,318 $418,722,516

Overview
The Military Department has a dual mission. The Department provides combat-ready units and
equipment to be deployed in support of national defense under the direction of the President and provides
trained personnel and equipment to protect life and property in Oregon during natural disasters or civil
unrest under the direction of the Governor. With the inclusion of the Office of Emergency Management
in the 2007-09 biennium, the department is also responsible for coordinating and facilitating emergency
planning, preparedness, response, and recovery activities with state, county, and local emergency services
agencies and organizations.
Oregon’s National Guard has a force strength of over 8,800 Army and Air Guard members in combat,
engineering, medical, security, communications, radar, and support units. The department manages 537
buildings with 4.3 million square feet of operational space in 27 counties throughout the state. These
facilities include 41 armories, two air bases, and 15 training and logistics sites. In addition to the state
budget and personnel, the department manages a federal program of approximately $616 million per
biennium and 2,465 federal employees.
Balanced Budget
The Governor’s Balanced Budget is $418.7 million total funds, a one percent decline from the
2009-11 Legislatively Approved Budget.
The balanced budget continues all major programs, although facilities maintenance and construction are
reduced. The Governor will work with the 2011 Legislature to establish priorities and funding for the
department’s facilities inventory. Agency administration declines from 2009-11. General Fund for
Operations, which is the main program for Oregon National Guard facilities, operations, staffing, and
maintenance, declines but total funding increases. Emergency Management funding remains close to 2009-11
levels. The Youth Challenge Program continues with greatly reduced General Fund due to an increase in
Public Safety
Federal Funds support. Debt service increases due primarily to the issuance of seismic rehabilitation bonds in
the 2009-11 biennium.
The budget reduces positions in Administration and Operations combined and adds positions in
Emergency Management.
The budget includes Other Funds expenditure limitation for the portion of the seismic rehabilitation grants
awarded in the 2009-11 biennium but distributed in the 2011-13 biennium to retrofit critical facilities such
as hospitals, public educational institutions and emergency facilities in the state. The budget does not
include expenditure limitation for new capital construction projects funded through Certificates of
Participation. Debt service on existing General Obligation bonds and Certificates of Participation
continues to be paid with General Fund.
Revenue
General Fund pays the salaries of state employees and provides matching funds for various Oregon
National Guard activities and the Office of Emergency Management. The matching funds draw Federal
Fund revenues into Oregon through 17 cooperative agreements with the federal government for
maintenance of Oregon Army and Air Guard facilities and community support programs. General Fund
also provides the 50 percent match for the Emergency Management Performance Grant.
Other Funds include revenues from 911 tax and interest; facility rental fees; proceeds from real property
sales; interest on funds in the Military Construction Account; and miscellaneous funds from vending
machines, pay telephones, etc. Facility rental fees contribute to, but do not fully cover, armory
maintenance and operations costs.
Federal Funds pay wages and salaries of state employees working under the cooperative agreements, fund
operations and maintenance for readiness centers and training sites, provide construction funds for new
facilities, fund several programs for at-risk youth, and contribute to central administrative costs. The
Office of Emergency Management receives federal dollars from the Department of Homeland Security
and the Department of Defense through the Federal Emergency Management Agency.
The Department’s federal budget is administered separately from its state budget and is not included in
their Federal Funds expenditure limitation.

Public Safety
OREGON YOUTH AUTHORITY
2007-09 2009-11 2011-13

General Fund $249,785,623 $265,234,385 $231,658,348
Other Funds $28,127,294 $14,669,929 $12,816,354
Federal Funds $26,415,309 $31,443,386 $34,246,428
Total Funds $304,328,226 $311,347,701 $278,721,131
Positions 1,274 1,195 890

Full-time Equivalent 1,149.81 1,142.30 819.97
Overview
The Oregon Youth Authority (OYA) is the state’s juvenile corrections agency. It operates close-custody
facilities, accountability camps and work-study camps; manages the state’s juvenile parole and probation
programs; contracts for foster care, residential treatment and specialized treatment programs for
adjudicated youth; and distributes funds to county juvenile departments for diversion programs to keep
youth from being committed to state institutions.
Balanced Budget
The Governor’s Balanced Budget of $278.7 million total funds is a decrease of 10.5 percent from the
2009-11 Legislatively Approved Budget. General Fund comprises $231.7 million, a 12.7 percent
reduction from the 2009-11 Legislatively Approved Budget.
The Facilities Programs unit operates close-custody facilities, work-study camps and accountability
camps. The balanced budget of $124.9 million total funds supports 475 close-custody beds throughout
the state. While the budget funds the number of beds needed to cover the mandatory caseload, it does not
continue 425 discretionary beds. The reduced number of close-custody beds is partially offset by an
increase in the number of residential beds and increased county diversion funds. The budget includes
funds for gender-specific programs that provide special attention to the unique needs of young women in
the system. Providing needed medical and pharmaceutical therapy is expensive; this budget funds
anticipated inflation to insure the continuation of these services.
The Community Programs section provides supervision, services and sanctions to youth offenders in
OYA custody who are not incarcerated. Services include parole and probation, diversion grants,
residential treatment, foster care, individualized services and program development. The balanced budget

Public Safety
is $113.8 million, about 4.6 percent higher than the 2009-11 Legislatively Approved Budget. Residential
treatment beds are funded at 658, an increase of 103 beds from current levels. This level is equal to the
demand forecast for these beds, and will help offset the loss of discretionary close custody capacity.
It is particularly important to prevent delinquent youth from repeating criminal conduct and sinking
deeper into the system. The 2011-13 Governor’s Balanced Budget invests $3.4 million General Fund in
additional county diversion programs.
Revenue
General Fund comprises 83.1 percent of the balanced budget. The largest ongoing sources of
Other Fund revenues have traditionally been trust recoveries from Supplemental Security Income
disability payments, child support collections, and other client funds used to reimburse the state for the
maintenance costs of youths in care.
OYA also receives Federal Funds in the form of Title XIX funds for Behavioral Rehabilitation Services.

Public Safety
STATE BOARD OF PAROLE AND POST-PRISON SUPERVISION

2007-09 2009-11 2011-13
General Fund $3,896,669 $3,960,399 $3,877,663
Other Funds $1,424 $10,048 $10,289
Total Funds $3,898,093 $3,970,447 $3,887,952
Positions 15 15 14
Overview
The State Board of Parole and Post-Prison Supervision sets parole release dates for offenders convicted of
felonies prior to November 1, 1989, and determines when offenders sentenced as “dangerous offenders”
should be released. It establishes conditions of parole and post-prison supervision for all offenders being
released from prison, and sanctions offenders who violate these conditions. The Board also notifies
eligible victims of hearings and releases and issues arrest warrants for parole violators.
Balanced Budget
The Governor’s Balanced Budget for the Board is $3.9 million total funds. This is a 2.1 percent decrease
from the 2009-11 Legislatively Approved Budget. The Board has engaged the assistance of an advisory
workgroup to identify process improvements and to develop better procedures for serving crime victims
vis a vis the inmates the board reviews. The Board has implemented improvements to deal with rising
workload. The balanced budget removes one vacant position, which brings the board to 14 positions,
including three board members.
Since sentencing guidelines took effect in 1989, the number of offenders subject to prison release hearings
has dropped from 5,300 in 1988 to 1,700 currently; a little under 12 percent of the total inmate population.
During the same period, the number of offenders on supervision has grown from 2,000 to around 14,000,
all under the Board’s authority for sanctions, revocations and other activities.
Revenue
General Fund makes up over 99 percent of the Board’s revenues. Sales of documents and tapes provide
Other Fund revenues.

Public Safety
DEPARTMENT OF STATE POLICE

2007-09 2009-11 2011-13
General Fund $215,083,395 $229,384,624 $139,002,319
Lottery Funds $6,669,667 $7,223,958 $6,680,937
Other Funds $153,784,453 $94,772,462 $185,797,572
Federal Funds $18,649,062 $7,596,117 $6,747,819
Total Funds $394,186,577 $338,977,161 $338,228,647
Positions 1,346 1,301 1,272

Overview
The Department of State Police (OSP) is responsible for a wide variety of public safety programs and
services:
• The Patrol Services Division provides a uniform police presence statewide, provides assistance to
the public and local law enforcement agencies, and enforces state laws.
• The Fish and Wildlife Enforcement Division enforces laws that protect and enhance fish and
wildlife resources, as well as enforcing all criminal, traffic, boating, livestock and environmental
laws.
• The Criminal Investigation Division is charged with the investigation of crimes, the pursuit and
apprehension of criminal offenders and the gathering of evidence. The Gaming Services Division
provides investigative, security and monitoring services to the Oregon Lottery and Native
American gaming facilities. The Oregon Athletic Commission licenses and regulates promoters
and participants in boxing, wrestling and mixed martial arts.
• The Forensic Services Division provides scientific and technical examination services to all
criminal justice agencies. The State Medical Examiner Division directs investigations of
suspicious deaths, performs autopsies and provides technical assistance to county medical
examiners and other agencies.
• The Criminal Justice Information Services Division includes data processing, telecommunications
and the Law Enforcement Data Systems program that connects law enforcement and criminal
justice agencies to central criminal history data files.
• The State Fire Marshal Division offers services to protect life and property from fire and
hazardous materials.
• The Administrative Services Division provides direction, management, training and support
services to the department. Field operations and dispatch centers are managed within this
division.
Public Safety
Balanced Budget
The balanced budget for the Department is $338.2 million total funds, a decrease of .20 percent from the
2009-11 Legislatively Approved Budget (LAB). The combined General Fund and Lottery Funds budget
of $145.7 million is a 37.6 percent decrease from the 2009-11, LAB. The decrease is the result of a shift
to Other Fund sources of revenue. In funding programs at near 2009-11 levels, the Governor’s Balanced
Budget preserves recent investments in the agency and continues to promote desired public safety
outcomes.
The current budget funds 457 patrol troopers, which is sufficient to preserve basic around-the-clock
coverage on major highways. The Balanced Budget achieves this funding level by shifting the cost of
Patrol Services to the State Highway Fund in the Department of Transportation. The shift will be
effective in January 2012. The Agency will continue to develop and adopt strategies to improve
performance from existing resources, including targeted patrols in high risk areas.
The number of Fish and Wildlife Enforcement officers is 116, down from 117 in 2009-11. Enforcement
of hunting and fishing laws and natural resource protection activities will continue at slightly reduced
levels.
In the Criminal Investigation Division, the number of detectives is down three from the 2009-11 LAB.
The officers will continue to focus on identity crime, methamphetamine and other controlled substance
interdiction, counter terrorism, and other major crimes. The Division is responsible for investigating
incidents in all the state’s institutions, including the state hospital, and juvenile and adult correctional
facilities.
The forensics laboratory system is funded at existing resource levels, which safeguards recent investments
made to reduce backlogs and enhance support for law enforcement agencies throughout the state. The
forensics unit is the only service of its kind for most Oregon law enforcement agencies.
Forensics funding for the Medical Examiner continues at the same resource level as in the
2009-11 biennium level. The agency will continue to provide support and assistance to local law
enforcement partners around the state.
The Criminal Justice Information Systems Division remains unchanged from the 2009-11 level. The
Division will continue to operate the Law Enforcement Data Systems and clearinghouse services. A
portion of the General Fund that supported the division is backfilled with an increase in fees on
clearinghouse services, including gun check fees. Core services, including criminal history and
automated fingerprint checks, will continue to be free for criminal justice partners around the state.
The Administrative Services Division budget decreases from 2009-11. The resources provided will
maintain training, accounting, dispatch, and other services to support the agency’s primary functions.
Revenue
General Fund provides just over 41 percent of total funding for the Department. Patrol, Fish and Wildlife,
Criminal, Information Management, and Administrative Services are partly supported by General Fund.

Public Safety
Ballot Measure 76 Lottery Funds partially support Fish and Wildlife enforcement. Lottery is two percent
of the total budget.
The largest source of Other Funds revenue is the use of State Highway Fund dollars from the Department
of Transportation to fund Patrol Services. Other Fund revenues also include charges to state agencies for
patrol, fish and wildlife, and investigative services; and fees for services related to processing handgun
permits, open records criminal history checks and fingerprint checks. Gaming enforcement activities are
funded by the Lottery Commission, Native American tribes and vendors and contractors. The State Fire
Marshal is funded by the Fire Insurance Premium Tax, the Petroleum Load Fee and Hazardous Substance
Possession Fees. In total, Other Funds are 55 percent of the budget.
Federal Fund revenues are received for fish and wildlife and investigative services. They account for
2.0 percent of the budget.

Public Safety
DEPARTMENT OF PUBLIC SAFETY STANDARDS AND TRAINING

2007-09 2009-11 2011-13
General Fund $10,979,575 $11,360,288 $11,366,106
Other Funds $36,677,979 $35,479,059 $35,483,437
Federal Funds $54,635 $56,165 $57,513
Total Funds $47,712,189 $46,895,512 $46,907,056

Overview
The Department of Public Safety Standards and Training (DPSST) is responsible for standards,
certification and accreditation, and training of public safety personnel in law enforcement, corrections,
parole and probation, telecommunications, firefighting and private security. The department determines
whether candidates for election as sheriff meet statutory qualifications, licenses polygraph examiners, and
provides specialized training to police officers regarding hate crimes and child abuse cases. DPSST also
manages extensive regional fire and law enforcement training in critical decision making and skills such
as use of force, emergency vehicle operations, defense tactics and enforcement of driving under the
influence of intoxicants. The agency has resided in the Public Safety Academy in Salem since 2006.
Balanced Budget
The Governor’s Balanced Budget is $46.9 million total funds, essentially no change from the
2009-11 Legislatively Approved Budget. The budget includes funding for an in-house custodial staff to
provide safe and sanitary conditions for students, visitors and employees and to protect and maintain the
more than 330,000 square feet of building space on the Academy campus.
The Public Safety Memorial Fund was established by the 1999 Legislature to assist family members of
public safety officers killed or permanently disabled in the line of duty. There is a sufficient balance in
the Public Safety Memorial Fund to make payments to beneficiaries during the 2011-13 biennium. For
this reason, additional funds do not need to be deposited in the account during 2011-13.
Revenue
General Fund is provided to cover $11.4 million in debt service on the Certificates of Participation used to
fund construction of the new academy.

Public Safety
Criminal Fine and Assessment Account (CFAA) revenues fund criminal justice training; certification and
records management; and agency administration. CFAA funds are collected in municipal and circuit courts
and are distributed according to allocations made by the Legislative Assembly according to statutory
priorities. After the allocations are distributed, all remaining funds are transferred to the General Fund.
The current General Fund crisis has increased pressure on maximizing the amount of CFAA funds
transferred to the General Fund. To that end, the balanced budget reduces CFAA funds transferred to the
agency by 10.3 percent.
Revenues from the Fire Insurance Premium Tax, the 911 telecommunications tax, and fees charged to
private security officers and providers and to private investigators are dedicated to specific programs. The
department also receives polygraph licensing fees and charges for certain non-mandated training.

Economic Development

BUSINESS DEVELOPMENT DEPARTMENT ...................................................................................................E-3
EMPLOYMENT DEPARTMENT.....................................................................................................................E-6
HOUSING AND COMMUNITY SERVICES DEPARTMENT ...............................................................................E-9
DEPARTMENT OF VETERANS’ AFFAIRS .................................................................................................. E-11
2007-09 2009-11 2011-13

General Fund $33,950,198 $29,171,344 $19,432,623
Lottery Funds $128,011,309 $119,875,292 $171,063,769
Other Funds $308,920,336 $350,256,048 $346,713,563
Federal Funds $428,891,822 $619,429,332 $376,286,451
Federal Funds (Nonlimited) $249,859,658 $1,707,342,327 $480,229,868
Total Funds $5,195,771,334 $8,181,565,016 $4,454,127,158
Positions 1,766 2,055 1,775

Overview
Agencies in the Economic and Community Development Program Area aid businesses, communities, and
people in providing economic and cultural enhancement throughout the state. The current economic
downturn means even greater responsibilities for the economic development agencies. Economic
development activities include job creation, placement, retention services, business recruitment and
assistance, and workforce assistance and training. Agencies in this program area administer housing and
infrastructure financing programs, and provide technical assistance to individuals, businesses and
communities. The program area also includes funding for programs that support community development
activities such as the arts.
Balanced Budget
The budget for the Economic Development Program Area is $4.5 billion total funds, a 45.6 percent
decrease from the 2009-11 Legislatively Approved Budget. The reduction is due to several factors
including an anticipated decline in the payment of unemployment insurance benefits, market conditions
resulting in fewer home loans by the Housing and Community Services Department and thus, a decline in
the issuance of short term bonds for those loans, and the phase-out of one time expenditures related to the
American Recovery and Reinvestment Act of 2009.
General Fund and Lottery Funds total $190.5 million, a 27.8 percent increase from the 2009-11
Legislatively Approved Budget. The increases are primarily due to investments in economic development
2011-13 Governor's Balanced Budget E-1 Economic Development

efforts to create and retain sustainable businesses, activities and investments, as well as an increase in debt
service payments. Agencies in this program area work to ensure dollars spent on the economy are
generating the maximum benefit.
Key elements of the Governor’s Balanced Budget for the Economic and Community Development
Program Area are outlined below:
• The budget provides funding for OregonInc to promote research and innovative technology
transfer to advance Oregon’s economy.
• The budget provides lottery bonds to recapitalize the Special Public Works Fund (SPWF) and
Water/Waste Water Funds (W/WF) within the Infrastructure Finance Authority of Business
Oregon.
• For veterans, the budget continues emergency assistance, education funding and funding basic and
enhanced county veterans’ service officer programs in 34 Oregon counties.
• The balanced budget enhances the Strategic Reserve Fund and Industry Competitiveness Fund in
Business Oregon.
• The budget also creates and funds a new Business Expansion Program within Business Oregon.
• The total funds budget for the Employment Department is a 52.8 percent decrease from the 2009-
11 Legislatively Approved Budget. The reduction is largely due to an anticipated decline in
payment of unemployment insurance benefits.
• Funding for the Employment Department Child Care Division is transferred to the newly created
Early Learning Council.
• The budget includes $10 million to preserve approximately 250 units of Section 8 project based
housing. The federal subsidy preserved on these units over 20 years is estimated to be $18 million.

BUSINESS DEVELOPMENT DEPARTMENT

2007-09 2009-11 2011-13
General Fund $4,544,947 $9,665,252 $4,010,484
Lottery Funds $122,082,119 $111,215,883 $159,832,848
Other Funds $48,345,537 $33,421,791 $25,444,060
Federal Funds $24,544,245 $39,265,233 $32,781,618
Total Funds $390,873,567 $436,552,430 $489,940,030

Overview
The Oregon Business Development Department (Business Oregon) maintains and promotes the economic
development policy of the state. Business Oregon delivers services through two programs: Business,
Innovation, and Trade and the Infrastructure Finance Authority. A Business Development Commission
advises the agency. The Commission consists of nine members appointed by the Governor and two ex-
officio legislative members. In 2009, an independent board was established, which reports to the
Commission, to assist the department with oversight of the Infrastructure Finance Authority (IFA) and the
state's infrastructure activities.
The Arts Commission is part of the agency and receives administrative support from the central shared
services program unit. The Office of Film and Video is a program unit within the agency’s budget, but for
pass-through of funds only.
Business Oregon’s mission is to enable the creation, retention, expansion and attraction of businesses to
provide sustainable, living-wage jobs for Oregonians through public-private partnerships, leveraged
funding and support of economic opportunities for Oregon companies and entrepreneurs. Business
Oregon staff:
• Work closely with businesses across the state to identify job retention and creation opportunities,
as well as provide assistance to open new global markets for Oregon businesses and their
products.
• Connect companies with the department’s business finance resources to provide streamlined
access to capital necessary to expand their ventures.
• Provide technical assistance to companies seeking to relocate facilities and operations.

• Make introductions between buyers and suppliers to create opportunities to source locally made
products and services.
• Work with the Oregon Innovation Council on initiatives to connect university research and
development resources with Oregon industries in order to develop new products and companies,
enhance the competitiveness of existing Oregon businesses, and identify emerging market
opportunities for the state, which furthers Oregon’s long-term economic development strategy.
The Infrastructure Finance Authority (IFA) assists communities to build infrastructure capacity to address
public health, safety and compliance issues, as well as support their ability to attract, retain and expand
businesses. It achieves this through revolving loan programs that include state and federal funds. The IFA
also administers the Community Development Block Grant program.
The Governor’s Office of Film and Television (Oregon Film) is connected to the department. Oregon
Film promotes the development of the film, video and multimedia industry in Oregon and works to
enhance the industry’s revenues, profile and reputation within Oregon and among the industry
internationally. It recruits the industry to film features, movies and television series in Oregon, and
actively recruits related businesses to relocate to Oregon permanently. The 1995 Legislature made
Oregon Film a semi-independent state agency. As such, the office has no state employees. Staff is under
direction of a five-member board appointed by the Governor.
In 1993, the Oregon Arts Commission joined the department. The Arts Commission provides leadership,
funding and services to Oregon artists, art organizations, students and communities. The commissioners,
appointed by the Governor, are responsible for policy and grant-making decisions. The commission also
promotes Oregon's cultural resources outside the state. The commission administers a number of
programs, including evaluating the impact of arts on Oregon's economy and providing National
Endowment for the Arts funding for programs in Oregon. The Arts Commission also houses the
operations of the Oregon Cultural Trust, which is governed by a nine-member board of directors, seven-
members of which are appointed by the Governor, and two ex-officio legislative members. The Oregon
Cultural Trust is a statewide cultural plan to raise significant new funds to invest in Oregon's arts,
humanities and heritage.
Balanced Budget
The Governor’s Balanced Budget at $489.9 million total funds focuses economic development efforts on
transferring technology, attracting businesses to Oregon and creating and retaining sustainable business
activities in Oregon. This is a total fund increase of 12.2 percent over the 2009-11 Legislatively Approved
Budget.
The 2011-13 budget includes targeted investments to expand and diversify the state’s economic base by
building on industry clusters and attracting new industries, companies, investments and ideas to Oregon.
Proposals funded in this budget include:
$19 million Lottery Funds for continued direct public investments through Oregon Innovation
Council (Oregon InC) to promote research and innovative technology transfer to advance Oregon’s
economy. The entities and initiatives receiving funding through this program include the Oregon
Nanoscience and Microtechnologies Institute; the Oregon Translational Research and Drug Institute;
the Oregon Built Environment and Sustainable Technologies Center; the Oregon Wave Energy Trust;
the Northwest Food Processors Innovation Productivity Center; and the new Drive Oregon Initiative
for electric vehicles.
Recapitalization of the Special Public Works Fund and Water/Waste Water Funds to increase the
capacity respond to critical statewide public works and infrastructure needs.
Enhancements to the Strategic Reserve Fund, which is the state’s most flexible resource used to
expand and retain businesses in Oregon as well as attract new business. The budget also enhances the
Industry Competitiveness Fund, which is a resource for industry clusters, statewide and regional
economic development groups, and international trade-oriented businesses to increase their
competitiveness, capacity, and growth in the global marketplace.
Funding for a new Business Expansion Program aimed at providing payroll-based incentives to
existing businesses for expansion. Additionally, the budget makes a strategic investment in the Credit
Enhancement Fund in order to increase capital access to small businesses.
Revenue
The department’s main source of revenue is Lottery Funds. General Fund finances the Arts Commission.
Federal revenue is from the Community Development Block Grant and other miscellaneous federal
grants.
Loan repayments, bonding (Lottery and other), grants, and various Other Funds sources support
Infrastructure Finance Authority activities. The department also receives Safe Drinking Water Act funds
from the Oregon Health Authority and expends these funds as Other Funds. These resources are expended
under Limited and Nonlimited expenditure authority. The Nonlimited authority is mainly for
expenditures related to bonds and revolving loan fund activities.

EMPLOYMENT DEPARTMENT
2007-09 2009-11 2011-13
General Fund $3,767,711 $2,984,465 $0
Other Funds $111,164,368 $130,274,033 $130,529,304
Federal Funds $269,413,795 $298,620,148 $140,492,112
Federal Funds (Nonlimited) $148,664,421 $1,600,092,327 $376,000,000
Total Funds $2,832,153,205 $5,119,178,653 $2,415,969,512
Positions 1,390 1,659 1,356

Overview
The Employment Department’s mission is to support business and promote employment. It operates three
employment security programs:
• Unemployment Insurance provides wage replacement income to workers who are unemployed
through no fault of their own.
• Business and Employment Services offers job listings, referral services and career development
resources.
• Workforce and Economic Research coordinates the collection and dissemination of occupational
and economic data for the state, workforce regions and counties.
The Office of Administrative Hearings, which conducts contested cases for approximately 70 state
agencies, is also included the Employment Department’s budget.
Child care programs located in the Employment Department are transferred to the newly created Early
Learning Council.
Balanced Budget
The Governor’s Balanced Budget of $2.4 billion total funds is a 52.8 percent reduction from the 2009-11
Legislatively Approved Budget. The reduction is largely due to an anticipated decline in payment of
unemployment insurance benefits. The decline in benefits is expected to occur as a result of several
factors, including the end of federal extended and emergency benefit programs, increasing numbers of the
long-term unemployed exhausting their benefits, and employers slowly beginning to increase hiring.

Funding and positions for the Department’s employment security programs are reduced as federal support
for administration of these programs is reduced. The balanced budget continues the practice of
establishing limited duration positions to conduct studies and provide job placement services on a contract
basis if funding becomes available. Resources are provided to implement a federal Trade Act training
program, comply with federal requirements around prevention and collection of unemployment insurance
overpayments, and reduce the time it takes unemployment insurance claimants to return to work. Funding
is also provided to complete information systems projects begun in the 2009-11 biennium, increase
information technology security, and accommodate an anticipated increase in the Office of Administrative
Hearings workload.
The programs administered by the Child Care Division are transferred to the newly created Early
Learning Council. These programs are responsible for statewide planning for safe, accessible, affordable,
and quality child care; licensing and regulation of child care providers; and administration of the federal
Child Care and Development fund grant.
Revenue
With the transfer of child care programs to the newly created Early Learning Council, the Employment
Department receives no General Fund.
The primary source of Other Funds is employer-paid Oregon unemployment taxes. These taxes are
collected by the state and held by the United States Treasury for the payment of benefits to eligible
claimants. They are included as Nonlimited funds in the agency budget. As a result of unemployment
benefit payments resulting from the recession, the employer tax rate has been increased to the maximum
statutory rate and will remain at that level for several years while the state’s unemployment insurance
trust fund is replenished.
The major sources of Other Fund revenues supporting employment security programs are:
• Supplemental Employment Department Administrative Fund revenues received from a
0.09 percent unemployment tax diversion.
• Federal Reed Act funds distributed to states at the discretion of Congress.
• Special Administrative Fund revenues that consist of penalties for unemployment tax
delinquencies and interest on account balances.
• Fraud Control Fund revenues received from interest earnings on delinquent repayments of
unemployment insurance benefits overpayments.
The Agency also receives Other Fund revenues from contracts with other state agencies to provide
employment placement and hearings services. The Office of Administrative Hearings is funded with
charges to agencies for which it conducts hearings.
Federal Unemployment Tax Act revenues are generated through a tax on employers to support
administration of the employment security system. Wagner-Peyser Act funds are allocated based on the
civilian labor force and unemployment history for employment related labor exchange services.
The federal Child Care and Development Block Grant that funds payments to providers, licensing and
regulation, system planning and coordination, research and evaluation and administration, is also
transferred to the Early Learning Council.

HOUSING AND COMMUNITY SERVICES DEPARTMENT
2007-09 2009-11 2011-13

General Fund $19,514,921 $10,312,467 $9,523,939
Lottery Funds $5,929,190 $8,659,409 $11,230,921
Other Funds $111,922,729 $138,768,090 $145,177,772
Federal Funds $134,933,782 $279,752,340 $203,012,721
Other Funds (Nonlimited) $1,210,382,469 $1,537,062,014 $580,486,383
Total Funds $1,583,878,328 $2,081,804,320 $1,053,661,604

Overview
The Housing and Community Services Department is Oregon’s low-income housing finance agency. The
Agency assists in the financing of both single-family homes and the new construction or rehabilitation of
multi-family affordable housing developments. It also administers federal and state programs to alleviate
homelessness and poverty. A seven-member state housing council, appointed by the Governor, guides the
agency.
The Agency plays a critical role in maintaining and improving quality of life. It coordinates agency
resources with other state and local resources to solve community problems. It also works with private
community-based agencies to help people in need. It is often difficult for families who earn less than
80 percent of median income to buy a home. The Agency helps these families with low interest rate
loans, tax credits and subsidy grants. The agency helps develop low-income housing projects for families
with an income below 60 percent of the median income. It provides below-market interest rate loans and
tax credits. It also processes federal rent subsidies.
Community service programs provide basic safety net services. These programs provide resources to
shelter the homeless and help the homeless obtain affordable housing. They also provide energy cost
subsidies, home weatherization services and food to the poor.
The Agency administers the Manufactured Dwelling Park Community Relations Program. This program
helps mobile home park tenants and landlords resolve concerns about their parks and living situations.

Balanced Budget
The Governor’s Balanced Budget of $1.05 billion total funds is a 50 percent reduction from the
2009-11 Legislatively Approved Budget. The reduction is largely due a 62.2 percent reduction to Other
Funds Nonlimited and a 7.6 percent reduction to General Fund. The large reduction to Other Funds
Nonlimited is a result of current market conditions, resulting in fewer home loans being made, and a
decline in short term bonds being issued.
Revenue
The Agency operates mainly with Other Funds from the sale or repayment of bonds. It also receives
public utilities fees, investment income, grants, loan repayments, loan commitment fees and revenue from
other state agencies. Nonlimited expenditure authority is used for bond-related costs and proceeds.
General Fund finances the state homeless emergency housing and food programs. The Agency receives
Federal Funds from a variety of federal sources.

Department of Veterans' Affairs

2007-09 2009-11 2011-13
General Fund $6,122,619 $6,209,160 $5,898,200
Other Funds $37,487,702 $47,792,134 $45,562,427
Federal Funds $0 $1,791,611 $0
Total Funds $388,866,234 $544,029,613 $494,556,012

Overview
The Department of Veterans’ Affairs serves Oregon veterans, their dependents, and survivors. Specific
programs include:
• The Veterans’ Loan Program, which provides home loans at a favorable interest rate. Tax-exempt
bond revenue is used to finance the loans. Loan repayments and investment earnings pay off the
bonds and cover the cost of program administration. Federal law allows the Department to finance a
loan with tax-exempt financing to any veteran discharged within the past 25 years. The Oregon
Constitution does not limit the timeframe a veteran may access this benefit.
• The Veterans’ Services Program, which provides benefit counseling, claims assistance,
conservatorship services, and education assistance. It operates through county service centers in 34 of
the state’s counties. The Department finances the county Veterans Service Officer positions with a
base amount and an amount based on the veteran population of the county. The agency headquarters
is in Salem and directly serves veterans in Marion and Polk counties.
• The Oregon Veterans’ Home Program, which opened for business in November 1997. This is a
151-bed facility in The Dalles that provides skilled nursing care and Alzheimer’s disease care. The
Department contracts for the facility's operation. The home had 146 residents as of June 2010.
Balanced Budget
The Governor’s Balanced Budget for the Department of Veterans’ Affairs is $495 million total funds.
This is a 9.1 percent decrease from the 2009-11 Legislatively Approved Budget. Excluding Nonlimited
Other Funds, which account for bond and loan activity, the balanced budget is a 7.8 percent decrease from
the 2009-11 Legislatively Approved Budget.

The balanced budget continues ongoing services in the loan program, veterans services and at the
Veterans Home in The Dalles. The Department eliminated seven positions in the loan program due to
economic conditions and phased out five positions in the Veterans Services program.
Revenue
Most of the Department’s budget is Other Funds. This money primarily comes from the bond-financed
loan program. Specific sources include mortgage loan and contract repayments, investment earnings,
mortgage insurance payments, property tax payments, fee and rental income, and bond proceeds. The
remaining 10.3 percent of Other Funds revenue comes from revenues received for the benefit of veterans
residing at the Veterans Home.
General Fund supports direct services to veterans. In addition the Department earns some revenue through
its conservatorship activities in that area. The amount pays for approximately half of the services
provided in the conservatorship program.

Natural Resources

DEPARTMENT OF AGRICULTURE ...............................................................................................................F-4
COLUMBIA RIVER GORGE COMMISSION....................................................................................................F-6
DEPARTMENT OF ENERGY .........................................................................................................................F-7
DEPARTMENT OF ENVIRONMENTAL QUALITY ...........................................................................................F-9
DEPARTMENT OF FISH AND WILDLIFE .....................................................................................................F-11
STATE FORESTRY DEPARTMENT .............................................................................................................F-13
DEPARTMENT OF GEOLOGY AND MINERAL INDUSTRIES .........................................................................F-15
DEPARTMENT OF LAND CONSERVATION AND DEVELOPMENT ................................................................F-17
LAND USE BOARD OF APPEALS ...............................................................................................................F-19
DEPARTMENT OF STATE LANDS ..............................................................................................................F-21
MARINE BOARD ......................................................................................................................................F-23
PARKS AND RECREATION DEPARTMENT .................................................................................................F-25
WATER RESOURCES DEPARTMENT .........................................................................................................F-27
OREGON WATERSHED ENHANCEMENT BOARD .......................................................................................F-29
2007-09 2009-11 2011-13

General Fund $164,897,844 $146,856,498 $136,546,668
Lottery Funds $197,743,661 $182,021,396 $178,963,415
Other Funds $705,916,740 $743,754,874 $798,354,172
Federal Funds $175,707,203 $304,690,684 $313,367,157
Total Funds $1,496,715,912 $1,761,275,886 $1,758,627,456
Positions 5,454 5,401 5,457

Overview
The agencies within the Natural Resources Program Area manage Oregon’s natural resources for present
and future generations while supporting a growing and sustainable economy. This program area
represents about 2.2 percent of the state’s combined General Fund and Lottery Funds budgets. Natural
Resource agencies provide a variety of services, including control of pollution, land use and water use,
consumer protection and natural resource product promotion.
While all Natural Resource agencies work to conserve and enhance Oregon’s environment, they have
diverse roles. The Department of Agriculture, for example, helps protect water quality through
agricultural water quality planning and monitoring of Combined Animal Feeding Operations. It also
works to promote Oregon agriculture in existing and new markets, and protects consumers by conducting
food safety inspections and checking weights and measures used in business transactions. The
Department of Forestry assists forest landowners with forest stewardship, enforces Forest Practices Act
guidelines, leads the effort to prevent and combat forest fires and works with the timber industry to assure
2011-13 Governor's Balanced Budget F-1 Natural Resources
Natural Resources
a viable forest products sector as part of Oregon’s economy. The Department of Fish and Wildlife
regulates the catch of sport and commercial fishers, and also works to assure that there are fish to catch.
In addition to traditional work protecting the environment, promoting Oregon natural resource products,
and promoting consumer safety, many Natural Resource agencies participate in the Oregon Plan for
Salmon and Watersheds. The plan, in effect since 1997, is an effort to restore the health of watersheds.
Plan activities include developing water quality plans, conducting scientific surveys of fish health,
assisting landowners and volunteer citizen groups to restore watersheds, enhancing critical habitat for fish
and wildlife, and monitoring watershed health and fish population trends. The funding for these efforts
comes mainly from General Fund, Lottery Funds, and Federal Funds.
Revenues to support Natural Resources agency work come mainly from fees, contracts, payments for
services and grants. Current fees and fee increases are set to support basic services for which fees are
charged and are not used to support unrelated programs. Proposals for new or increased fees are
developed in consultation with those who pay the fees as well as other interested stakeholders. Agencies
also receive federal grants and work on federal contracts.
Revenues supporting Oregon Plan for Salmon and Watersheds work are mainly dedicated Lottery Funds.
A constitutional amendment in 1998 dedicated 7.5 percent of net Lottery proceeds to the plan. Voters
approved a similar amendment continuing the dedication through Ballot Measure 76 in 2010. Ballot
Measure 76 places different restrictions on spending than its predecessor measure did. No more than 35
percent of these revenues pay for operations. No less than 65 percent must pay for grants to entities other
than state or federal agencies.
The constitutional amendment also dedicates 7.5 percent of net Lottery proceeds to the Oregon Parks and
Recreation Department for park operations, maintenance, heritage and cultural sites, local grants and land
acquisitions. Ballot Measure 76 places a new threshold on the amount of the funds that must be allocated
to local grants.
The balanced budget relies on some fund shifts to continue programs but reduce General Fund. These
shifts include a change to the forest fire protection assessment, reducing the state share of the forest fire
protection fund from 50 to 45 percent. Landowners would make up for this change by increasing their
share from 50 to 55 percent. The state savings would keep Forest Practices Act work from experiencing a
large reduction. Also, some funding for the Food Safety Inspection program at the Department of
Agriculture is shifted to fee revenue. The agency raised some fees during 2009-11 and is seeking
additional but limited fee increases in 2011-13.
Balanced Budget
The Governor’s Balanced Budget for this program area is $1.8 billion total funds, which is a 0.2 percent
decrease from the 2009-11 Legislatively Approved Budget. General Fund expenditures decrease 7.0
percent and Lottery Fund expenditures decrease 1.7 percent from the 2009-11 Legislatively Approved
Budget. The reductions result from projections of inadequate revenue to support ongoing expenditures.
Other Funds expenditures are 64 percent of the program area’s budget and will grow very slightly.
Proceeds from debt financing, such as bonds, are the largest contributor to growth in Other Funds.
Federal Funds will grow 2.8 percent, with one time carryover funds from the 2009-11 biennium and
revenues from firearm sales the largest contributors to the increase.

Natural Resources
Parks and Natural Resource Fund Lottery Funds are distributed among Natural Resource agencies as the
law prescribes, including paying for park maintenance and construction, land acquisition, local grants, and
watershed protection and improvement through local grants. Because of estimated lottery revenue decline
and passage of the constitutional amendment in 2010, Lottery Fund expenditures have been reduced and
re-arranged for all agencies receiving these funds. The balanced budget includes a lower amount of
operating and local grant expenditures than in the 2009-11 biennium because of estimated decreases in
Lottery revenue.
Lottery Funds supporting state agency expenditures also decline because of the restrictions of the
amendment passed in 2010. More of the funding will go to local entities than in the past, where it will be
used for projects that improve or rehabilitate habitat. Projects have included installing large woody debris
in rivers and streams and planting trees and bushes. Agency salmon restoration and protection efforts
continue with the use of one-time federal Pacific Coastal Salmon Recovery Funds, which carried over
from the 2009-11 biennium. The Lottery Funds will also be used to continue marine reserve work and for
a forest health collaborative effort.
The Parks and Recreation Department budget shifts funding to grants to meet the new requirements of
Measure 76. Because the shift would reduce funding available for park operations and/or maintenance
backlogs, the budget replaces the lottery shift to local grants with fee revenue from existing balances. It
also includes a proposal to index fee increases to the consumer price index in an effort to maintain park
operations. The fee change is intended to be as affordable as possible to the public. The budget also
includes support for marine reserve work, provides resources for developing the new Cottonwood Canyon
State Park and for operating newly developed sites at Beaver Creek and Fort Yamhill. Also, the support
for the Natural Heritage Advisory Council transfers from the Department of State Lands to the
department. The Main Street program continues to preserve downtown historic districts, and support for
the State Fair and exposition center is maintained.
Because of financial conditions, agencies will spend less on air quality monitoring and pollution reduction
work, land quality waste management and cleanup, and water quality assessments, restoration and point
source controls. The Pesticide Use Reporting System remains suspended. Expenditures for land planning
local grants will be more limited. Additional non-state funding is available for fish monitoring, research
and evaluation and for encouraging landowners to provide hunters access to their land. Funding is
provided to implement a limited system of marine reserves and to continue implementing the Western
Oregon Stream Restoration Project and the Oregon Conservation Strategy.

Natural Resources
DEPARTMENT OF AGRICULTURE
2007-09 2009-11 2011-13

General Fund $14,147,428 $14,089,994 $11,939,880

Lottery Funds $9,695,292 $10,143,165 $9,463,296
Other Funds $46,106,933 $49,680,325 $54,574,473
Federal Funds $7,635,574 $12,287,361 $12,665,265
Total Funds $77,585,227 $86,200,845 $88,642,914

Overview
The Oregon Department of Agriculture (ODA) works to ensure food safety, provide consumer protection,
protect agricultural natural resources and promote economic development in the agricultural industry.
The department’s budget includes four policy areas:
• The Administration and Support policy area provides policy direction and business services.
• The Food Safety policy area protects the food supply, keeps livestock healthy and ensures
measurement device accuracy. It also maintains fertilizer and pesticide standards. Employees
inspect food-processing plants, grocery stores and in-store delis. Staff also record livestock brands
to help identify and deter theft of animals.
• The Natural Resources policy area conserves, protects and develops natural resources. The
program includes efforts to control and exclude foreign pests and plant diseases. Employees
inspect and certify nursery stock, Christmas trees and seed crops. The program controls the use of
pesticides and fertilizers. Under the Oregon Plan, the program helps to protect water quality to
assist in the restoration of salmon and steelhead runs and watersheds.
• The Agricultural Development and Marketing policy area staff promotes Oregon agricultural
products. Commodity Inspection Division staff provide sampling, inspection, and verification
services that promote the movement of Oregon’s agricultural products throughout the world.
Balanced Budget
The balanced budget of $88.6 million total funds is about a three percent increase from the
2009-11 Legislatively Approved Budget. The budget enables the agency to carry out its statutory mission
for food safety and consumer protection, the protection and conservation of natural resources, and the
promotion of economic development in the agricultural sector. It adds resources to maintain and upgrade
the agency’s critical business information systems, coordinate the agency’s climate change efforts,

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monitor compliance with pesticide rules, and perform product certifications requested by industry. It
partially restores funding for predator control. It includes Pacific Coastal Salmon Recovery Funds for
agricultural water quality efforts.
The budget reduces the Food Safety Policy Area’s General Fund from the 2009-11 biennium by almost 15
percent due to General Fund constraints. It replaces about one-half of these General Fund reductions with
revenues from existing and increased license fees paid by a variety of wholesale and retail businesses.
Revenue
The agency is funded by a combination of General Fund, Lottery Funds, Other Funds and Federal Funds.
Lottery Funds, which come almost entirely from the Measure 76 operations portion of the Parks and
Natural Resources Fund, are reduced due to revenue constraints and changes in allowed uses. Other
Funds is the largest revenue component. Sources include fees for licenses, registrations, inspections,
certifications and reimbursements under federal service contracts. The recommended budget includes fee
increases in all four agency divisions. These include fee increases for seed dealer licenses, Confined
Animal Feeding Operations, shellfish cultivation, veterinary products, pet foods, and National Pollutant
Discharge Elimination System permits. The budget makes the animal health program entirely reliant on
fees. The remainder of the agency’s budget is funded with federal dollars received from the U.S.
Department of Agriculture and other federal agencies.

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COLUMBIA RIVER GORGE COMMISSION
2007-09 2009-11 2011-13

General Fund $1,022,067 $885,811 $847,538
Other Funds $0 $73,030 $5,000
Total Funds $1,022,067 $958,841 $852,538
Positions 0 0 0
Overview
The Columbia River Gorge Commission is charged with protecting scenic, cultural, recreational and
natural resources while encouraging compatible growth and economic development within the Scenic
Area. It is the regional land use policy entity for the 292,615 acre Scenic Area, which consists of
Multnomah, Hood River and Wasco counties in Oregon; Clark, Skamania and Klickitat counties in
Washington.
Balanced Budget
The Governor’s Balanced Budget is $0.85 million total funds; this is 11.1 percent lower than the 2009-11
Legislatively Approved Budget. The budget continues planning programs, service as an appeals board,
and economic development certification for the National Scenic Area without allowing for inflation.
The commission’s staff members are administered by the Washington personnel system. Each of the two
states pays one-half of the commission’s joint operating expenses and the full cost of commissioners who
represent their respective states. The Governor’s Balanced Budget includes only Oregon’s half of the
commission’s operating expenses and expenses relating to Oregon’s commission members.
Revenue
The commission’s budget officially resides in the state of Washington for administrative purposes. The
Oregon budget reflects payments to Washington state from the General Fund and expenses relating to
Oregon’s commission members. The balanced budget aligns Other Funds expenditures with expected
revenue.

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DEPARTMENT OF ENERGY
2007-09 2009-11 2011-13

General Fund $3,100,000 $0 $0
Lottery Funds $0 $590,347 $2,164,185
Other Funds $20,140,759 $33,307,287 $30,531,027
Federal Funds $3,551,982 $57,739,196 $30,830,849
Total Funds $138,297,780 $259,553,646 $235,441,301

Overview
The mission of the Oregon Department of Energy is to ensure Oregon has an adequate supply of reliable
and affordable energy and is safe from nuclear contamination. The department helps Oregonians save
energy, develop clean energy resources, promote renewable energy and clean up nuclear waste. The
department accomplishes this mission by:
• Encouraging individuals and businesses to invest in energy conservation.
• Promoting the development of new, environmentally friendly energy resources and technologies
that are cleaner than conventional resources and that have the potential to provide economic
development opportunities.
• Ensuring that new energy facilities are safe and in environmentally sound locations.
The Energy Policy Division develops state policy and goals for environmentally-friendly and
economically sustainable energy production. Policy issues include energy conservation and greenhouse
gas emission reduction; alternative fuel and renewable energy development; and economic development.
The Energy Development Services Division coordinates and integrates the department’s financing and
incentive programs that promote energy conservation and renewable energy. Programs within this
division include the business and residential energy tax credit, the Small-Scale Energy Loan program, the
Energy Efficiency and Sustainable Technology program, the Biomass Tax Credits program and the
Community Renewable Energy Feasibility program. This division is also responsible for the Department
of Energy’s American Recovery and Reinvestment Act of 2009 program.

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The Nuclear Safety and Energy Emergency Preparedness Division works to provide safe energy through
oversight of nuclear waste cleanup activities at the Hanford nuclear site. The division also provides
emergency preparedness for potential hazards.
The Energy Facility Siting Division works with the Energy Facility Siting Council, energy facility
developers and operators to meet the state’s energy needs by ensuring that infrastructure is built to meet
Oregon siting requirements. The Division also oversees compliance.
The Administrative Services program area includes the director’s office and the central business services.
Balanced Budget
The Governor’s Balanced Budget for the Department of Energy is $235.4 million total funds. This is a
9.3 percent decrease from the 2009-11 Legislatively Approved Budget. The decrease is largely due to the
phase-out of expenditures that were one-time in nature for 2009-11, as well as the phase-out of most of
the activity from the American Recovery and Reinvestment Act (ARRA) of 2009.
The Budget continues programs at existing levels and adds positions for the continuation and completion
of ARRA activities. This will provide the agency with the ability to maintain its fiduciary responsibility
of ensuring that ARRA Funds are properly spent within the established timelines. The budget also
provides positions to manage the increase in new energy siting projects.
Revenue
Other Fund revenues for the department are from assessments on energy and petroleum suppliers, energy
facility site applications and certificate renewal fees, tax credit application fees and contracts (primarily
for emergency response planning, energy conservation achievement, energy education programs and
hazardous waste cleanup). The largest source of Other Funds is from the State Energy Loan Program,
which generates revenue from General Obligation bond sales, loan repayments and interest earnings.
The Department also receives money from the U.S. Department of Energy for several programs, including
ARRA funds for the 2011-13 biennium. These funds provide grants to improve the energy efficiency of
public and private buildings, promote alternative fuels and demonstrate new energy-saving technologies;
support business projects that reduce waste, cut pollution and save energy; fund activities to ensure safe
cleanup at the Hanford Nuclear Site; and provide energy audits of federal buildings.

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DEPARTMENT OF ENVIRONMENTAL QUALITY

2007-09 2009-11 2011-13
General Fund
$36,444,631 $32,977,995 $28,962,145
Lottery Funds $5,610,171 $5,415,717 $3,133,153
Other Funds $117,306,094 $137,858,403 $143,176,928
Federal Funds $26,452,507 $35,935,314 $32,597,667
Total Funds $323,249,920 $401,260,577 $333,536,695
Overview
The Department of Environmental Quality leads efforts to restore, enhance, and maintain the quality of
Oregon’s air, water and land. The Agency administers the state’s pollution laws. It also manages several
federally delegated programs. The Environmental Quality Commission’s five-member board sets policy
direction for the department. The Department operates six major programs. These are:
• Air Quality, which regulates air pollutants, detects and monitors pollutant levels, analyzes data,
provides education and business assistance and enforces pollution laws.
• Water Quality, which monitors and regulates the discharge of water and wastewater to ensure
water quality goals are met. The program has identified standards for water quality and monitors
those regularly.
• Land Quality, which works to reduce hazardous and solid waste, regulates underground storage
tank use, responds to hazardous substance spills and cleans up contaminated sites.
• Cross Media, which helps manage issues that cover more than one of the above programs.
• Agency Management, which includes the director’s office, public affairs and management
services. These centralized functions provide leadership, coordination and support.
• Clean Water State Revolving Loan Program and the management of Pollution Control Bonds,
which has provided capital for the loan program and “orphan site” cleanup work in the past. The
actual orphan site cleanup work, managed as part of the Land Quality program, conducts
assessments and cleanups when the owner of a contaminated site is unknown, unwilling or unable
to pay for the cleanup.

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Balanced Budget
The Governor’s Balanced Budget is $333.5 million total funds. This is a 16.9 percent decrease from the
2009-11 Legislatively Approved Budget. The largest share of the decrease results from phasing out one-
time American Recovery and Reinvestment Act funding.
The balanced budget continues funding for core programs in the air, water and land quality programs,
although at reduced levels. The Air Quality Program will continue inspecting vehicles, operating the
Federal Industrial Air Pollutant Permitting Program, and monitoring air quality in key areas. The Water
Quality Program will continue to manage water quality standards and clean water plans, operate the
permitting program for waste water discharge and treatment systems (including onsite septic systems),
monitor water quality, provide grants and technical assistance to reduce non-point pollution sources,
protect Oregon’s public drinking water, and conduct groundwater pollution prevention efforts.
Land Quality Program expenditures are reduced and positions eliminated because of fee revenue
shortfalls in several programs. Many of the revenue sources depend on real estate, waste disposal or other
business activity, which have declined since 2007. It is unclear when real estate and other activities will
rebound. The balanced budget addresses invasive species concerns with a proposal for improved ballast
water monitoring efforts. The budget also proposes to finance investigation and cleanup activity and to
meet federal Superfund obligations for known orphan land sites through bond sales. When no owner can
be found legally responsible for cleanup of contaminated land, the land is considered orphaned.
The balanced budget continues funding the Clean Water State Revolving Fund, along with the payment of
debt service for the bonds that fund this program.
Service reductions include air quality monitoring and pollution reduction work, land quality waste
management and cleanup, and water quality assessments, restoration and point source controls.
Revenue
More than 40 different fees support the department’s activities, along with General Fund, Lottery Funds
and Federal Funds. The department charges fees for the three major programs: Air, Water and Land
Quality. Revenue from onsite septic system, storm water permitting and solid waste fees has declined
substantially over the past few years. The balanced budget also depends on a legislative bill for ballast
water management fees and a transfer of Pacific Coastal Salmon Recovery Funds from the Oregon
Watershed Enhancement Board for water toxics work and water quality volunteer coordination.
Estimates for Federal Funds are lower than the 2009-11 biennium. Lottery Funds decrease because of
declining revenue projections and the new restrictions for these funds under Measure 76 (2010).

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DEPARTMENT OF FISH AND WILDLIFE

2007-09 2009-11 2011-13
General Fund $13,849,847 $14,230,033 $12,134,244
Lottery Funds $11,945,861 $6,105,448 $3,645,741
Other Funds $131,336,054 $152,272,795 $176,455,718
Federal Funds $83,303,669 $90,736,188 $112,976,593
Total Funds $240,435,431 $263,344,464 $305,212,296
Positions 1,360 1,379 1,493

Overview
The Department of Fish and Wildlife protects and enhances fish, wildlife and their habitats for the use and
enjoyment of present and future generations. The agency operates three major programs:
• Fish Division: This program runs fish hatcheries, manages native fish populations, monitors
commercial fisheries, protects and enhances fish in the Columbia River Basin, and provides
technical assistance to private individuals, watershed councils, and state and federal agencies in
support of the Oregon Plan for Salmon and Watersheds.
• Wildlife Division: This division maintains all wildlife species at optimum levels compatible with
primary land and water uses. Biologists implement species management plans, respond to damage
complaints, oversee habitat improvement work, and undertake the protection and recovery of non-
game bird and animal species.
• Administrative Services: This section supports the agency with accounting and budgeting, license
and tag sales, personnel management, information systems, engineering, information, and
education.
The agency also maintains a contract with the Oregon State Police for fish and game law enforcement and
has a Capital Improvement program to maintain and repair agency property, such as fish hatcheries.
Balanced Budget
The Governor’s Balanced Budget is $305.2 million total funds. This is a 16 percent increase from the
2009-11 Legislatively Approved Budget. The net increase results from decreases in General Fund and

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Lottery Funds and increases in Other Funds and Federal Funds. The budget for fish programs includes
additional Federal Funds for recovery efforts related to the operation of dams on the Columbia and
Willamette rivers and their tributaries. It also includes additional Other Funds from a variety of public and
private sources. The additional funds support many projects such as research, monitoring, and evaluation
of salmon and steelhead in the interior Columbia River basin.
The budget for wildlife programs include additional Federal Funds to encourage public hunting access on
private lands. It also includes funds from power companies to help coordinate the Oregon and federal
siting processes for two proposed electricity transmission lines and other energy generation issues.
The special payment to Oregon State Police maintains funding for Fish and Wildlife Officer positions that
enforce the state’s fish and wildlife laws.
The budget continues to fund the Western Oregon Stream Restoration Project and adds Lottery Funds for
Marine Reserves and for the implementation of the Oregon Conservation Strategy.
Butte Falls Hatchery in Jackson County was permanently closed in late 2010.
Revenue
The 2011-13 budget is supported by General Fund, Lottery Funds, Other Funds, and Federal Funds.
Lottery Funds are from Measure 76 operations portion of the Parks and Natural Resources Fund. Other
Funds are from three major categories; hunting and fishing licenses and tags, overhead charges on federal
contract work, and miscellaneous sources such as agreements with non-federal organizations, fines, and
forfeitures from game law violations and donations. The majority of Other Funds increase in the balanced
budget is due to new agreements with non-federal organizations. The agency receives most of its Federal
Fund revenues from the U.S. Forest Service, Army Corps of Engineers, Bonneville Power
Administration, National Marine Fisheries Service, U.S. Fish and Wildlife Service, Environmental
Protection Agency, and tribal governments.

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STATE FORESTRY DEPARTMENT

2007-09 2009-11 2011-13
General Fund $46,393,079 $42,588,222 $46,101,909
Lottery Funds 0 1,374,136 3,060,100
Other Funds 212,418,724 199,755,346 198,776,816
Federal Funds 16,746,135 46,558,712 47,864,641
Other Funds (Nonlimited) 2,050,843 17,150,020 15,000,000
Federal Funds (Nonlimited) 0 0 0
Total Funds $277,608,781 $307,426,436 $310,803,466
Positions 1,297 1,227 1,245

Overview
The State Forestry Department works to protect, manage and promote stewardship of Oregon’s forests to
enhance environmental, economic and community sustainability. The agency has three operational
divisions and several support divisions.
The Private Forests program administers the Oregon Forest Practices Act, provides technical consultation
to forest landowners, provides insect and disease surveys and technical assistance statewide, and conducts
effectiveness and compliance monitoring. The Forest Practices Act encourages economically efficient
forest practices and resource protection on privately owned land.
The Protection from Fire program puts out forest fires and tries to prevent them on about 16 million acres
of forestland. It does this through the coordination of 12 forest protection districts as well as in
cooperation with other public and private organizations. Funding for fire prevention and suppression
includes landowner assessments, General Fund, and timber harvest taxes. The Governor’s Balanced
Budget funds the split at 45 percent General Fund and 55 percent landowner assessment.
The State Forest Lands program manages about 819,000 acres of state-owned public forests. Oregon’s
state forests include the Tillamook, Clatsop, Santiam, Sun Pass, Elliott, and Gilchrist forests. These lands
are actively managed for a broad range of economic, environmental, and social values.
Support functions include Administration, Equipment Pool, and Facilities Maintenance and Management.
Administration leads and supports the other programs with administrative functions. The Equipment Pool
provides equipment management and operation for the three operational divisions. Facilities Maintenance
and Management maintains 393 structures owned by the department throughout the state.

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Balanced Budget
The balanced budget is $310.8 million total funds. This is a one percent increase from the 2009-11
Legislatively Approved Budget. The budget continues all existing agency programs.
The Private Forests program budget increases funding and staffing from the 2009-11 level. General Fund
rises due partly to a change in the way the department charges divisions for administrative services and
partly to additional resources made available by the change in funding of the Protection from Fire
program. The budget includes Lottery Funds for early detection and response to forest health threats.
In the Protection from Fire program, the budget increases funding and staffing slightly from the 2009-11
level. Both General Fund and Other Funds increase.
In the State Forest Lands program, the budget increases funding slightly from the 2009-11 level. Staffing
remains essentially unchanged.
Revenue
General Fund, Lottery Funds, Other Funds and Federal Funds support this budget. Lottery Funds from
the Parks and Natural Resources Fund support forest health management. Other Fund revenue sources
include the timber harvest tax, landowner assessments, and sales of timber on forestlands managed by the
department. The agency receives Federal Funds for a variety of fire program activities. Federal Funds
also support forest insect and disease control activities, and landowner assistance in the Private Forests
program.
The budget changes the division between General Fund and landowner assessments for basic fire
protection from the current split of 50 percent General Fund and 50 percent landowner assessments to 45
percent General Fund and 55 percent landowner assessment.

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DEPARTMENT OF GEOLOGY AND MINERAL INDUSTRIES

2007-09 2009-11 2011-13
General Fund $3,289,957 $2,896,740 $2,597,776
Lottery Funds $1,499,224 $500,000 $0
Other Funds $5,581,580 $6,868,294 $7,211,066
Federal Funds $1,690,466 $2,396,172 $3,502,353
Total Funds $12,061,227 $12,661,206 $13,311,195
Positions 40 38 42
Overview
The Department of Geology and Mineral Industries (DOGAMI) gathers geologic data and maps the
state’s geology. The agency also regulates surface mining.
The agency’s Geologic Survey unit gathers geologic data and prepares maps. This includes mineral and
energy assets and geological hazards. The agency shares the information with state and local leaders. It
uses the data for land use decisions, building sitings and code revisions, emergency planning and
emergency response.
The agency’s Mined Land Regulation program regulates surface mining. This includes about
850 aggregate and metal mines. The program balances the economic need for minerals with conserving
the resource and the environment.
DOGAMI operates the Nature of the Northwest Information Center on behalf of state natural resource
agencies and in cooperation with federal agencies.
Balanced Budget
The Governor’s Balanced Budget is $13.3 million total funds. This is a 5.1 percent decrease compared
with the 2009-11 Legislatively Approved Budget. The balanced budget continues existing programs,
including Light Detection and Ranging (LIDAR) data collection, but does not provide Lottery Funds for
LIDAR because of limited revenue.
A major component of the agency’s activities involves LIDAR data collection, which started in the
2007-09 biennium. LIDAR is a technique that uses light (laser) pulses emitted from aircraft; the pulses

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bounce back and are recorded by equipment aboard the aircraft. LIDAR can produce maps far more
accurate than historically available. The U.S. Geological Survey no longer supports the older digital
mapping techniques, so obtaining current maps for public safety and economic development purposes
requires using this newer mapping technique.
Revenue
The agency is funded by a combination of General Fund, Other Funds and Federal Funds. Other Fund
revenues come from contracts, mining fees, gas and oil fees, and publications. The U.S. Geologic Survey,
U.S. Bureau of Land Management, Federal Emergency Management Agency, National Oceanic and
Atmospheric Administration, and other federal bureaus provide Federal Funds to the agency. Funding for
the LIDAR initiative comes from anticipated agreements with federal, state, county and municipal
governments.

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DEPARTMENT OF LAND CONSERVATION AND DEVELOPMENT
2007-09 2009-11 2011-13

General Fund $19,057,084 $16,793,066 $11,440,378
Other Funds $686,757 $2,093,138 $1,363,210
Federal Funds $5,259,499 $6,598,675 $5,860,289
Total Funds $25,003,340 $25,484,879 $18,663,877
Positions 95 95 58
Overview
The Department of Land Conservation and Development (DLCD) works to guide land use policy to:
• Foster livable, sustainable development in urban and rural communities.

• Protect farm and forest lands and other natural resources.
• Conserve coastal and ocean resources.
• Improve the well-being and prosperity of citizens, businesses and communities throughout Oregon
including safeguarding people and property from natural hazards.
The department’s mission is to support all of its partners in creating and implementing comprehensive
plans that reflect and balance the statewide planning goals, the vision of citizens, and the interests of local,
state, federal and tribal governments.
Balanced Budget
The balanced budget for the DLCD is $18.7 million total funds. This is a 26.8 percent decrease from the
2009-11 Legislatively Approved Budget. The 2009-11 biennium budget had a one-time infusion of
money to handle Measure 49 property use claims. The proposed budget for the 2011-13 biennium is
5.6 percent lower than the current service level.
The balanced budget continues planning services, Measure 49 development, community services, and
local grants; however, local grants and Measure 49 services are continued at a reduced level.
Administration is also reduced.

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Revenue
The agency is funded through a combination of General Fund, Other Funds and Federal Funds. Other
Fund revenues come from charges for services, miscellaneous receipts and transfers from other state
agencies. Federal Funds come from FEMA for flood plain management work. Federal Funds also pay for
Coastal Zone Management Act work.

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LAND USE BOARD OF APPEALS

2007-09 2009-11 2011-13
General Fund $1,506,938 $1,531,111 $1,352,155
Other Funds $65,304 $80,003 $83,644
Total Funds $1,572,242 $1,611,114 $1,435,799
Positions 6 6 5
Overview
The Land Use Board of Appeals (LUBA) hears appeals of state and local land use decisions. Prior to
LUBA’s creation, local circuit courts resolved these cases. LUBA was created to improve the existing
system in the following ways:
• Resolve land use disputes quickly. From the time LUBA receives the appeal, it has 77 days to
issue its opinion.
• Resolve all of the issues raised on appeal.
• Be accessible to the general public, as well as the attorneys.
• Provide a single body issuing consistent opinions on a statewide basis.
• Make its opinions widely available to the public.
Balanced Budget
The Governor’s Balanced Budget for LUBA is $1.4 million total funds. This is a 10.9 percent decrease
from the 2009-11 Legislatively Approved Budget. The balanced budget eliminates the staff attorney
position that assists the Board.

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Revenue
Most of LUBA’s revenue is General Fund. The remaining revenue is Other Funds received from filing
fees and the sale of LUBA publications. Revenues from the filing fees are transferred to the General
Fund. LUBA publications are the published version of LUBA’s decisions; sales proceeds are reinvested
in publishing the next volume.

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DEPARTMENT OF STATE LANDS

2007-09 2009-11 2011-13
General Fund $213,075 $0 $0
Other Funds $37,447,787 $25,577,452 $24,208,738
Federal Funds $2,277,027 $6,101,737 $2,895,671
Total Funds $41,180,222 $41,491,639 $37,158,658

Overview
The Department of State Lands (DSL) carries out policy for the State Land Board, which consists of the
Governor, the Secretary of State and the State Treasurer. The board manages the Common School
Fund (CSF), valued at about $1.1 billion in November 2010. The State Treasurer invests CSF money for
the board. The fund includes revenue and investment earnings from land deeded in trust for education
when the state was founded, as well as other lands, such as submerged and submersible lands. It also
includes unclaimed or forfeited property and certain lands dedicated by law. The Department distributes
CSF earnings to schools twice a year.
The Department’s goals are to produce income for the CSF and to manage and protect the land and water
of the state. The Department also administers the state’s removal-fill law and wetlands programs. It
manages the South Slough National Estuarine Research Reserve (SSNERR) and supports the Natural
Heritage Advisory Council (NHAC). SSNERR was the first national estuarine research reserve named in
the nation. It is a natural site to conduct research of local and national importance and for the public to
explore and learn about estuaries. The 1997 Legislature made SSNERR an asset of the CSF. NHAC
oversees the Natural Heritage Plan and data bank. It registers and dedicates natural heritage conservation
lands. It also advises the board and others of sites for natural heritage conservation lands.
Balanced Budget
The Governor’s Balanced Budget is $37.2 million total funds. The budget also includes a
$78 million revenue transfer to the Department of Education for distribution to schools, which is nearly an
18 percent decrease from the 2009-11 Legislatively Approved Budget. The decrease results from a return
to standard distribution policy after a one-time change in method and from the effects of the
2008 financial crisis. The distribution depends on the average CSF balance for the past three years. The
2009-11 biennium budget distribution was based on the average fund balance from 2005 to 2008, which

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included the height of the financial bubble. The 2011-13 biennium budget distribution is based on the
three years from 2008 to 2011, when the financial crisis reduced the average fund balance. Because the
distribution is based on a three-year rolling average of the fund balance, the 2008 financial crisis will
affect the distribution calculation until 2012.
The balanced budget continues funding for oversight of waterway leases, management of rangeland and
increasing wetlands. The budget continues current programs at South Slough and allows for the
completion of a federal Environmental Protection Agency grant. It also transfers NHAC to the Oregon
Parks and Recreation Department.
Revenue
Most funding comes from revenues and earnings generated from land management and unclaimed
property. Revenues and earnings derive from the sale of timber, leases and royalties, land sales, permit
fees, unclaimed property, donations and publications. Investment income is generated from interest,
dividends and capital gains earnings on the CSF. Federal Funds from the National Oceanic and
Atmospheric Administration partially support the South Slough and the Environmental Protection Agency
provides some support for wetland projects.

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MARINE BOARD
2007-09 2009-11 2011-13

Other Funds $23,795,485 $26,262,518 $25,615,484
Federal Funds $8,032,484 $6,934,578 $6,954,993
Total Funds $31,827,969 $33,197,096 $32,570,477
Positions 40 43 43
Overview
The Marine Board promotes the safe and enjoyable use of Oregon’s waters. It does this by:
• Titling and registering over 184,000 boats.

• Registering outdoor outfitters and guides.
• Developing waterway management plans.
• Educating boaters on safe boating practices.
• Contracting with 32 county sheriffs and the Oregon State Police for on-water patrols and safety
services.
• Awarding facility grants to state and local agencies for boating facility development and
maintenance.
Balanced Budget
The Governor’s Balanced Budget for the Marine Board is $32.6 million total funds. This is a 1.9 percent
decrease from the 2009-11 Legislatively Approved Budget. The decrease results in reducing expenditures
to meet lower revenue projections, reflecting the effect of the recession on boating.
Reduced expenditures affect facilities projects. Resources are added to continue aquatic invasive species
work started in the 2009-11 biennium. As with all state agencies, the budget does not cover inflation and
limits personnel cost increases. Otherwise, this maintains boating safety education, technical advice and
information to reduce environmental impacts of marina operations and boating, and public recognition of
marinas that comply with state and federal requirements voluntarily. It also continues payments to
counties for law enforcement work.
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Revenue
The board has three major revenue sources. First, motorboat fuel taxes provide a quarter of the agency’s
2011-13 biennium budget projected revenues. The Department of Transportation (ODOT) collects
Oregon fuel taxes. Based on an estimate of fuel taxes paid by boaters, ODOT sends a portion of those
taxes to the Marine Board. The estimate is based on a boater survey taken every four years. The budget
includes an estimate of $10.1 million from this source. The estimated revenue for the 2011-13 biennium
is down about eight percent from the start of the 2009-11 biennium.
The second revenue source is registration and title fees. These fees account for a little more than a quarter
of projected revenues. Registration and titling fee revenues are estimated at $10.5 million for 2011-13.
Registration revenues are expected to decline six percent and title fees to decline ten percent from the
2009-11 biennium.
Federal Funds make up the board’s third major source of revenue, around a fifth of projected revenues.
The Clean Vessel Act provides money to develop sewage dump stations for boats. The Coast Guard’s
Recreational Boating Safety program pays for on-water law enforcement activities. The Agency expects
to have $7.0 million in Federal Funds during the 2011-13 biennium, which is a slight increase from the
2009-11 biennium.

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PARKS AND RECREATION DEPARTMENT

2007-09 2009-11 2011-13
Lottery Funds 93,331,031 90,870,271 88,206,624
Other Funds 105,112,829 94,170,268 101,377,638
Federal Funds 5,225,522 14,984,968 11,917,038
Other Funds (Nonlimited) 215,732 0 8,759,753
Total Funds $203,885,114 $200,025,507 $210,261,053

Overview
The Oregon Parks and Recreation Department provides and protects natural, scenic, cultural, historic and
recreational sites for the enjoyment and education of present and future generations. The system includes
235 parks or recreational properties and more than 99,400 acres of land.
The department also manages recreational and heritage programs, including all-terrain vehicle grants,
ocean shores protection, scenic waterways, the Willamette Greenway, recreational trails and historic
preservation. In addition, Parks houses the Oregon Heritage Commission.
During the 2005-07 biennium, the department started operating the annual State Fair, managing the State
Fairgrounds and directing exposition center activities. In the 2007-09 biennium, it began managing the
Oregon State Capitol Mall Park in front of the State Capitol building in Salem.
Balanced Budget
The Governor’s Balanced Budget for the Parks and Recreation Department is $210.3 million total funds.
This is a 5.1 percent increase from the 2009-11 Legislatively Approved Budget. The increase results from
funding acquisitions and development of the new Cottonwood Canyon state park. Also, the budget
includes operating expenses for the new and improved Beaver Creek State Natural Area and Fort Yamhill.
The Main Street program, which restores historic downtown areas, continues and support for the Natural
Heritage Advisory Council transfers from the Department of State Lands to the Oregon Parks and
Recreation Department. The State Fair continues.
The balanced budget adjusts Lottery Funds to implement Measure 76, which was approved by voters in
2010. The measure requires that 12 percent of the department’s lottery funds go to local grants. This
requirement resulted in a shift of Lottery Funds to local grants from other programs. The balanced budget

Natural Resources
keeps programs whole by using existing fee revenue to substitute for the Lottery Funds shift to local
grants. Measure 76 Lottery Funds also support work on marine reserves.
Over the years, the Department’s costs have increased while its longstanding funding source, park user
fees, have remained flat. Costs have increased as the department has opened new parks and taken on new
responsibilities, like the Main Street program, State Fair and Capitol Mall Park in Salem. Inflation and
labor cost increases have also increased expenditures. The 2009 legislative assembly approved a fee
increase for the first time since 1996. The 2011-13 biennium balanced budget proposes to tie fee
increases automatically to inflation rates to provide for continuing park operations.
Revenue
The budget is funded with Lottery Revenues from the constitutionally dedicated Parks and Natural
Resources Fund. Lottery Revenue forecasts continue to predict a decrease in resources. This change has
reduced the Department’s ability to absorb new programs and rising costs without addressing park user
fee rates, which are its major source of Other Fund Revenues. The proposal to tie fee increases to
inflation is intended to provide enough revenue to operate existing and new parks, and to remain as
affordable as possible to the public.
Additional sources of Other Fund revenues are all-terrain vehicle permits and un-refunded fuel tax and
recreational vehicle fees. The Department of Transportation also sends funds to the Department to
operate and maintain wayside rest areas. Other sources of funds include land sales proceeds, rents,
royalties and gifts. The State Fair generates operating revenues from the annual fair and exposition event
activities. Federal Fund revenues support the Historic Preservation Act and various grants. These federal
revenues have declined and will likely not increase during the 2011-13 biennium.

Natural Resources
WATER RESOURCES DEPARTMENT

2007-09 2009-11 2011-13
General Fund $25,873,738 $20,863,526 $21,170,643
Lottery Funds $0 $354,911 $574,400
Other Funds $4,999,094 $13,746,310 $33,210,177
Federal Funds $576,618 $1,197,639 $1,195,501
Total Funds $31,449,450 $36,162,386 $56,150,721

Overview
The Water Resources Department administers laws governing surface and groundwater resources. The
goal is to balance use of the state’s water among current and future generations of Oregonians. Among its
responsibilities, the department:
• Processes transfers of water rights, permits, certificates and water rights applications.
• Administers hydroelectric relicensing.
• Inspects construction and maintenance of wells and dams.
• Provides technical information and analysis on surface water and ground water availability.
• Adjudicates pre-1909 and federal reserved water rights.
• Negotiates Native American reserved water rights.
• Provides loans for various water development projects.
• Adjudicates rules on disputed water rights. The Klamath Basin adjudication is currently underway.
The Department also operates the Water Development Loan Program (WDLP). Established in 1977 to
finance irrigation and drainage projects, the WDLP has provided loans for 181 projects. In addition to
irrigation and drainage projects, the portfolio includes five loans for development of community water
supply systems.
Balanced Budget
The Governor’s Balanced Budget is $56.2 million total funds. This is a 55.3 percent increase from the
2009-11 Legislatively Approved Budget. The increase comes from Lottery Revenue Bond proceeds to
fund grants for Klamath County and water conservation/supply work. The balanced budget also continues
support for the Integrated Water Supply Strategy authorized by House Bill 3369 in 2009. It includes a
permanent water master position in the South Central region and a hydrotechnician in the Eastern region.

Natural Resources
Two Oregon Plan positions are shifted to Pacific Coastal Salmon Recovery Funds from the Oregon
Watershed Enhancement Board. Reductions include a contract oversight position, a groundwater
hydrogeologist, a water availability modeler and an information services manager. Reductions also affect
groundwater studies and services and supplies.
Revenue
General Fund supports 40 percent of the budget. Other Funds from fees associated with water rights and
start cards and fees received from service and interagency agreements provide most of the remaining
funding. Chapter 745, Oregon Laws 2003, allows the department to contract work when an applicant is
willing to pay more to receive expedited service, and more revenue is expected from this source. This
option was intended to streamline some of the regulatory process and is now established. Lottery
Revenue Bond proceeds fund 10 percent of the Department’s expenditures; these revenues are used for
water conservation/supply and irrigation projects. The Water Development Loan Program includes Other
Funds generated by general obligation bond proceeds, interest income and loan repayments. The agency
also receives federal grants for specific projects and for federally directed projects.
The balanced budget also includes non-dedicated Lottery Funds to pay debt service for bonds that will
fund existing debt for Umatilla water supply projects.

Natural Resources
OREGON WATERSHED ENHANCEMENT BOARD
2007-09 2009-11 2011-13

Lottery Funds $75,662,082 $66,667,401 $68,715,916
Other Funds $919,340 $2,009,705 $1,764,253
Federal Funds $14,955,720 $23,220,144 $44,106,297
Total Funds $91,537,142 $91,897,250 $114,586,466
Positions 30 31 34
Overview
The Oregon Watershed Enhancement Board (OWEB) promotes and implements programs that restore,
maintain and enhance Oregon watersheds to protect the economic and social well being of the state and its
citizens. The agency provides grants for local voluntary efforts to restore and protect native fish and
wildlife habitat and improve water quality. In 1998, voters approved Ballot Measure 66, which dedicated
15 percent of net lottery proceeds to natural resource efforts. The funds are split evenly between state
parks and watershed restoration. The 1999 Legislature established OWEB to administer the salmon and
watershed portion of dedicated lottery revenues. In 2010, Oregon voters approved Measure 76, which
continues the dedication with changes to how the funds can be spent.
Balanced Budget
The Governor’s Balanced Budget is $114.6 million total funds. This is a 24.7 percent increase from the
2009-11 Legislatively Approved Budget. The increase results from the use of a 2010 Pacific Coastal
Salmon Recovery Fund grant and from changes in Lottery Fund allocations under Measure 76.
Ballot Measure 76 limits Lottery Funds expenditures for appropriate operations, planning, and local
programs to no more than 35 percent of the available revenues under the dedication. The Measure also
requires that at least 65 percent of the dedicated revenues pay for local grants, which is a change from
Measure 66. Measure 66 required that at least 65 percent of the revenues go to capital expenditures, and
under Measure 66 capital expenses for other state agencies could be supported with the revenue. Measure
76 does not allow state or federal agencies to use the local grants for their own capital expenses. The
change results in the Oregon Watershed Enhancement Board budget retaining more Lottery Funds with

Natural Resources
off-setting Lottery Fund reductions in other natural resource agency budgets. Pacific Coastal Salmon
Recovery Funds (PCSRF), are used to continue other natural resource agencies’ programs.
The budget uses operations Lottery Funds to continue core agency functions, including grant oversight,
tracking and payments, data management, and education coordination. Federal performance review,
which the federal government requires, continues. Both Watershed Councils and Soil and Water
Conservation Districts will continue to receive support. Grants are funded with a combination of Lottery
Funds and Federal Funds. Local grant funding reflects Lottery Fund revenue projections and the use of
interest earnings. The budget continues an ecosystems services coordinator position to develop cost-
effective, market based programs to manage natural resources.
Revenue
The 2011-13 budget is supported by Lottery Funds, Other Funds and Federal Funds. Lottery Funds come
from the constitutional dedication in the Parks and Natural Resources Fund for restoration and protection
of native fish and wildlife habitat and improved water quality. Other Fund revenues come from a
surcharge on salmon license plates, various grants from other entities, and other charges for services.
Federal Fund (PCSRF) revenues come from the National Marine Fisheries Service, U.S. Department of
Commerce. The budget assumes $19 million of new PCSRF dollars will become available in the 2011-13
biennium along with $15 million of PCSRF awarded to OWEB in 2010 and held over for the 2011-13
biennium. The budget uses some of the PCSRF for non-capital grant expenditures.

Transportation

OREGON DEPARTMENT OF AVIATION....................................................................................................... G-3
DEPARTMENT OF TRANSPORTATION ........................................................................................................ G-5
2007-09 2009-11 2011-13

General Fund $4,504,713 $19,654,533 $20,000,231
Lottery Funds $46,559,439 $85,445,103 $83,891,421
Other Funds $2,990,622,144 $4,071,010,917 $3,754,354,934
Federal Funds $71,834,431 $92,411,014 $94,093,206
Total Funds $3,131,997,236 $4,286,679,782 $3,992,119,534
Positions 4,644 4,653 4,639

Overview
Quality roads, bridges and highways help keep Oregon's economy strong. Workers use the transportation
system to get to and return from their jobs. Businesses depend on the delivery of materials and supplies
to prosper. Every region of Oregon relies on transportation to assure economic growth and improve
Oregon’s quality of life. The Transportation Program Area currently includes two agencies: the
Department of Aviation and the Department of Transportation.
Approximately three percent of program area activities are supported by General Fund and Lottery Funds,
which are used for debt service for the Oregon Wireless Interoperability Network, rail construction
projects, short line rail infrastructure loans, Oregon streetcar projects, light rail projects and investments
in multi-modal infrastructure (Connect Oregon). Other Fund revenue sources include: fuel taxes, motor
vehicle and aircraft registrations, driver license fees, airport leases and maritime pilot fees. Federal Funds
support highway, transit, rail, and airport improvement programs. Federal Highway dollars are budgeted
and spent as Other Funds. All other Federal Funds are budgeted and spent as Federal Funds.
Balanced Budget
The budget for the Transportation Program Area is $4.0 billion total funds, a 6.9 percent decrease from
the 2009-11 Legislatively Approved Budget. General Fund and Lottery Funds total $103.9 million, a
1.2 percent decrease from 2009-11 levels. The decrease in total funds is related mostly to the phase-out of
expenditures for construction projects, based on the projected schedule in the statewide Transportation
Improvement Plan, a one-time payment for Milwaukie Light Rail and the completion of certain projects
from the American Recovery and Reinvestment Act of 2009.
2011-13 Governor's Balanced Budget G-1 Transportation

Transportation
During 2009-11, under the Connect Oregon III Program, the state sold $100 million in Lottery Backed
Bonds to invest in air, rail, marine and transit infrastructure to ensure Oregon’s transportation system is
strong, diverse and efficient. The 2011-13 budget includes funding for Connect Oregon IV to fund
another round of multimodal projects for improving public transportation, aviation, rail networks and
marine ports.
Key elements of the Governor’s Balanced Budget for the Transportation Program Area are outlined
below:
• The Governor’s Balanced Budget invests in Connect Oregon IV to continue Oregon’s investment
in multi-modal projects aimed at improving public transportation, the aviation system and the rail
network.
• The budget invests in the existing transportation and State Police wireless communications
systems to extend the life of the systems, consolidate the operations of the systems into a single
unit and meet the January 2013 federal deadline for narrowband requirements.
• The budget merges the Department of Aviation into the Department of Transportation to take
advantage of more robust and mature business systems and processes.
• The budget reduces Aviation Division operating expenditures to stay within lower forecasted
revenues.
• The Governor’s Balanced Budget shifts the funding for the patrol division of the Oregon State
Police from the General Fund to the State Highway Fund.

Transportation
OREGON DEPARTMENT OF AVIATION

2007-09 2009-11 2011-13
Other Funds $8,463,051 $6,738,855 $0
Federal Funds $9,993,345 $2,470,000 $0
Total Funds $18,456,396 $9,208,855 $0
Positions 17 17 0
Overview
The Oregon Department of Aviation’s mission is to advocate for the safe operation, growth and
improvement of aviation in Oregon. Founded in 1921, it was the first government aviation agency in the
United States.
The Department plans the development of airports, state airways and aviation industries. The Department
is also responsible for operations and maintenance of 27 state-owned airports. It assists communities in
obtaining federal support for airport construction and maintenance; registers pilots, aircraft and airports;
and inspects and licenses public and private airports and heliports.
Balanced Budget
The Governor’s Balanced Budget merges the Department of Aviation into the Oregon Department of
Transportation (ODOT). This action will allow the agency to take advantage of existing, mature business
systems and processes. The expenditure limitation of $6,327,213 Other Funds and $4,472,056 Federal
Funds, as well as 13 positions (13.00 full-time equivalents) have been included in the ODOT balanced
budget.
There is not enough revenue to support agency operations at the 2009-11 Legislatively Approved Budget
level. As a result, the balanced budget reduces operating expenditures, including the loss of three
positions. The agency has been reorganized to provide services more efficiently. The budget does
include capital construction projects at the Joseph Airport, the Aurora Airport, and the Chiloquin Airport.

Transportation
Revenue
Other Funds and Federal Funds support the Department. Other Fund revenues come from licenses,
registrations, leases, fuel taxes and other sources. The Federal Aviation Administration provides support
in the form of grants requiring a five percent state match. Aviation and jet fuel tax revenues have dropped
significantly in recent years and are not expected to return to pre-recession levels in the near future.
Therefore, the agency has been merged into the ODOT in order to be effective at a reduced operating
level.
State jet fuel and aviation gas taxes fund the Statewide Airport Pavement Maintenance program. The
department also awards grants to communities to use as a match for Federal Funds, or to fund projects
that are not eligible for federal support.

Transportation
DEPARTMENT OF TRANSPORTATION
2007-09 2009-11 2011-13

General Fund $4,504,713 $19,654,533 $20,000,231
Lottery Funds $46,559,439 $85,445,103 $83,891,421
Other Funds $2,982,159,093 $4,064,272,062 $3,754,354,934
Federal Funds $61,841,086 $89,941,014 $94,093,206
Total Funds $3,113,540,840 $4,277,470,927 $3,992,119,534
Positions 4,627 4,636 4,639

Overview
The mission of the Oregon Department of Transportation (ODOT) is to provide a safe, efficient
transportation system that supports economic opportunity and livable communities for Oregon. The
Department is under the direction of the five-member Oregon Transportation Commission, which is
appointed by the Governor, as is the agency Director.
ODOT is responsible for a wide range of programs and activities related to Oregon’s transportation
systems. The agency is involved in developing highways, roads and bridges; railways and public
transportation services; bicycle and pedestrian paths; transportation safety programs; driver and vehicle
licensing; and motor carrier regulation. The agency, which is organized into eight divisions, has more
than 4,600 employees located in offices and facilities around the state.
Balanced Budget
The Governor’s Balanced Budget is $4 billion total funds. The budget is a 6.7 percent decrease from the
2009-11 Legislatively Approved Budget. The decrease results from adjustments to payments for
construction on highway projects, which reflect the forecasted schedule in the adopted Statewide
Transportation Improvement Plan, the completion of certain projects for the American Recovery and
Reinvestment Act of 2009, the elimination of a one-time payment to Tri-Met for Milwaukie Light Rail,
and reductions to personal services and certain inflationary factors for services and supplies.
The General Fund portion of the budget, which funds debt service for the Oregon Wireless
Interoperability Network is 1.8 percent higher than the 2009-11 Legislatively Approved Budget.
The Governor’s Balanced Budget adds resources to the Highway Division overall. The budget also
contains $40 million in Lottery Revenue Bonds for a Connect Oregon IV program, which will provide

Transportation
ODOT with funding for another round of multimodal projects to improve public transportation, the
aviation system, the rail network and marine ports.
The budget makes a $146 million investment in existing Transportation and State Police wireless
communications to achieve three goals:
• Extend the useful life of transportation and State Police wireless communications systems. This
includes replacement of all microwave and radio equipment, and acquisition of handheld radios.
• Consolidate operations of these systems into a single unit.
• Meet the January 2013 federal deadline for narrow banding.
This project investment is in lieu of the Oregon Wireless Interoperability Network.
This budget sustains investments in maintaining and improving Oregon’s aging infrastructure, including
department assets.
It also merges the Aviation Department into the Department of Transportation as a division.
The budget also funds 457 patrol troopers from the Oregon State Police, which is sufficient to preserve
basic around-the-clock coverage on major highways. The balanced budget achieves this funding level by
shifting the cost of patrol services to the state Highway Fund in the Department of Transportation. The
shift is effective in January 2012.
Revenue
The balanced budget includes General Fund support for debt service on the Oregon Wireless
Interoperability Network.
Debt service on bonds supporting Connect Oregon I, II, and III; South Metro Commuter Rail; Southeast
Metro Milwaukie Extension; Short Line Rail and industrial spur projects and Street Car projects is paid
with Lottery Funds.
The majority of the agency’s revenue comes from motor fuel receipts, weight-mile tax collections and
motor vehicle licensing and registration fees. These revenue sources were increased as a result of the Jobs
and Transportation Act of 2009. Net proceeds from these revenue sources, after collection costs incurred
by Driver and Motor Vehicle Services, Motor Carrier Divisions and Central Services, are deducted and
shared with cities and counties on a formula basis. ODOT also collects various special fees and
surcharges which are transferred to other state and local agencies. A portion of fuel taxes collected for
various special classes of vehicles, such as boats and snowmobiles is also transferred to other state
agencies for use in programs benefiting the users of these vehicles.

Consumer and Business Services

OREGON BOARD OF ACCOUNTANCY ........................................................................................................ H-3
BOARD OF CHIROPRACTIC EXAMINERS .................................................................................................... H-4
STATE BOARD OF CLINICAL SOCIAL WORKERS ....................................................................................... H-5
CONSTRUCTION CONTRACTORS BOARD ................................................................................................... H-7
DEPARTMENT OF CONSUMER AND BUSINESS SERVICES ........................................................................... H-8
BOARD OF LICENSED PROFESSIONAL COUNSELORS AND THERAPISTS ................................................... H-10
OREGON BOARD OF DENTISTRY ............................................................................................................. H-11
OREGON HEALTH LICENSING AGENCY ................................................................................................... H-12
HEALTH RELATED LICENSING BOARDS ................................................................................................. H-14
BUREAU OF LABOR AND INDUSTRIES ..................................................................................................... H-22
OREGON MEDICAL BOARD..................................................................................................................... H-24
OREGON STATE BOARD OF NURSING ..................................................................................................... H-25
OREGON BOARD OF PHARMACY ............................................................................................................ H-27
BOARD OF PSYCHOLOGIST EXAMINERS ................................................................................................. H-28
PUBLIC UTILITY COMMISSION................................................................................................................ H-29
REAL ESTATE AGENCY .......................................................................................................................... H-31
STATE BOARD OF TAX PRACTITIONERS ................................................................................................. H-32
2011-13
2007-09 2009-11
Governor's Balanced
Actuals Legislatively Approved
Budget
General Fund $12,749,264 $12,915,379 $11,927,913
Other Funds $301,086,237 $325,457,714 $321,350,903
Federal Funds $1,821,755 $4,322,726 $6,926,507
Total Funds $922,323,498 $1,044,233,541 $610,718,117
Positions 1,621 1,622 1,451

Overview
Consumer and Business Services agencies work to protect consumers and workers, and to promote a
positive business climate in the state. With the current economic downturn, many agencies have
experienced a decrease in revenue. They have made reductions where needed and reviewed the
possibility of a fee increase. Fee increases that are recommended will maintain or enhance services
supported by affected constituents. Agencies will continue to evaluate services, systems and programs in
this program area for better coordination and integration.
2011-13 Governor's Balanced Budget H-1 Consumer and Business Services

Agencies within the Consumer and Business Services Program Area include:
• Department of Consumer and Business Services, which protects consumers and workers in
matters of workers’ compensation, occupational safety and health, financial services, insurance
and state building codes, while supporting a positive business climate.
• Bureau of Labor and Industries, which protects people’s rights in workplaces, career schools,
housing and public accommodations; enforces wage and hour laws; promotes the development
of a skilled workforce; and provides training to employers.
• Public Utility Commission, which works to ensure that safe and reliable utility services are
provided to consumers at equitable and reasonable rates through regulation and promoting the
development of competitive markets; regulates customer rates and services of investor-owned
electric, natural gas, and telephone utilities, as well as certain water companies.
• Regulatory boards, which protect customers of various professional services; ensure that only
qualified people are licensed or bonded; and set and ensure standards of conduct.
Balanced Budget
The Governor’s Balanced Budget for the Consumer and Business Services Program Area agencies is
$610.7 million total funds. This is a 41.5 percent decrease from the 2009-11 Legislatively Approved
Budget; this decrease is primarily related to the budget for the Oregon Medical Insurance Pool moving
from the Department of Consumer and Business Services to the Oregon Health Authority effective
July 1, 2011 through House Bill 2009 (2009). Limited Other Fund expenditures are reduced by
10 percent.
Other Funds provide almost 97 percent of the budget for this program area. Just two percent of the
program area’s budget is General Fund. The General Fund is $11.9 million, all within the Bureau of
Labor and Industries, which is a reduction of eight percent from 2009-11 Legislatively Approved Budget.
All regulatory boards are funded entirely with Other Funds, derived primarily from licensing fees.

OREGON BOARD OF ACCOUNTANCY

2011-13
2007-09 2009-11
Governor's Balanced
Actuals Leg Approved Budget
Budget
Other Funds $1,658,890 $1,752,239 $2,066,408
Total Funds $1,658,890 $1,752,239 $2,066,408
Positions 7 7 7
Overview
The Oregon Board of Accountancy regulates the practice and performance of services provided by
licensed accountants. The board evaluates the qualifications of candidates, manages the exam
applications and grades, issues and renews licenses and investigates complaints. Approximately 8,500
certified public accountants, public accountants and municipal auditors are overseen by the board.
Balanced Budget
The Governor’s Balanced Budget is $2.1 million Other Funds. This is a 17.9 percent increase from the
2009-11 Legislatively Approved Budget. The balanced budget continues all programs and provides
funding for contract investigators to handle complex cases requiring additional expertise. The budget also
supports costs associated with a new online licensing system approved at the December 2010 Emergency
Board meeting.
Revenue
The Board is funded entirely with Other Fund revenues, primarily from licensing fees. The Governor’s
Balanced Budget leaves the Board with an estimated ending cash balance of $1.0 million for 2011-13,
which is equivalent to 11 months of operating expenses.

BOARD OF CHIROPRACTIC EXAMINERS

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $1,112,908 $1,243,565 $1,303,051
Total Funds $1,112,908 $1,243,565 $1,303,051
Positions 5 5 5
Overview
The Board of Chiropractic Examiners regulates chiropractors and chiropractic assistants through public
protection, licensing, continuing education, examination, rulemaking and practice guidelines. The Board
oversees more than 2,700 licensees, including over 1,000 chiropractic assistants and more than
1,400 active chiropractors.
Balanced Budget
2009-11 Legislatively Approved Budget. The balanced budget continues all programs and adds funding
for additional Attorney General costs and upward reclassification of a Compliance Specialist position.
Revenue
The Board is funded entirely with Other Funds, primarily supported by licensing fees. The Governor’s
Balanced Budget would leave the Board a $207,200 ending cash balance for 2011-13, which is equivalent
to approximately four months of operational expenses.

STATE BOARD OF LICENSED SOCIAL WORKERS

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $793,311 $927,435 $1,256,572
Total Funds $793,311 $927,435 $1,256,572
Positions 5 5 6
Overview
The mission of the Board of Licensed Social Workers (Board) is to protect the citizens of Oregon by
setting a strong standard of practice and ethics through the regulation of social workers. The Governor
appoints the seven-member board that includes four Licensed Clinical Social Workers and three public
members. The Board regulates clinical social workers by certifying associates working toward licensure
through two-year plans of supervision, and licenses clinical social workers by means of a national
examination with a self-test on Oregon laws and rules.
The Board sets policy, writes and adopts rules, renews licenses annually, and audits continuing education
as a part of the renewal process. The Board has the authority to discipline licensees, to deny, suspend,
revoke, or refuse to renew a certificate or license. It also appoints and reviews the work of the Executive
Director. Staff is responsible for issuing and renewing licenses, investigating complaints and monitoring
disciplined licensees. The Board currently has 3,734 licensees.
Balanced Budget
The Governor’s Balanced Budget is $1.3 million Other Funds. This is a 35.5 percent increase over the
2009-11 Legislatively Approved Budget. The increase is primarily due to the implementation of
Senate Bill 177, a practice act, passed during the 2009 Legislative Session. The budget supports existing
services, continues one limited duration position on a permanent basis in order to address an increase in
complaints that lead to investigations, and provides the limitation necessary for conducting criminal
background checks on licensees. The Balanced Budget also provides funds and positions necessary to
implement Senate Bill 177 (2009).

Revenue
The Board is funded solely by Other Funds, primarily derived from professional licensing fees. The
Balanced Budget includes a fee ratification to provide funding for the implementation of
Senate Bill 177 (2009). The Board established new fees associated with new licenses created in Senate
Bill 177 (2009) and increased late fees for individuals renewing their licenses late. This position and the
fee increases associated with it are critical to the agency’s public protection mission.
The Balanced Budget leaves the Board with an ending balance of about $181,891 or approximately four
months of average operating expenses.

CONSTRUCTION CONTRACTORS BOARD

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $14,693,323 $15,082,530 $14,373,739
Total Funds $14,693,323 $15,082,530 $14,373,739
Positions 85 80 70
Overview
The Construction Contractors Board safeguards consumers’ rights related to contract improvements to
real property. The Board also promotes a fair, equitable and competitive environment in the construction
industry. The agency is responsible for testing and licensing contractors, investigating complaints,
adjudicating claims and educating consumers and contractors. The Board oversees approximately 40,000
licensed contractors.
Balanced Budget
The Governor’s Balanced Budget is $14.4 million Other Funds. This is a 4.7 percent decrease from the
2009-11 Legislatively Approved Budget. The Balanced Budget provides funds to continue recent
additions to the agency’s charge, including a continuing education program, lead-based paint certification,
and locksmith licensing.
Revenue
The Board is funded with Other Fund revenues, primarily through the registration and renewal fee. This
fee will remain at $325 for a two-year license during the 2011-13 biennium. The agency estimates that it
will collect approximately $13.0 million from this source in 2011-13. The Governor’s Balanced Budget
would provide the agency an estimated ending balance of $2.7 million, which is equivalent to four and a
half months of operating expenditures.

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $199,119,398 $210,074,625 $200,492,670
Federal Funds $0 $0 $756,100
Total Funds $707,492,436 $814,429,694 $394,440,961
Positions 1,073 1,073 922

Full-time Equivalent 1,059.54 1,064.08 913.93
Overview
The Department of Consumer and Business Services (DCBS) administers programs that protect
consumers and workers. This is done while supporting a positive business climate in the state. DCBS has
seven major programs:
• The Workers’ Compensation Board hears and settles cases relating to workers’ compensation
claims and workplace safety.
• The Workers’ Compensation Division supervises and enforces workers’ compensation insurance
laws. The Division funds programs that help injured workers and employers. It also funds the
administrative costs of the Management-Labor Advisory Committee. This committee considers
various aspects of the workers’ compensation system and reports findings to the Director and the
Legislature.
• The Oregon Occupational Safety and Health Division (OSHA) helps make sure that the workplace
is safe. It conducts worksite inspections, provides training materials and offers free consultation
services to employers.
• The Insurance Division helps make sure that insurance companies are financially sound. It also
works to see that insurance policyholders and claimants are treated fairly and to ensure the
affordability and availability of insurance products.
• The Division of Finance and Corporate Securities assures financial institutions’ services and
products are provided in a safe, sound, equitable and fraud-free manner while promoting a
favorable business climate for these institutions. It also helps make sure that financial deals are
fully disclosed.

• Shared Services Division guides the agency. It includes the Director’s Office, Fiscal and Business
Services, the Information Management Division, Communications Section, and Employee
Services.
• The Building Codes Division ensures safe building construction while supporting a positive
business climate. It provides code development, administration, inspection, plan review, licensing
and permit services to the industry.
DCBS administers Nonlimited Special Payments accounts, the self-insured employer reserve accounts
and the Workers’ Benefit Fund, for workers’ compensation reserve programs.
Balanced Budget
The Governor’s Balanced Budget for DCBS is $394.4 million total funds. This is 51.6 percent decrease
from the 2009-11 Legislatively Approved Budget. This decrease is mostly related to the Oregon Medical
Insurance Pool budget moving to the Oregon Health Authority effective July 1, 2011, per House Bill 2009
(2009). Limited expenditures have decreased by 4.6 percent.
The budget maintains the current level of operations in the Insurance Division and the Division of Finance
and Corporate Securities; however, it reduces operational expenditures across the other divisions due to
the Department’s decrease in revenue. The budget continues the policy and fiscal decisions made by the
2009 Legislature for the Department to examine mortgage lending companies every two to three years
and maintains the current level of enforcement efforts. The budget also includes expansion of the
Department’s amusement ride oversight function and residential elevator safety.
Revenue
DCBS has numerous sources of Other Fund revenues including workers’ compensation “cents-per-hour”
assessments and contributions; workers’ compensation premium assessments; insurer assessments for the
Insurance Division; license fees and other charges for services; interest earnings from investment sales;
and fines and penalties. With the current economic downturn, DCBS has experienced a sharp decline in
revenue streams tied to employment and the housing and construction markets. The budget reduces
expenditures to account for this continued expected decrease in revenues.
In addition to its Other Fund revenues, the Department also receives Federal Funds that it spends as Other
Funds. Federal Funds are received for administration of the OSHA, collection of statistics for the
U.S. Bureau of Labor Statistics, regulation of manufactured housing production, and administration of the
Oregon Senior Health Insurance Benefits Assistance Program. The Department also receives two federal
grants relating to Federal Health Insurance Reform.

BOARD OF LICENSED PROFESSIONAL COUNSELORS AND

THERAPISTS
2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $666,367 $789,059 $998,835
Total Funds $666,367 $789,059 $998,835
Positions 3 4 5
Overview
The Board of Licensed Professional Counselors and Therapists oversees use of the titles “Licensed
Professional Counselor” and “Licensed Marriage and Family Therapist.” Though the agency does not
regulate the general practice of counseling and family therapy, it regulates the use of the titles and the
practice of its licensees. The 2,400 licensees must meet the Board’s education, examination and
experience standards. Licensees include professional counselors, marriage and family therapists, and
interns.
Balanced Budget
The Governor’s Balanced Budget is $998,835 Other Funds. This is 26.6 percent higher than the
2009-11 Legislatively Approved Budget. The Balanced Budget continues all programs. In addition, the
budget adds two positions (1.50 full-time equivalent) for professional investigative expertise to handle an
increasing number of complaints against licensees and to support of the Board’s reporting requirements.
Revenue
The Board is funded entirely with Other Funds collected through fees for applications, examinations,
licenses and renewals, restoration of lapsed licenses, civil penalties and miscellaneous services. The
Board is proposing one new fee, $47.25, to pass through to the Oregon State Police for fingerprint-based
criminal background checks. The Balanced Budget includes an ending balance that is equivalent to about
four months of operating expenditures.
2011-13 Governor's Balanced Budget H - 10 Consumer and Business Services

OREGON BOARD OF DENTISTRY

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $1,943,392 $2,182,624 $2,509,517
Total Funds $1,943,392 $2,182,624 $2,509,517
Positions 7 7 7
Overview
The Board of Dentistry ensures that citizens of Oregon receive the highest possible quality of dental care.
To this end, the Board regulates dentists and dental hygienists. It does this through examination, licensing,
certification, issuance of permits and discipline. The board licenses about 3,600 dentists and 3,700 dental
hygienists.
The Board participates in the Health Professionals Service Program (HPSP) for impaired professionals
established within the Oregon Health Authority under House Bill 2345 (2009).
Balanced Budget
The Governor’s Balanced Budget is approximately $2.5 million Other Funds. This is an increase of
15 percent over the 2009-11 Legislatively Approved Budget. The Balanced Budget continues all current
programs. It provides funds and adjustments to expenditure limitations to sustain existing services. The
Balanced Budget also includes implementation of pass-through fees to fund the Board’s participation in
the HPSP.
Revenue
The Board is funded entirely with Other Funds by fees paid for professional licenses and applications.
Pass-through fees fund national criminal background checks and subscriptions to national disciplinary
databases. The Governor’s Balanced Budget would leave the Board with an estimated ending cash
balance of $0.3 million for 2011-13, which is equivalent to approximately three months of operating
expenses.

OREGON HEALTH LICENSING AGENCY

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $6,262,795 $6,402,806 $6,568,327
Total Funds $6,262,795 $6,402,806 $6,568,327
Positions 33 33 34
Overview
The Health Licensing Agency (HLA) provides licensing, oversight and direction for multiple professions
represented by volunteer citizen boards and advisory councils. Professions subject to the Board include:
• Athletic Training • Environmental Health Technology

• Body Piercing Technology • Hearing Aid Technology
• Cosmetology: • Midwifery
o Barbers • Nursing Home Administrators
o Estheticians • Sex Offender Treatment Therapy
o Hair Designers • Tattoo Artists / Permanent Color Technology
o Nail Technicians • Respiratory Therapy
• Denture Technology • Waste Water Treatment
• Electrology
The Agency’s regulatory authority and powers span administrative (determining policy, budgeting,
rulemaking and personnel) and regulatory (licensing, investigations, discipline and sanctions) while
allowing input and consultation from the boards and councils.
Balanced Budget
The Governor’s Balanced Budget is $6.6 million Other Funds, which constitutes a three percent increase
from the 2009-11 Legislatively Approved Budget. The budget continues five limited-duration positions
as permanent; three investigators, an office specialist, and a public service representative. The budget
also permanently reclassifies two positions to operations and policy analysts and aligns budgeted
expenses to more accurately reflect actual expenditures.
Revenue
The HLA is entirely funded with Other Funds, primarily derived from licensing fees. The budget
includes the fees for three boards and one program that were changed administratively during the 2009-11
biennium. The budget also includes two revenue packages related to legislative concepts, one creating a
single license for the Board of Cosmetology and one creating a temporary license for the Board of
Denture Technology.
The Balanced Budget would leave the agency with an estimated ending cash balance equivalent to about
three months of operational expenses.

BOARD OF EXAMINERS OF LICENSED DIETITIANS

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $71,185 $76,354 $103,773
Total Funds $71,185 $76,354 $103,773
Positions 1 1 1
Overview
The Board of Examiners of Licensed Dietitians protects public health, safety and well-being by regulating
licensed dietetic practice. Unlike many of the other health-related licensing boards, the licensure of
dietitians is not mandatory. The board recommends sanctions for licensees who violate the board’s
standards of conduct and professional responsibility. Licensing of practicing dietitians in the state of
Oregon protects the public in the provision of nutrition therapy and ensures a standard of quality.
Balanced Budget
The Governor’s Balanced Budget is $103,773 Other Funds, which is a 36 percent increase from the
2009-11 Legislatively Approved Budget. The budget funds existing operations and includes additional
resources to fund a temporary employee to provide assistance during the renewal season and to maintain
its information technology infrastructure.
Revenue
The board is funded entirely with Other Funds, supported by license fees, renewal fees, license lists/labels
and late fees. The Governor’s Balanced Budget leaves the board with an ending balance of
approximately $117,227 Other Funds, which is equivalent to approximately 27 months of operating
expenses. Due to the limited nature of this board’s budget, the recommended ending balance is prudent
since one or two contested cases could quickly place significant financial demands on the board.

OREGON MORTUARY AND CEMETERY BOARD

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $1,032,009 $1,256,294 $1,310,960
Total Funds $1,032,009 $1,256,294 $1,310,960
Positions 5 6 6
Overview
The Oregon Mortuary and Cemetery Board works to protect public health, safety and welfare by fairly
and efficiently performing licensing, inspection, and enforcement duties; promoting professional behavior
and standards in all facets of the Oregon death care industry; and maintaining constructive relationships
with licensees and the public. The board’s principal duties include providing impartial oversight,
regulation, testing, review, registration, certification and discipline of licensees.
Balanced Budget
The Governor’s Balanced Budget is $1.3 million Other Funds, which is a 4.4 percent increase over the
2009-11 Legislatively Approved Budget. The budget funds existing operations with no enhancements.
Revenue
The board is funded entirely with Other Funds from license fees, public record fees, civil penalties and a
$14.00 portion of the $20.00 death registration filing fee. The remaining $6.00 of the death registration
filing fee stays within the Department of Human Services Public Health Program for administration of the
Indigent Burial Fund Program. This fund allows funeral service practitioners to claim limited
reimbursement when a deceased person lacks assets and no one takes responsibility for the expenses of
final disposition.
The Governor’s Balanced Budget leaves the board with an ending balance of about $291,968, which is
equivant to five months of operating expenses.

BOARD OF NATUROPATHIC MEDICINE

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $478,567 $543,608 $655,139
Total Funds $478,567 $543,608 $655,139
Positions 2 3 2
Overview
The Board of Naturopathic Medicine examines, licenses and disciplines naturopathic physicians,
including certifying those practitioners qualified to perform natural childbirth. Renewals for licensure
require continuing education hours that must be reviewed and approved throughout the year. The board
also works to increase consumer awareness and encourage a higher level of professional education for
licensees.
Balanced Budget
The Governor’s Balanced Budget of $655,139 Other Funds is a 20.5 percent increase over the
2009-11 Legislatively Approved Budget. The Balanced Budget funds existing operations with additional
resources to address workload issues associated with an increase in the number of complaints the Board
needs to investigate and to maintain its information technology infrastructure.
Revenue
The Board of Naturopathic Examiners is supported by Other Funds generated through fees for
examination, initial licenses, license renewals and miscellaneous service fees. The budget includes a fee
increase to cover the Board’s operating costs and provide a prudent ending balance. The ending balance in
the Governor’s Balanced Budget is about $121,630 Other Funds, which is equivalent to just over four
months of operating expenses.

OCCUPATIONAL THERAPY LICENSING BOARD

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $256,951 $337,191 $391,377
Total Funds $256,951 $337,191 $391,377
Positions 1 1 1
Overview
The Occupational Therapy Licensing Board’s mission is to protect the public by supervising the practice
of occupational therapy, and assure the safe and ethical delivery of occupational therapy services. The
Board also investigates complaints and takes appropriate disciplinary action.
Balanced Budget
The Governor’s Balanced Budget is $391,377 Other Funds, which is a 16.1 percent increase over the
2009-11 Legislatively Approved Budget. The budget funds existing operations. The increase is largely
due to the need to include limitation for the Board to pay for criminal background checks on its
applicants.
Revenue
The Board is supported by Other Fund revenues from initial licenses, renewals and miscellaneous fees.
The Governor’s Balanced Budget leaves the board with an ending balance of about $218,418
Other Funds, which is equivalent to approximately thirteen months of operating expenses. The ending
balance is the result of prudent fiscal management, as the Board needs to maintain at least 11 months of
reserves based on its fee cycle. The Board decreased fees in 2009-11.

BOARD OF MEDICAL IMAGING

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $569,574 $612,737 $754,416
Total Funds $569,574 $612,737 $754,416
Positions 3 3 4
Overview
The mission of the Board of Medical Imaging is to promote, preserve and protect the public health, safety
and welfare of Oregonians while undergoing medical imaging studies performed by licensees for the
purpose of medical diagnosis and therapy. In 2009-11, through House Bill 2245 (2009), the Board’s
regulatory responsibilities expanded to nuclear medicine technologists, MRI technologists and
sonographers.
Balanced Budget
The Governor’s Balanced Budget is $754,416 Other Funds, which is 23.1 percent higher than the
2009-11 Legislatively Approved Budget. The increase in the budget is due mainly to the enactment of
House Bill 2245. The budget also provides the Board with additional resources necessary to pay a vendor
for issuing a competency exam to certain licensees.
Revenue
The Board is funded entirely with Other Funds, supported by fees paid for limited scope examinations,
initial licensing and renewal. The ending balance in the Governor’s Balanced Budget is about $138,902
Other Funds, which is equivalent to approximately four months of operating expenses.

BOARD OF EXAMINERS FOR SPEECH-LANGUAGE PATHOLOGY

AND AUDIOLOGY
2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $290,440 $313,554 $560,437
Total Funds $290,440 $313,554 $560,437
Positions 2 2 3
Overview
The Board of Examiners for Speech-Language Pathology and Audiology protects the public by licensing
and regulating the performance of Speech-Language Pathologists and Audiologists. The Board regulates
the professional practice of speech-language pathology and audiology through ongoing monitoring of
licensees, including investigating professional competence and conduct.
Balanced Budget
The Governor’s Balanced Budget of $560,437 Other Funds is a 78.7 percent increase over the
2009-11 Legislatively Approved Budget. Since 2008, the Board’s Speech-Language Pathologists,
Audiologists, and Speech-Language Pathologist Assistants have increased by 8.5 percent, 12 percent, and
12 percent, respectively. Furthermore, since 2008, the Board has experienced a marked increase (16 cases
in 2008, 41 cases in 2009, and 47 cases through August of 2010) in complaints that lead to open
investigations. The budget funds the Board’s existing operations and adds resources to increase the
Board’s current part-time positions to full-time and fund a limited duration investigator position to
address workload related to compliance efforts. The budget also provides the Board with funding to
maintain its information technology infrastructure.
Revenue
The Board of Examiners for Speech-Language Pathology and Audiology is supported solely by Other
Funds generated through fees for examination, initial licenses, license renewals and miscellaneous service
fees. The budget includes a fee increase that was established, in rule, in July 2009. The fee was designed
to cover the Board’s operating costs and provide a prudent ending balance. The fee increase resulted in
collecting more revenue than originally anticipated. Therefore, the budget also includes a one-time fee
decrease for the 2011-13 biennium. The ending balance in the Governor’s Balanced Budget is about
$238,756 Other Funds, which is equivalent to approximately 10 months of operating expenses. The
ending balance is the result of prudent fiscal management, as the Board needs to maintain at least nine
months of reserves based on its fee cycle.

VETERINARY MEDICAL EXAMINING BOARD

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $557,881 $658,855 $696,996
Total Funds $557,881 $658,855 $696,996
Positions 3 3 3
Overview
The Veterinary Medical Examining Board regulates the veterinary professions in Oregon through the
enforcement of the Veterinary Practice Act. The Board’s mission is to protect animal health and welfare,
public health and consumers by setting and enforcing professional standards for veterinary health and
medical services. This is done by mandating minimum qualifications for entry into the profession,
providing parameters for the practice of veterinary medicine and enforcing the law relating to such
services.
Balanced Budget
The Governor’s Balanced Budget is $696,996 Other Funds, which is a 5.8 percent increase over the
2009-11 Legislatively Approved Budget. The budget funds existing operations with no enhancements.
Revenue
The board is solely supported by Other Funds that are composed of application, examination and license
fees, with the remaining derived from assessed penalties and miscellaneous revenue. The ending balance
in the Governor’s Balanced Budget is $241,501 Other Funds, which is equivalent to approximately eight
months of operating expenses. The ending balance is the result of prudent fiscal management, as the
Board needs to maintain at least six months of reserves based on its fee cycle.

BUREAU OF LABOR AND INDUSTRIES

2011-13
2007-09 2009-11
Governor's Balanced
Budget
General Fund $12,749,264 $12,915,379 $11,927,913
Other Funds $5,395,659 $6,862,262 $8,063,580
Federal Funds $1,326,011 $1,412,409 $1,356,446
Total Funds $21,303,929 $23,594,000 $23,547,939

Overview
The Bureau of Labor and Industries (BOLI) has four principal functions:
• The Apprenticeship and Training Division promotes the development of a highly skilled,
competitive workforce in Oregon through apprenticeship programs and through partnerships with
government, labor, business and educational institutions.
• The Civil Rights Division enforces state and federal laws that prohibit unlawful discrimination.
The division investigates allegations of civil rights violations in workplaces, career schools,
housing and public accommodations.
• The Technical Assistance for Employers Program provides a variety of educational services to
employers including: public seminars, customized on-site training, employment law manuals and
publications, online information and a free assistance hotline.
• The Wage and Hour Division enforces state laws relating to minimum wage, overtime, terms and
conditions of employment and prevailing wage rates on public works projects. The division
investigates wage claims and allegations of workplace violations of those laws. The division also
enforces laws regulating farm and forest labor contractors.
Balanced Budget
The Governor’s Balanced Budget is $23.5 million total funds, which is 0.2 percent lower than the
2009-11 Legislatively Approved Budget. The Balanced Budget continues all current programs. It provides
funding for minor information technology updates. The budget includes reductions in all four divisions,
including elimination of seven positions across the divisions due to General Fund’s slowed growth.

Revenue
BOLI is funded primarily with General Fund. BOLI receives Federal Funds through three contracts: a
contract with the Equal Employment Opportunity Commission for jointly filed civil rights complaint
investigations, a contract with the U.S. Department of Housing and Urban Development for investigating
housing complaints, and a contract with the U.S. Department of Veterans Affairs for providing
apprenticeship and training services to veterans. BOLI receives Other Funds from the following sources:
payments for technical assistance services to support the Technical Assistance for Employers unit, the
Wage Security Fund, the prevailing wage rate contract fees, licensing fees for farm and forest labor
contractors, the Workers Benefit Fund and contracts with state government.

OREGON MEDICAL BOARD

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $8,614,946 $9,532,401 $10,179,398
Total Funds $8,614,946 $9,532,401 $10,179,398
Positions 37 40 40
Overview
The Oregon Medical Board regulates the practice of medicine to promote quality care. It does this
through licensing, investigation, examination, continuing education and discipline. The Board’s more
than 16,000 licensees include medical doctors, doctors of osteopathy, podiatrists, acupuncturists and
physician assistants.
The board participates in the Health Professionals Service Program for impaired professionals
Balanced Budget
The Governor’s Balanced Budget is $10.2 million Other Funds, which is a 6.8 percent increase from the
2009-11 Legislatively Approved Budget. The Balanced Budget continues all current programs. It
provides funds for office security enhancement and adjustments to expenditure limitations to sustain
certain existing services. These additional resources are needed to keep up with increased workload
demands and maintain efficient internal operations. The Balanced Budget also includes implementation
of pass-through fees and the agency’s first fee increase since 1998.
Revenue
The board is funded entirely with Other Funds by fees paid for professional licenses. A portion of the
annual renewal fee is transferred to the Oregon Health Sciences University to maintain its medical
library. Board licensing fees also support the prescription monitoring program established under Senate
Bill 355 (2009) and workforce data collection required by House Bill 2009 (2009). The Governor’s
Balanced Budget would leave the board with an estimated ending cash balance of $4.9 million for 2011-
13, which is equivalent to approximately 11 months of operating expenses.
OREGON STATE BOARD OF NURSING

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $10,236,464 $11,700,411 $14,171,248
Total Funds $10,236,464 $11,700,411 $14,171,248
Positions 47 50 47
Overview
The Oregon State Board of Nursing (Board) safeguards the public's health and well-being by regulating the
practice of nurses and nursing assistants. The Board sets standards for the nursing practice, guidelines for
education programs, and minimum competency levels for entry into the professions it regulates. The Board
also imposes discipline upon licensees who violate the nurse practice act. The Board licenses approximately
45,500 Registered Nurses, 4,000 Licensed Practical Nurses, 2,400 Nurse Practitioners, 470 Certified
Registered Nurse Anesthetists, and 190 Clinical Nurse Specialists. Additionally, the Board certifies 20,000
Certified Nursing Assistants (CNA), 1,300 of which are also Certified Medication Aides.
Balanced Budget
The Governor’s Balanced Budget of $14.2 million Other Funds is a 21.1 percent increase from the
2009-11 Legislatively Approved Budget. The Balanced Budget provides the Board with the resources to
support the ongoing maintenance and enhancement of the Board’s information technology infrastructure.
It also continues two limited duration positions on a permanent basis to address an increase in licensees
and investigations. The Board has seen a steady two to three percent increase in licensees per year.
There has been a significant increase in the number of cases brought before the Board for investigation and
discipline. In 2009-11, for the first time in several years, the Board met its Key Performance Measure for
timely processing of complaints. Continuing the positions in a permanent manner will provide the Board with
necessary resources for efficiently handling the increase in licensees and Board investigations. The Balanced
Budget adds funding for increased Attorney General costs associated with the increase in licensees and
investigations. Finally, the budget provides an increase in limitation associated with costs for candidates to
take the nursing assistant exam, for which there has been a steady increase in demand.

Revenue
Revenue from license fees is the primary funding source for the Board. Other sources include
examination, subscription and civil penalty fees. Federal matching funds partially support the CNA
program.
The Balanced Budget leaves the Board with an ending balance of approximately $2.9 million, or
five months of average operating expenses.

OREGON BOARD OF PHARMACY

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $4,387,662 $4,916,407 $5,109,140
Federal Funds $19,360 $0 $0
Total Funds $4,407,022 $4,916,407 $5,109,140
Positions 22 20 18
Overview
The Oregon Board of Pharmacy promotes, preserves and protects the public welfare by establishing high
standards in the practice of pharmacy and the distribution of drugs in Oregon. The Board licenses and
regulates more than 18,000 county health clinics, pharmaceutical manufacturers, pharmaceutical
wholesalers, pharmacies, pharmacists, pharmacist interns and technicians, controlled substances, hospital
drug rooms, among a variety of other drug-related occupations and facilities.
The Board participates in the Health Professionals Services Program for impaired professionals
Balanced Budget
The Governor’s Balanced Budget is $5.1 million Other Funds, which is a 3.9 percent increase from the
2009-11 Legislatively Approved Budget. The Balanced Budget funds all current programs and adjusts
expenditure limitations to sustain certain existing services. These additional resources are provided to
fund contested case demands and maintain efficient internal operations. The Balanced Budget also
includes implementation of the board’s first fee increase since 2001.
Revenue
The Board is funded entirely with Other Funds by fees paid for professional licenses. Additional
revenues include civil penalties, inspection fees, delinquent fees and miscellaneous revenue. The
Governor’s Balanced Budget would leave the board with an estimated ending cash balance of $0.9
million for 2011-13, the equivalent to approximately four months of operating expenses.

BOARD OF PSYCHOLOGIST EXAMINERS

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $995,663 $1,041,395 $1,008,437
Total Funds $995,663 $1,041,395 $1,008,437
Positions 4 4 4
Overview
The Board of Psychologist Examiners is responsible for ensuring the competence and ethical practice of
psychologists practicing in Oregon. The Board ensures the character and fitness of applicants through an
examination and educational review. It ensures ongoing competence of licensees through continuing
education. It provides sanctions against those psychologists who violate the board's rules and standards
of professional conduct. The Board oversees 1,500 licensed psychologists and associates.
Balanced Budget
The Governor’s Balanced Budget is $1.0 million, which is 3.2 percent below the 2009-11 Legislatively
Approved Budget. The Balanced Budget continues the existing program without inflation adjustments.
One full-time limited duration position is replaced with a half-time permanent position. An investigator
position is reclassified to better match its job description.
Revenue
The Board is funded entirely with Other Funds supported from licensing fees, applications, examinations,
and other miscellaneous sources, including civil penalties and sales of publications. The Balanced Budget
includes an ending balance that is equivalent to about seven months of operating expenditures.

PUBLIC UTILITY COMMISSION

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $33,845,411 $39,777,023 $39,666,574
Federal Funds $476,384 $2,910,317 $4,813,961
Total Funds $130,782,004 $137,466,043 $119,601,138

Overview
The Public Utility Commission’s (PUC) mission is to ensure that safe and reliable utility services are
provided to consumers at equitable and reasonable rates through the process of regulation and promoting
the development of competitive markets. The Commission regulates customer rates and services of
investor-owned electric, natural gas and telephone utilities, as well as certain water companies. The
Commission does not regulate peoples utility districts, cooperatives or municipally-owned utilities except
in matters of safety. The Commission ensures that consumers receive utility services at fair and
reasonable rates, while allowing regulated companies the opportunity to earn an adequate return on their
investment. The Commission is governed by federal and state laws, including a broad history of judicial
decisions.
Companies that fall under some form of Commission price, service quality, or safety regulation include:
• Three private electric companies: Portland General Electric, PacifiCorp and Idaho Power
Company (serving almost 1.4 million Oregon homes and businesses).
• Three natural gas utilities: Northwest Natural, Avista Utilities and Cascade Natural Gas
(serving more than 700,000 Oregon homes and businesses).
• Four large private telecommunications utilities: Qwest, Verizon (now Frontier), CenturyTel and
United Telephone of the Northwest (dba EMBARQ), 18 small private companies and eleven
cooperative companies that provide about 81 percent of Oregon’s telephone lines.
• Approximately 375 competitive telecommunications carriers that provide about 19 percent of
Oregon’s telephone lines.
• Eighty-one water utilities that serve about 40,000 customers.

The PUC also administers four Residential Service Protection Fund programs, which insure that adequate
and affordable residential telecommunications services are available for all Oregonians. These programs
include services for the hearing and speech-impaired, and low-income individuals. Additionally, PUC is
responsible for ensuring the safe and reliable operation of the state’s electricity and natural gas
transportation and distribution systems.
The Commission is an independent policy-making body that provides direction for the agency. The Governor
appoints three Commissioners (including the Commission Chair).
The Commission houses the Board of Maritime Pilots. This independent board is the licensing and
administrative entity for state maritime pilots. The Commission is primarily responsible for providing
budget and administrative support services to the Board.
Balanced Budget
The Governor’s Balanced Budget for the Commission is about $119.6 million total funds. This about
13 percent lower than the 2009-11 Legislatively Approved Budget. The budget enables the agency to
maintain its existing level of service and continue work on existing American Recovery and
Reinvestment Act of 2009 projects involving the Oregon Electricity Regulators Assistance Project and
the State Broadband and Development Program. The budget also provides resources to expand the
Telecommunications Devices Access Program to a broader segment of the hard of hearing and speech
impaired population.
Revenue
The Commission is funded primarily by Other Funds from Utility Fees, the Residential Service
Protection Fund, the Oregon Universal Service Fund and the Public Purpose Charge. The Commission
also receives Federal Funds from the United States Department of Transportation for the Natural Gas
Pipeline Safety Program and is a recipient of grants under the American Recovery and Reinvestment Act
of 2009.
In order to bring its cash balances down, the Commission reduced its Utility Fee (an annual assessment
on regulated electric, natural gas, water utilities and telecommunications providers) for calendar years
2009 and 2010. The rate is anticipated to go up in calendar year 2011. The majority of the agency’s
operating revenues come from fees paid by investor-owned utilities.
The Governor’s Balanced Budget would leave the agency with an ending balance of $16 million Other
Funds (limited), which is equivalent to about seven months of operating expenses.

REAL ESTATE AGENCY
2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $6,939,595 $8,377,812 $7,876,904
Total Funds $6,939,595 $8,377,812 $7,876,904
Positions 33 31 30
Overview
The Real Estate Agency provides quality protection for consumers of real estate, escrow and land
development services. It does so with a balanced professional environment conducive to a healthy real
estate market. The agency licenses and regulates nearly 22,000 real estate brokers and property
managers. The agency also staffs the Real Estate Board, which advises the Governor and the Real Estate
Commissioner on concerns of the real estate industry.
Balanced Budget
The Governor’s Balanced Budget is $7.9 million Other Funds, a six percent decrease from the
2009-11 Legislatively Approved Budget. The Balanced Budget continues all current services. It adjusts
expenditure limitations to reflect one-time costs incurred in 2009-11 and phases out one position.
Revenue
The Agency is funded entirely with Other Funds by fees paid for professional licenses. Other revenues
include registration, auditing, examination and publication fees. All fines imposed by the agency are
transferred to the General Fund; these transfers are expected to total $112,000 in the 2011-13 biennium.
The Governor’s Balanced Budget would leave an estimated ending cash balance of $1.5 million, enough
to cover operating expenses for about four months.

STATE BOARD OF TAX PRACTITIONERS

2011-13
2007-09 2009-11
Governor's Balanced
Budget
Other Funds $1,000,861 $996,527 $1,233,405
Total Funds $1,000,861 $996,527 $1,233,405
Positions 5 4 5
Overview
The State Board of Tax Practitioners is a consumer protection agency that regulates providers of tax
services to ensure that services are provided in a competent and ethical manner. The Board oversees
approximately 5,500 licensees who are paid to prepare, advise, or assist in preparing personal income tax
returns. The Board creates and grades examinations to ensure applicants for licensure meet the minimum
qualifications. It issues preparer and consultant licenses that are renewed on an annual basis upon
completion of minimum requirements established by the agency. The Board reviews and investigates
complaints about tax preparers and any possible unlicensed activity in Oregon.
Balanced Budget
2009-11 Legislatively Approved Budget. The Balanced Budget continues all programs and adds one
part-time limited duration position to meet agency needs during the busy license renewal seasons.
Revenue
The Board is funded entirely with Other Fund revenue, primarily from fees paid for licensing, business
registration and examinations. The Governor’s Balanced Budget would leave the Board an estimated
ending balance of $348,118 for 2011-13, which is equivalent to approximately six months of operating
expenses.

Administration

DEPARTMENT OF ADMINISTRATIVE SERVICES ...........................................................................................I-3
OREGON ADVOCACY COMMISSIONS OFFICE ..............................................................................................I-6
EMPLOYMENT RELATIONS BOARD .............................................................................................................I-7
OREGON GOVERNMENT ETHICS COMMISSION ...........................................................................................I-9
OFFICE OF THE GOVERNOR ......................................................................................................................I-11
OREGON LIQUOR CONTROL COMMISSION ................................................................................................I-13
PUBLIC EMPLOYEES RETIREMENT SYSTEM ..............................................................................................I-15
OREGON RACING COMMISSION ................................................................................................................I-18
DEPARTMENT OF REVENUE .....................................................................................................................I-19
SECRETARY OF STATE ..............................................................................................................................I-21
STATE LIBRARY .......................................................................................................................................I-23
OFFICE OF STATE TREASURER .................................................................................................................I-24
2007-09 2009-11 2011-13

General Fund $187,829,295 $194,382,626 $182,997,076
Lottery Funds $7,331,704 $11,643,437 $13,827,558
Other Funds $1,692,733,868 $1,312,563,110 $1,176,124,861
Federal Funds $10,59,434 $12,263,720 $9,561,985
Total Funds $8,215,164,923 $10,488,481,218 $9,035,072,543
Positions 3,063 3,010 2,834

Overview
The Administration Program Area includes statewide elected officials, commissions, and state agencies.
They provide policy direction and core central services to agencies, including:
• Directing state operations and ensuring accountability of public officials and agencies.
• Providing central support services for some state agencies.
• Managing elections and tax collections activities.
• Regulating the sale of alcoholic beverages.
• Working to eliminate barriers due to race and gender.
2011-13 Governor's Balanced Budget I-1 Administration

Administration
Balanced Budget
The Governor’s Balanced Budget is $9.0 billion total funds. This is a 13.9 percent decrease from the
2009-11 Legislatively Approved Budget. The large decrease in the total funds budget is primarily driven
by the transfer of the Public Employees Benefit Board and the Oregon Educators Benefit Board to the
Oregon Health Authority. The Program Area budget includes $183 million General Fund. This is a
5.9 percent decrease from the 2009-11 Legislatively Approved Budget.
The key elements of the 2011-13 Governor’s Balanced Budget are as follows:
• Public Employees Retirement System employer contribution rates have increased from the
historical lows of 2009-11. This is the result of the $17.2 billion in investment losses in 2008. For
the 2011-13 biennium, system-wide rates, not including employee contributions or adjusting for
employer side accounts (funded with pension obligation bonds), are expected to be 10.8 percent,
up from about 4.7 percent in 2009-11.
• The balanced budget for the Employment Relations Board replaces all General Fund with Other
Funds revenue from a new local government assessment that is modeled on the assessment that
supports the Oregon Government Ethics Commission.
• The Department of Revenue has been provided with resources to replace the agency’s core data
system.
• The balanced budget makes investments in the Department of Administrative Services for a
classification and compensation system, a human resources information system, continuation of
the iLearnOregon initiative, an updated procurement system, development of a performance
management system, and the creation of the Office of Transformation which will implement an
entrepreneurial management initiative.
• The budget supports the State Data Center with a disaster recovery upgrade and additional storage
capacity.

Administration
DEPARTMENT OF ADMINISTRATIVE SERVICES
2007-09 2009-11 2011-13

General Fund $10,848,303 $14,032,658 $6,932,367
Lottery Funds $5,282,568 $9,701,527 $11,885,648
Other Funds $1,376,856,440 $968,615,894 $903,928,328
Federal Funds $0 $47,000 $0
Other Funds (Nonlimited) $227,879,711 $2,476,978,830 $122,415,320
Total Funds $1,620,867,022 $3,469,375,910 $1,045,161,664

Overview
The Department of Administrative Services (DAS) operates as the central administrative agency for
Oregon state government. It delivers support services that can most effectively and efficiently be
provided by a central government agency. DAS also provides management oversight and direction on
behalf of the Governor. The department has nine operational divisions; they are:
• The Director’s Office provides leadership and support to DAS divisions and to state agencies.
The Director’s Office also houses the Office of Economic Analysis, which provides the state’s
economic, and revenue forecasts, as well as demographic forecasts.
• The Budget and Management Division creates and enforces statewide budget standards. It
monitors agencies to ensure that funds are spent within legal and budgetary requirements. The
division prepares the Governor’s Balanced Budget. It also helps to coordinate statewide bonded
debt programs, including Certificates of Participation (COP), Tax Anticipation Notes and Lottery
Revenue Bonds.
• The State Controller’s Division provides state financial and accounting services, policies and
controls. The division also houses the Economic Recovery Executive Team (ERET), which works
closely with agencies to coordinate and track the infusion of federal stimulus dollars into Oregon.
• The Enterprise Information Strategy and Policy Division provides statewide information
technology management and oversight. The division also oversees the E-government program,
geographic information systems, information technology security activities and business
continuity planning.
• The Human Resource Services Division maintains the state’s personnel and compensation
systems. The division also negotiates with unions and provides training and recruitment services.

Administration
• The Facilities Division builds and maintains state structures, including landscaping activities. It
also negotiates leases for state agencies. The division pays utility costs for all the buildings it
owns or manages.
• State Services Division provides services in five primary areas. The division acts as the state’s
insurance agent. It buys insurance and manages the state’s self-insurance. It investigates and
resolves claims against the state and its employees. It also helps the state find ways to minimize
risk and related costs. This division also operates the state’s purchasing, motor pool, surplus
property, printing and mailing services.
• The Operations Division provides administrative guidance and operational support to DAS
divisions, the office of the Governor, select boards and commissions, and select client agencies.
The division also provides a full range of personnel, payroll, and desktop support for DAS
employees. The division includes the Office of Transformation which implements the agency’s
initiative to drive process improvement and business cultural changes.
• The State Data Center (SDC) was created in 2005 as the result of the Computing and Network
Infrastructure Consolidation project. The project centralized the state’s 12 largest data centers into
a single entity. The goals of the SDC are to reduce costs while maintaining or improving service
levels, improving security and recoverability, increasing returns on information technology
investments, and freeing agencies from information technology infrastructure management to
focus on their core programmatic issues.
The DAS budget houses the Economic Development Fund, the Education Stability Fund, the Parks and
Natural Resources Fund and the Oregon Education Fund. Lottery proceeds flow through these funds to
state agencies. In addition, DAS manages the collection and distribution of tobacco settlement funds, and
oversees outstanding appropriation and pension bonds.
DAS distributes funds to mass transit districts. State agencies pay these funds instead of payroll or transit
taxes under ORS 291.407. DAS also distributes a variety of funds, including Federal Funds, to Oregon
cities and counties. Other distributions to cities and counties include portions of Oregon Liquor Control
Commission revenues, cigarette taxes, amusement device taxes and video poker receipts.
Balanced Budget
The Governor’s Balanced Budget for DAS is $1.05 billion total funds. This is a 70 percent decrease from
the 2009-11 Legislatively Approved Budget, which is mostly due to the transfer of the Public Employees
Benefit Board and the Oregon Educators Benefit Board to the Oregon Health Authority.
The budget provides the Human Resource Services Division with resources for classification and
compensation system, a modern human resources information system, and to continue the iLearnOregon
initiative. Resources are included for the Operations Division to create an Office of Transformation,
develop a performance management system, and establish an entrepreneurial management initiative.
Other investments include disaster recovery and additional storage capacity for the State Data Center, an
updated procurement system, and the transition to a new E-Government contract.
The Capital Construction program budget reflects cost estimates for various projects, including HVAC
improvements, fire panel upgrades, roof replacements, exterior weatherization, and carpet replacements

Administration
for several DAS owned buildings as well as parking lot projects and improvements to the Salem Motor
Pool.
The Department will distribute $177.6 million Other Funds from the Tobacco Settlement Funds Account.
The bulk of those funds will be used to pay debt service on outstanding state appropriation bonds, as well
as outstanding Oregon Opportunity Bonds that were issued on behalf of the Oregon Health and Science
University.
The balanced budget also includes debt service payments on outstanding Article XI-O pension obligation
bonds. Funding for the payments is provided by state agencies. The budget includes Lottery Funds
distributions to county fairs from the County Fair Account, and continues Lottery debt service on
outstanding bonds for Oregon Public Broadcasting, Pendleton Round-Up, Ports of Morrow and Newport,
Tillamook FEMA match, Lane Transit District, and Coos Bay railroad.
Revenue
The Department is financed primarily through two sources of Other Funds: proportional assessments on
state agencies and fees for services charged to state agencies for program usage. Agency assessments rely
on several variables, ranging from full-time equivalent positions, dollar volume, funding limitation and
square footage of office space occupied or utilization of resources. The source of Other Funds received
by DAS from assessed agencies is a combination of General Fund, Other Funds and Federal Funds.
Capital Improvement and Capital Construction projects are financed out of the Capital Projects Fund.
The fund receives the majority of its funding from the “depreciation” component of Uniform Rent and
Service Agreements. Certificates of Participation are usually used for larger construction projects.
All of the agency’s General Fund goes toward paying debt service on the Mill Creek

Administration
OREGON ADVOCACY COMMISSIONS OFFICE
2007-09 2009-11 2011-13

General Fund $334,556 $419,895 $387,792
Other Funds $17,728 $75,000 $75,000
Total Funds $352,284 $494,895 $462,792
Positions 2 2 2
Overview
The Oregon Advocacy Commission Office is a state agency created by the Governor and the
2005 Legislature through passage of Senate Bill 359. The agency was created to provide staff support to
four advocacy commissions, each of which would otherwise have continued to function independently.
The four advocacy commissions are: Commission on Asian Affairs, Commission on Black Affairs,
Commission on Hispanic Affairs and Commission for Women. Each of these commissions is charged in
statute with monitoring the impact of legislation and state programs on their respective constituencies, and
with working to establish economic, social, legal and political equality in Oregon.
Balanced Budget
The Governor’s Balanced Budget totals $387,792 General Fund and $75,000 Other Funds. In total, this is
a 6.5 percent reduction from the 2009-11 Legislatively Approved Budget. The balanced budget continues
all current programs, funds two positions, per diem expenses for non-legislative commissioners and
services and supplies to support agency programs.
Revenue
Core agency functions are funded with General Fund. The individual commissions raise Other Funds
from private donations and grants. These Other Funds finance a portion of the agency’s services and
supplies.

Administration
EMPLOYMENT RELATIONS BOARD

2007-09 2009-11 2011-13
General Fund $1,781,460 $1,732,400 $0
Other Funds $1,581,906 $1,758,626 $3,745,109
Total Funds $3,363,366 $3,491,026 $3,745,109
Positions 13 13 13
Overview
The Employment Relations Board works to resolve disputes concerning labor relations for an estimated
3,000 different employers and 250,000 employees in public and private employment in the state. The
agency performs the following three primary functions:
• Administers the collective bargaining law that covers public employees of the State of Oregon and its
cities, counties, school districts and other local governments.
• Hears and decides appeals from state employees concerning personnel actions.
• Administers the collective bargaining law for the small number of private employers who are not
covered by the National Labor Relations Act.
Balanced Budget
The Governor’s Balanced Budget is $3.7 million total funds. This is about 7.3 percent higher than the
2009-11 Legislatively Approved Budget. The balanced budget replaces all General Fund with Other
Funds revenue from a new local government assessment that is modeled on the assessment that supports
the Oregon Government Ethics Commission.
The budget continues the existing 13 positions, but increases a part-time mediator and a part-time
administrative law judge from three-quarters time to full-time, allowing the agency to reduce caseload
backlogs. Funds are also provided on a one-time basis to cover anticipated costs of representation
elections for home health care workers. Legislation adopted in the 2009 legislative session increased the
number of workers eligible for union representation.

Administration
Revenue
The state government program is funded by an assessment charged to state agencies based on the number
of state employees who are subject to the Public Employee Collective Bargaining Act and the State
Personnel Relations Law. The monthly assessment is reduced from $1.75 per employee in 2009-11 to
$1.70 per employee in 2011-13.
The Governor’s budget shifts costs for the local government program from General Fund and mediation
fees charged to local governments and labor organizations to an assessment charged to cities, counties,
school districts, and other local governments. The new assessment is based on the local government
assessment that supports the Oregon Government Ethics Commission. The assessment is an add-on to the
Secretary of State’s Municipal Audit Fee. The amount of the fee and the add-on are based on the size of
the local government entity and the amount that will be collected.

Administration
OREGON GOVERNMENT ETHICS COMMISSION

2007-09 2009-11 2011-13
Actuals Legislatively Approved Governor’s Balanced
General Fund $1,257,474 $176,399 $0
Other Funds $1,523 $1,381,699 $1,684,230
Total Funds $1,258,997 $1,558,098 $1,684,230
Positions 7 8 8
Overview
The Oregon Government Ethics Commission:
• Interprets and applies Oregon Government Ethics Commission’s laws, lobby regulation, and
public meetings laws.
• Reviews public official and lobbyist conduct for all citizens of the state.
• Educates public officials and lobbyists on the provisions of the Government Ethics Law, the
Public Meetings Law, and lobbying regulations.
The 2007 Legislature passed Senate Bill 10 and House Bill 2595, which implemented a number of ethics
law reforms that increased reporting requirements for public officials, lobbyists, and lobbying entities.
The 2009 Legislature passed Senate Bill 30 and House Bill 2518, reducing some of these reporting
requirements.
Balanced Budget
The Governor’s Balanced Budget for the Commission is $1.7 million total funds. This is an eight percent
increase from the 2009-11 Legislatively Approved Budget. However, it is sufficient only to continue the
current activities of the Commission. The Commission had requested a General Fund package to meet the
January 1, 2013, statutory deadline for implementing an electronic filing system to allow electronic filing
and Internet access of statements of economic interest and statements of contributions received and
expenditures made by public officials’ legal trust funds. This package is not included in the balanced
budget because of General Fund constraints.

Administration
The Governor’s Balanced Budget:
• Converts a trainer position from limited-duration to permanent.

• Converts an administrative position from limited-duration to permanent.
• Reclasses a Compliance Specialist position, without additional funding.
Revenue
With the passage of ethics reform by the 2007 Legislature, the agency’s funding shifted from General
Fund appropriation to assessments charged to state agencies and local government entities. The 2009-11
biennium was a transition period from General Fund to Other Funds. The agency’s sole funding source is
Other Funds in the 2011-13 biennium.

Administration
OFFICE OF THE GOVERNOR

2007-09 2009-11 2011-13
General Fund $11,223,550 $10,905,192 $10,905,192
Lottery Funds $2,049,136 $1,941,910 $1,941,910
Other Funds $2,261,593 $4,314,229 $2,741,773
Federal Funds $16,734 $0 $0
Total Funds $15,551,013 $17,161,331 $15,588,875
Positions 64 71 61
Overview
The Office of the Governor provides leadership and direction to state agencies that are in the
executive branch. The office includes:
• Program area policy advisors;

• Affirmative Action program;
• Minority, Women and Emerging Small Business (MWESB) advocacy;
• Executive Appointments;
• Citizens’ Representative Office;
• Extradition services for all law enforcement agencies; and
• Economic Revitalization Team.
The Governor’s policy staff work in the areas of education and workforce, natural resources, economic
development, health and human services, public safety, transportation and intergovernmental relations.
Balanced Budget
The Governor’s Balanced Budget of $15.6 million total funds is a 9.2 percent decrease from the 2009-11
Legislatively Approved Budget. The balanced budget continues all services of the Governor’s Office but
restricts the General Fund to 2009-11 levels. The decrease in total fund expenditures is the result of
transferring the Economic Recovery Executive Team to the Department of Administrative Services.

Administration
Revenue
Most of the Office of the Governor is financed with General Fund. Several staff members are funded
with resources transferred from other state agencies. The Affirmative Action program and the Minority,
Women and Emerging Small Business program are financed by state agency assessments. Funding for
the Economic Revitalization Team is from Lottery Funds.

Administration
OREGON LIQUOR CONTROL COMMISSION

2007-09 2009-11 2011-13
Actuals Legislatively Approved Governor’s Balanced
Other Funds $120,573,770 $134,285,467 $44,937,464
Other Funds (Nonlimited) $0 $0 90,688,426
Total Funds $120,573,770 $134,285,467 $135,625,890

Overview
The Oregon Liquor Control Commission (OLCC) works to promote the public interest through the
responsible sale and service of alcoholic beverages. The OLCC envisions balancing services to
stakeholders (both internal and external), revenue optimization, and social responsibility. It accomplishes
its mission by working to:
• Educate the industries and individuals who manufacture and sell alcoholic beverages and the
public who may want to consume them.
• Partner with local governments, other agencies, private industry, and members of the public to
achieve a high quality of life in Oregon, free of the dangers of alcohol misuse.
• Make alcohol available to legal users through high-quality customer service.
• Provide optimal revenue in support of state and local governments.
Oregon is one of the 18 states (besides two counties in Maryland) that control the distribution of hard
liquor. Private agents contract with OLCC to operate 243 liquor stores in the state.
Balanced Budget
The Governor’s Balanced Budget is $135.6 million total funds. This is one percent higher than the
2009-11 Legislatively Approved Budget. The budget:
• Includes $2.5 million in revenue from a new non-refundable $750 application fee for new
manufacturing, distributing, or retailing licenses.
• Includes $26 million in revenue from the continuation of the 50-cent-per-bottle surcharge on
liquor.

Administration
• Converts bank transaction fees from Other Funds to Nonlimited Other Funds.
• Converts liquor store agent compensation from Other Funds to Nonlimited Other Funds.
• Provides resources to improve licensing services.
Of the total balanced budget $44.9 million is for agency operations, $81.7 million compensates liquor
agents for their retailing services for the state; and $9.0 million pays the bank transaction fees and rental
charges for bank card processing equipment in the liquor stores.
Liquor agents are paid on commission, which stays at 8.88 percent of sales, on average. Both liquor sales
and total agent compensation are likely to remain flat due to weak economic conditions.
Revenue
The major sources of income for this agency are:
• Liquor sales income;

• Taxes on beer and wine sales;
• License fees; and,
• Fines and other income.
After paying its operating costs, the Agency distributes the remaining revenues as follows:
• Liquor receipts: 56 percent to the General Fund, 20 percent to cities, 10 percent to counties, and
14 percent to city revenue sharing.
• Beer and wine tax receipts: Two cents per gallon of the wine tax goes to the Oregon Wine Board.
The balance of beer and wine tax receipts are distributed as follows: 50 percent to the Department
of Human Services Office of Alcohol and Drug Abuse Programs, 28 percent to the General Fund,
10 percent to cities, 5 percent to counties and 7 percent to city revenue sharing.
Liquor license fees are transferred in the same way as liquor receipts.

Administration
PUBLIC EMPLOYEES RETIREMENT SYSTEM
2007-09 2009-11 2011-13

Other Funds $83,094,363 $82,083,703 $80,881,654
Total Funds $6,168,800,054 $6,558,969,367 $7,514,893,964

Overview
The Public Employees Retirement System (PERS) is responsible for administering retirement programs
for public employees. PERS distributes approximately $2.8 billion in retirement benefits annually. PERS
manages the Tier One and Tier Two Retirement plans, the Oregon Public Service Retirement Plan
(OPSRP), the Individual Account Program (IAP), retiree health insurance programs, Social Security
Administration functions and a deferred compensation program.
Approximately 880 public employers in Oregon participate in the retirement programs administered by
PERS. This includes all state agencies, all public school districts, and the majority of local government
entities – making PERS the provider of retirement programs for the vast majority of public employees in
the state.
Tier One and Tier Two program membership totals approximately 150,000 non-retired members and
111,000 retirees and beneficiaries receiving monthly benefits. These programs were closed to new
members August 29, 2003, corresponding to the passage of House Bill 2020 (2003).
The OPSRP program was created for employees entering the system after August 2003 and currently has
about 69,000 members. OPSRP includes both defined benefit and defined contribution type components.
The defined benefit component is funded solely by employer contributions and any earnings. It is
designed to generally provide a benefit that approximates 45 percent of a member’s final average salary
after 30 years of service. The defined contribution component requires PERS members to contribute an
amount equal to six percent of eligible salary to an IAP account. At retirement, members will receive the
balance of this account, either as a lump-sum or in equal installments over a specified period. All active
Tier One-Tier Two members are also participants in the IAP plan, as their employee contributions after
January 1, 2004 are directed to their IAP account rather than the employee account associated with the
Tier One-Tier Two programs.

Administration
Operationally, the agency is organized into six primary functional areas:
• Central Administration manages other divisions, as well as internal audit, human resources, Social
Security Administration, deferred compensation and health insurance programs. It also supports
the agency’s governing board.
• The Customer Service Division provides education, counseling and communication services and
manages employer reporting activities and member demographics, employment and account data.
• The Benefit Payment Division provides retirement benefit estimates and calculates and issues
retirement, death and disability benefits.
• The Fiscal Services Division provides business and central support services to the entire agency.
• The Information Services Division provides data processing services for the agency. The division
also manages all agency records, including both computerized data and physical records. It has
the primary responsibility for replacement of the legacy information management system.
• The Policy, Planning, and Legislative Analysis Division coordinates legal services and contested
cases. It manages administrative and business rules, as well as legislative analysis.
Balanced Budget
The Governor’s Balanced Budget for the agency is $7.5 billion total funds. This is a 14.6 percent increase
from the 2009-11 Legislatively Approved Budget (LAB). The increase is primarily due to growth in
retirement payments; operations costs are increased by 6.7 percent from the prior biennium. The budget
includes resources to complete the transition from the agency’s legacy data system, improve business
practices and processes, address increasing workload demands and continue to contract for outside legal
counsel. The budget converts 36 limited-duration positions to permanent to improve business practices and
processes, address increasing workload demands, and complete the agency’s disaster recovery strategy.
The market downturn of 2008 greatly affected the PERS unfunded actuarial liability (UAL), increasing it
from an estimated $1.5 billion as of December 31, 2007 to $13.7 billion as of December 31, 2009. Side
accounts of $5.5 billion, funded from the sale of pension obligation bonds by state and local employers,
are not reflected in that UAL valuation. Including side accounts shows the system with a $8.2 billion
UAL. Employers’ debt service obligations on the pension obligation bonds are not included in this figure.
As a result of the increase in the UAL, employer contributions will increase for the 2011-13 biennium.
System-wide rates, not including employee contributions, are 10.8 percent, up from the historically low
4.7 percent for 2009-11.
Revenue
PERS is funded entirely with Other Fund revenues. Principal revenue sources include investment
earnings on the PERS trust fund, employer contributions, member contributions and fees. Employee
contributions are now credited to Individual Account Program accounts. Employer contributions are

Administration
credited primarily to individual employer accounts or employer pools as appropriate. A portion of the
employer contribution is also credited to Retirement Health Insurance Accounts that provide premium
subsidies for eligible retirees per statutory directives. Historically, the largest source of revenue for the
PERS system has been investment earnings. It is from this source that the PERS operating budget is
funded. Net earnings, if any, are then distributed to member, employer and various reserve accounts.
Revenues to fund administrative activities for deferred compensation programs come largely from
participant fees. For the 2011-13 biennium, this fee will be 0.08 percent of participant assets held in the
trust. Participant contributions, all of which are voluntary, and interest earnings are credited to their
accounts and are eventually returned to participants, often at retirement.

Administration
OREGON RACING COMMISSION

2007-09 2009-11 2011-13
Other Funds $5,663,042 $5,941,351 $5,241,417
Total Funds $5,663,042 $5,941,351 $5,241,417
Positions 16 16 15
Overview
The Racing Commission licenses race meets and participants. It currently regulates live and simulcast
horse racing. If greyhound racing resumes, the Commission has the authority to regulate it. It also
oversees off-track betting sites and multi-jurisdiction totalizator operations, known as hubs. These hubs
allow subscribers to place race bets over the telephone or the Internet.
Balanced Budget
The Governor’s Balanced Budget for the Commission is $5.2 million Other Funds. This is an
11.8 percent decrease from the 2009-11 Legislatively Approved Budget. The budget maintains current
service levels and provides no additional resources.
Revenue
The Commission’s operations are entirely funded with Other Funds. The balanced budget includes a fee
increase on race meet participants. Fees have not been changed since they were first implemented in
1979.
One-third of hub revenues, along with other revenues exceeding the agency’s operating budget, are
transferred to the General Fund. The estimated transfer for 2011-13 totals $1.1 million. After expenses
and transfers, the Commission is left with an estimated ending balance of $636,835 Other Funds. This
amount is approximately three months of operating expenses.

Administration
DEPARTMENT OF REVENUE
2007-09 2009-11 2011-13

General Fund $145,212,294 $152,089,266 $151,329,855
Other Funds $30,475,737 $36,934,358 $44,962,544
Other Funds (Nonlimited) $240,508 $263,830 $1,945,006
Total Funds $175,928,539 $189,287,454 $198,237,405
Positions 1,035 1,108 1,053

Full-time Equivalent 959.96 1,026.89 992.84
Overview
The Department of Revenue’s (DOR) major duties are to collect taxes pursuant to the state’s tax laws.
The agency:
• Administers more than 30 tax programs. The Personal Income Tax, Corporation Excise Tax,
Property Tax, Cigarette and Other Tobacco Tax, and Inheritance Tax programs are the largest.
• Assists counties to assess and collect property taxes.
• Collects and distributes taxes and fees for other state agencies and local governments.
The agency also represents the State of Oregon on the Multistate Tax Commission, which works to make
corporate income taxation more uniform among states.
Balanced Budget
The Governor’s Balanced Budget for DOR is $198.2 million total funds. This budget is an increase of
4.7 percent over the 2009-11 Legislatively Approved Budget. It supports an initiative to re-engineer
agency business processes. Delinquent account collection activity for other state agencies is continued at
the current level. Two audit units that are currently supported by revenue from the 2009-11 Amnesty
program are maintained to continue providing revenue for assistance to small businesses. However,
funding for these audit units is shifted to the General Fund since there will not be additional Amnesty
revenue in 2011-13. Funding for the Elderly Rental Assistance and Assistance for Nonprofit Homes for
the Elderly programs has been eliminated.

Administration
Revenue
The Department transfers most of the money it collects to other users. Collected monies go to the General
Fund, other state agencies and local governments. The department uses General Fund to pay for most of
its operations. Other Fund revenues are generated from the services it provides to other governmental
units. This includes collection, mapping, assessment and taxation services.
DOR transfers personal and corporate income taxes, and inheritance taxes to the General Fund. Some of
the state’s cigarette and other tobacco taxes go to the General Fund, cities, counties and the Department of
Transportation. Other cigarette tax revenues are dedicated to the Oregon Health Plan and tobacco use
reduction programs. These go to the state agencies that run those programs.
The department collects tax revenue from electric cooperatives, private railcar companies and rural
telephone exchanges. It collects and distributes local transit taxes to the Tri-Met and Lane County Transit
Districts.
The Department collects and distributes 9-1-1 tax receipts. It also collects and transfers Criminal Fine
and Assessment Account revenue as directed by law.

Administration
SECRETARY OF STATE
2007-09 2009-11 2011-13
Actuals Leg Approved Budget Agency Request*
General Fund $13,964,221 $11,639,792 $15,609,985
Lottery Funds 0 0 0
Other Funds 36,525,613 38,386,600 44,871,880
Federal Funds 6,421,887 7,505,935 4,812,513
Other Funds (Nonlimited) 0 0 0
Total Funds $56,911,721 $57,532,327 $65,294,378

*The Governor makes no recommendation for this budget, as it is not under executive control. For statutory purposes, the
Governor included $11,639,792 General Fund, $44,871,880 Other Funds and $4,812,513 Federal Funds, for a total amount of
$61,324,185 in his budget as a placeholder.
Overview
The Secretary of State is an elected constitutional office. Its duties include:
• Interpreting, applying and enforcing election laws.

• Publishing the Voters’ Pamphlet.
• Auditing state agencies’ financial operations and program performance.
• Publishing the state’s administrative rules.
• Storing and preserving public records.
• Making records accessible to the citizens of Oregon.
• Providing registration and other services to Oregon businesses.
The office has increased its services to citizens and other customers over recent years, particularly through
the use of technology. The requested budget would continue that effort.
Requested Budget
The agency request budget is $65.3 million total funds. This is about 13.5 percent higher than the
2009-11 Legislatively Approved Budget. The requested budget adds General Fund to continue the
maintenance and support of the Oregon Centralized Voter Registration System. This system has been
funded with federal Help America Vote Act funds, but those resources are declining.

Administration
The requested budget also establishes a local government archives and records management program to
allow the archives division to dedicate staff to working with local governments on their public records
issues. The new program is funded by adding a surcharge to documents recorded by county clerks.
Finally, the requested budget adds two positions, continues the expansion of on-line business services and
provides for technological upgrades within the Information Systems Division.
Revenue
The office uses General Fund to cover part of its operational costs, especially for the Elections Division
and the Archives Division. It transfers revenue from Voters’ Pamphlet fees and election filing fees to the
General Fund. The agency collects Other Funds revenues from document sales and fees for service, such
as charges to state agencies for audits.

Administration
STATE LIBRARY
2007-09 2009-11 2011-13

General Fund $3,207,437 $3,387,024 $1,802,078
Other Funds $6,862,070 $7,176,422 $6,418,622
Federal Funds $4,160,813 $4,710,785 $4,749,472
Total Funds $14,230,320 $15,274,231 $12,970,172
Positions 45 44 44
Overview
The Oregon State Library:
• Provides research and reference assistance to state government.
• Circulates library materials in audio and Braille formats to Oregonians who are blind or have
disabilities that prevent them from reading printed materials.
• Provides grants and assistance to help develop and improve local library services.
Balanced Budget
The Governor’s Balanced Budget of $13.0 million total funds is 15.1 percent below the
2009-11 Legislatively Approved Budget. Funding for Ready-to-Read grants is transferred to the Early
Learning Council. The budget for the remainder of the agency is reduced by 6.2 percent below the 2009-
11 Legislatively Approved Budget. It is expected that the agency will reorganize its service delivery
during 2011-13 to continue offering excellent services in a more efficient manner.
Revenue
General Fund is the main source of financing for the Talking Books and Braille Services. Other Fund
revenues come from state agency assessments, donations, grants and other miscellaneous income. Federal
Funds from the Library Services and Technology Act support local library services.

Administration
OFFICE OF STATE TREASURER
2007-09 2009-11 2011-13

Actuals Legislatively Approved Governor’s Requested
Other Funds $28,820,083 $31,609,761 $36,636,840
Total Funds $31,664,795 $35,109,761 $40,136,840
Positions 83 84 85
Overview
The Treasurer of State is an elected constitutional office. The office is responsible for the sound
management of state money and assets. The Treasury is a multi-billion dollar cash and investment
management center. The agency is made up of five program areas:
• The Investments Program manages the investments of the Oregon Public Employees Retirement
Fund, the State Accident Insurance Fund, the Common School Fund, and numerous smaller funds.
• The Cash Management Program provides cash management services to state agencies and operates
Oregon’s Local Government Investment Pool. Idle cash, including the state’s General Fund, is
invested in the Oregon Short-Term Fund, which is managed by the agency’s investment officers.
• The Debt Management Program provides central coordination and issuance approval for state agency
and authority bonds for Oregon. It serves as the state’s liaison to the major bond rating agencies
working to improve Oregon’s bond rating.
• The Public Funds Collateralization Program oversees the collateralization of all public funds deposits
in commercial banks. It is responsible for all public funds held by state agencies and deposited to
Treasury accounts.
• The Oregon 529 College Savings Network operates to increase the ability of Oregon families and
individuals to save for qualified higher education expenses through flexible investment options that
offer state and federal tax benefits.

Administration
Requested Budget
The Governor does not make recommendations on this budget. The budget for the Treasurer of State is
$40.1 million total funds. This is a 14.3 percent increase over the 2009-2011 Legislatively Approved
Budget. The budget continues all programs at their current level and provides for enhancements.
The Public Funds Collateralization Program adds one position. This position addresses needs arising from
the implementation of House Bill 3700 (2010), which allows credit unions to begin accepting public
funds in excess of FDIC-insured amounts beginning on January 1, 2013. The Debt Management Program
adds funding for the web-based debt tracking system, which was approved by the 2009 Legislature. The
Investment Program adds funding to better manage and monitor an increasingly diverse investment
portfolio and comply with contractual provisions and portfolio rules. The Oregon 529 Savings Network
adds funding for the services of a securities attorney to insure that the Network complies with federal tax
code provisions that govern college savings plans.
Revenue
The Treasurer of State is financed entirely with Other Funds. Some of the revenue comes from investment
administrative fees. Other revenues come from the direct billing of customers for actual costs of banking
services, bond and coupon redemption services, and bond issuance activities. Banks pledging collateral
for the protection of public fund deposits pay the cost of operating the Public Funds Collateralization
Program. Program administrative fee revenues fund the College Savings Network. Nonlimited funds pay
for the purchase of goods and services directly related to banking services.

Legislative Branch

LEGISLATIVE COMMISSION ON INDIAN SERVICES ..................................................................................... J-2
LEGISLATIVE ADMINISTRATION COMMITTEE ............................................................................................ J-3
LEGISLATIVE ASSEMBLY........................................................................................................................... J-4
LEGISLATIVE COUNSEL COMMITTEE ......................................................................................................... J-5
LEGISLATIVE FISCAL OFFICER .................................................................................................................. J-6
LEGISLATIVE REVENUE OFFICER .............................................................................................................. J-7
2007-09 2009-11 2011-13

Actuals Legislatively Approved Agency Request
General Fund $77,919,436 $75,178,600 $87,120,124
Other Funds $37,088,427 $6,729,165 $4,026,576
Total Funds $116,477,643 $83,370,794 $92,616,703
Overview
The legislative branch includes the Legislative Assembly and five supporting agencies that provide
administrative services and specialized analysis.
Requested Budget
The requested budgets for the six agencies maintain program operations at existing levels.
Governor’s Adjustment
The legislative agencies comprise a separate and independent branch of state government over which the
Governor does not have budgetary authority. The law requires the Governor, however, to submit a
balanced budget for state government as a whole. For this reason, the Governor’s Balanced Budget
maintains General Fund at the same amount included in the 2009-11 Legislatively Approved Budget.
Other Funds are not reduced from the Agency Request.
2011-13 Governor's Balanced Budget J-1 Legislative Branch

Legislative Branch
LEGISLATIVE COMMISSION ON INDIAN SERVICES

2007-09 2009-11 2011-13
Actuals Legislatively Approved Agency Request*
General Fund $378,980 $413,427 $455,630
Other Funds $752 $6,280 $6,431
Total Funds $379,732 $419,707 $462,061
Positions 2 2 2
*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the
statutorily required balanced budget, the Governor included $455,630 General Fund and $6,431 Other Funds for total funds of
$462,061 in his budget as a placeholder.
Overview
The Legislative Commission on Indian Services compiles information on services available to Native
Americans, assesses state programs and services, serves as a forum for considering Native American
problems, and advises on matters relating to the preservation and protection of Native American Indian
historic and archaeological resources. Various statutes require that the Commission be consulted on
matters related to the preservation and protection of fish, wildlife, historic, and archaeological resources.
Requested Budget
The agency request budget is $462,061 total funds. This is a 10.1 percent increase from the
2009-11 Legislatively Approved Budget. The General Fund budget of $455,630 constitutes a
10.2 percent increase over the 2009-11 Legislatively Approved Budget. The requested budget allows the
commission to continue existing level of services.
Revenue
The Commission receives most of its budget from the General Fund. The Commission also collects
miscellaneous registration fees from the attendees at Commission-sponsored special meetings. These fees
are usually expended on the costs associated with each individual event.

Legislative Branch
LEGISLATIVE ADMINISTRATION COMMITTEE

2007-09 2009-11 2011-13
General Fund $30,183,274 $25,297,160 $30,359,959
Other Funds $35,918,079 $4,625,874 $2,115,390
Other Funds (Nonlimited) $502,054 $597,932 $597,932
Total Funds $66,603,407 $30,520,966 $33,073,281

statutorily required balanced budget, the Governor included $18,418,435 General Fund, $2,115,390 Other Funds and $597,932
Other Funds Nonlimited for total funds of $21,131,757 in his budget as a placeholder. All reductions to legislative branch
agencies to balance the state budget were taken in this budget.
Overview
The Legislative Administration Committee (LAC) appoints an administrator to direct and manage
services and support systems for the Legislative Assembly and other legislative branch agencies. Services
include staffing substantive committees, providing information systems and technology support,
managing building operations and maintenance for the State Capitol; performing accounting, payroll, and
personnel functions; and providing information to legislators and the public.
Requested Budget
The agency request budget is $33.1 million total funds. This is an 8.4 percent increase from the 2009-11
Legislatively Approved Budget. The General Fund budget of $30.4 million is 20 percent more than the
2009-11 Legislatively Approved Budget. The budget eliminates Other Funds for various one-time
expenditures. The budget provides funding for continuing operations.
Revenue
The Legislative Administration Committee receives most of its budget from the General Fund. The
agency also receives Other Fund revenues for rent of office space, parking fees and other items.
Nonlimited Other Funds are from the Capitol Gift Shop and the Property and Surplus Stores account.

Legislative Branch
LEGISLATIVE ASSEMBLY
2007-09 2009-11 2011-13
General Fund $31,781,326 $32,943,483 $37,957,590
Other Funds $125,145 $208,653 $268,970
Total Funds $31,993,153 $33,289,223 $38,317,920

statutorily required balanced budget, the Governor included $37,957,590 General Fund, $268,970 Other Funds and $91,360
Other Funds Nonlimited for total funds of $38,317,920 in his budget as a placeholder.
Overview
The primary responsibility of the Legislative Assembly is to produce a balanced budget that receives an
affirmative vote by a majority of each chamber and is signed into law by the Governor. The Legislature
also considers thousands of policy issues each biennium and, ultimately, enacts laws on behalf of the
citizens it represents. The Legislative Assembly budget includes salaries and per diem for legislative
members and their staffs, the leadership and caucus offices, the Secretary of the Senate, the Chief Clerk of
the House, session staff, and Senate Executive Appointments.
Requested Budget
The agency request budget is $38.3 million total funds. This is a 15.1 percent increase from the
2009-11 Legislatively Approved Budget. The General Fund budget of $38 million is a 15.2 percent
increase from the 2009-11 Legislatively Approved Budget. The requested budget allows the Assembly to
continue at existing program levels.
Revenue
The Legislative Assembly receives most of its budget from General Fund. The Assembly receives Other
Fund revenues from charging customers for the duplication of legislative materials and miscellaneous
receipts. The Assembly also receives Nonlimited Other Funds from use of the House and Senate lounges
by legislative members during session.

Legislative Branch
LEGISLATIVE COUNSEL COMMITTEE

2007-09 2009-11 2011-13
General Fund $8,359,019 $8,394,303 $9,409,507
Other Funds $1,044,451 $1,788,358 $1,635,785
Total Funds $10,284,514 $10,910,671 $11,826,003
Positions 67 57 57

statutorily required balanced budget, the Governor included $9,409,507 General Fund, $1,635,785 Other Funds and $780,711
Other Funds Nonlimited for total funds of $11,826,003 in his budget as a placeholder.
Overview
The Legislative Counsel Committee oversees the Office of the Legislative Counsel, which provides legal
and publication services to the Legislative Assembly and other agencies of state government. The agency
drafts measures and amendments for legislators, legislative committees, statewide elected officials and
state agencies. It provides legal advice to legislators and legislative committees and reviews state agency
rules for legal sufficiency. It prepares indices and tables for legislative publications and prepares
introduced measures, and any changes that may become necessary. The agency compiles, edits,
publishes, sells and distributes Oregon Revised Statutes, official bound session laws, and other print and
electronic publications.
Requested Budget
The agency request budget is $11.8 million total funds. This is an 8.4 percent increase over the
2009-11 Legislatively Approved Budget. The General Fund budget of $9.4 million is 12.1 percent more
than the 2009-11 Legislatively Approved Budget. The requested budget allows the agency to continue
providing services at the existing level.
Revenue
The Legislative Counsel Committee receives most of its budget from the General Fund. The agency also
receives Other Fund revenues from the sale of Oregon Revised Statutes, session laws and other specialty
legal publications.

Legislative Branch
LEGISLATIVE FISCAL OFFICER

2007-09 2009-11 2011-13
General Fund $5,433,438 $5,995,339 $6,582,859
Other Funds $0 $100,000 $0
Total Funds $5,433,438 $6,095,339 $6,582,859
Positions 22 21 21
statutorily required balanced budget, the Governor included $6,582,859 General Fund in his budget as a placeholder.
Overview
The Legislative Fiscal Office (LFO) is a permanent, nonpartisan legislative service agency. It provides
research, analysis and evaluation of state expenditures, financial affairs, program administration and
agency organization. LFO also provides fiscal impact statements on legislative measures. Committees
staffed by LFO include the Joint Committee on Ways and Means (during the legislative session), the
Emergency Board and the Interim Joint Committee on Ways and Means (during the interim), the Joint
Legislative Audit Committee, and other such financial committees as legislative leadership may appoint.
Requested Budget
The agency request budget is $6.6 million General Fund. Total Funds are increased by 8.0 percent from
the 2009-11 Legislatively Approved Budget. The requested budget allows the agency to continue its
current level of service.
Revenue
The Legislative Fiscal Office is completely supported by General Fund.

Legislative Branch
LEGISLATIVE REVENUE OFFICER

2007-09 2009-11 2011-13
General Fund $1,783,399 $2,134,888 $2,354,579
Total Funds $1,783,399 $2,134,888 $2,354,579
Positions 7 7 7
statutorily required balanced budget, the Governor included $2,354,579 General Fund in his budget as a placeholder.
Overview
The Legislative Revenue Office provides non-partisan analysis to the Oregon Legislature on tax policy
and school finance issues. The agency staffs the House Revenue and Senate Revenue committees.
Research for other members and committees is provided upon request.
Requested Budget
The agency request budget is $2.4 million General Fund. This is a 10.3 percent increase over the
2009-11 Legislatively Approved Budget. The requested budget allows the agency to continue providing
services at the existing level.
Revenue
The Legislative Revenue Office is completely supported by General Fund.

Judicial

OREGON JUDICIAL DEPARTMENT ............................................................................................................. K-3
COMMISSION ON JUDICIAL FITNESS AND DISABILITY............................................................................... K-5
PUBLIC DEFENSE SERVICES COMMISSION ................................................................................................ K-6
2007-09 2009-11 2011-13

Actuals Leg Approved Budget Agency Request
General Fund $521,913,859 $507,188,317 $657,967,058
Other Funds $45,697,054 $93,501,794 $71,143,786
Federal Funds $829,955 $859,163 $884,626
Other Funds (Nonlimited) $9,721,566 $0 $0
Total Funds $578,162,434 $601,549,274 $729,995,470
Positions 2,150 1,932 2,222

Overview
The mission of the Judicial Branch is to:

• Provide fair and accessible justice services.
• Protect the rights of individuals.
• Preserve community welfare.
• Inspire public confidence.
Three agencies make up the Judicial Branch program unit. These agencies provide policy, program,
administrative support and oversight for Oregon’s judicial system.
Requested Budget
Highlights of the Chief Justice’s recommended budget for the Judicial Department:
• Proposes continuing a five year funding plan to modernize the technology and business process of the
trial courts and a long range plan to improve court facilities.
• Supports judge and staff compensation and benefit adjustments.
• Adds new judgeships and related staff.
• Restores some General Fund reductions made in 2009-11.
• Adds a new Court of Appeals Judicial Panel.
• Provides funding for the Supreme Court building preservation efforts.
• Provides funding for Gresham courthouse infrastructure.
• Adds interpreters related to victims’ rights and staff for the state court administrator.
2011-13 Governor’s Balanced Budget K-1 Judicial Branch

Judicial
Highlights of the Public Defense Services Commission’s requested budget:

• Requests resources for Juvenile Dependency Representation.
• Funds rate increases for public defenders and staff attorneys to address pay disparities.
Overall, the requested Judicial Branch budget is 21.4 percent higher than the 2009-11 Legislatively Approved
Budget. The General Fund request is 29.7 percent higher than the 2009-11 Legislatively Approved Budget.
Governor’s Adjustment:
The Judicial Branch agencies are a separate and independent branch of state government. The Governor does
not have budgetary authority over them. The law, however, requires the Governor to submit a balanced
budget for the state. For this reason, the Governor’s Balanced Budget reduces the Judicial Branch’s
requested budget to $507,188,317 General Fund, $579,216,729 Total Funds which represents the same level
of General Fund received by the Judicial Branch in 2009-11. This is a 20.7 percent decrease for the Judicial
Branch total funds, compared to the requested agency budgets.

Judicial
OREGON JUDICIAL DEPARTMENT
2007-09 2009-11 2011-13

General Fund $310,336,253 $297,215,227 $385,506,668
Other Funds $44,642,997 $80,639,820 $70,675,474
Federal Funds $829,955 $859,163 $884,626
Other Funds (Nonlimited) $9,721,566 $0 $0
Total Funds $365,530,771 $378,714,210 $457,066,768
Positions 2,077 1,862 2,138

*The Governor makes no recommendation for this budget, as it is a separate branch of government. For statutory purposes, the
Governor included $297,215,227 General Fund, $70,675,474 Other Funds and $884,626 Federal Funds for total funds of
$368,775,327 in his budget as a placeholder.
Overview
The Judicial Department’s budget contains the resources necessary to operate a state-wide court system in
the Judicial Branch of Oregon state government. Effective January 1983, the Legislature created a
unified, state-funded court system with general jurisdiction trial courts (circuit courts) located in all
36 counties of the state. (Municipal courts and some justice courts, both with limited jurisdiction, still
remain outside the state-funded system and are controlled at the municipal or county levels.)
The Chief Justice of the Supreme Court is the administrative head of the department with authority over
the unified state court system operations, programs and functions. The Chief Justice appoints the State
Court Administrator, who is responsible for assisting in administration and coordination. At the local
judicial district level, the Chief Justice appoints presiding judges, who in turn appoint trial court
administrators to assist in administering the daily operations of the individual courts.
The Judicial Department includes:
• Operations of the Oregon Supreme Court, Court of Appeals, the Tax Court and Office of the State
Court Administrator.
• Operations of the 36 circuit courts located in 27 judicial districts statewide. These are general
jurisdiction trial courts located in every county that rule on a wide range of criminal, civil, juvenile,
domestic relations cases and other matters.
• Administration of mandated payments for the cost of jurors, transcript costs for certain indigents in
civil appeals, Americans with Disabilities Act compliance, and interpreters for non-English-speaking
and hearing-impaired persons in the courts.

Judicial
• Administration of centralized management and support functions, such as statewide systems for
technological case management and information, budget and finance, legal counsel services, education
and training, internal auditing, inter-branch and interagency relations, court operations program
review, personnel rules and services, and a statutory citizen review board program that reviews
permanency plans for children in out-of-home placements and makes recommendations to the circuit
court judges on the feasibility and progress of these plans.
Requested Budget
The Chief Justice’s agency request budget is $385.5 million General Fund, $457.1 million total funds.
This budget supports all programs and all policy packages submitted for legislative consideration. The
requested General Fund budget is 29.7 percent more than the 2009-11 Legislatively Approved Budget.
Much of the General Fund increase is related to increased debt service and to replace one-time revenues
used in 2009-11.
The Chief Justice’s maintenance level budget requests $356.5 million General Fund, $46.7 million Other
Funds and $0.9 million Federal Funds. In addition, the budget adds $29.4 million General Fund and
$24.0 million Other Funds in policy packages.
The agency request budget proposes continuing a five-year funding plan to modernize the technology and
business processes of the trial courts. The project is known as eCourt. The request also supports a long
range plan to improve court facilities security. The budget includes judges and staff compensation and
benefit adjustments, as well as funding to continue drug, mental health and domestic violence courts. The
budget adds new judgeships and related staff, and restores some General Fund reductions made in the
2009-11 biennium. It also requests funding for a new Court of Appeals Judicial Panel, increased staff
support in the State Court Administrator’s office, and preservation efforts in the Supreme Court building.
Revenue
The Judicial Department’s requested budget is 84 percent General Fund. Most of the operating costs are
for personnel located statewide as required by statute. The department generates revenue for the General
Fund from filing fees, trial and hearing fees and copy sales. Other Fund revenues also are generated for
the Judicial Department and other entities from fines, assessments, filing fee surcharges, collections fees,
sales of publications, access to the Oregon Judicial Information Network, drug court grants and grants
from other state agencies to leverage federal funding sources. The Federal Fund revenues are from the
Department of Health and Human Services for the Juvenile Court Improvement project.

Judicial
COMMISSION ON JUDICIAL FITNESS AND DISABILITY

2007-09 2009-11 2011-13
Actuals Leg Approved Budget Agency Request*
General Fund $160,475 $178,929 $201,311
Total Funds $160,475 $178,929 $201,311
Positions 1 1 1
Governor included $178,929 General Fund in his budget as a placeholder.
Overview
The Commission on Judicial Fitness and Disability investigates complaints filed against Oregon judges.
The commission may recommend the Oregon Supreme Court discipline a judge for misconduct and may
censure, suspend, or remove a judge from the bench. The Commission is not under Executive Branch
control.
Requested Budget
The requested budget for the Commission is $201,311 General Fund. This is 12.5 percent higher than the
2009-11 Legislatively Approved Budget. The increase is mostly attributable to inflation and employee
cost increases to maintain current operations.
Revenue
The Commission’s entire budget is funded with General Fund.

Judicial
PUBLIC DEFENSE SERVICES COMMISSION

2007-09 2009-11 2011-13
General Fund $211,417,131 $209,794,161 $272,259,079
Other Funds $1,054,057 $12,861,974 $468,312
Total Funds $212,471,188 $222,656,135 $272,727,391
Positions 72 69 83
Governor included $209,794,161 General Fund and $468,312 Other Funds for a total amount of $210,262,473 in his budget as
a placeholder.
Overview
The Public Defense Services Commission consists of three divisions: the Appellate Division, which
provides direct legal services for representation on criminal appeals; the Public Defense Services
Account, which contains funding used to pay the expenses for trial-level representation and appellate
cases not handled by the Appellate Division; and the Contract and Business Services Division, which
administers the Public Defense Services Account, negotiates contracts and pays bills for trial-level
representation and appellate cases not handled by the Appellate Division. The commission is not under
executive branch control.
Requested Budget
The requested budget for the Commission is $272.7 million total funds. The budget includes funds for
increased compensation for attorneys within the Commission to become comparable to their counterparts
within the Department of Justice and rate increases for public defender (not-for-profit) attorneys. In
addition, the requested budget provides funding for juvenile dependency caseload reduction. Finally, the
budget covers increases in mandated caseload and shifts funding from one-time Other Funds (court fees
and fines) to General Fund. In total funds, the requested budget is 22.5 percent over the 2009-11
Legislatively Approved Budget (LAB). The General Fund is a 29.8 percent increase over LAB.
Revenue
The Commission is funded primarily with General Fund. Other Funds come from the Application and
Contribution program, which is composed of application fees and contributions for services from people
who can afford to pay for a portion of their defense services.

Miscellaneous
EMERGENCY BOARD
2007-09 2009-11 2011-13
General Fund $0 $73,479,570 $20,000,000
Total Funds $0 $73,479,570 $20,000,000
Positions 0 0 0
Overview
The Emergency Board acts to meet emergency needs when the Legislature is not in session. It can
allocate money from the Emergency Fund to state agencies. It can also take other action on agency
budget requests. The Governor’s Balanced Budget provides a total of $20 million for the Emergency
Fund.
General Purpose
The Governor’s Balanced Budget proposes $20 million for the General Purpose Emergency Fund. The
Emergency Board can use this for any purpose during the biennium.
Items that would be appropriate for consideration for this fund include situations in which the state must
deal with unforeseen but critical needs, such as fighting forest fires, or when additional investment is
critical to an agency or service.
2011-13 Governor’s Balanced Budget L-1 Miscellaneous

Miscellaneous
TAX EXPENDITURE REPORT
Summary of the 2011-13 Tax Expenditure Report
Oregon law (ORS 291.202) requires the Governor to produce a tax expenditure report. The Department
of Revenue prepares the report, which goes to the Legislature along with the Governor’s budget. The
following is a summary of the report for the 2011-13 biennium. The full report is available from the
Budget and Management Division, Department of Administrative Services.
A definition of a tax expenditure appears in ORS 291.201. A tax expenditure is any law that exempts
something from taxes that otherwise could be taxed. Much of income and property value is taxed, but the
law exempts some income and property value from taxation. The part that is not taxed is a “tax
expenditure.”
The report looks at 378 tax expenditures in Oregon law. Of these, 123 relate to property taxes, and
217 relate to income taxes. The remaining 38 relate to other state tax programs. More than half of the
income tax expenditures result from Oregon’s connection to the federal income tax code. This reduces
the costs to comply with Oregon tax law, and makes it simpler to run the tax programs.
Oregon Revenues and Tax Expenditures

by Tax Program
(In Millions)
Revenue Impact of
Number of Tax Estimated Revenues Tax Expenditures
Tax Programs Expenditures 2011-13 2009-11 2011-13
Income 217 $13,802.0 $10,250.8 $12,080.9

Property 123 11,200.0 17,514.8 19,111.8
Gas and Use Fuel 5 1,071.8 15.6 19.4
Weight-Mile 7 599.3 15.9 19.8
Cigarette and Other Tobacco 5 487.2 2.7 3.0
Beer and Wine 2 38.0 2.5 2.8
Other State Taxes 19 816.9 98.4 110.1
All Taxes 378 $28,015.2 $27,900.7 $31,347.8

Miscellaneous
Tax Expenditures Scheduled for Sunset in 2011-13
ORS 291.214 requires the Governor to identify tax expenditures that fully or partially sunset in the
coming biennium. A sunset means the tax item is no longer allowed. The Governor recommends
whether the sunset should take effect. A sunset must be changed by the Legislature to keep it from taking
place. The sunset recommendations appear below.
Sunsets
Income Tax
1.317 Film Production Labor Rebate ORS 316.698/317.394 Sunsets 12/31/11

Governor’s Recommendation: Extend sunset.
1.326 Military Active Duty and Related Pay ORS 316.680(1)(c) &(k), None
316.789/316.791 Sunsets 12/31/11
1.327 TRICARE Payments ORS 316.680 Sunsets 12/31/11

1.413 Film Production Development Contributions ORS 315.514 Sunsets 12/31/11

1.414 Qualified Research Activities ORS 317.152 Sunsets 12/31/11

1.415 Qualified Research Activities (Alternatives) ORS 317.154 Sunsets 12/31/11

1.416 Long-Term Rural Enterprise Zone ORS 317.124 Sunsets 6/30/12 and
1.418 Electronic Commerce Enterprise Zone ORS 315.507 Sunsets 12/31/11

1.419 Water Transit Vessel Manufacturing ORS 315.517 Sunsets 12/31/11

1.433 Crop Donation ORS 315.156 Sunsets 12/31/11


Miscellaneous
1.436 Riparian Lands Removed from Farm Production

ORS 315.113 Sunsets 12/31/11
1.441 Diesel Truck Engines (Retrofit & Repower) ORS 315.356 Sunsets 12/31/11
1.442 Fish Screening Devices ORS 315.138 Sunsets 12/31/11

1.443 Alternative Energy Devices (Residential) ORS 316.116 Sunsets 12/31/11

1.444 Alternative Fuel Stations ORS 317.115 Sunsets 12/31/11

1.445 Business Energy Facilities ORS 315.354 Sunsets 06/30/12

Governor’s Recommendation: Extend sunset. and 12/31/13
1.446 Energy Conservation Lender’s Credit ORS 317.112 Sunsets 12/31/11

1.448 Biofuels and Fuel Blends ORS 315.465 Sunsets 12/31/11

1.449 Biodiesel Used in Home Heating ORS 315.469 Sunsets 12/31/11

1.450 Production or Collection of Biomass ORS 315.141 Sunsets 12/31/11

1.451 Reforestation ORS 315.104 Sunsets 12/31/12

1.453 Fire Insurance ORS 317.122(1) Sunsets 12/31/11

1.454 Workers’ Compensation Assessments ORS 317.122(2) Sunsets 12/31/11


Miscellaneous
Property Tax
2.009 Construction in Process in an Enterprise Zone ORS 285C.170 Sunsets 06/30/13

2.010 Enterprise Zone Businesses ORS 285C.175 Sunsets 06/30/13

2.011 Long-Term Rural Enterprise Zone ORS 285C.409 Sunsets 06/30/13

2.012 Rural Renewable Energy Development Zone ORS 285C.362 Sunsets 06/30/13
2.021 Federal Land Under Recreation Facility ORS 307.182 Sunsets 06/30/12
2.069 Low Value Manufactured Structure in Large County

OR Laws 2010, Sunsets 06/30/13
Chapter 69, Sect. 1
2.095 Multi-Family Rental Housing in City Core ORS 307.612 Sunsets 01/01/12
2.096 Low Income Multi-Unit Housing ORS 307.612 Sunsets 01/01/12

2.102 Alternative Energy Systems ORS 307.175 Sunsets 06/30/12

2.105 Egg Processing Equipment ORS 307.462 Sunsets 06/30/12


Miscellaneous
STATE AND LOCAL SHARED SERVICES

Introduction
Revenue stability and the capacity of tax revenue to keep pace with economic expansion are key issues
for both state and local governments. Local governments depend on the property tax. The property tax is
inelastic, which tends to make it a very stable revenue source. These revenues may not, however, grow
fast enough to keep up with inflation and population growth.
The state depends heavily on the income tax. It is a more elastic source of revenue that grows or drops as
fast as or faster than the economy. Given the relatively slow growth of the property tax and the volatility
of the General Fund, revenue sharing is critical to achieving a level of stability between state and local
shared services.
State services that benefit local governments and state funding of locally administered programs are vital
connections. The most dramatic example arises from the passage of Ballot Measure 5 in 1990. Before its
passage, education was mainly funded locally, by the property tax through school districts. Since then,
education has been mostly funded by the income tax-driven state General Fund, and has become the
largest portion of the state budget.
Coordinated efforts address shared goals and result in good inter-governmental partnerships. Some
example efforts include:
• Community Corrections.
• Oregon Health Plan.
• Mental Health and Substance Abuse Services.
• Services to People with Developmental Disabilities.
• Salmon Initiatives.
• Gas Tax Revenue Sharing.

Miscellaneous
2011-13 State and Local Shared Services

By Program Area
Administration,
$1,140.7 million, 10%
Consumer & Bus. Serv., Judicial, $62.9 million, 1%
$77.9 million, 1%
Transportation,
$1,038.6 million, 9%
Natural Resources,
$147.2 million, 1%
Economic & Community

Development,
$132.0 million, 1%
Public Safety,
Education, $7,309.6 million,
$501.5 million, 5%
66%
Human Services, $708.0

million, 6%

Miscellaneous
2011-13 State and Local Shared Services

By Recipient
Total: $11.1 Billion
Community Colleges, Other, $36.0 million, 0%

$426.6 million, 4% Cities,
$639.0 million, 6%
Counties,
$2,778.4 million, 25%
Other Governmental Units,

Local School Districts, $492.8 million, 4%
$6,745.5 million, 61%
The property tax initiatives of the 1990s reinforced the link between the financial health of local
governments and the state’s economy. Local governments provide some basic services – such as police
and fire protection, transportation, sewer, water, housing and educated workers – that businesses need to
develop and thrive.

Miscellaneous
Budget Overview
There are three primary types of shared services between state and local government:
• Funds paid by state agencies to local governments for locally administered programs (primarily
county human services, public education, etc.).
• Revenues collected by state agencies and shared with local governments (shared revenues) for the
purpose of funding local government services, such as the gas tax.
• Services delivered by state agencies that benefit local governments, for example, directly funding
local infrastructure projects.
Resources to non-governmental units, individuals and tax relief are not included.
The 2011-13 The Governor’s Balanced Budget contains $11.1 billion total funds in state and local shared
services (see chart on previous page for specific program area distributions).
The following narrative provides a sampling of state and local shared services. This is not a complete
documentation. Services are both direct and indirect. Indirect services are not directly reflected in state
budgets. Individual agencies can be contacted for more information.
Administration Program Area

The Administration Program Area represents 10 percent of total shared services. Agency budgets
apportion $1.1 billion total funds to local government. Some examples of aid to local government are:
Department of Administrative Services. The department administers a number of funds distributed to cities
and counties in Oregon. In the 2011-13 biennium, transfers of revenue total more than $389 million,
excluding Lottery Funds. The support includes cigarette, tobacco and amusement tax revenues received from
the Department of Revenue, as well as liquor and beer and wine taxes from the Oregon Liquor Control
Commission. Federal Funds come from U.S. Land Sales, forest reserve rentals and leases, Taylor Grazing
Act funds and mineral leases. Distributions to counties from video lottery proceeds pass through the
Economic Development Fund.
Oregon Liquor Control Commission. A portion of liquor sales revenue, privilege tax revenue, and license
fee revenue is transferred to local governments. Twenty percent of net liquor revenues and 10 percent of
net privilege tax revenues are transferred to cities. Ten percent of net liquor revenues and five percent of
net privilege tax revenues are transferred to counties. Fourteen percent of net liquor taxes and seven
percent of net privilege tax revenues are transferred to city revenue sharing. For 2009-11, it is estimated
that $146.6 million will be transferred to local governments. This includes the transfer to local
governments through the Department of Administrative Services for city revenue sharing.
Department of Revenue. The agency sends funds to counties from a variety of sources. A total of $533.2
million will be distributed to counties during 2011-13. This includes local transit tax moneys. Also,
funds for property tax assessors from the County Assessment Function Funding Account will help
counties maintain their assessment and collection programs. The department also collects and transfers
revenues for programs such as the Electric Co-op and Private Rail Car programs.

Miscellaneous
Oregon State Library. The State Library provides resources to local governments in the form of Library
Services and Technology Act (LSTA) competitive grants totaling $1.1 million Federal Funds. These
grants are distributed to city, county and other libraries across the state.
Economic and Community Development Program Area

The Economic and Community Development Program Area includes one percent of total shared services
and $132.0 million total funds. Agencies in this area help provide economic and cultural enhancement.
Some examples of shared services are:
Oregon Business Development Department. The department supports local infrastructure projects
through technical assistance, grants, loans and bond financing. The department also administers the
Community Development Block Grant program for the non-entitlement areas of the state (those local
governments that do not receive a block grant directly from the United States Housing and Urban
Development Department). The balanced budget includes over $63.7 million in Lottery Funds, Other
Funds and Federal Funds for special payments to local government.
Housing and Community Services Department. The balanced budget provides approximately $64.6
million to local government. The agency works with community development corporations, community
action agencies, housing authorities, and local governments and school districts to expand affordable
housing, revitalize rural and distressed communities and low-income utility assistance.
Department of Veterans’ Affairs. The Department of Veterans Affairs budget includes $3.1 million
General Fund for 34 county veterans’ service organizations in a service-delivery partnership with
counties.
Education Program Area

The Education Program Area represents 66 percent, or $7.3 billion, of all state resources to local
government, more than any other program area. State aid to schools has grown significantly since Ballot
Measure 5 (1990) amended the Oregon Constitution to reduce property taxes and required the state to
replace property tax revenues lost by schools. The phase-in of Measure 5, as well as the replacement
requirement, ended after the 1995-96 fiscal year. Measure 50, however, will continue to restrict the
growth in property taxes, and the state has continued to provide increases in school funding. Some
examples of shared services are:
Early Learning Council. The department provides $311 million to local governments for the delivery of
services related to early childhood education and school readiness. This includes grants for pre-
kindergarten and early education services and contracts with organizations in local service delivery areas
to provide child care resource and referral services. The department also provides funding to counties for
children’s community mental health and public health programs, to local governments for programs
associated with the commissions on children and families (such as Healthy Start and Relief Nurseries),
and payments to county and city libraries for reading programs.
Oregon University System. OUS does not directly transfer funds to local governments. However, Oregon’s
universities provide a significant amount of assistance to local governments through their research and public
2011-13 Governor’s Balanced Budget L - 10 Miscellaneous
Miscellaneous
service programs. For example, the Extension Service works with all 36 counties to provide educational
programs based on locally identified needs. A majority of Extension faculty are assigned to county
locations. Extension Specialists are Oregon State University (OSU) faculty members who develop
educational programs and serve as technical resources for county-delivered programs. Extension Agents
are OSU faculty assigned to county field locations. Generally, counties provide office space and
operating expenses, including support staff. Programs are delivered with the assistance of thousands of
volunteers. The balanced budget reduces support for the Extension Service by 25 percent below Current
Service Level.
Department of Community Colleges and Workforce Development (CCWD). The majority of the budget
for CCWD is funding for local governments. This funding consists of Community College Support Fund
payments to local districts; distribution of the federal Workforce Investment Act funds to regional,
county, or community service delivery agents; and distribution of state funding for local OYCC programs.
The Governor’s balanced budget does not include Article XI-G bonds to support community college
Capital Construction projects during the 2011-13 biennium. The balanced budget includes the transfer of
the following amounts to local governments:
General Fund Other Funds Federal Funds Federal Funds

Nonlimited
Counties $59,553 $29,415
Other Gov Units $88,367 $62,155 $18,968,831
Local School Districts $629,518
Community Colleges $410,000,000 $140,763 $13,546,176
Department of Education (ODE). Almost 95 percent of the budget for ODE is for services to local
governments. This aid consists of the State School Fund payments to local education districts, as well as
numerous Grant-in-Aid programs.
General Fund Lottery Other Funds Federal Funds

Other Gov Units $477,498
Local School
Districts $5,221,753,134 $371,918,440 $94,310,728 $863,778,563
Community
Colleges $1,548,726
Oregon Health and Science University. OHSU operates a number of programs and services that provide
health care resources to Oregon’s communities, including Area Health Education Centers, Community
Development and Rehabilitation Centers, and others.
Oregon Student Assistance Commission. The budget includes $357,000 Other Funds to pay local school
districts for 50 percent of the cost of ASPIRE program coordinators. ASPIRE provides training and
technical assistance to Oregon high schools to implement and sustain a corps of volunteer advisors who help
students understand their post-secondary options.

Miscellaneous
Human Services Program Area
The Human Services Program Area promotes health and safety. Agencies foster self-sufficiency and
independence. State and local partnerships are vital in providing social supports. The program area
represents 6.0 percent of total shared services. The agencies provide $708 million total funds to local
governments. Some examples of these services are:
Department of Human Services. The department contracts with local government to provide a variety of
developmental disability services and case management for seniors and people with disabilities. In
addition, other local governmental units, like school districts, local Commissions on Children and
Families, community action agencies and cities, also play key roles in providing or coordinating services.
DHS distributes almost $302 million for services to seniors and people with disabilities. The senior and
disabled services system is primarily managed through contracts with local Area Agencies on Aging. The
developmental disability program is managed through contracts with local brokerages and county offices.
Oregon Health Authority. The Health Authority contracts with local governments to deliver a significant
number of state services. These contracts include mental health payments for county-based Mental Health
Organizations, alcohol and drug abuse treatment services, communicable disease testing, prenatal/parental
services and various other public health initiatives. OHA distributes $286 million for addiction and mental
health programs and $112 million for public health services.
Natural Resources Program Area
The Natural Resource Program Area represents one percent of total shared services. Agencies apportion
$147.2 million total funds to local governments.
Agencies in this program area manage, protect, and preserve Oregon’s natural resources. This is done
with the best interests of present and future generations in mind, with the goal of protecting a sound,
diversified and sustainable economy. The Oregon Plan for Salmon and Watersheds is a cooperative
endeavor among the state, local communities and the private sector. The agreement works toward
improving and restoring salmon and steelhead runs, habitat and watershed health. Some examples of aid
or shared services are:
Department of Agriculture. The budget includes $2.5 million in Lottery Funds for various cities, counties
and other local government entities for weed control activities.
Department of Energy. The department assists local government through the State Home Oil Weatherization
Program and various tax credit programs. The department also provides for the coordination of emergency
response activities for the Hanford and Columbia Generating Station, and for assistance in evaluating energy
facility sitting applications. The budget includes approximately $1.7 million in Other Funds and Federal
Funds for these payments to local government.
Department of Environmental Quality. The agency provides a subsidy to the Lane Regional Air Pollution
Authority. It also provides grants to improve solid waste planning and recycling, and loans for sewage
treatment infrastructure.

Miscellaneous
Forestry Department. The department manages some state forests for benefits to counties. These lands were
transferred to the state in the early part of the 20th century. Revenues from these lands help support county
operations and local school districts. Also, counties and schools receive a share of revenues from the
harvesting of timber on forestland managed by the department on behalf of the State Land Board.
Department of Land Conservation and Development. Through its Grants program unit, the agency
distributes funds to cities and counties. Grants are awarded to maintain, improve, and carry out
comprehensive plans and land use regulations, and to help local governments meet the statutory
obligation for periodic review of those plans. For the 2011-13 biennium, distributions under this program
will likely total $1.7 million total funds.
Department of State Lands. The department transfers revenue to the Department of Education; this
revenue becomes part of the funding for primary and secondary public schools (Kindergarten through 12th
grade).
Marine Board. The Marine Board provides resources to local government in three ways. First, the board
helps local communities submit facility construction grant proposals for docks and boat ramps. Second, the
board has staff engineers that work with the community to provide technical expertise. Finally, the Board
provides direct assistance of $8.7 million.
Oregon Parks & Recreation Department. The department operates grant programs that provide funding to
counties and other local governments for recreation and historic preservation. Each grant program has
specific eligibility requirements. Some are designed for county governments only; others can include
cities, counties, metropolitan service districts, park and recreation districts and port districts.
There are six recreational grant programs, five of which distribute grants primarily for outdoor recreation
purposes. Two of the five are pass-throughs using Federal Funds. The other grant program assists local
governments in the creation or preservation of veterans and war memorials.
Other grant programs include various types of historic preservation and heritage-related projects such as
historic buildings and sites, archaeology, museums and cemeteries.
Parks recreational grants

• The County Opportunity Grant program (funding for recreational vehicle camping sites and
funded through RV registration fees) distributes approximately $1.1 million in grants.
• The All-Terrain Vehicle (ATV) program distributes about $9.05 million in grants to local, state
and federal entities. Grants are awarded for law enforcement and safety, acquisition and
maintenance of trails and facilities, and other ATV-related purposes.
• The Local Government Grant Program provides approximately $10.2 million, from the Lottery
funded Parks and Natural Resources Fund, to local governments for the acquisition and
development of outdoor park grounds and facilities.
• The federal Recreational Trail Grant Program distributes approximately $2.8 million in grants.
The majority of the grant funds are used by local governments for non-motorized trails.

Miscellaneous
• The federal Land and Water Conservation Funds are used by local governments for acquisition
and development of local parks. This program distributes approximately $1 million in grants.
• Grants for veteran and war memorials are funded at $150,000.
Parks historic preservation grants

• Grants for historic resource programs, archaeology, museums and historic cemeteries are funded at
about $1.2 million.
Public Safety Program Area

The Public Safety Program Area provides 5.0 percent of all shared services with local government, or
$501.5 million total funds. Community Corrections funds 40 percent of the total.
Agencies in the public safety area are responsible for ensuring the safety of Oregon’s people, property and
natural resources. This is done through trained militia and law enforcement. It also includes prosecution
and incarceration of juvenile and adult offenders. Some examples of shared services are:
Criminal Justice Commission. The Governor’s Balanced Budget includes $3.5 million General Fund for
distribution to counties to fund drug court grants. The budget also includes $0.9 million Federal Funds
distributed to counties as part of the Justice Assistance Grant, Byrne Grant and Residential Substance
Abuse Treatment Grant programs.
Department of Corrections. The balanced budget includes $211.4 million total funds for grants to counties
for supervision of state felony offenders on parole, probation, and post-prison supervision, and for
management of felony offenders sentenced to incarceration for 12 or fewer months.
Department of Justice. The department will transfer about $7.1 million total funds to cities and counties for
crime victim assistance. These funds come primarily from the Criminal Fine and Assessment Account,
penalties levied against defendants who were found guilty of committing certain crimes by the courts.
Federal Funds are also part of the total pass-through for victims.
An additional $5.2 million Federal Funds are expended, primarily to counties and primarily for High
Intensity Drug Trafficking Area programs and drug enforcement coordination activities.
The department also distributes $14.9 million Federal Funds and $4.2 million Other Funds to counties to fund
the District Attorney (DA) cost of the Child Support Program. For the 2011-13 biennium, the department
will also transfer $2.2 million General Fund to the DAs to offset a funding reduction from passage of the
federal Deficit Reduction Act of 2005.
In addition, $2.5 million Other Funds are transferred to DAs for work related to juvenile dependency
hearings.
Oregon Military Department. The Oregon Military Department provides a variety of services to local
government during state emergencies. National Guard members assist in the design and construction of
public improvement projects as part of their training activities. The 9-1-1, federal emergency planning

Miscellaneous
and management grants and homeland security grants will be distributed from the department. As a
result, the department total is $65.8 million for counties and $74.5 million for cities.
Oregon Youth Authority (OYA). OYA provides funds to juvenile departments to purchase services
designed to prevent youth from re-offending and to provide focused gang-related programs. The amount
is $12.3 million General Fund.
Department of Public Safety Standards and Training (DPSST). DPSST certifies and trains city and county
police officers and state and local corrections, parole and probation, telecommunications and emergency
medical dispatchers. It also certifies and provides training for volunteer and professional firefighters. The
recommended budget covers continued provision of these services, at no cost to the sending governments or
students.
Transportation Program Area

The Transportation Program Area distributions make up 9.0 percent of total shared services, or $1.0
billion total funds. Some examples of these services to local government are:
Department of Transportation. Through Connect Oregon, the department provides funding to local
governments for multi-modal transportation projects. The department also provides local governments
with public transportation funding for the transportation of elderly individuals and individuals with
disabilities. Finally, cities and counties receive revenue for highway construction. The funds received are
Federal Funds, in addition to a portion of the fuels tax, weight-mile tax and driver licensing fees.

Miscellaneous
STATE AND LOCAL SHARED SERVICES BY EXPENDITURES

AND REVENUES RECIPIENT AND FUND TYPE
RECIPIENT FUND 2007-09 2009-11 2011-13
TYPE ACTUALS LEGISLATIVELY GOVERNOR'S
APPROVED BALANCED
Cities
General Fund 2,297,069 2,129,686 1,066,940
Lottery Funds 10,339,011 2,398,842 3,980,470
Other Funds 82,167,217 91,083,492 90,903,159
Federal Funds 54,147,905 69,880,294 84,110,358
Total 148,951,202 165,492,314 180,060,927
Counties
General Fund 519,175,118 567,614,166 576,261,766
Lottery Funds 9,485,104 10,301,144 11,882,772
Other Funds 225,720,050 192,629,030 208,338,643
Federal Funds 310,839,258 415,159,326 408,092,504
Total 1,065,219,530 1,185,703,666 1,204,575,685
Other Governmental Units
General Fund 59,257,599 57,762,498 60,649,659
Lottery Funds 19,972,361 8,475,461 9,245,781
Other Funds 204,796,390 302,242,394 235,443,949
Federal Funds 127,884,549 222,873,859 187,487,996
Total 411,910,899 591,354,212 492,827,385
Local School Districts
General Fund 5,100,260,782 5,410,288,050 5,357,999,985
Lottery Funds 1,061,258,188 494,085,427 371,918,440
Other Funds 129,457,209 130,217,182 103,391,157
Federal Funds 1,027,235,235 1,371,576,566 912,179,145
Total 7,318,211,414 7,406,167,225 6,745,488,727
Community College Districts
General Fund 502,751,214 451,828,352 410,000,000
Lottery Funds 2,572,766 0 0
Other Funds 152,210,832 129,912,907 1,431,233
Federal Funds 35,339,630 25,208,014 15,184,607
Total 692,874,442 606,949,273 426,615,840
Transfer to Cities
General Fund 0 0 0
Lottery Funds 0 0 0
Other Funds 351,785,334 443,943,473 458,938,265
Federal Funds 42,542 0 0
Total 351,827,876 443,943,473 458,938,265
Transfer to Counties
General Fund 0 0 0
Lottery Funds 40,031,347 29,793,584 38,228,412
Other Funds 1,060,767,929 1,198,118,831 1,211,819,228
Federal Funds 0 316,177,100 323,765,350
Total 1,100,799,276 1,544,089,515 1,573,812,990
Transfer to Other
General Fund 0 0 0
Lottery Funds 0 0 0
Other Funds 33,603,778 32,408,114 36,015,006
Federal Funds 0 0 0
Total 33,603,778 32,408,114 36,015,006
TOTALS
General Fund 6,183,741,782 6,489,622,752 6,405,978,350
Lottery Funds 1,143,658,777 545,054,458 435,255,875
Other Funds 2,240,508,739 2,520,555,423 2,346,280,640
Federal Funds 1,555,489,119 2,420,875,159 1,930,819,960
Total 11,123,398,417 11,976,107,792 11,118,334,825

Capital Budgeting
CAPITAL CONSTRUCTION
Capital Construction projects are presented in appropriation bills separate from agencies’ budget bills for
ongoing operations. “Major Construction” projects are distinguished from “Capital Improvements” based
on a cost in excess of $1 million, and must receive approval by the Legislature before spending begins.
Capital Improvements less than $1 million do not require specific legislative approval and are included in
an agency’s operating budget.
The following tables show the major projects proposed by the Governor for the 2011-13 biennium. They
also show identified major project costs for the four years in the subsequent two biennia as submitted by
each agency. This data on projected future project cost is referred to as the "six-year plan" and is a
required component of the Governor’s recommended budget under Oregon law (ORS 291.224).
The recommended major construction projects are included in two appropriation bills. One bill presents
projects for the Oregon University System and Community Colleges, and another bill for projects of all
other state government.
Projects may be funded with proceeds from bonds that are repaid over time or on a “pay-as-you-go” (i.e.
without borrowing) basis. Sources for bond repayment and “pay-as-you-go” include General Fund, Other
Funds, Lottery Funds and Federal Funds. Income taxes are the primary source of General Fund
resources. Other Funds are moneys dedicated by Oregon Law or Constitution. Other Fund revenues are
derived from a variety of sources including taxes on fuels, rents, fees for services, grants, and donations.
Lottery Funds are net revenues derived from operations of the Oregon Lottery. Federal Funds are moneys
from the U.S. Government to pay for specific projects such as armories and airport improvements.
Important investments in this budget will:
• Improve Oregon University System facilities, including addressing significant deferred

maintenance needs;
• Provide construction funds for new State Hospital facilities; and
• Make improvements to state office buildings.
2011-13 Governor's Balanced Budget M-1 Capital Budgeting

MAJOR CONSTRUCTION/ACQUISITION
2011-13 PROGRAM FUNDING REQUEST SUMMARY
General Other Federal Total

Program Area Fund Funds Funds Funds
406,887,30
Education $ - 406,887,303 - $ 3
155,360,01
Human Services - 155,360,013 - 3
Public Safety - 680,000 - 680,000
Economic and Community

Development - - - -
Natural Resources - 3,700,001 1 3,700,002
Transportation - 63,160 1,200,001 1,263,161
Administration - 16,338,554 - 16,338,554
584,229,03
Total $ - $ 583,029,031 $ 1,200,002 $ 3

2011-2013 RECOMMENDED MAJOR
CONSTRUCTION/ACQUISITION PROJECTS
Program Area/Agency Fund Funds Funds Funds
EDUCATION PROGRAM
Oregon University System
Misc Student Building Fee Projects $ - 40,000,000 - 40,000,000
-Capital renewal, code, and safety - 61,400,000 - 61,400,000
- Reserves - 9,148,300 - 9,148,300
Western Oregon University
- Todd Hall Renovation - 10,900,000 - 10,900,000
Eastern Oregon University
- Quinn Coliseum Deferred Maint - 13,179,000 - 13,179,000
Oregon State University
- Animal Sciences Teaching Pavilion Equip. 2,000,000 2,000,000
- Cross County Track expanded scope 4,000,000 4,000,000
- Sport Performance expanded scope - 3,000,000 - 3,000,000
- Student Experience Center - 40,700,000 - 40,700,000
- Memorial Union Renovation - 11,000,000 - 11,000,000
- New Business Education Bldg - 56,000,000 - 56,000,000
- Education Hall deferred Maintenance - 6,000,000 - 6,000,000
- New residential Hall - 30,000,000 - 30,000,000
- Bookstore relocation - 12,000,000 - 12,000,000
- UHDS Arnold Dining Hall Renovation - Phase 2 - 5,000,000 - 5,000,000
- Student Family Housing - 16,250,000 - 16,250,000
- Univ Housing & Dining Upgrades: Poling, Cauthorn & Coop. House - 8,000,000 - 8,000,000
- USGS Facility - 13,860,000 - 13,860,000
Portland State University
- Blumel Residence Hall Domestic Water Line Replace - 7,000,000 - 7,000,000
- Land Acquisition - 1 - 1
- New Student Housing - 1 - 1
Southern Oregon University
- Science Building/Seismic Remediation & Def. Maintenance - 21,000,000 - 21,000,000
University of Oregon
- Parking Structure - 1 - 1
- Steam Service Replacement - 2,500,000 - 2,500,000
- Earl Residence Hall Fire System Improvements - 750,000 - 750,000
- Bean Residence Hall Exterior Preservation - 1,500,000 - 1,500,000
- Barnhart Residence Hall Envelope Restoration - 1,700,000 - 1,700,000
Oregon Institute of Technology
- Portland Consolidated Campus - 30,000,000 - 30,000,000
Total Oregon University System $ - $ 406,887,303 $ - $ 406,887,303
TOTAL EDUCATION PROGRAM $ - $ 406,887,303 $ - $ 406,887,303
HUMAN SERVICES PROGRAM

Oregon Health Authority
State Hospital Replacement $ - $ 155,360,013 $ - $ 155,360,013
Total Oregon Health Authority $ - $ 155,360,013 $ - $ 155,360,013
TOTAL HUMAN SERVICES PROGRAM $ - $ 155,360,013 $ - $ 155,360,013
PUBLIC SAFETY PROGRAM

Military Department
Christmas Valley site acquisition 680,000 680,000
Total Military Department $ - $ 680,000 $ - $ 680,000
TOTAL PUBLIC SAFETY PROGRAM $ - $ 680,000 $ - $ 680,000
NATURAL RESOURCES PROGRAM

Department of Fish & Wildlife
Sandy Hatchery Fish Passage - 3,700,000 - 3,700,000
Headquarters Bldg - 1 1 2
Total Department of Fish & Wildlife $ - $ 3,700,001 $ 1 $ 3,700,002
TOTAL NATURAL RESOURCES PROGRAM $ - $ 3,700,001 $ 1 $ 3,700,002

TRANSPORTATION PROGRAM
Department of Transportation
Joseph Airport Runway / Apron Rehab - 52,633 1,000,000 1,052,633
Chiloquin State Airport Runway / Apron Rehab - 10,526 200,000 210,526
Aurora State Airport Traffic Control Tower - 1 1 2
Total Department of Transportation $ - $ 63,160 $ 1,200,001 $ 1,263,161
TOTAL TRANSPORTATION PROGRAM $ - $ 63,160 $ 1,200,001 $ 1,263,161
ADMINISTRATION PROGRAM
Department of Administrative Services
HVAC Improvement Projects Phase 1 $ - $ 1,535,603 $ - $ 1,535,603
Roof Replacements - 1,479,759 - 1,479,759
Fire Panel Upgrades - 2,791,212 - 2,791,212
Building Exterior Weatherization - 1,552,033 - 1,552,033
Carpet Replacements - 3,094,700 - 3,094,700
Parking Projects - 2,268,881 - 2,268,881
Salem Motor Pool Improvements - 1,366,366 - 1,366,366
Facilities Integrated Software Sys Phase 2 - 1,000,000 - 1,000,000
Planning - 250,000 - 250,000
Revenue Bldg Heating, Ventilation, Air Conditioning Sys Chiller Replace - 1,000,000 - 1,000,000
Total Department of Administrative Services $ - $ 16,338,554 $ - $ 16,338,554
TOTAL ADMINISTRATION PROGRAM $ - $ 16,338,554 $ - $ 16,338,554
GRAND TOTAL 2011-13 BIENNIUM $ - $ 583,029,031 $ 1,200,002 $ 584,229,033

CONSTRUCTION/ACQUISITION REQUIREMENTS *
EDUCATION PROGRAM
Capital Renewal, Code and Safety (Current Needs) $ 42,000,000 150,000,000 $ - $ 192,000,000
Deferred Maint - 250,880,000 - 250,880,000
Education Addition & Facility Upgrade 2,500,000 9,500,000 - 12,000,000
Facilities Upgrade Projects 1,750,000 11,250,000 - 13,000,000
Rice Auditorium Rehabilitation 3,000,000 11,000,000 14,000,000
Oregon State University
Performing Arts Center 35,000,000 - 35,000,000
Veterinary Medicine Academic Center 7,700,000 - 7,700,000
HMSC-Youth & Family Education Bldg 7,200,000 - 7,200,000
Energy and Green Materials Center 100,000,000 - 100,000,000
HMSC Facilities Maintenance Shop 2,750,000 2,750,000 - 5,500,000
Dryden Hall Renovation 13,000,000 - 13,000,000
Magruder Hall Renovation 2,806,393 - 2,806,393
HMSC Marine Mammal & Marine Genomics Bldg 25,000,000 - 25,000,000
Gilbert Hall Renovation 22,500,000 - 22,500,000
HMSC Infrastructure Facilities and Site Improvements 1,604,578 2,406,866 - 4,011,444
Peavy Hall Instruction Modernization 5,950,000 - 5,950,000
Education Hall Interior Renovation 13,000,000 - 13,000,000
Radiation Center Addition, East Wing Addition 20,000,000 - 20,000,000
HP B-11 Laboratory Build-out 12,000,000 - 12,000,000
Mechanical, Industrial & Manufacturing Engineering Bldg 50,000,000 - 50,000,000
COAS Expedition Support Center 4,000,000 - 4,000,000
Marston House & East Hall Historic Preservation 4,500,000 - 4,500,000
School of Business Admin ED/BA Building - Phase 2 10,000,000 - 10,000,000
Knowledge Commons & Millar Library Annex 69,000,000 69,000,000
Fourth Ave Building Renovation & Modernization 20,000,000 20,000,000
Eco District Campus Energy Sys Upgrade 25,000,000 25,000,000
Montgomery Court Renovation & Academic Modernization 10,000,000 10,000,000
Ondine Student Housing Seismic Upgrades Phase 2 15,000,000 15,000,000
Fire Life Safety & Seismic Upgrades in Aux Building 5,000,000 5,000,000
Blackstone Student Housing Seismic Upgrades 7,000,000 - 7,000,000
Retail Development 5,000,000 - 5,000,000
Sciences Renovation and Additions 30,000,000 - 30,000,000
University of Oregon -
Knight Law School Addition 16,250,000 - 16,250,000
Learning Spaces for the 21st Century - Phases 2, 3 43,500,000 - 43,500,000
Integrative Science Complex, phase 3 106,500,000 - 106,500,000
New Computing Center 20,000,000 20,000,000
Science Library 20,000,000 20,000,000
Vivian Olum Child Development Center 9,500,000 9,500,000
University Ecological Village 100,000,000 100,000,000
Gerlinger Annex Expansion & Renovation for Dance 22,000,000 22,000,000
Student Success Center 20,000,000 20,000,000
New Residence Hall - 2 98,000,000 98,000,000
Oregon Institute of Technology
Earth Sciences Center 75,000,000 - 75,000,000
-
Total Oregon University System $ 53,604,578 $ 1,487,193,259 $ - $ 1,540,797,837

Dept. of Community Colleges and Workforce Development
Klamath Falls Community College
Phy Ed Instructional Center/CTC Expand $ - $ 8,000,000 $ - $ 8,000,000
Linn-Benton Community College
Nursing & Allied Health Proj - 3,750,000 - 3,750,000
Rouge Valley Community College
Riverside Campus - 8,000,000 - 8,000,000
Chemeketa Community College
Industrial Tech Facility - 7,826,000 - 7,826,000
Umpqua Community College
Student Entry Center - 6,125,000 - 6,125,000
Blue Mountain Community College
Baker County Proj - 6,000,000 - 6,000,000
Clackamas Community College
Environmental Resource Center - 6,075,000 - 6,075,000
Lane Community College
Learning Center - 8,000,000 - 8,000,000
Central Oregon Community College
Redmond General Purpose Classroom - 2,892,417 - 2,892,417
Clatsop Community College
Classroom Building - 3,750,000 - 3,750,000
Portland Community College
E6 / Net Zero Strategy - 6,450,000 - 6,450,000
Mt Hood Community College
Library Upgrade - 4,989,000 - 4,989,000
Total Community Colleges and Workforce Development $ - $ 71,857,417 $ - $ 71,857,417
TOTAL EDUCATION PROGRAM $ 53,604,578 $ 1,559,050,676 $ - $ 1,612,655,254

Department of Corrections
Junction City Prison - Site Development & Construction $ - $ 148,359,909 $ - $ 148,359,909
Deferred Maintenance $ - $ 1,476,989 $ - $ 1,476,989
- - -
Total Department of Corrections $ - $ 149,836,898 $ - $ 149,836,898
Military Department
Boardman Tactical Unmanned Aircraft Systems Facility $ - $ 609,171 $ 7,886,320 $ 8,495,491
Boardman Multipurpose Machinegun Range 704,000 10,760,640 11,464,640
Owens Summers Building Addition/Alteration - Phase I 2,956,941 17,636,960 20,593,901
Salem 17th St - Armory - Service Life Extension 2,592,000 2,592,000
Warrenton - Armory - Service Life Extension 1,458,000 1,458,000
Jackson - Armory - Service Life Extension 3,564,000 3,564,000
Ashland - Armory - Service Life Extension 2,268,000 2,268,000
Washington County Readiness Center 598,723 1,951,080 2,549,803
Washington County FMS 109,066 1,451,400 1,560,466
Total Military Department $ - $ 14,859,901 $ 39,686,400 $ 54,546,301
Oregon Youth Authority

Deferred Maintenance Projects $ - $ 12,823,017 $ $ 12,823,017
Energy Savings Improvements 5,000,000 5,000,000
Total Oregon Youth Authority $ - $ 17,823,017 $ - $ 17,823,017
TOTAL PUBLIC SAFETY PROGRAM $ - $ 182,519,816 $ 39,686,400 $ 222,206,216

Total Department of Fish & Wildlife $ - $ 2,500,000 $ - $ 2,500,000
TOTAL NATURAL RESOURCES PROGRAM $ - $ 2,500,000 $ - $ 2,500,000
East Portland - phase 2 $ - $ 5,500,000 $ - $ 5,500,000
Meacham Maint Station 6,500,000 6,500,000
Total Department of Transportation $ - $ 12,000,000 $ - $ 12,000,000
TOTAL TRANSPORTATION PROGRAM $ - $ 12,000,000 $ - $ 12,000,000
Heating, Ventilation, Air Conditioning Sys Upgrades-Phase 2 $ - $ 3,100,000 $ - $ 3,100,000
Lighting Upgrades Various Bldg - Phase 1 - 500,000 - 500,000
Heating, Ventilation, Air Conditioning Sys Upgrades-Phase 3 - 1,767,504 - 1,767,504
GRAND TOTAL 2011-2013 BIENNIUM $ 53,604,578 $ 1,761,437,996 $ 39,686,400 $ 1,854,728,974
* Funding in the Governor's Recommend Budget includes only those items identified in capital construction bills. This table
presents estimated biennial construction requirements and includes items not yet recommended in capital construction bills.

EDUCATION PROGRAM
Capital renewal, code, and safety (Current Needs) $ 40,000,000 150,000,000 $ - $ 190,000,000
Deferred Maintenance 205,880,000 - 205,880,000
Smith Hall Rehabilitation 500,000 2,500,000 - 3,000,000
New Science Facility 6,000,000 8,000,000 - 14,000,000
APS-Forner Library Remodel 2,500,000 6,500,000 9,000,000
New PC Renovation & Addition 1,750,000 7,250,000 9,000,000
Roy Lieuallen Admin Building Renovation 2,500,000 12,500,000 15,000,000
Jensen Museum Upgrade 2,800,000 2,800,000
Science 1 Seismic Stabilization & Bldg Improvements 18,000,000 18,000,000
Bradford P Millar Lib Renovation & Seismic Upgrades 40,000,000 - 40,000,000
Cramer Hall Renovation and Seismic Upgrades 44,000,000 - 44,000,000
Acquisition & Renovation of Classroom Buildings 1 1
East Campus Parking Project 16,200,000 16,200,000
New Student Housing 75,000,000 75,000,000
University of Oregon
Campus Exterior Enhancements - Phase 1 11,000,000 11,000,000
Learning Spaces for the 21st Century - Phase 4, 5, 6 60,000,000 - 60,000,000
Student Housing Support Facility 6,500,000 - 6,500,000
New Residence Hall - 3 150,000,000 150,000,000
Carson Residence Hall Central Kitchen Upgrade 2,500,000 2,500,000
Computing Services Center Re-Purposing 1,500,000 1,500,000
Total Oregon University System $ 53,250,000 $ 820,130,001 $ - $ 873,380,001
Dept. of Community Colleges and Workforce Development

Klamath Falls Community College
Campus Center Bldg/KALC Remodel $ - $ 8,000,000 $ - $ 8,000,000
Linn-Benton Community College
Industrial Advanced Training Center - 4,000,000 - 4,000,000
Rouge Valley Community College
Table Rock Campus-Justice Training Ed Center & Flex Lab - 1,320,000 - 1,320,000
Chemeketa Community College
N Marion Classroom Bldg - 7,738,984 - 7,738,984
Umpqua Community College
South County Training Center - 3,722,000 - 3,722,000
Clackamas Community College
Workforce Industry Center - 8,000,000 - 8,000,000
Lane Community College
Sustainable Workforce Center - 8,000,000 - 8,000,000
Central Oregon Community College
Madras/Prineville Gen Purpose Classroom - 2,892,417 - 2,892,417
Portland Community College
E6 / Net Zero Strategy-Sylvania - 8,000,000 - 8,000,000
Mt Hood Community College
General Ed, Science, Tech & Student Serv Proj - 6,000,000 - 6,000,000
Total Community Colleges and Workforce Development $ - $ 57,673,401 $ - $ 57,673,401
TOTAL EDUCATION PROGRAM $ 53,250,000 $ 877,803,402 $ - $ 931,053,402


Department of Corrections
Deferred Maintenance Projects $ - $ 1,734,958 $ - $ 1,734,958
- - -
Total Department of Corrections $ - $ 1,734,958 $ - $ 1,734,958
Military Department
Washington County Readiness Center $ - $ 4,390,637 14,307,920 $ 18,698,557
Washington County FMS 799,814 10,643,600 11,443,414
Klamath Falls AFRC 917,440 12,117,000 13,034,440
Kliever - Armory - Service Life Extension 3,888,000 3,888,000
Medford - Armory - Service Life Extension 3,240,000 3,240,000
Pendleton - Armory - Service Life Extension 1,728,000 1,728,000
Scharff Hall - Armory - Service Life Extension 907,200 907,200
Camp Withycombe Infrastructure 177,754 2,221,920 2,399,674
Boardman Multipurpose Training Range 145,594 2,149,920 2,295,514
Linn County Readiness Center 617,736 1,898,760 2,516,496
Josephine County FMS 119,539 1,571,280 1,690,819
Salem Army Aviation Support Facility Hanger 1 774,576 9,760,200 10,534,776
Total Military Department $ - $ 17,706,290 $ 54,670,600 $ 72,376,890
Oregon Youth Authority

Deferred Maintenance Projects $ $ 10,640,313 $ - $ 10,640,313
Total Oregon Youth Authority $ - $ 10,640,313 $ - $ 10,640,313
TOTAL PUBLIC SAFETY PROGRAM $ - $ 30,081,561 $ 54,670,600 $ 84,752,161

Total Department of Fish & Wildlife $ - $ 2,500,000 $ - $ 2,500,000
TOTAL NATURAL RESOURCES PROGRAM $ - $ 2,500,000 $ - $ 2,500,000
Silver Lake Maint Station $ - $ 6,500,000 $ - $ 6,500,000
Estacada Maint Station 7,500,000 7,500,000
Total Department of Transportation $ - $ 14,000,000 $ - $ 14,000,000
TOTAL TRANSPORTATION PROGRAM $ - $ 14,000,000 $ - $ 14,000,000
Heating, Ventilation, Air conditioning System Upgrades-Phase 4 $ - $ 630,000 $ - $ 630,000
Lighting upgrades Various Buildings-Phase 2 2,680,000
All Building Rekey and Automation Upgrade 2,169,367 2,169,367
GRAND TOTAL 2015-2017 BIENNIUM $ 53,250,000 $ 929,864,330 $ 54,670,600 $ 1,035,104,930
* Funding in the Governor's Recommend Budget includes only those items identified in capital construction bills. This table
presents estimated biennial construction requirements and includes items not yet recommended in capital construction bills.

Capital Budgeting
BONDED DEBT PROFILE
Debt Structure and Authorization
The state’s general obligation bond authority is based on the True Cash Value (TCV) of all taxable
property in Oregon. Most constitutionally authorized GO bond programs have an issuance ceiling based
on a percentage of TCV, ranging from 0.2 percent to 8.0 percent. The most recent (January 1, 2009)
certified statewide TCV is $498.7 billion. The total outstanding general obligation debt at June 30, 2010
was approximately $4.5 billion. Total outstanding bonded indebtedness of the state, including both
general obligation and direct revenue bonds, but excluding Certificates of Participation was $9.3 billion.
Of the outstanding general obligation debt, 69 percent is structured to be fully self-supporting from
various program revenues; that is, no state General Fund revenues are planned to pay debt service.
Generally, these self-supporting bonds are considered “double-barreled,” because they are also general
obligation bonds, which carry a pledge of the state’s full faith and credit.
Approximately 13 percent of the state’s outstanding general obligation debt matures in five years, and
36 percent matures in 10 years. The remaining debt matures over the following 37 years. This maturity
structure is affected most significantly by required principal payments for pension obligation bonds in
2017 – 2027.
Certificates of Participation (COPs) are not debt and therefore cannot include a pledge of the general
obligation of the state. However, COPs rely on legislative appropriations from the state General Fund as
the primary source of payment and therefore are considered an appropriation credit. Total appropriation
credits outstanding as of June 30, 2010, were approximately $1.80 billion.
Recent Developments
Voters approved ballot measures in May and November 2010 which could have a significant impact on
capital financing and bonded debt in Oregon. In the May 2010 election voters approved Measure 68
which amends the constitution allowing State government to issue bonds to provide matching funds for
local school district bonds. The new general obligation bonds of the state, which are authorized for capital
expenditures only will be referred to as Article XI-P bonds. Also in May, voters approved Measure 69
which broadened the authority of the Oregon University System to issue bonds under Articles XI-F and
XI-G of the constitution. In November, voters approved Measure 72 amending the constitution to allow
borrowing for the State’s real and personal property projects. Heretofore, such projects had been funded
through the use of more costly COPs. The new general obligation bonds for financing real and personal
property will be referred to as Article XI-Q bonds.
There is an expectation that interest rates will increase for municipal debt over current levels. Congress
did not renew the Build America Bond program authorized under the American Recovery and
Reinvestment Act (ARRA). This program had allowed issuers of municipal bonds to reach the broader
taxable bond market at rates comparable to traditional tax-exempt bonds. In addition, new regulations
may impact the cost for Letters of Credit required by issuers of variable rate debt. Recently, there has
been a net withdrawal from bond funds as equity markets improve.

Capital Budgeting
Declines in State revenues combined with high issuance levels have resulted in an increase in General
Fund-Supported debt service as a percentage of revenue. The Treasurer and the State Debt Policy
Advisory Commission have responded by revising the policy used to determine debt capacity targets.
Consequently the 2011-13 budget has dramatically lower General Fund supported debt issuance levels
than in recent biennia.
Biennium Issuance
The State is expected to sell just over $2.4 billion of bonds and COPs in the 2009-11 biennium, excluding
Pass-Through Revenue Bonds. This is an increase of $518.9 million from 2007-09. The change is the
result of several factors. To complete Oregon Transportation Initiative Act (OTIA) projects initially
authorized in 2001, the Department of Transportation (ODOT) increased its sale of Highway Bonds to
$580 million – an increase of $233 million over 2007-09 levels. In addition there is a planned issuance of
$163 million in Transportation Infrastructure Bank bonds for major remodeling of the ODOT
headquarters building and for upgrades to the department’s radio system. The 2009-11 biennium saw the
first issuance of Seismic Rehabilitation Bonds - authorized by voters in 2002. Several construction
initiatives throughout the Oregon University System (OUS) required an increased use of Article XI-F and
Article XI-G Bonds. The Department of Energy also significantly increased its issuance of Article XI-J
bonds to finance energy savings projects, including several for OUS. Finally, major construction projects
such as the new State Hospital drove up the use of Certificates of Participation by approximately $132
million. These changes more than offset decreases in sales of both Lottery Bonds and bonds for the
Business Development Department’s Infrastructure Bond Bank.
After a short-lived spike during the uncertainty experienced by financial markets late in calendar year
2008, interest rates have generally declined and remained at historically low levels during 2009-10. State
government continues to take advantage of these conditions by refunding bonds to achieve significant
debt service savings. The consensus among economists is that interest rates will trend upward in 2011-13.
The program with the highest projected issuance in 2009-11 is the Oregon Department of Transportation
(ODOT) Highway User Tax revenue bonds. As previously noted, these bonds were issued to complete
projects authorized under OTIA. This program will likely be the largest issuer again in 2011-13. The
Legislative Assembly approved HB 2001 (2009), The Oregon Jobs and Transportation Act which
increased issuance authority for Highway User Tax bonds by $840 million.
The second largest dollar volume for bond issuance in 2009-11, at $535.4 million, is projected to be from
the State’s COP program. However, in November 2010, through approval of Measure 72 voters amended
the Oregon Constitution authorizing a new general obligation bond program for financing real and
personal property (Article XI-Q Bonds). This program, with its lower costs of borrowing, is expected to
replace the COP program once enabling legislation has been enacted.
The remainder of the long-term issuance provided funding for Oregon University System and Community
College XI-G projects, energy conservation, pollution control and other government services. Issuance of
conduit revenue bonds, for which the State has no legal obligation for debt service payments, is expected
to total approximately $792.4 million in 2009-11, which represents 24.4 percent of total state issuance.

Capital Budgeting
Oregon’s gross long-term debt has increased to $11.10 billion as of June 30, 2010, excluding conduit
bonds. This is approximately 14.40 percent higher than fiscal year 2008 levels, with the most significant
increase from issuance of OTIA bonds. The $2.2 billion in highway user tax bonds is the largest
component of the State’s debt, having surpassed the $2.0 billion in pension obligation bonds issued in
2003 to virtually eliminate the state’s unfunded pension liability.
Credit Rating Considerations
Most of Oregon’s general obligation debt is paid from non-tax sources, that is, the debt is self-supporting.
Because this debt has general obligation backing, some analysts may treat a portion of it as a General
Fund liability, despite its self-supporting character and history.
The State of Oregon’s standing as a well-managed issuer of debt was affirmed throughout the period.
Credit Ratings *
Standard & Moody’s Fitch
Poor’s
General Obligation Bonds AA Aa2 AA
Highway Revenue Bonds – Senior Lien AAA Aa2 AA
Highway Revenue Bonds – Subordinate Lien AA+ Aa2 AA
Lottery Bonds AAA Aa3 A+
Certificates of Participation AA- Aa3 AA-
Housing and Community Services: -- -- --
-Mortgage Revenue Bonds -- Aa2 --
-Housing Revenue Bonds -- Aa3 --
-Multi-Family Housing Revenue Bonds -- Aaa --
Business Development Dept – Infrastructure Bonds AA+ Aa3 --
*based on most recent published ratings and subject to change.
Several factors are cited by the ratings agencies in maintaining Oregon’s strong credit position. These
include sound financial controls underscored by strong executive ability to reduce spending, maintenance
of budget reserves, and favorable funding ratios in the state’s pension system. Credit challenges include
heavy reliance on volatile income tax, the “kicker” law which restricts the State’s ability to manage
income volatility, high debt ratios and uncertainty created by the initiative process.
Interest Rates
As previously noted, the consensus forecast among economists is for an upward trend in interest rates
generally over the next several months.
During the period July 1, 2009 through June 30, 2010, the 20-year Oregon Bond Index for Aa-rated issues
started low at 4.59 percent and trended lower ending the fiscal year at 4.07 percent. The index reached
3.50 percent in the last week of August 2010. Typically, Oregon issuers pay lower interest costs when
issuing tax-exempt municipal bonds in comparison to their national counterparts, due to their exemption
from both federal and state income taxes, and Oregon being a relatively high income tax state.
Capital Budgeting
During fiscal year 2010, Oregon generally enjoyed the “right” measure of supply and demand, for
efficient and cost-effective new financings. Because the supply of bonds in the market generally has an
impact on the prices paid, an oversupply results in additional compensation for investors through higher
returns. Likewise, when demand for tax-exempt issues weakens, yields also rise, narrowing the spread
between municipals and comparable maturities of taxable securities.
As previously noted, the consensus among economists is that interest rates will trend upward over the
next several months. Some analysts believe there are indications that the upward pressure on rates for
municipal issuers will be greater than the market in general. This view is based on a variety of factors
including expiration of ARRA provisions, relative decline in variable rate bonds as a percentage of
overall issuance and a general decline in demand for municipal bonds as equity markets improve.

Capital Budgeting
CONSTITUTIONAL AND STATUTORY

BORROWING AUTHORIZATIONS
The State of Oregon’s borrowing programs consist of many different and separate authorizations,
including both constitutional and statutory provisions. Constitutional authorizations permit issuance of
general obligation bonds that are backed by the full faith and credit of the state. Statutory authorizations
provide for the sale of revenue bonds and conduit revenue bonds backed only by the moneys derived from
operation of the particular enterprise for which the obligations were issued. Appropriation credits,
authorized in ORS 283 and Senate Bill 856 (2003 Legislature), include both certificates of participation
and appropriation bonds. Both of these debt finance types are special limited obligations of the State
payable solely from funds appropriated or otherwise made available by the Legislative Assembly.
Certificates of participation or financing agreements are instruments under which the State is able to
finance real property or equipment purchases using the property or equipment finances as security and a
promise to request a legislative biennial appropriation for the repayment of the certificates or agreements.
In addition to these Constitutional and Statutory limits, the Legislative Assembly biennially approves,
through the budgetary process, the volume of bonds and finance agreements that may be issued under
each authorization during the next biennium. A general summary of each active authorization follows.
Active General Obligation Authorizations -- General Fund Supported

Oregon University System – Article XI-G: The Oregon Constitution grants the state Board of Higher
Education authority to issue general obligation bonds under two separate Articles: XI-G and XI-F.
Article XI-G is the governing authority for borrowing for both higher education institutions and activities,
and community colleges. Bonds issued for these purposes are secured by appropriations from the State’s
General Fund and, in addition, by an unlimited ad valorem tax levied on all taxable property in the State.
While this authorization is shared between Higher Education and Community Colleges, the Higher
Education portion of XI-G debt ($342.8 million) greatly exceeds the Community Colleges portion of XI-
G debt ($82.6 million) as of June 30, 2010. The combined total of XI-G bonded debt outstanding at
June 30, 2010 is $425.3 million. Article XI-F(1) debt is discussed in the “Self-Supporting” section.
Oregon Opportunity Bonds (OHSU) – Article XI-L: Authorizes bonds to finance capital costs of the
Oregon Health and Science University (OHSU) in an aggregate principal amount that produces net
proceeds for the University in an amount not to exceed $200 million. Section 1 of the Article authorizes
debt not to exceed one-half of one percent of the real market value of all property in the State. The State
is not permitted to levy ad valorem (property) taxes to pay the bonds. The legislation authorizing the
program contemplates that the bonds may be paid from tobacco settlement revenues, but those revenues
are not pledged to pay the bonds. Principal outstanding is $159.5 million as of June 30, 2010.
Pension Obligation Bonds – Article XI-O: House Bill 3659 (2003) is the implementing legislation for
Oregon’s Pension Obligation Bond program. Article XI-O, which amended the Oregon Constitution, was
adopted by the Legislative Assembly as House Joint Resolution 18 on July 17, 2003 and approved by the
voters of the State at a special election held on September 16, 2003.

Capital Budgeting
Article XI-O permits the state to lend its credit and to incur indebtedness to finance its pension liabilities
and to pay the costs of incurring such indebtedness. Article XI-O provides that all indebtedness incurred
pursuant to Article XI-O is a general obligation of the State; and must contain a direct promise on behalf
of the State to pay the principal, premium, if any, and interest on that debt. Article XI-O also requires the
State to pledge its full faith and credit and taxing power to pay such indebtedness, but it does not permit
the State to pledge its ad valorem taxing power. The amount of outstanding indebtedness authorized by
Article XI-O is limited to one percent of the real market value of all property in the State.
House Bill 3659 (2003) requires the net proceeds of Article XI-O Bonds issued to finance State pension
liabilities be transferred to the Public Employees Retirement Board (PERB) for deposit in the
Public Employees Retirement Fund (PERF) established pursuant to ORS 238.660. As of June 30, 2010,
$2.04 billion remains outstanding. Of this amount, $1.23 billion (62 percent) is considered to be non-
General Fund-supported debt (paid from non-General Fund sources); $776.3 million (38 percent) is
considered to be General Fund-supported debt. The State does not currently anticipate issuing any
additional XI-O Bonds.
Pollution Control Article XI-H: Article XI-H authorizes indebtedness not to exceed one-half percent of
statewide TCV to finance pollution control facilities. Any municipal corporation, city, county, or agency
of the State may construct projects for pollution control. General Obligation Pollution Control bonds may
be either General Fund supported or self-supporting from revenues generated by the program the bonds
fund. Because bond proceeds are used for a variety of different pollution abatement projects, including
“orphan” sites clean up, an increasing amount of the State’s pollution control debt may become General
Fund supported. Clean Water State Revolving Fund (CWSRF) bonds are primarily Other Fund supported
and Orphan Site bonds are primarily General Fund supported.
At June 30, 2010, $41.5 million in Pollution Control General Fund backed bonded debt was outstanding.
As “full-faith-and-credit” debt, if necessary, a statewide property tax may be levied or other revenues
designated by the Legislative Assembly may be directed to provide payment of bond principal and
interest. Under the Constitution, $2.5 billion in pollution control bonds could be issued; however, the
Legislature has limited the debt that may be issued under this authorization to $260 million
(ORS 468.195). This occurred, in part, because in 1990, voters approved expanded use of this bonding
authority for pollution control and disposal activities, and exempted pollution control and disposal and
hazardous substance facilities from the self-support requirement.
Seismic Rehabilitation Bonds Article XI-M/XI-N: In the November 2002 election, two General
Obligation programs were added to the Constitution for the purpose of creating grant programs that will
provide funds for seismic structural improvements at public education buildings, hospitals, fire and law
enforcement stations. Enabling legislation was enacted in 2005 (Senate Bills 2-5). The first sale of
Article XI-M bonds - Seismic Rehabilitation of Public Education Buildings, and Article XI-N bonds –
Seismic Rehabilitation of Emergency Services Buildings took place in July 2010.

Capital Budgeting
Self-Supporting
Overall, 68.7 percent of outstanding state General Obligation debt is considered self-supporting.
Veterans’ Affairs Article XI-A: Under Article XI-A of the Constitution, debt may be incurred in an
amount not to exceed eight percent of the State’s true cash value to finance farm and home loans for
eligible veterans. At June 30, 2010, the Department of Veterans’ Affairs had $441.4 million in
outstanding bonds.
Oregon’s Veterans’ bonds represent approximately 9.8 percent of all State of Oregon general obligation
bonds outstanding. Veterans’ bonds are self-supporting from loan repayments, but carry the additional
security of the Legislature’s ability to levy an annual statewide property tax.
Alternate Energy Projects – Article XI-J: The Small Scale Energy Loan Program may not incur debt in
excess of one-half of one percent TCV to finance development of small-scale local energy projects.
Approximately 85 percent of outstanding Article XI-J bonds are supported from project revenue streams
outside the State General Fund. Additional security is provided by a pledge of the full faith and credit of
the State. At June 30, 2010, outstanding program bonds totaled $188.6 million.
Higher Education – Article XI-F(1): Article XI-F(1) empowers the State to issue bonds in an amount
not to exceed three-fourths of one percent TCV for higher education building projects. Bonds issued
under this authority are expected to be self-supporting. If necessary, a statewide property tax may be used
to provide for the payment of such indebtedness and the interest thereon. On June 30, 2010,
approximately $1,043.8 million or 27.9 percent of the available authorization was outstanding.
State Highway – Article XI, Section 7: Article XI, Section 7 of the Oregon Constitution approves the
issuance of bonds to build and maintain permanent roads. Such bonds may not be issued in excess of
one percent TCV. Security for the bonds is provided by gasoline and weight-mile tax revenues, and
additionally secured by the State’s general obligation. As of June 30, 2010, no outstanding debt remained
for this program.
Elderly and Disabled Housing – Article XI-I(2): The State is empowered to issue bonds in an amount
not greater than one-half of one percent of TCV ($2.5 billion) to provide financing for multi-family
housing for households of elderly low-income persons and for disabled persons. Elderly and Disabled
Housing program debt is self-supporting from project revenues and is backed by the state’s
general obligation pledge, which includes property taxing authority. As of June 30, 2010, approximately
6.9 percent ($173.1 million) of authorized debt was outstanding.
Pollution Control – Article XI-H: During 2009-11, approximately 42 percent of the State’s Pollution
Control bonded debt was General Fund-supported. Over time the ratio of self-supporting versus General
Fund supported debt is expected to change due to voter commitment of resources to clean up pollution.
XI-H bonds are considered 60 percent General Fund supported for debt capacity purposes. At this level,
$24.9 million in outstanding bonds are considered General Fund supported and $16.6 million is
considered self-supporting.

Capital Budgeting
Pension Obligations – Article XI-O: As previously noted, Article XI-O permits the State to lend its
credit and to incur indebtedness to finance the state’s pension liabilities and to pay the costs of incurring
such indebtedness. As of June 30, 2010, $2.04 billion remains outstanding. Of this amount, $1.27 billion
(62 percent) is considered to be non-General Fund supported debt (paid from non-General Fund sources)
and $776.3 million (38 percent) is considered to be General Fund-supported debt. The State does not
currently anticipate issuing any additional XI-O Bonds.
Water Development Projects – Article XI-I(1): The credit of the State may be extended in an amount
not to exceed one and one-half of one percent of TCV ($7.48 billion) to provide financing for loans for
construction of water development projects for irrigation, drainage, fish protection, watershed restoration,
and municipal uses and for the acquisition of easements and rights of way for water development. As of
June 30, 2010 no Water Development Bonds were outstanding, however the Legislative Assembly
authorized the issuance of $10 million and $15 million in bonds in 2009-11 and 2011-13 respectively.
Appropriation Credit Authorization
Oregon Revised Statutes 283.085 to 283.092 provides that the State may enter into financing agreements,
including lease-purchase agreements, installment sales agreements, and loan agreements to finance real or
personal property and issue certificates of participation evidencing these financing agreements, subject to
Legislative approval. Further, the Oregon Supreme Court has ruled that certificates of participation
financings (COPs) do not constitute an issuance of debt or an impermissible lending of credit for state law
purposes. Amounts payable by the State under a financing agreement are limited to funds appropriated or
otherwise made available by the Legislature for such payment. The principal amounts of such financing
agreements are subject to maximum annual issuance levels established by the Legislature under ORS
286A.035 to 286A.095. The 75th Oregon Legislative Assembly authorized $764.78 million in certificates
of participation and other financing agreements during the 2009-11 biennium. Of that amount, the
majority was used for the State Hospital replacement project, the Oregon Wireless Interoperability
Network, information technology systems, and improvements to state buildings, including university
facilities. As of June 30, 2010, $1.57 billion in COPs remained outstanding.
Appropriation Bonds are special obligations of the State that are payable solely from appropriated
moneys. Each fiscal year the Appropriation Bond Act and the Bond Declaration require the State to
credit to the Oregon Appropriation Bond Fund any appropriated moneys until the Oregon Appropriation
Bond Fund contains an amount sufficient to make all Bond principal and interest payments that are due in
that fiscal year. The obligation of the State to provide appropriated moneys and to pay the Bonds is
subject to future appropriation by the Oregon Legislative Assembly for the fiscal period in which
payments are due. The Bonds are not secured by any lien on, or claim against, any State funds except
appropriated moneys and any other amounts that may be credited to the Oregon Appropriation Bond
Fund. While the state is not obligated to provide any appropriated moneys, it has made certain covenants
with respect to the appropriations process for the payment of debt service on the Bonds. The Series 2003
Bonds were authorized by and issued in accordance with the provisions of the Appropriation Bond Act
and applicable provisions of ORS Chapters 286 and 288.
The Series 2003 Bonds were issued to assist the State of Oregon in balancing its budget for the
2001-03 biennium. Proceeds of the Series 2003 Bonds were credited to the General Fund and used for
Capital Budgeting
purposes for which moneys in the General Fund may be expended. As of June 30, 2010, $223.7 million
in appropriation bonds remains outstanding. Together, the COPs and appropriation bonds equal a total
appropriation credits outstanding for the state of $1.8 billion.
Active Revenue Bond Authorizations

Single-Family and Multi-Family Housing: The Oregon Housing and Community Services Department
(OHCSD) is the only statewide public body in Oregon serving as a central source of data and program
information, training and education, planning and technical assistance, seed-money loans, mortgage
financing, and federal tax credits relating to housing within the State. OHCSD may issue revenue bonds
to finance both single-family mortgage loans and multi-family housing projects. Project rental revenues,
mortgage payments, and fees are the sole source of support for these bonds. ORS 456.661 limits total
outstanding debt under these programs to $2.5 billion. As of June 30, 2010, the amount outstanding for
OHCSD is $1.3 billion - approximately 26 percent of all State of Oregon direct revenue-bonded debt.
Highway User Tax: Pursuant to Article IX, Section 3a of the Oregon Constitution and ORS 367.605 to
367.670, as amended, inclusive and ORS Chapter 286A and Chapter 288 (collectively, the “Act”), the
State may issue highway user tax revenue bonds to provide proceeds for building and maintaining
permanent public roads. These bonds are not general obligation, however; they are unlike other State
revenue bonds, because they are secured by tax proceeds from fuel sales and various other “taxes” or fees
charged for vehicle use and licensing. The Constitution provides that the revenues received shall be used
exclusively for public highways, roads, streets and roadside rest areas in the state. The Oregon
Constitution also provides that such revenues may be used for the retirement of bonds for which such
revenues have been pledged.
Local Street Networks Fund. Bond proceeds are deposited to the State Highway Fund for distribution to
local government projects throughout Oregon, based on a formula that promotes statewide equity. These
projects are expected to provide a cost-effective means of reducing congestion on State highways by
constructing improvements on local, off-system streets.
Access Management Fund. Bond proceeds are also to be deposited to the State Highway Fund for access
management projects that benefit the State highway system. These projects are expected to improve
highway safety by limiting and controlling access to State highways through the purchase of access
rights, and the construction of medians and other access-control features. Funding is made available for
access management projects sponsored by the department. They are awarded based on project merit.
State Highway Fund. In 2001, the Legislature took the first two of three major steps toward upgrading
Oregon roads. House Bill 2142 (2001), also referred to as the Oregon Transportation Investment Act I
(OTIA), increased several Driver and Motor Vehicle fees to secure $400 million in bonds to increase lane
capacity and improve interchanges ($200 million), repair and replace bridges ($130 million), and preserve
road pavement ($70 million). OTIA requires the Oregon Transportation Commission (the “Commission”)
to select OTIA projects.
In the first 2002 Special Session, the Legislature passed into law House Bill 4010 (OTIA II) that added
$50 million for projects to increase lane capacity and improve highway interchanges, $45 million for
additional bridge projects, and $5 million to preserve road pavement.
Capital Budgeting
In 2003, the Legislature passed House Bill 2041, which provides $1.3 billion for the replacement and
repair of bridges on State highways (OTIA III). Work is expected to continue on the bridges and related
road work through 2012.
In 2009, The Legislature approved House Bill 2001, the Jobs and Transportation Act which included an
increase of $840 million in Highway User Tax bond authority.
As of June 30, 2010, there is $2.2 billion in Highway User Bonds outstanding.
Lottery Revenue Bonds: In 1994, Oregon became the first state in the nation to issue revenue bonds
backed solely by lottery proceeds. The first statutory authority, ORS 391.140, permitted the issuance of
up to $115 million in bonds for financing the costs of development, acquisition, and construction of the
Westside Corridor Light-Rail project. Three additional Lottery-backed programs, State Parks, Economic
Development Safe Drinking Water Funds and Education activities were authorized during the 1997
Legislative Session and November general elections subsequent to that session. The 1999 Legislative
Assembly enacted Senate Bill 200 combining the existing Lottery bond programs into a single program.
In recent biennia proceeds from Lottery bonds have been used for a variety of purposes including grants
to local governments, acquiring a new state forest, addressing deferred maintenance needs (including at
community colleges), construction projects in the university system, providing non-highway
transportation infrastructure including passenger rail acquisitions, development of affordable housing,
local government infrastructure loans and other projects.
As of June 30, 2010, the total amount outstanding for Lottery-backed projects was $1,114.5 million.
State Fair and Exposition Center: ORS 565.095 grants the Oregon State Fair Director the authority to
issue, with the approval of the State Treasurer, up to $10 million in revenue bonds. Proceeds may be used
for land acquisition, capital construction and improvement, and Fair expenses, including operations.
There are currently no bonds outstanding in this program.
Business Development Department Bond Bank: Under ORS 285B.410 to 285B.479, the Treasurer
may issue revenue bonds to finance a Special Public Works Fund (SPWF) administered by the Oregon
Business Development Department (OBDD). This program was created in 1985 to assist municipalities
in financing the infrastructure necessary for economic development. The SPWF Act and the Water Act,
the SPWF Program, the Community Facilities Program and the Water Program were created so that
municipalities, which include cities, counties, port districts, metropolitan service districts or domestic
water supply districts, water supply or sanitary authorities, water improvement districts, water control
districts, sanitary districts, county service districts and tribal councils of federally-recognized Indian tribes
in the State of Oregon can borrow up to $10 million in bond proceeds for projects needed to develop
infrastructure system capacity. The SPWF Program assists local governments in meeting portions of their
infrastructure and economic development needs, based upon the probability that jobs will be created and
economic development will occur with the installation of needed public works. The Community
Facilities Program is authorized under the SPWF Act, ORS 285B.422 and 285B.425, and assists local
governments in meeting portions of their infrastructure and economic development needs by providing
funds to acquire, construct, or develop community facilities. Water Program loans are available to assist
Capital Budgeting
Oregon municipalities in their efforts to meet federal and State of Oregon mandates for public drinking
water systems and wastewater collection and treatment systems. As of June 30, 2010, $161.4 million of
this authorized debt was outstanding. This represents approximately 3.4 percent of the State’s
outstanding direct revenue bond debt.
In general, borrowers from the Oregon Bond Bank have pledged a source or sources of repayment related
to the project being financed. For example, water project loans are typically repaid with water system
revenues, and sewer projects are generally repaid with sewer system revenues. In addition to these
sources of repayment, each of the loans is repayable from the borrower’s general fund. Except for
borrowers that are counties, the borrower’s obligation to make payments from its general fund is a full
faith and credit obligation of the borrower.
Energy Revenue Bonds: Authorized under Oregon Laws 2009, Chapter 753, the Energy Revenue Bond
program was established for a variety of energy related purposes including financing energy efficiency,
conservation and sustainable technology projects. These revenue bonds do not constitute a debt, liability
or general obligation of the state and are payable solely from revenues, moneys or other program assets.
No bonds have been issued to date under this program. The Governor’s Balanced Budget includes $25
million in issuance authority for Energy Revenue Bonds.

Capital Budgeting
Conduit Revenue
Oregon Facilities Authority Bonds (OFA) – ORS 289: The Oregon Facilities Authority, formerly
known as the Health, Housing, Educational, and Cultural Facilities Authority (HHECFA), was created in
1989 and is empowered to issue bonds to assist with the financing of lands for health, housing,
educational, and cultural uses and for the construction and financing of facilities for such uses. All bonds
issued by the Authority are “conduit” or “pass-through” revenue bonds. The Authority reviews proposed
projects and makes recommendations to the State Treasurer whether to issue bonds, which are secured
solely by payments from the entities for which the projects were financed. There is no recourse to the
State for payment, should the project be unable to meet debt service requirements. As of
June 30, 2010, $1.3 billion in bonds were outstanding.
Economic & Community Development Department – ORS 285B: The Oregon Economic and
Community Development Commission is empowered to issue Industrial Development Revenue Bonds
(IDB) through the State Treasurer, issuer of all State bonds. The proceeds are loaned to private
businesses to finance various expansion, relocation, retention, and other projects that will stimulate
economic development and provide jobs in the State. The Department may also issue a “composite” IDB
to finance several projects, each of which would benefit from issuance cost savings brought about by
“pooling” a series of smaller individual issues. The bonds are secured solely by payments made by the
various private businesses on whose behalf the bonds are issued. In addition to federal requirements
relating to the issuance of tax-exempt bonds, the Department subjects individual projects to a cost
effectiveness test to ensure that the public benefits of a project outweigh the public costs.
The authorizing statute (ORS 285B.344) for the Economic Development Revenue Bond Program allows
unlimited issuance of these bonds. The Governor recommended budget includes an authorization of $250
million for 2011-13. As of June 30, 2010, IDB’s totaling $348.3 million were outstanding.
Housing Development Revenue Bonds – ORS 456.692. The Oregon Housing and Community Services
Department (OHCSD) is authorized pursuant to Oregon Revised Statute 456.692 to issue conduit revenue
bonds through the State Treasurer for its Housing Development Program. The multifamily housing
program provides financing for developments in which a specified number of units are provided to low
income households. Each bond issue finances a single development that is separately secured by
revenues and assets specifically pledged by the borrower. Similar to the other state conduit revenue bond
programs, as noted above, there is no bondholder recourse to the State for payment, should the project be
unable to meet its debt service requirements. Principal amount outstanding was $197.7 million as of June
30, 2010.

Capital Budgeting
PRIVATE ACTIVITY BOND VOLUME CAP

The Tax Reform Act of 1986 imposed a state-by-state volume cap on certain “private activity bonds”
(PAB). The Private Activity Bond (PAB) Committee is a statutory body consisting of its Chair, a
representative of the Office of the State Treasurer; a public member, appointed by the Governor; and a
representative of the Department of Administrative Services. The PAB Committee is charged with re-
allocating a portion of the state’s PAB authority to various state and local issuers as appropriate under its
rules and governing federal and state law. The Debt Management Division of the State Treasury serves as
staff to the PAB Committee. The volume-cap authorizations for calendar year 2012 and 2013 are based
on $95 per capita and the 2010 Oregon population estimates.
The budget recommends the following volume cap allocation for calendar years 2012 and 2013:
Recommended Private Activity Bond Allocation

For 2012 and 2013 Calendar Years
2012 2013
Calendar Calendar
Allocation for Year Year
Business Development Department $ 40,000,000 $ 40,000,000

Housing and Community Services Department 125,000,000 125,000,000
Department of Energy 15,000,000 15,000,000
Private Activity Bond Committee 183,952,030 183,952,030
$ 363,952,030 $ 363,952,030
If an increase in the state’s population, a sufficient increase in the region’s CPI, or a change in federal tax
law result in an increase in the private activity bond limit above $363,952,030, such excess shall be
allocated to the Private Activity Bond Committee.

TABLE A
RECOMMENDED STATE BOND ISSUANCE AUTHORIZATION
Each biennium, the Governor must recommend the maximum amount of General Obligation and Revenue bonds, Certificates of Participation, and
other financing agreements state agencies may issue (ORS 286A.035). The Governor must consider the prudent maximum amounts advised by the
State Treasurer developed in accordance with ORS 286A.035 (2) . The Governor's recommendation for the 2011-13 biennium is shown below.
Recommended
2007-09 2009-11 2011-13
Program Designation Actual Estimated Maximum Limit
GENERAL OBLIGATION BONDS

(Constitutional Authority)
General Fund Obligations
Oregon University System (Art. XI-G) $ 87,760,000 $ 144,419,500 $ 23,000,000

Community Colleges and Workforce Development (Art. XI-G) 60,566,250 46,733,000 16,500,000
Department of Environmental Quality (Art. XI-H)
(60% of the total amount for 2007-09 and 2009-11) 5,580,000 5,580,000 --
Military Department - Office of Emergency Management
Seismic Rehabilitation Bonds (Art. XI-M) -- 11,250,000 --
Seismic Rehabilitation Bonds (Art. XI-N) 11,250,000 --
Department of Administrative Services (Art. XI-Q)1 202,833,407
Sub-total General Fund Obligations $ 153,906,250 $ 219,232,500 $ 242,333,407
Dedicated Fund Obligations

Department of Transportation (Art. XI, Sec. 7) $ -- $ -- $ 178,500,000
Department of Veterans' Affairs (Art. XI-A) 10,000,000 25,000,000 200,000,000
Department of Higher Education [Art. XI-F(1)] 268,195,000 319,425,000 466,032,937
Department of Environmental Quality (Art. XI-H)
(40% of the total amount for 2007-09 and 2009-11) 3,720,000 3,720,000 15,500,000
Water Resources Department [Art. XI-I(1)] -- 10,000,000 15,000,000
Housing and Community Services Department [Art. XI-I(2)] -- -- 100,000,000
Department of Energy (Art. XI-J) 33,445,000 130,820,000 250,000,000
Sub-total Dedicated Fund Obligations $ 315,360,000 $ 488,965,000 $ 1,225,032,937
Total All General Obligation Bonds $ 469,266,250 $ 708,197,500 $ 1,467,366,344
REVENUE BONDS
Direct Revenue Bonds

Housing and Community Services Department $ 140,073,008 $ 184,402,000 $ 600,000,000
Highway User Tax 347,290,000 580,285,000 663,000,000
Oregon Transportation Infrastructure Fund -- 163,200,000 18,360,000
Business Development Department 32,830,000 21,555,000 200,000,000
Lottery Revenue Bonds 545,270,000 263,000,000 279,835,000
Department of Energy -- -- 25,000,000
Sub-total Direct Revenue Bonds $ 1,065,463,008 $ 1,212,442,000 $ 1,786,195,000
Pass-Through Revenue Bonds

Business Development Department
Industrial Development Bonds $ 16,224,000 $ 165,155,000 $ 250,000,000
Oregon Facilities Authority 291,012,126 553,023,615 950,000,000
Housing and Community Services Department 78,599,154 74,242,000 250,000,000
Sub-total Pass-Through Revenue Bonds $ 385,835,280 $ 792,420,615 $ 1,450,000,000
Total All Revenue Bonds $ 1,451,298,288 $ 2,004,862,615 $ 3,236,195,000
CERTIFICATES OF PARTICIPATION AND

OTHER FINANCING AGREEMENTS
Department of Administrative Services1 $ 402,880,000 $ 535,375,578 $ 222,833,407
Amounts do not include refundings.

Note1: If enabling legislation for Article Q Bonds is enacted, recommended amount for Certificates of Participation will be reduced to $20 million.

TABLE B
OUTSTANDING LONG-TERM FINANCIAL OBLIGATIONS
AND CONSTITUTIONAL AND STATUTORY PROVISIONS
AS OF JUNE 30, 2010
Constitutional % True 2011-13
[Statutory] Cash Constitutional Statutory Amount Authorization Governor's
Purpose/Department Provision Value{1} Debt Limit{1}{2} Debt Limit Outstanding{3} Remaining Balanced Budget
General Obligation Bonds ,
General Fund Supported
General Purpose Bonds {6} ARTICLE XI, SEC 7 0.0000% $ 50,000 -- -- $ 50,000 --
State Power Development Bonds ARTICLE XI-D 1.5000% $ 7,480,268,262 -- -- 7,480,268,262 --
Forest Rehabilitation ARTICLE XI-E [ORS 530.230] 0.1875% $ 935,033,533 750,000/yr -- 935,033,533 --
Oregon University System Facility XI-G Bonds {4} ARTICLE XI-G 0.7500% $ 3,740,134,131 -- $ 342,775,147 3,314,793,984 $ 23,000,000
Community College Bonds ARTICLE XI-G -- -- -- 82,565,000 16,500,000
Pollution Control Bonds {5} (60% of total) ARTICLE XI-H [ORS 468.195] 0.5000% $ 2,493,422,754 $ 156,000,000 24,885,000 131,115,000 --
Alternate Energy Project Bonds (15% of total) ARTICLE XI-J 0.5000% $ 2,493,422,754 28,290,750 345,722,663 --
Oregon School Bond Guaranty ARTICLE XI-K 0.5000% $ 2,493,422,754 2,493,422,754 --
OHSU/Department of Administrative Services, {6} ARTICLE XI-L 0.5000% $ 2,493,422,754 $ 203,175,000 159,450,000 43,725,000 --
Seismic Retrofit - Public Education Buildings ARTICLE XI-M 0.2000% $ 997,369,102 997,369,102 --
2011-13 Governor's Balanced Budget

Seismic Retrofit - Emergency Service Bldg ARTICLE XI-N 0.2000% $ 997,369,102 997,369,102 --
Pension Obligation (38% of total amount) ARTICLE XI-O 1.0000% $ 4,986,845,508 776,260,200 1,118,741,093 --
State Gov't Real & Personal Property ARTICLE XI-Q 1.0000% $ 4,986,845,508 4,986,845,508 202,833,407
Total General Fund Supported $ 1,414,226,097 $ 22,844,456,001 $ 242,333,407
Fully Self--Supporting
State Highway Bonds ARTICLE XI, SEC 7 1.0000% $ 4,986,845,508 -- -- $ 4,986,845,508 $ 178,500,000
Veterans' Welfare Bonds {4} ARTICLE XI-A 8.0000% $ 39,894,764,066 -- $ 441,425,000 39,453,339,066 200,000,000
Higher Education Building projects XI-F Bonds {4} ARTICLE XI-F(1) 0.7500% $ 3,740,134,131 -- 1,043,836,633 2,696,297,498 466,032,937
Pollution Control Bonds {5} (40% of total) ARTICLE XI-H [ORS 468.195] 0.5000% $ 2,493,422,754 $ 104,000,000 16,590,000 87,410,000 15,500,000
Water Resources Bonds ARTICLE XI-I(1) 1.5000% $ 7,480,268,262 -- -- 7,480,268,262 15,000,000
Elderly & Disabled Housing Bonds ARTICLE XI-I(2) 0.5000% $ 2,493,422,754 -- 173,125,000 2,320,297,754 100,000,000
Alternate Energy Project Bonds (85% of total) ARTICLE XI-J 0.5000% $ 2,493,422,754 -- 160,314,250 1,959,095,091 250,000,000
Pension Obligation (62% of total amount) ARTICLE XI-O 1.0000% $ 4,986,845,508 1,266,529,800 1,825,314,415 --
Total Self--Supporting $ 3,101,820,683 $ 60,808,867,594 $ 1,225,032,937

Total General Obligation Bonds $ 4,516,046,780 $ 83,653,323,595 $ 1,467,366,344
Revenue Bonds
M-23
Housing and Community Services Department
Single & Multi-Family Housing Programs [ORS Chapter 456] $ 2,500,000,000 $ 1,263,000,500 $ 1,236,999,500 $ 600,000,000
Highway User Tax [ORS Chapter 367,620] $ 3,240,000,000 2,247,185,000 992,815,000 663,000,000
Transportation Infrastructure Bank [ORS Chapter 367] $ 200,000,000 -- 200,000,000 18,360,000
Lottery Revenue Bond Program(s) [ORS Chapter 286A.560-585] 1,114,460,000 -- 279,835,000
State Fair & Exposition Center [ORS Chapter 565] $ 10,000,000 -- 10,000,000 --
Dept. of Energy - Energy Revenue Bonds [OL 2009, ch 753] -- -- -- 25,000,000
Business Development Department -Bond Bank [ORS Chapter 285B] -- 161,460,000 -- 200,000,000
Total Revenue Bonds $ 4,786,105,500 $ 2,439,814,500 $ 1,786,195,000
Conduit Revenue Bonds

Oregon Facilities Authority [ORS Chapter 289] -- $ 1,343,587,413 -- $ 950,000,000
Industrial Development Revenue Bonds [ORS Chapter 285] -- 348,262,044 -- 250,000,000
Conduit Multi-family Housing Programs [ORS Chapter 456.692] -- 197,652,635 -- 250,000,000
Total Conduit Revenue Bonds $ 1,889,502,092 $ -- $ 1,450,000,000
Certificates Of Participation (COP) {8} [ORS Chapter 283 & 286A] -- -- $ 1,573,110,000 $ 222,833,407
Appropriation Credit
Oregon Appropriation Bonds SB 856 - 2003 Legislature 431,560,000 $ 223,740,000 207,820,000 --
Total Appropriation Credits $1,796,850,000 $ 207,820,000 $ 222,833,407
1. Percentages listed are of True Cash Value (TCV) of all taxable real property in the state. The True Cash Value on January 1, 2009 was 4. Outstanding Veterans' Welfare and University System general obligation debt reflect the proceeds amount of original issue discount bonds.
$498,684,550,831. Total authorization remaining may not agree due to rounding. 5. In this exhibit, Pollution Control debt is reported at the 60% General Fund supported and 40% self-supporting rates prior to 2011-13.
2. The State of Oregon may not incur indebtedness exceeding $50,000 without a constitutional amendment approved by the voters. 6. Authorized to finance capital costs of Oregon Health and Science University biotechnology research efforts.
3. Excludes refunded and defeased bonds. 7. Art. XI-J bonds assumed 15% GF-supported for issues prior to 2011-13.
NOTE: Totals may not agree with sum of components due to rounding. 8. If Art. XI-Q implementing legislation approved, recommended 2011-13 COP reduced to $20 million.
Source: Debt Management Division, Oregon State Treasury.
Capital Budgeting
TABLE C
GENERAL OBLIGATION DEBT SUMMARY
June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010
Gross General Obligation (GO) Debt (1) $ 4,273,948,691 $ 4,235,722,717 $ 4,352,800,189 $ 4,520,412,674 $ 4,617,618,090 $ 4,516,046,780

Revenue Supported GO Debt $ 3,062,494,767 $ 3,021,567,174 $ 3,091,596,672 $ 3,246,866,501 $ 3,229,411,604 $ 3,101,820,683
Net GO Debt $ 1,211,489,924 $ 1,214,155,543 $ 1,261,203,517 $ 1,273,546,173 $ 1,388,206,486 $ 1,414,226,097
Population (2) 3,631,440 3,690,505 3,745,555 3,791,075 3,823,465 3,844,200
Gross Debt per Capita $ 1,177 $ 1,148 $ 1,162 $ 1,192 $ 1,208 $ 1,175
Net Debt per Capita $ 334 $ 329 $ 337 $ 336 $ 363 $ 368
M-24
True Cash Value [TCV] (3) $ 330,248,718,696 $ 362,836,922,347 $ 434,319,218,596 $ 501,152,650,155 $ 525,356,272,908 $ 498,684,550,831
Gross Debt as Percent of TCV 1.29% 1.17% 1.00% 0.90% 0.88% 0.91%
Net Debt as Percent of TCV 0.37% 0.33% 0.29% 0.25% 0.26% 0.28%
Total Personal Income (4) $ 114,703,500,000 $ 122,909,500,000 $ 130,623,000,000 $ 136,769,700,000 $ 138,203,250,000 $ 142,433,450,000
Revenue Supported GO Debt as

Percent of Total Personal Income 2.67% 2.46% 2.37% 2.37% 2.34% 2.18%
Net GO Debt as Percent

of Total Personal Income 1.06% 0.99% 0.97% 0.93% 1.00% 0.99%
1. Pollution Control Debt is reported at 60% General Fund supported and 40% self-supporting effective 2008 (None of 2011-13 is GF-supported).
2. Population figures are as of July 1 each year. Sources: Department of Administrative Services, Office of Economic Analysis
3. True Cash Value is as of January 1 of the preceding year. Source: Oregon Department of Revenue
4. Total personal income includes all classes of income minus Contributions for Social Security and is presented on a calendar year basis. Projected
for 2010. Source: Oregon Department of Administrative Services, Office of Economic Analysis.
Capital Budgeting
TABLE D
AGGREGATE GENERAL OBLIGATION DEBT SERVICE
AS OF JUNE 30, 2010
Payment Year Principal Interest Total Requirements

2011 93,637,687 225,968,704 319,606,391
2012 118,825,818 226,320,847 345,146,665
2013 123,647,360 222,353,001 346,000,361
2014 133,014,060 216,073,918 349,087,978
2015 145,251,440 207,744,629 352,996,069
2016 159,811,434 202,046,993 361,858,428
2017 170,745,162 196,048,341 366,793,503
2018 185,862,240 185,327,303 371,189,543
2019 203,183,074 173,068,668 376,251,742
2020 313,139,966 162,627,503 475,767,469
2021 239,573,352 147,532,252 387,105,604
2022 252,365,187 134,209,963 386,575,149
2023 271,985,000 119,473,027 391,458,027
2024 286,180,000 105,024,569 391,204,569
2025 301,995,000 89,451,784 391,446,784
2026 327,615,000 72,669,474 400,284,474
2027 353,930,000 54,402,103 408,332,103
2028 88,030,000 34,823,230 122,853,230
2029 83,210,000 30,964,679 114,174,679
2030 79,750,000 27,338,044 107,088,044
2031 75,155,000 23,949,321 99,104,321
2032 74,465,000 20,714,105 95,179,105
2033 64,910,000 17,745,158 82,655,158
2034 67,770,000 14,991,522 82,761,522
2035 60,555,000 12,346,344 72,901,344
2036 62,695,000 9,811,626 72,506,626
2037 57,105,000 7,407,880 64,512,880
2038 57,625,000 5,110,351 62,735,351
2039 54,670,000 2,883,736 57,553,736
2040 32,855,000 1,316,127 34,171,127
2041 15,260,000 685,093 15,945,093
2042 11,045,000 376,969 11,721,969
2043 4,760,000 134,056 4,894,056
2044 2,910,000 60,634 2,970,634
2045 2,975,000 43,694 3,018,694
2046 1,640,000 28,056 1,668,056
2047 200,000 17,100 217,100
2048 210,000 7,481 217,481
TOTALS: 4,578,556,780 2,951,098,285 7,529,955,065
Veterans' Affairs Series 73E, 73F, 73G, and 73H Variable Rate Bonds were calculated in this report using an
interest rate of 6%.
NOTE: Totals may not agree with sum of components due to rounding.
Information Source: Debt Management Division, Oregon State Treasury.

TABLE E
SUMMARY OF DEBT SERVICE REQUIREMENTS FOR STATE BONDED INDEBTEDNESS BY FUND
Description
2009-11 2009-11 2011-13
2007-09 Actuals 2007-09 Actuals Leg Approved Leg Approved Governor's Balanced Budget
Total COPs Total COPs Total COPs
Human Services, Dept of 9,234,738 9,234,503 29,365,538 29,635,538 17,918,806 17,918,806
Administrative Services, Dept of 1,725,427 10,670,767 8,790,442 15,111,846 6,932,367
Oregon Business Development Department 58,264,450 70,756,731 90,058,388

Legislative Administration Committee 5,279,267 5,279,267 5,766,596 5,766,596 6,768,675 6,768,675
Judicial Department 11,099,041 11,099,041 20,778,511 20,778,511
Military Department, Oregon 1,457,991 1,457,991 7,123,759 5,887,422 10,412,499 7,342,260
Police, Dept of State 3,103,395 3,103,395 4,750,925 4,750,925 575,850 575,850
Public Safety Standards & Training, Dept of 10,979,575 10,979,575 11,360,288 11,360,288 11,366,106 11,366,106
Corrections, Dept of 126,575,804 126,575,804 130,860,333 130,860,333 141,962,853 141,962,853
Energy, Dept of 590,347 2,164,185
Environmental Quality, Dept of 4,712,840 4,592,353 5,573,180
Oregon Youth Authority 7,164,625 7,164,625 7,653,121 7,653,121 5,507,436 5,507,436
Oregon Health Authority 54,065,245 54,065,245
Oregon University System 49,836,425 2,189,451 72,947,455 9,478,692 99,750,010 16,867,499
M-26
Education, Dept of 56,415,089 55,232,892 55,497,890
Community Coll & Workforce Dvlpmnt, Dept of 3,162,206 17,253,806 24,008,023
Forestry, Dept of 2,342,530 2,342,530 4,156,940 2,782,804 5,298,711 2,938,611
Parks & Recreation Dept 4,231,091 4,093,009 4,261,181
Fish & Wildlife, Oregon Dept of 183,141 183,141 355,543 355,543 350,262 350,262
Water Resources Dept 354,911 574,400
Transportation, Oregon Dept of 46,559,439 94,444,274 8,999,171 103,891,652 20,000,231
Housing & Community Svcs Dept 5,929,190 8,659,409 11,230,921
Total General Fund and Lottery Supported $ 397,157,223 $ 168,510,282 $ 552,088,038 $ 237,419,916 $ 687,126,630 $ 313,374,712
Capital Budgeting
TABLE E
SUMMARY OF DEBT SERVICE REQUIREMENTS FOR STATE BONDED INDEBTEDNESS BY FUND
Description 2007-09 Actuals 2009-11 2011-13
Leg Approved Budget Governor's Balanced Budget
Total COPS Total COPS Total COPS
Other Funds and Federal Funds Supported

Human Services, Dept of 2,240,217 2,240,217 22,236,657 22,236,656
Administrative Svcs, Dept of 450,946,296 73,696,824 502,323,963 83,612,676 491,475,290 42,276,287
Oregon Business Development Department 77,547,534 47,381,104 -- 42,540,427
Legislative Administration Committee 2,000,000 2,000,000

Judicial Dept 280,400 280,400
Military Department 830,522 830,522 541,872 541,871 112,363 112,363
Public Safety Standards & Training 378,838 378,838
Veteran's Affairs, Oregon Dept of 235,265,251 320,161,708 275,020,385
Corrections, Dept of 3,549,487 3,549,487 107,999,392 107,999,391 1,262,826 1,262,825
Energy, Dept of 44,877,932 66,707,616 68,308,599
Environmental Quailty, Dept of 4,643,292 15,492,548 240,600 16,388,801 238,600
Oregon Youth Authority 8,006 8,006 1 1 1 1
Oregon Health Authority 24,663,481 24,663,481
Public Employees Retirement System, Oregon 5,709,200 5,709,200 1,423,075 1,423,075 1,418,600 1,418,600
Employment Department 374,299 374,299 378,700 378,700 368,888 368,888
Early Learning, Dept. of 401,816 401,816
M-27
Oregon University System 151,150,518 7,738,465 157,595,085 14,304,236 214,504,947 18,400,223
Education, Dept of 43,014,475 2,496,841 2,464,515
Community Coll & Workforce Dvlpmnt, Dept of 2,414,689 1
Oregon Health & Science University 31,912,194 31,912,502 31,568,288
Forestry, Dept of 1,386,173 1,386,173 3,750,148 3,750,148 1,684,587 1,684,587
Transportation, Oregon Dept of 195,614,102 1,601,459 301,690,902 1,635,493 398,570,751 1,586,183
Parks and Recreation 214,342
Housing and Community Services 726,574,494 879,588,523 365,926,144
Water Resources Department 2,297,241
Total Other Funds & Federal Funds Supported $ 1,976,517,572 $ 97,793,890 $ 2,466,095,326 $ 238,122,847 $ 1,938,977,951 $ 92,413,854
Grand Total Debt Service Requirements $ 2,373,674,795 $ 266,304,172 $ 3,018,183,364 $ 475,542,763 $ 2,626,104,581 $ 405,788,566
(1) Amounts shown are for outstanding bonds as of November 1, 2006.

(2) Legislatively approved debt service excluding refunding debt payments.
(3) Certificates of participation (COPs) are financing agreements. Repayment of COPs is limited to funds appropriated or otherwise made available
by the Legislative Assembly, and is not contractually or constitutionally guaranteed. These amounts are included in the biennial debt service figures.
(4) Amounts shown are net of Capitalized Interest for Appropriation Bonds, GO OHSU Bonds, and GO Pension Bonds.
Capital Budgeting
TABLE F
CAPITAL FINANCING SIX-YEAR FORECAST SUMMARY
ORS 291.216 requires the Governor's balanced budget to compare state agency capital financing needs to the State Debt Policy Advisory Commission's (SDPAC) six-year estimate of net debt capacity. The capital financing needs
are in three categories: capital construction, equipment and technology, and grants and loans. The estimates in Table F reflect changes in capacity based on the December revenue forecast using the SDPAC model. The SDPAC debt
capacity estimate as of Jan. 14, 2010 was $2.15 bil. General Fund supported debt and $845 mil. lottery debt through 2015-17. However, no General Fund capcity exists for 2011-13. Therefore, the Governor's Budget proposes canelling
or deferring projects previously approved to create new General Fund capacity. Other changes may occur during the legislative process and targets may be updated from time to time. Net tax
supported debt includes three components. The first is General Fund Supported Debt. The second is the Lottery Revenue bond program. The third is the Transportation Department Bonds. There are specific debt capacity estimates only
for General Fund Supported Debt Programs and Lottery Revenue Bond Programs. The Transportation Department Bond capacity is limited by Oregon law, and in Article XI, Sec. 7 of the Constitution.
The SDPAC did not make specific capacity estimates for Non Tax-Supported Debt Programs. Debt capacity is based on legal limits in Oregon laws and the Constitution, sound program management, loan demand, need for capital
projects, and appropriate reviews by the State Treasurer, the Governor, and the Legislative Assembly. This table shows expected debt issuance only.
The SDPAC did not make specific capacity estimates for Conduit Revenue Bond Programs. The conduit borrower is solely responsible to repay the debt. Debt capacity is based on borrowers' ability to repay bonds, market effects on the
other state bond programs, legislative authorization, and central debt management review.
Capital Financing Needs beyond 2011-13 include only projects for which commitments have been made including the Junction City Prison.
2011-13 2013-15 2015-17

REPAYMENT SOURCE REPAYMENT SOURCE REPAYMENT SOURCE
General Fund Supported SDPAC Model SDPAC Model SDPAC Model
ESTIMATED ESTIMATED ESTIMATED
NET TAX-SUPPORTED GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT
DEBT PROGRAMS FUND FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY
SDPAC estimated new net debt capacity $ -- $ 1,125,000,000 $ 1,125,000,000
Projected Debt Capacity Carryforward 44,913,407
Projected Debt Capacityfrom cancelled/deferred projects 190,000,000 $ 910,000 977,550,091

- Capital Construction
Art. XI-G Higher Ed & Comm. Col. $ 39,500,000 -- -- $ -- -- -- -- --
Art. XI-J Alternate Energy Projects
- Grants and Loans (GF only) --
Art. XI-H Pollution Control (GF only) -- -- -- -- --
M-28
Art. XI-M/N Seismic Bonds --
Less total G.O. bonds (GF only) $ 39,500,000 $ -- $ -- $ (39,500,000) $ -- $ -- $ -- $ -- -- --
XI-Q/CERTIFICATES OF
PARTICIPATION (COP's)
Dept. of Administrative Services
- Capital Construction $ 170,198,407 $ -- -- $ 148,359,909 -- -- $ -- --
- Equipment and Technology 24,305,000 28,330,000 -- -- -- -- -- -- --
Less total for COP's (GF Only) $ 194,503,407 $ 28,330,000 $ -- $ (194,503,407) $ 148,359,909 $ -- $ -- $ (148,359,909) $ -- $ -- $ --
Remaining estimated net tax-supported debt capacity. $ 910,000 $ N/A $ N/A
NOTE: For the 2011-13 biennium, updated issuance information may result in a reduction from capacity model amounts shown here.
2009-11 2011-13 2013-15

Lottery Supported SDPAC Model SDPAC Model SDPAC Model
ESTIMATED ESTIMATED ESTIMATED
NET TAX-SUPPORTED GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT
DEBT PROGRAMS FUND FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY
SDPAC estimated net new debt capacity. $ 281,000,000 $ 281,000,000 $ 281,000,000
Projected Debt Capacity Carryforward 1,165,000 282,165,000
LOTTERY REVENUE BONDS

- Capital Construction -- -- $ 151,560,000 -- -- -- -- --
- Equipment and Technology -- -- 21,125,000 -- -- -- -- -- --
- Grants and loans -- -- 107,150,000 -- -- -- -- -- --
Less total for lottery revenue bonds $ -- $ -- $ 279,835,000 $ (279,835,000) $ -- $ -- $ -- $ -- $ -- $ -- $ --
Remaining estimated lottery revenue debt capacity $ 1,165,000 $ N/A $ N/A
Capital Budgeting
TABLE F
CAPITAL FINANCING SIX-YEAR FORECAST SUMMARY
2011-13 2013-15 2015-17

SDPAC SDPAC
OTHER TAX-SUPPORTED ESTIMATED ESTIMATED STATUTORY
DEBT PROGRAMS GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT
CONTINUED FUND FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY
Debt capacity limited by statute $ 1,029,815,000 $ 348,455,000 $ 305,706,000

REVENUE BONDS

Transportation Highway User Tax
- Capital Construction $ 663,000,000 $ -- $
Transportation Infrastructure Fund
- Grants and loans -- 18,360,000 -- -- -- -- -- --
Less total for revenue bonds $ -- $ 681,360,000 $ -- $ (681,360,000) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Remaining transportation revenue debt capacity $ 348,455,000 $ N/A $ N/A
2011-13 2013-15 2015-17

TOTAL TOTAL TOTAL
OTHER NON TAX-SUPPORTED GENERAL OTHER LOTTERY FORECAST GENERAL OTHER LOTTERY FORECAST GENERAL OTHER LOTTERY FORECAST
DEBT PROGRAMS FUND FUNDS FUNDS DEBT FUND FUNDS FUNDS DEBT FUND FUNDS FUNDS DEBT
M-29
Dept. of Trans. (Art. XI, Sec. 7)
- Capital Construction $ 178,500,000 $ 178,500,000 $ N/A $ --
Veterans' Welfare-(Art XI-A)
- Grants and loans -- 200,000,000 -- 200,000,000 -- N/A -- -- -- $ N/A -- $ --
Water Development Proj (Art. XI-I (1))
- Grants and loans 15,000,000 15,000,000 N/A -- N/A
Elderly & Disabled Hous (Art. XI-I(2)
- Grants and loans -- 100,000,000 -- 100,000,000 -- N/A -- -- -- N/A -- --
Oregon Univ. Sys Bonds (Art. XI-F)
- Capital Construction -- 510,653,220 -- 510,653,220 -- N/A -- -- -- N/A -- --
Alternate Energy Bonds (Art. XI-J)
Pollution Control Bonds (Art. XI-H)
Total G.O. bonds $ -- $ 1,269,653,220 $ -- $ 1,269,653,220 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
REVENUE BONDS
Single and Multi-family Housing Bonds
- Grants and loans -- $ 600,000,000 -- $ 600,000,000 -- $ N/A -- $ -- -- $ N/A -- $ --
Energy Revenue Bonds
- Grants and loans 25,000,000 25,000,000 N/A N/A
Business Development Dept.
Bond Bank & Safe Drinking Water
Total revenue bonds $ -- $ 825,000,000 $ -- $ 825,000,000 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Total other non tax-supported debt forecast $ 2,094,653,220 $ -- $ --
Capital Budgeting
Glossary
Agency Request: The budget prepared by state agencies for consideration by the Governor. It contains
necessary revenues, expenditures and staffing to continue currently approved programs, plus a plan to
reduce expenditures by 10 percent. It also may propose new programs or changes to existing programs
(policy packages). Agencies send this budget to the Budget and Management Division (BAM) of the
Department of Administrative Services (DAS). Oregon law requires submission of this budget by
September 1 of even-numbered years. See Governor’s Recommended Budget.
Appropriation: An amount of money from the General Fund approved by the legislature for a certain
purpose.
Base Budget: This is the starting point for budgeting. For the 2011-13 biennium, the base budget includes
the 2009-11 Legislatively Adopted Budget adjusted for Emergency Board and special session actions
through April 2010. It is also updated to fully fund existing employee compensation into the next biennium.
Biennium: A biennium is a two-year period in which a budget is effective. It begins on July 1 of odd-
numbered years and ends on June 30 of the next odd-numbered year. For example, the 2011-13 biennium
will begin on July 1, 2011 and end on June 30, 2013.
Capital Construction: See Major Construction/Acquisition.
Capital Improvement: A project that costs less than $1,000,000 to build, buy, renovate or modify the use of
a facility or to buy land. Costs must add to the value of capital assets.
Capital Outlay: Expenditures for items not consumed in routine agency operations. These expenditures
have a useful life of more than two years with an initial value of $5,000 or more.
Capital Project Advisory Board: A seven-member board, including five public members, appointed by the
DAS Director for the purpose of establishing a statewide planning and review process that evaluates the
needs of the state’s facilities; provides comparative information on the condition of the state’s facilities;
establishes guidelines and standards for acquiring, managing and maintaining state facilities; reviews siting
of facilities in the Salem/Keizer area; and evaluates design submittals for Capitol Mall projects.
Certificates of Participation: Certificates of Participation (COPs) are tax-exempt government securities

used to raise funds to improve and construct buildings or purchase equipment. COPs are used to finance
capital costs related to construction or acquisition and may not be used to finance ongoing operating costs.
COPs are sold to investors. In return, the investors receive COP payments, which include interest income
that is exempt from federal and Oregon income tax. Oregon uses COPs very selectively to fund projects
essential to delivering public services.
Debt Service: Expenditures for repaying the principal and interest on the state’s debt. The state’s debt is
the General Obligation or Revenue Bonds and Certificates of Participation it has issued to raise money.
Emergency Board: The legislative board that makes budget decisions when the Legislative Assembly is
not in session. Its members are legislators. The Board is allowed by the Oregon Constitution. Its powers
are set forth in the Constitution and in Chapter 291 of Oregon statutes.
Emergency Fund: The Emergency Board uses this fund to meet budget needs of state agencies that arise
between legislative sessions. The Legislative Assembly appropriates General Fund revenues to this fund.
2011-13 Governor's Balanced Budget N-1 Glossary

Glossary
Current Service Level: The calculated cost to continue current legislatively approved programs into the
next biennium (2011-13). Current service level is built on the base budget plus essential packages.
Essential Package: An essential package is added to the base budget to build the current service level.
Individual essential packages adjust the base budget for the following changes: program phase-ins or phase-
outs, vacancy savings, inflation, price list changes, fund shifts and mandated caseload growth. It is not used
to ask for new programs or to expand programs. The base budget and essential packages make up the
current service level. See Program Package.
Executive Branch: The branch of state government that carries out and enforces state laws. It is made up
of state agencies, and the Governor’s Office, Secretary of State, State Treasurer, Superintendent of Public
Instruction and Commissioner of the Bureau of Labor and Industries. The other two branches are
Legislative and Judicial.
Expenditure Limitation: The maximum amount an agency can spend. Spending limits are set in budgets
adopted by the Legislative Assembly and apply to Lottery Funds, Other Funds and Federal Funds. An
agency can change the spending limits through requests to the interim Emergency Board or the Legislative
Assembly in special session.
Federal Funds: Dollars the federal government sends to state agencies to pay for specific services or
programs.
Full-time Equivalent: Full-time equivalent is a formula for calculating the cost of positions. A position
filled for all 24 months of a biennium is one full-time equivalent. The cost of a position filled part-time or
for only part of a biennium is prorated. For example, an agency may have enough money to fill a position
for only one year of the two-year budget cycle, which means the position is 0.50 full-time equivalent.
General Fund: General Fund is the only money that can be used for general purposes of state government.
It is not dedicated to a specific agency or program. Most of this money comes from personal and corporate
income taxes. Some revenues from liquor, cigarettes and other sales go into the General Fund.
Governor's Recommended Budget: The Governor’s recommended budget is the budget the Governor
proposes for state government, including specific programs and an amount of funding for each. The
Governor’s recommended budget is sent to the Legislative Assembly. It must be transmitted to the
Legislature by December 1 of even-numbered years. If a new Governor is elected, it must be submitted by
February 1 of the odd-numbered year after the general election.
Judicial Branch: The branch of state government that interprets the Oregon Constitution and state laws. It
includes the courts of the state, with the Supreme Court having general power over all other courts. The
other two branches are Legislative and Executive.
Legislative Branch: The branch of state government that creates state laws. It also decides how state
government will be financed. It has a Senate of 30 members and a House of Representatives of 60
members, all elected. The other two branches are Executive and Judicial.
Legislatively Approved Budget: The Legislative Assembly decides on the legislatively adopted budget
(LAB) when it is in regular session. When the Legislature is not in session, Emergency Board actions
change the LAB. Legislative actions from a special session also may change the LAB. When these changes
are made to the LAB, it is the Legislatively Approved Budget.

Glossary
Lottery Funds: Money the state receives when people play state lottery games is called Lottery Funds. By
law, the state may use Lottery Funds for economic development, education, and natural resources. Ballot
Measure 76 (2010) dedicates 15 percent of net Lottery proceeds to parks (7.5 percent) and native species
(7.5 percent). Of the 7.5 percent dedicated to native species efforts, up to 35 percent may be spent on
operations and at least 65 percent must be spent on local grants. Effective July 1, 2003, the Education
Stability Fund receives 18 percent of the net proceeds from the Oregon Lottery. Seventy-five percent of the
interest earnings on the Education Stability Fund pays debt service on Education Lottery Bonds. The
balance of the earnings on the Fund is made available to the Student Assistance Commission for the
Opportunity Grant Program. There are also dedicated distributions for sports programs in higher education,
county economic development, county fairs, and gambling addiction treatment. The rest of the Lottery
Funds is available to pay for Lottery bond debt service, the State School Fund and economic development
programs.
Major Construction/Acquisition: A project that costs $1,000,000 or more to build, buy, change a facility or
workplace, or purchase land. Budget approvals of these projects have a life of six years from the effective
date of the first approval of any element of the project. All major construction/acquisition projects are
subject to the review of the Capital Projects Advisory Board.
Nonlimited Expenditures: The Legislative Assembly does not place a spending limit on Nonlimited
expenditures. These expenditures must be approved in an agency’s budget. They must be for a specific
purpose and typically are for expenditures that are outside of the agency’s control and have some other
limitation factor, such as a contract.
Other Funds: Money received by state agencies that does not come from the General Fund, Lottery
Commission or the federal government is Other Funds. The money comes from sources such as gasoline
taxes, professional license fees, building permits, hunting licenses, etc. This money is usually "dedicated,"
thus requiring that it must be spent for specific purposes. For example, a park user fee can only be used by
the Parks and Recreation Department.
Personal Services: The cost of paying the state’s employees. This cost includes salaries, benefits and other
payroll costs.
Phase-In: New programs or services are sometimes started midway through a biennium. During the next
biennium, the budget needs to include the full 24-month cost of that program. The additional cost to fully
fund the program for 24 months is the “phase-in” amount.
Phase-Out: The opposite of phase-in. These costs in the current biennium are not required in the next
biennium. Such costs include one-time expenditures for equipment, studies or start-up costs that are not
reoccurring. It also includes costs for programs or services that end part way through the biennium, so a full
24 months of expenditures is not needed.
Policy Package: A package that presents policy and program changes above or below the agency’s current
service level. An agency’s total budget is the sum of its base budget, essential packages and policy
packages.
Program Areas: Program areas are groups of agencies that have related programs. The name of the
program area tells the purpose of the agencies. For example, the Public Safety Program Area includes
agencies with public safety as a purpose.

Glossary
Revenues: Dollars sent to state agencies from all sources appropriated for the payment of public expenses.
Services and Supplies: Services and Supplies is a budget category showing how much money is approved
to pay the daily costs of operating the agency. Common expenses are for rent, office supplies, contracts for
services, telephone service, data processing, maintenance, etc.
Special Payments: These budgeted transfers and payments are made directly to eligible persons,
contractors, or others. The payments also go to local governments, such as counties, or school districts.
State Agency: The Legislative Assembly creates a state agency. It is a unit of state government and may be
a department, division, board, or commission. Its purpose is to carry out and enforce state laws. Some
examples are the Department of Veterans’ Affairs, Bureau of Labor and Industries, Board of Nursing and
Commission on Children and Families.

Revenue Section
REVENUE SUMMARY
Current Law Projection
The Department of Administrative Services Office of Economic Analysis projects General Fund revenue
of $13,855.5 million for 2011-13. No beginning balance is anticipated for the new biennium.
Personal income tax makes up the largest share of the General Fund. It accounts for about 87 percent of
projected revenues. Corporate income taxes are about seven percent of the total revenue amount. Other
sources make up the remainder. The largest of the other sources are insurance taxes, estate taxes, and
liquor apportionment transfer.
Personal income tax revenues will total $12,052.5 million, and corporate income tax revenues are
expected to be $966.2 million for the biennium.
New state Lottery revenues for the biennium are forecast to be $1,133.5 million. The beginning balance
is anticipated to be $21.4 million. Interest on the Education Stability Fund and carry forward revenue
provide an additional $10.5 million and $31.0 million of resources, respectively. Total resources are
expected to be $1,196.4 million for the 2011-13 biennium.
Dedicated distributions for the Education Stability Fund, the Parks and Natural Resources Fund, sports
programs for higher education, county economic development, county fairs, and problem gambling
treatment will total $439.3 million. Funds dedicated for debt service on Lottery bonds will total
$270.3 million. In addition to these distributions, $446.4 million will be available for allocation to
education and economic development activities in the 2011-13 biennium.
Governor's Recommended Revenue Changes
The Governor recommends continuing 23 corporate and personal income tax credits that are set to end in
2011-13. Most of them do not have a substantive affect on the General Fund and cumulate to about $38.4
million. The Governor recommends enhancing the Business Energy Facility credit, resulting in a
decrease of $5 million, and an expansion of the Film Development tax credit, reducing the General Fund
by $10 million. The Governor is also recommending Capital Gains relief for personal income that
reduces the General Fund by $25 million.
The budget recommends a package that will enhance tax collection by the Department of Revenue.
Inclusion of the package is expected to increase the General Fund by $14.7 million.
The budget also includes expected costs for the issuance of Tax Anticipation Notes (TANs). These notes
are used by the State Treasurer during the biennium to help with General Fund cash flow. The total cost
for the biennium is estimated at $23.5 million.
2011-13 Governor's Balanced Budget O-1 Revenue

Revenue Section
When the Governor’s recommended revenue changes are incorporated into the revenue forecast, total
General Fund revenues for 2011-13 will be $13,811.9 million. This is an 11.2 percent increase over the
latest forecast of General Fund resources for the 2009-11 biennium.

SCHEDULE I
SUMMARY OF GENERAL FUND REVENUES
BY MAJOR SOURCE
Change from
2009-11 2011-13 2011-13 Current Law or
2007-09 Current Percent of Current Law Percent of Governor's Other
Actuals Estimates Total Forecast Total Balanced Budget Adjustment
Taxes
Personal Income Taxes $10,090,597,208 $10,442,980,069 84.0% $12,052,472,567 87.0% $11,995,130,523 (57,342,044) (1)

Corporate Excise and Income Taxes 684,485,152 860,644,733 6.9% 966,163,262 7.0% 945,105,306 (21,057,956) (2)
Insurance Taxes 93,328,150 88,624,540 0.7% 99,171,299 0.7% 99,171,299 0
Estate Taxes 196,819,461 190,508,259 1.5% 204,284,177 1.5% 204,284,177 0
Cigarette Taxes 80,881,884 76,692,563 0.6% 75,987,630 0.5% 75,987,630 0
Other Tobacco Products Taxes 34,500,903 45,783,748 0.4% 50,371,847 0.4% 50,371,847 0
Other Taxes 1,476,928 2,369,618 0.0% 1,364,000 0.0% 1,364,000 0
Fines and Fees

State Court Fees 53,001,391 52,558,133 0.4% 55,985,085 0.4% 55,985,085 0
Secretary of State Corporation Fees 22,495,632 33,772,672 0.3% 37,546,338 0.3% 45,046,338 7,500,000 (3)
Criminal Fines and Assessments 77,191,177 64,134,990 0.5% 65,950,086 0.5% 74,059,917 8,109,831 (4)
Securities Fees 19,571,868 16,839,364 0.1% 15,832,106 0.1% 15,832,106 0
O-3
Charges for Services 8,713,121 8,174,509 0.1% 11,151,513 0.1% 11,151,513 0
Sales Income 177,270,732 208,516,534 1.7% 187,387,609 1.4% 215,272,009 27,884,400 (5)
Revenue Section
Interest Earnings 84,069,693 5,767,532 0.0% 10,120,000 0.1% 10,120,000 0
Other 12,456,835 13,017,172 0.1% 21,750,000 0.2% 12,990,100 (8,759,900) (6)
One-time Transfers 87,078,311 315,917,272 2.5% 0 0.0% 0 0

Total General Fund Revenues $11,723,938,445 $12,426,301,709 100.0% $13,855,537,518 100.0% $13,811,871,849 ($43,665,669)
Explanation of Recommended Changes:
(1) Includes a reduction of $20.3 million for extending personal income tax credits that are scheduled to sunset in 2011-13. See the Tax Expenditure Report for a full list of sunset dates.
Also includes reductions of $2.1 million and $10.0 million for expanding BETC and Film/Video tax credits, respectively, and a $25 million reduction for capital gains relief.
(2) Includes a reduction of $18.1 million for extending corporate tax credits that are scheduled to sunset in 2011-13. See the Tax Expenditure Report for a full list of sunset dates.
Also includes reductions of $2.9 million for enhancing the Business Energy Facility tax credit.
(3) Upward revision to revenue projections made after the December 2010 forecast to reflect increased corporate registry fees from the Secretary of State.
(4) Represents program reductions (savings) in agencies that receive a percentage portion of CFAA revenue. These savings are then passed on to the General Fund.
(5) Includes continuation of bottle surcharge ($26.448 million) and new license application fee ($1.436 million) in the Oregon Liquor Control Commission agency.
(6) Includes an increase of $14,700,000 for enhanced collections from a Department of revenue policy package and a decrease of $23,459,900 for projected Tax Anticipation
Note (TAN) issuance costs in the 2011-13 biennium.
Note: 2007-09 Personal Income Taxes are shown after being reduced for the amount of "kicker" revenue returned to taxpayers.
Revenue
Revenue Section
GENERAL FUND SUMMARIES

CASH BALANCES
2011-13
GOVERNOR'S
BALANCED
BEGINNING BALANCE $ -
CURRENT REVENUES 13,811,871,849
TOTAL AVAILABLE RESOURCES $ 13,811,871,849
LESS: EXPENDITURES (13,618,871,849)
BALANCES CARRIED FORWARD $ 193,000,000
GENERAL FUND REVENUES BY MAJOR SOURCE
2011-13
2007-09 2009-11 % CHANGE GOVERNOR'S % CHANGE
ACTUALS ESTIMATES (ACT/EST) BALANCED (EST/GBB)
TAXES $11,182,089,686 $11,707,603,531 4.7% $13,371,414,781 14.2%

FINES AND FEES 172,260,067 167,305,160 -2.9% 190,923,446 14.1%
CHARGES FOR SERVICES 8,713,121 8,174,509 -6.2% 11,151,513 36.4%
SALES INCOME 177,270,732 208,516,534 17.6% 215,272,009 3.2%
INTEREST EARNINGS 84,069,693 5,767,532 -93.1% 10,120,000 75.5%
OTHER 99,535,146 328,934,444 230.5% 12,990,100 -96.1%
TOTAL * $ 11,723,938,445 $ 12,426,301,709 6.0% $ 13,811,871,849 11.2%
* Does not include beginning balance

Revenue Section

Revenue Section
LOTTERY FUNDS
Oregon’s Lottery proceeds are used in the education, economic and community development,
transportation, natural resources, and public safety program areas. Lottery Funds make up 6.4 percent of
the state’s General Fund and Lottery Funds expenditure budget.
The Oregon Lottery collects revenues from traditional and video lottery gaming. It pays player prizes and
its operating expenses out of these revenues. It then transfers the balance to the state. New state Lottery
revenues for the biennium are forecast to be $1,133.5 million. The beginning balance is anticipated to be
$21.4 million. Interest on the Education Stability Fund and carry forward revenue provide an additional
$10.5 million and $31.0 million of resources, respectively. Total resources are expected to be $1,196.4
million for the 2011-13 biennium.
Lottery Funds are transferred to the Administrative Services Economic Development Fund. That fund is
distributed based on current law and legislative direction:
• Counties receive 2.5 percent of video poker proceeds. This is $38.8 million for 2011-13.
• The Department of Higher Education receives one percent of total transfers for sports programs. It
uses the money for intercollegiate athletics and for non-athletic scholarships. The budget includes
$11.3 million from this source.
• The Education Stability Fund receives 18 percent of total transfers. A total of $204.0 million is
expected to be deposited in the Education Stability fund in 2011-13.
• Interest on the Education Stability Fund, except for the Oregon Growth Account portion of the Fund,
is dedicated as follows:
− The Department of Education receives 75 percent of the interest earned. It will use this to pay
debt service on education bonds.
− The Student Assistance Commission receives 25 percent. This will fund education grants.
• The Parks and Natural Resources Fund receive 15 percent of total transfers. This amounts to $170.0
million in 2011-13. The Oregon Constitution requires that half of this money be used for parks, ocean
shore and public beach access, historic sites, and recreation areas. The other half must be used to help
restore and protect wild salmon, watersheds, fish and wildlife habitat, and water quality. The
Governor’s balanced budget uses the funds for projects in a number of state agencies.
• The Problem Gambling Treatment Fund receives one percent of total transfers. This amounts to $11.3
million in 2011-13.
• The Department of Administrative services receives money for distribution to county fairs. By law,
this amount equals one percent of total transfers up to a cap specified by statute. The Governor’s
balanced budget includes $3.7 million for this purpose.
Revenue Section
The rest of the Lottery Funds are available for allocation to agencies for Lottery bond debt service
expenditures and other program purposes. The following chart shows how the state’s available Lottery
resources have changed over time. It also shows how more of the available resources have been dedicated
for various uses.
State Lottery Resources
($ Millions)
$1,800
Parks (15%) & Other Dedicated Programs
$1,600
$1,400
$1,200
Education Stability
$1,000 Fund (15-18%)
$800
Debt Service
$600
$400 Resources Available

for Allocation
$200
$0
85-87 87-89 89-91 91-93 93-95 95-97 97-99 99-01 01-03 03-05 05-07 07-09 09-11 11-13 13-15
Proj. Proj. Proj.
This balanced budget reflects the dedicated Sports, Education Stability Fund, Parks and Natural
Resources Fund, Problem Gambling Treatment, and County Fair expenditures. The Governor proposes to
use the remaining Lottery funds for:
• The State School Fund.
• Debt service costs on outstanding and proposed bonds for education, transportation, economic
development, and infrastructure activities.
• Economic development programs and agency operations.
The budget also gives “carry forward” expenditure limitation to some agencies. This lets them spend
Lottery Funds they received in the previous biennium, but did not spend, for other projects.
The following tables show the state’s Lottery Funds cash flow and each agency’s Lottery Funds budget.
Lottery expenditures are described in more detail in each agency’s budget narrative.
Revenue Section
LOTTERY FUNDS CASH FLOW SUMMARY
2011-13
2009-11 Governor's
Estimated Balanced
Budget 1 Budget 2
ECONOMIC DEVELOPMENT FUND
RESOURCES
Beginning Balance 3 $1,352,767 $21,439,289
REVENUES
Transfers from Lottery
Net Proceeds 1,089,646,224 1,133,531,486
Administrative Savings 0
Other Revenues 925,000 1,100,000
Interest Earnings
Other
Total Revenue 1,090,571,224 1,134,631,486
TOTAL RESOURCES 1,091,923,991 1,156,070,774
DISTRIBUTIONS / ALLOCATIONS
Distribution of Video Revenues to Counties (30,130,847) (38,793,922)
Distribution to Higher Education for Sports Programs (9,665,082) (11,335,315)
Distribution to Education Stability Fund 6 (196,136,320) (204,035,667)
School Capital Matching Account 6 0 0
Distribution to Parks and Natural Resources Fund (163,446,934) (170,029,723)
Distribution for Gambling Addiction (8,775,462) (11,335,315)
Allocation to State School Fund (409,811,243) (371,918,440)
Debt Service Allocations (216,404,799) (270,335,951)
Other Agency Allocations (36,114,015) (70,968,875)
TOTAL DISTRIBUTIONS / ALLOCATIONS (1,070,484,702) (1,148,753,208)
ENDING BALANCE $21,439,289 $7,317,566
EDUCATION STABILITY FUND

(not including OGA or ORTDF)
RESOURCES
Beginning Balance 104,821 102,132,084
Revenues
Transfer from the Economic Development Fund 7 102,027,383 193,833,884
Interest Earnings 1,466,342 10,520,688
Total Revenue 103,493,725 204,354,572
TOTAL RESOURCES 103,598,547 306,486,656

4
DISTRIBUTIONS
Interest Distributions (1,466,463) (10,520,688)
TOTAL DISTRIBUTIONS (1,466,463) (10,520,688)
ENDING BALANCE $102,132,084 $295,965,968
PARKS AND NATURAL RESOURCES FUND

RESOURCES
Beginning Balance $0 $0
Revenues
Transfer from the Economic Development Fund 163,446,934 170,029,723
Interest Earnings 0
Total Revenue
TOTAL RESOURCES 163,446,934 170,029,723
5
ALLOCATIONS (163,446,934) (170,029,723)
ENDING BALANCE $0 $0
1. The 2009-11 Estimated Budget is based on the December 2010 forecast of 2009-11 resources.
2. The Governor's recommended budget is based on the Decembe forecast of 2011-13 resources.
3. 2011-13 Beginning Balance is equal to 2009-11 ending balance since it is less than $37.5 M (see HB 5101).
4. Declared earnings on the non-Oregon Growth Account portion of the Education Stability Fund are distributed. The Oregon Education Fund recieves 75 percent of the earnings to pay debt
service on Education Lottery Bonds. The Student Assistance Commission recieves the remaining 25 percent. Not all the earnings distributions in the Oregon Education Fund will be used for
debt service in 2009-11 due to timing of payments.
5. Moneys from the Parks and Natural Resources Fund are continuously appropriated to the Parks and Recreation Department and the Oregon Watershed Enhancement Board. Agency
expenditure limitation may include an amount related to carryforward in the agencies that is not represented here.
6. Assumes that EDF does not exceeds 5% cap during biennium. Otherwise this would trigger a diversion to the School Capital Matching Subaccount.
` 7. Only transfers to the Main ESF account - not the 5% to OGA
Revenue Section
2011-13 LOTTERY FUNDS ALLOCATIONS AND EXPENDITURES
New Lottery Beginning Interest GRB Ending

Funds Lottery and Other Expenditure Lottery
Allocation Balance Earnings Limitation Balance
ECONOMIC DEVELOPMENT FUND
DEBT SERVICE COMMITMENTS
Department of Education
Outstanding bonds 48,237,443 340,029 509,719 48,811,585 275,606
Department of Higher Education
Outstanding bonds 16,484,979 695,350 0 17,180,329 0
Housing and Community Services Dept.
Community Colleges & Workforce Development
Department of Forestry
Department of Energy
Water Resources Department
Outstanding bonds 573,739 661 0 574,400 0
OTHER ALLOCATIONS
Department of Higher Education
Sports programs 11,335,315 0 0 11,335,315 0
State School Fund 371,918,440 0 0 371,918,440 0
For Department of Agriculture County Fairs Admin. 20,166 5,010 0 21,970 3,206
Distribution to County Fairs 3,729,851 2,265 0 3,706,169 25,947
Shared Services 7,393,006 0 0 7,393,006 0
Business, Innovation, Trade 57,603,194 3,406,557 120,000 61,129,751 0
Infrastructure Finance Authority 0 0 0 0 0
Film and Video 1,251,703 0 0 1,251,703 0
Office of the Governor
Economic Revitalization Team 1,941,910 84,902 0 1,941,910 84,902
Oregon Health Authority
Gambling Addiction Treatment 11,335,315 0 573,040 11,142,377 765,978
TOTAL ECONOMIC DEVELOPMENT FUND $736,864,851 $4,849,110 $1,202,759 $741,761,081 $1,155,639
EDUCATION STABILITY FUND /

OREGON EDUCATION FUND
Student Assistance Commission
Opportunity Grant 2,630,172 0 0 2,630,172 0
Education bonds outstanding 7,890,516 4,605,272 0 6,686,305 5,809,483
TOTAL EDUCATION STABILITY/OREGON EDUCATION FUND $10,520,688 $4,605,272 $0 $9,316,477 $5,809,483
PARKS & NATURAL RESOURCES FUND
Oregon Watershed Enhancement Board
Capital and Operations 61,817,327 6,500,000 720,000 68,715,916 321,411
Department of Agriculture
Capital and Operations 9,441,326 0 0 9,441,326 0
Department of Environmental Quality
Department of Fish and Wildlife
State Police
Capital and Operations 6,277,314 561,086 0 6,680,937 157,463
Forestry Department
Capital and Operations 700,000 0 0 700,000 0
State Parks and Recreation Dept.
Debt Service 4,258,692 2,489 0 4,261,181 0
Capital and Operations 80,756,169 11,960,941 575,000 83,945,443 9,346,667
TOTAL PARKS & NATURAL RESOURCES FUND $170,029,722 $19,024,516 $1,295,000 $180,523,697 $9,825,541
GRAND TOTAL $917,415,261 $28,478,898 $2,497,759 $931,601,255 $16,790,663

COMBINED GENERAL FUND AND LOTTERY FUNDS SUMMARY
2011-13 2011-13
CURRENT LAW GOVERNOR'S BALANCED
GENERAL LOTTERY TOTAL GENERAL LOTTERY TOTAL

BEGINNING CASH BALANCES $ - $49,918,187 $ 49,918,187 $ - $49,918,187 $ 49,918,187
AVAILABLE REVENUES * $13,855,537,518 $898,473,731 14,754,011,249 $13,811,871,849 898,473,731 14,710,345,580
TOTAL RESOURCES $ 13,855,537,518 $ 948,391,918 $ 14,803,929,436 $ 13,811,871,849 $ 948,391,918 $ 14,760,263,767
LESS EXPENDITURES (13,618,871,849) (931,601,255) (14,550,473,104) (13,618,871,849) (931,601,255) (14,550,473,104)
O-10
PROJECTED CASH BALANCE $ 236,665,669 $ 16,790,663 $ 253,456,332 $ 193,000,000 $ 16,790,663 $ 209,790,663
Revenue Section
NET CHANGE IN PROJECTED ENDING BALANCE $ (43,665,669) $ (43,665,669)
* Available Lottery revenue includes interest on the Education Stability Fund and agency carry forwards but it does not include video lottery transfers to counties or the
Education Stability Fund.
Revenue
Revenue Section
NON-GENERAL FUND SUMMARIES

CASH BALANCES
2011-13
GOVERNOR'S
BALANCED
BEGINNING BALANCES $ 53,498,866,061
CURRENT REVENUES 46,112,073,938
TOTAL RESOURCES AVAILABLE $ 99,610,939,999
LESS: TRANSFERS TO OTHER GOVERNMENTS (2,032,751,255)

EXPENDITURES ** (41,096,665,449)
BALANCES CARRIED FORWARD $ 56,481,523,295
NON-GENERAL FUND REVENUES BY MAJOR SOURCE
2009-11 % 2011-13 %
2007-09 LEGISLATIVELY CHANGE GOVERNOR'S CHANGE
ACTUALS APPROVED (ACT/EST) BALANCED (EST/GBB)
TAXES $ 4,525,504,403 $ 5,108,414,061 12.9% $ 5,810,893,262 13.8%

FEDERAL FUNDS 10,066,205,456 15,822,289,472 57.2% 12,893,413,227 -18.5%
FEDERAL FUNDS AS OTHER FUNDS 1,830,050,839 2,256,934,680 23.3% 1,851,084,679 -18.0%
DONATIONS AND CONTRIBUTIONS 3,230,334,602 3,782,795,578 17.1% 3,578,077,064 -5.4%
OTHER 2,412,632,771 2,833,161,705 17.4% 3,410,995,561 20.4%
BOND SALES 2,700,548,123 3,740,120,141 38.5% 2,040,673,830 -45.4%
INTEREST EARNINGS 253,959,538 6,929,053,437 2628.4% 7,791,684,039 12.4%
LIQUOR AND OTHER SALES INCOME 482,892,441 477,690,357 -1.1% 502,902,769 5.3%
LOAN REPAYMENTS 568,671,643 625,584,836 10.0% 534,356,480 -14.6%
LOTTERY DISTRIBUTIONS 1,326,917,350 1,071,680,031 -19.2% 1,162,062,058 8.4%
CHARGES FOR SERVICES 2,816,926,147 3,833,606,389 36.1% 5,113,198,149 33.4%
LICENSES AND FEES 1,171,679,023 1,339,176,507 14.3% 1,422,732,820 6.2%
TOTAL * $ 31,386,322,336 $ 47,820,507,194 52.4% $ 46,112,073,938 -3.6%
* Does not include beginning balance.

** Excludes Non-Add expenditures.

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SCHEDULE II
OTHER FUNDS AND LOTTERY FUNDS REVENUE BY SOURCE
2009-11 2011-13
2007-09 LEGISLATIVELY GOVERNOR'S
ACTUALS APPROVED BALANCED
TAXES
SELECTIVE SALES AND USE TAXES

Tobacco Taxes $ 420,860,663 $ 323,910,858 $ 374,768,943
Motor Fuels Taxes 842,985,199 980,292,371 1,105,858,226
Weight-Mile Taxes 449,214,083 630,233,795 610,756,359
Privilege Taxes 25,829,423 25,791,600 27,557,520
Other Selective Sales and Use Taxes 206,357,807 521,025,947 484,553,643
Subtotal 1,945,247,175 2,481,254,571 2,603,494,691
GROSS RECEIPTS BUSINESS TAXES

Other Gross Receipts Business Taxes 3,945,380 4,500,000 3,500,000
Amusement Taxes 4,009,248 3,280,000 3,280,000
Public Utilities Taxes 177,922,724 173,660,379 145,960,666
Insurance Taxes - 89,775,432 116,625,285
Subtotal 185,877,352 271,215,811 269,365,951
EMPLOYER-EMPLOYEE TAXES
Employment Taxes 1,501,612,279 1,463,541,745 2,020,663,852
Workers' Compensation Insurance Taxes 77,130,779 77,495,482 104,622,864
Other Employer-Employee Taxes 618,371,527 621,843,492 620,621,938
Subtotal 2,197,114,585 2,162,880,719 2,745,908,654
SEVERANCE TAXES
Eastern Oregon Severance Taxes 16,723 - -
Western Oregon Severance Taxes 400,442 562,400 562,400
Other Severance Taxes 644,508 237,000 237,000
Subtotal 1,061,673 799,400 799,400
OTHER TAXES
Forest Protection Taxes 40,460,582 35,504,046 39,808,450
Other Taxes 155,743,036 156,759,514 151,516,116
Subtotal 196,203,618 192,263,560 191,324,566
TOTAL TAXES $ 4,525,504,403 $ 5,108,414,061 $ 5,810,893,262
LICENSES AND FEES
BUSINESS LICENSES AND FEES $ 419,047,961 $ 312,131,594 $ 323,076,444
NONBUSINESS LICENSES AND FEES

Park User Fees 34,123,590 37,663,226 44,735,501
Vehicle Licenses 385,422,899 564,625,314 604,702,401
Drivers Licenses 68,177,426 72,972,973 71,882,076
Transportation Licenses and Fees 46,388,291 72,796,536 96,613,799
Hunter and Angler Licenses 81,929,342 105,992,819 110,237,475
Other Nonbusiness Licenses and Fees 129,957,483 101,915,482 100,406,561
State Court Fees 6,632,031 71,078,563 71,078,563
Subtotal 752,631,062 1,027,044,913 1,099,656,376
TOTAL LICENSES AND FEES $ 1,171,679,023 $ 1,339,176,507 $ 1,422,732,820
FEDERAL FUNDS AS OTHER FUNDS $ 1,830,050,839 $ 2,256,934,680 $ 1,851,084,679

Revenue Section
SCHEDULE II
OTHER FUNDS AND LOTTERY FUNDS REVENUE BY SOURCE
OTHER REVENUES
CHARGES FOR SERVICES

Tuition and Fees -- Higher Education $ 1,305,881,105 $ 1,580,300,544 $ 1,917,950,731
Fee Remissions -- Higher Education (85,813,819) (130,024,269) (150,360,863)
Aux. Enterprise and Service Fees -- Higher Ed. 435,805,302 432,968,915 547,065,787
Sales and Service Fees -- Higher Education 278,118,134 271,524,273 328,699,340
Other Charges for Services 882,935,425 1,678,836,926 2,469,843,154
Subtotal 2,816,926,147 3,833,606,389 5,113,198,149
FINES, RENTS, AND ROYALTIES

Fines and Forfeitures 172,125,662 209,616,511 199,782,503
Rents and Royalties 126,585,545 128,250,387 105,315,114
Subtotal 298,711,207 337,866,898 305,097,617
BOND SALES
General Fund Obligation Bonds 216,904,596 159,117,000 16,740,000
Dedicated Fund Obligation Bonds 549,707,401 780,859,070 695,503,503
Lottery Bonds 492,062,892 230,235,810 255,557,040
Certificates of Participation 411,770,845 802,876,487 219,841,513
Revenue Bonds 978,159,419 1,367,031,774 853,031,774
Refunding Bonds 51,942,970 400,000,000 -
Subtotal 2,700,548,123 3,740,120,141 2,040,673,830
INTEREST EARNINGS
Interest Income 253,959,538 6,929,053,437 7,791,684,039
SALES INCOME
Liquor Sales 248,207,505 284,855,575 287,255,420
Pari-mutual Receipts 3,207,081 3,960,314 3,009,800
State Forest Lands 141,604,849 104,069,774 121,258,234
Common School Land 23,134,842 24,134,139 33,316,000
Other Sales Income 66,738,164 60,670,555 58,063,315
Subtotal 482,892,441 477,690,357 502,902,769
DONATIONS AND CONTRIBUTIONS

Donations and Grants (Non-Fed) 511,538,091 393,195,578 503,897,264
Retirement System Contribution 2,718,796,511 3,389,600,000 3,074,179,800
Subtotal 3,230,334,602 3,782,795,578 3,578,077,064
LOAN REPAYMENTS
Housing Division Loan Repayment 201,457,724 225,278,721 213,664,618
Senior Citizen Property Tax Repayments 32,559,971 38,497,653 38,497,653
Veterans' Loan Repayments 88,706,787 150,000,000 75,000,000
Other Loan Repayments 178,522,161 177,021,462 198,194,209
Loan Proceeds 67,425,000 34,787,000 9,000,000
Subtotal 568,671,643 625,584,836 534,356,480
LOTTERY DISTRIBUTIONS 1,326,917,350 1,071,680,031 1,162,062,058
OTHER REVENUES 2,113,921,564 2,495,294,807 3,105,897,944
TOTAL OTHER FUNDS AND LOTTERY FUNDS REVENUE $ 21,320,116,880 $ 31,998,217,722 $ 33,218,660,711

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ALL FUNDS SUMMARY
CASH BALANCES
2011-13
GOVERNOR'S
BALANCED
BEGINNING BALANCES $ 53,498,866,061
CURRENT REVENUES:
GENERAL FUND 13,811,871,849
OTHER AND LOTTERY FUNDS 33,218,660,711
FEDERAL FUNDS 12,893,413,227
SUBTOTAL 59,923,945,787
TOTAL RESOURCES AVAILABLE $ 113,422,811,848
LESS: TRANSFERS TO OTHER GOVERNMENTS

OTHER AND LOTTERY FUNDS (1,708,985,905)
FEDERAL FUNDS (323,765,350)
SUBTOTAL (2,032,751,255)
EXPENDITURES **
GENERAL FUND (13,618,871,849)
LOTTERY FUNDS (931,601,255)
OTHER FUNDS (27,622,963,658)
FEDERAL FUNDS (12,542,100,536)
SUBTOTAL (54,715,537,298)
BALANCES CARRIED FORWARD $ 56,674,523,295
REVENUES BY MAJOR SOURCE

2009-11 % 2011-13
2007-09 LEGISLATIVELY CHANGE GOVERNOR'S % CHANGE
ACTUALS APPROVED (ACT/EST) BALANCED (EST/GBB)
TAXES $ 15,707,594,089 $ 16,816,017,592 7.1% $19,182,308,043 14.1%
FEDERAL FUNDS 10,066,205,456 15,822,289,472 57.2% 12,893,413,227 -18.5%
FEDERAL FUNDS AS OTHER FUNDS 1,830,050,839 2,256,934,680 23.3% 1,851,084,679 -18.0%
DONATIONS AND CONTRIBUTIONS 3,230,334,602 3,782,795,578 17.1% 3,578,077,064 -5.4%
OTHER 2,512,167,917 3,162,096,149 25.9% 3,423,985,661 8.3%
BOND SALES 2,700,548,123 3,740,120,141 38.5% 2,040,673,830 -45.4%
INTEREST EARNINGS 338,029,231 6,934,820,969 1951.5% 7,801,804,039 12.5%
LIQUOR AND OTHER SALES INCOME 660,163,173 686,206,891 3.9% 718,174,778 4.7%
LOAN REPAYMENTS 568,671,643 625,584,836 10.0% 534,356,480 -14.6%
LOTTERY DISTRIBUTIONS 1,326,917,350 1,071,680,031 -19.2% 1,162,062,058 8.4%
CHARGES FOR SERVICES 2,825,639,268 3,841,780,898 36.0% 5,124,349,662 33.4%
LICENSES, FINES AND FEES 1,343,939,090 1,506,481,667 12.1% 1,613,656,266 7.1%
TOTAL * $ 43,110,260,781 $ 60,246,808,903 39.8% $ 59,923,945,787 -0.5%
* Does not include beginning balance.

** Excludes Non-Add expenditures.

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STATUTORY LIMITS
Revenues in Excess of Estimate (ORS 291.349)
This law was passed in 1979. It directs the state to give credits to taxpayers if certain conditions are met.
Corporations receive a credit if actual income tax collections are more than two percent above forecast.
Personal income taxpayers receive a credit if all other General Fund revenue is more than two percent
above forecast. This is commonly known as the “kicker.” In November 2000, voters passed Measure 86
which places the “kicker” in the Oregon Constitution.
The calculation is based on the forecast that is issued at the end of each legislative session. Actual
receipts collected for the two-year period are compared with this forecast. If revenue is two percent or
more above the forecast, a credit is due to taxpayers. The Department of Administrative Services (DAS)
certifies the amount of any credit in September of odd-numbered years.
Individual taxpayers receive their credits in the form of a refund against the prior tax year. The
Department of Revenue manages this process. Refund checks are mailed out by December 1 following
the end of the biennium. For corporations, the credit appears on tax forms for the year the biennium ends.
The Governor’s Balanced Budget proposal for the next two years is based on the December 2010 revenue
forecast. This forecast does anticipate a $23.6 million surplus kicker credit for corporate taxpayers, but
does not anticipate a kicker credit for individual taxpayers for 2009-11.
Appropriations Limit (ORS 291.357)

The 2001 Legislature passed House Bill 3997 that set a new limit on state appropriations. It replaced
ORS 391.355 that set limits only on the General Fund. The law places limits on all “governmental
activities” as defined by the Governmental Accounting Standards Board. The budget cannot exceed eight
percent of the projected personal income in Oregon. The income data comes from the U.S. Department of
Commerce and is printed by the Oregon Department of Administrative Services. The law states that the
final comparison shall be based on the last forecast before the Legislature adjourns.
• Personal income. The December 2010 revenue forecast projects Oregon’s total personal income for
the next biennium to be $306.59 billion. Based on that figure, the 8.0 percent limit is $24.53 billion.
• Subject appropriations. By definition, certain activities are exempt from the statute. Fiduciary
activities (retirement, unemployment, benefit funds, etc.) and business activities (loan programs,
enterprise programs, etc.) are excluded.
For 2011-13, the Governor’s Balanced Budget, when adjusted as described above, totals about 7.9 percent
of personal income.

Expenditure Section
Full-Time Equivalent Positions (ORS 240.185)
This law limits the number of state positions. The limit equals 1.5 percent of the state’s population in the
previous year. This is counted on a full-time equivalent basis.
The Office of the Governor, the Secretary of State, the Treasurer of State, the Judicial and Legislative
Branch agencies are not counted under the limit. Some positions in the Employment Department and
Department of Higher Education are also exempted.
The state’s population is estimated at 3,844,200 as of July 1, 2010, and 3,906,500 as of July 1, 2012.
Using these numbers, the position cap is at 57,663 and 58,598 full-time equivalent at the beginning and
end of the 2011-13 biennium.
The Governor’s Balanced Budget includes 51,056 full-time equivalent positions. Of these, 6,043 are
exempt from the limit. This puts the number of counted full-time equivalent positions at 45,013. This is
22–23 percent below the legal limit.

INDEX
Appropriation
Bill Numbers Page
2011-13 All Funds Budget (Graphs)................................................................................................................. A-13
2011-13 General Fund/Lottery Budget (Graphs) ............................................................................................. A-12
Accountancy, Oregon Board of................................................................ SB 5501............................................ H-3
Administration Program Area ...............................................................................................................................I-1
Administrative Services, Department of.................................................. SB 5502..............................................I-3
Advocacy Commissions Office, Oregon ................................................. HB 5001.............................................I-6
Agriculture, Department of....................................................................... HB 5002, HB 5003...........................F-4
All Funds Summaries .......................................................................................................................................... O-5
Aviation, Oregon Department of.............................................................. HB 5004........................................... G-3
Blind, Commission for the........................................................................ SB 5503............................................ C-5
Bond Table A - Recommended State Bond Issuance Authorization.............................................................. M-23
Bond Table B – Long-term Obligations and Authorities................................................................................ M-24
Bond Table C - General Obligation Debt Summary ....................................................................................... M-25
Bond Table D - Aggregate General Obligation Debt Service ........................................................................ M-26
Bond Table E - Summary of Debt Service Requirements for State
Bonded Indebtedness by Fund .............................................................................................. M-27
Bond Table F – Capital Financing Six-Year Forecast Summary ................................................................... M-29
Bonded Debt Profile
Highlights from Treasurer of State .............................................................................................................. M-9
Borrowing Authorizations ................................................................................................................................ M-13
Business Development Department, Oregon........................................... SB 5528.............................................E-3
Capital Construction ................................................................................. HB 5006.......................................... M-1
Capital Construction Program Funding Request Summary.............................................................................. M-2
Capital Construction 2011-13 Recommended Projects .................................................................................... M-3
Capital Construction 2013-15 Estimated Requirements ................................................................................... M-5
Capital Construction 2015-17 Estimated Requirements ......................... ......................................................... M-7
Chiropractic Examiners, Board of............................................................ HB 5007........................................... H-4
Clinical Social Workers, State Board of .................................................. HB 5008, HB 5009.......................... H-5
Columbia River Gorge Commission........................................................ HB 5010............................................F-6
Combined General Fund and Lottery Funds Summary ................................................................................... O-10
Community Colleges and Workforce Development, Dept. of................ HB 5011........................................... B-6
Construction Contractors Board............................................................... HB 5012........................................... H-7
Consumer and Business Services Program Area................................................................................................ H-1
Consumer and Business Services, Department of ................................... HB 5013, HB 5014.......................... H-8
Corrections, Department of ...................................................................... SB 5505............................................ D-4
Counselors and Therapists,
Board of Licensed Professional ......................................................... HB 5015, HB 5016........................ H-10
Criminal Justice Commission, Oregon .................................................... SB 5507............................................ D-8
Dentistry, Oregon Board of ...................................................................... HB 5017, HB 5018........................ H-11
District Attorneys and Their Deputies ..................................................... HB 5019......................................... D-10
Early Learning Council............................................................................. .......................................................... B-9
Economic and Community Development Program Area....................................................................................E-1
Economic and Revenue Environment................................................................................................................. A-1
Education Program Area ..................................................................................................................................... B-1
2011-13 Governor’s Balanced Budget Q-1 Index

INDEX
Education, Department of .........................................................................HB 5020, HB 5021 ........................B-12

Emergency Board......................................................................................SB 5508............................................ L-1
Employment Department ..........................................................................SB 5509............................................ E-6
Employment Relations Board...................................................................SB 5510............................................. I-7
Energy, Department of..............................................................................SB 5511, SB 5512............................ F-7
Environmental Quality, Department of ....................................................HB 5022 ........................................... F-9
Current Service Level .......................................................................................................................................... P-1
Expenditures, Schedule by Program, Agency, Fund (Schedule V) ................................................................... P-2
Expenditures, Summary by Category by Fund (Schedule VI)......................................................................... P-18
Fish and Wildlife, Department of .............................................................SB 5513 .......................................... F-11
Forestry Department, State .......................................................................HB 5023 ......................................... F-13
General Fund Revenues (Schedule I)..................................................................................................................O-3
General Fund Summaries.....................................................................................................................................O-4
Geology and Mineral Industries, Department of .....................................SB 5514 .......................................... F-15
Glossary ................................................................................................................................................................N-1
Government Ethics Commission, Oregon................................................HB 5024 ............................................ I-9
Governor, Office of the .............................................................................HB 5025 .......................................... I-11
Health Licensing Agency, Oregon ...........................................................HB 5026, HB 5027 ........................H-12
Health Related Licensing Boards .............................................................HB 5028, HB 5029 ........................H-14
Housing and Community Services Department.......................................SB 5515............................................ E-9
Human Services Program Area ........................................................................................................................... C-1
Human Services, Department of...............................................................HB 5030 ........................................... C-7
Indian Services, Commission ...................................................................SB 5520............................................. J-2
Judicial Branch Program Area.............................................................................................................................K-1
Judicial Department, Oregon ....................................................................SB 5516............................................K-3
Judicial Fitness and Disability, Commission on ......................................SB 5517 ............................................K-5
Justice, Department of...............................................................................SB 5518..........................................D-11
Labor and Industries, Bureau of ...............................................................SB 5519..........................................H-22
Land Conservation and Development, Department of ............................HB 5032, HB 5033 ........................ F-17
Land Use Board of Appeals......................................................................HB 5034 ......................................... F-19
Lands, Department of State.......................................................................HB 5042 ......................................... F-21
Legislative Branch Program Area ........................................................................................................................ J-1
Legislative Administration Committee ....................................................SB 5520 ............................................. J-3
Legislative Assembly ................................................................................SB 5520 ............................................. J-4
Legislative Counsel Committee................................................................SB 5520 ............................................. J-5
Legislative Fiscal Officer..........................................................................SB 5520 ............................................. J-6
Legislative Revenue Officer .....................................................................SB 5520 ............................................. J-7
Liquor Control Commission, Oregon.......................................................SB 5522 ........................................... I-13
Long Term Care Ombudsman ..................................................................SB 5524..........................................C-17
Lottery Funds.............................................................................................HB 5035 ...........................................O-6
Marine Board.............................................................................................SB 5525.......................................... F-23
Medical Board, Oregon.............................................................................SB 5526..........................................H-24
Military Department, Oregon ...................................................................HB 5037 .........................................D-14
Miscellaneous Program Area............................................................................................................................... L-1
Natural Resources Program Area ........................................................................................................................ F-1
Non-General Fund Summaries ............................................................................................................................O-7

INDEX
Number of Full-Time Equivalent Positions (Schedule VII) .............................................................................P-19

Nursing, Oregon State Board of............................................................... SB 5527.......................................... H-25
Oregon Health Authority.......................................................................... SB 5529, SB 5530 ........................... C-2
Oregon University System ....................................................................... SB 5532, SB 5533 ......................... B-18
Other Funds and Lottery Funds Revenue by Source (Schedule II) ................................................................. O-14
Parks and Recreation Department............................................................ SB 5534...........................................F-25
Parole and Post-Prison Supervision, State Board of................................ SB 5535.......................................... D-18
Pharmacy, Oregon Board of..................................................................... SB 5536.......................................... H-27
Police, Department of State ...................................................................... SB 5537, SB 5538 ......................... D-19
Private Activity Bond Volume ......................................................................................................................... M-15
Psychiatric Security Review Board.......................................................... SB 5539.......................................... C-20
Psychologist Examiners, Board of ........................................................... HB 5038......................................... H-28
Public Defense Services Commission...................................................... SB 5540............................................ K-6
Public Employees Retirement System ..................................................... HB 5039...........................................I-15
Public Safety Program Area ................................................................................................................................ D-1
Public Safety Standards and Training, Department of ............................ SB 5541.......................................... D-22
Public Utility Commission ....................................................................... SB 5542.......................................... H-29
Racing Commission, Oregon ................................................................... SB 5543............................................I-18
Real Estate Agency................................................................................... SB 5544.......................................... H-31
Receipts from the Federal Government (Schedule III) .................................................................................... O-15
Revenue Summary............................................................................................................................................... O-1
Revenue, Department of ........................................................................... HB 5040...........................................I-19
Revenues, Summary of Detail by Program, Agency,
Fund (Schedule IV) ..................................................................................................................................... O-21
Secretary of State ...................................................................................... HB 5041...........................................I-21
State and Local Shared Services ..........................................................................................................................L-6
State of Oregon Organization Chart.................................................................................................................. A-14
State Library.............................................................................................. SB 5521............................................I-23
Statutory Limits (Narrative) ...............................................................................................................................P-23
Student Assistance Commission, Oregon................................................ HB 5043......................................... B-16
Tax Expenditure Report........................................................................................................................................L-2
Tax Practitioners, State Board of ............................................................. HB 5044......................................... H-32
Teacher Standards and Practices Commission ........................................ SB 5545.......................................... B-21
Transportation Program Area.............................................................................................................................. G-1
Transportation, Department of ................................................................. HB 5046, HB 5047.......................... G-5
Treasurer, Office of State.......................................................................... HB 5048...........................................I-24
Veterans' Affairs, Department of.............................................................. SB 5546...........................................E-11
Water Resources Department................................................................... HB 5049..........................................F-27
Watershed Enhancement Board, Oregon................................................. SB 5547, SB 5548 ..........................F-29
Youth Authority, Oregon.......................................................................... SB 5549.......................................... D-16

DEPARTMENT OF ADMINISTRATIVE SERVICES
Kris Kautz
Acting Director
Budget and Management Division
George Naughton
Administrator
Art Ayre Jack Kenny Linda Pavis

Policy and Budget Analyst Finance Manager Process Coordinator
Tamara Brickman Bonnie Lanning Lisa Pearson

Policy and Budget Analyst Position Analyst Policy and Budget Analyst
Jim Carbone Bonnie Mathews Denver Peterson

Policy and Budget Analyst Receptionist Budget Systems Applications
Brian DeForest Meagan McFarland John Poitras

Deputy Administrator Process Coordinator Senior Systems Analyst
Kelly Freels William McGee Janet Savarro

Policy and Budget Analyst Policy and Budget Analyst SABR Section Manager
Linda Gilbert Mark Miedema Lyndon Troseth

Budget Section Manager Policy and Budget Analyst Finance Coordinator
Blake Johnson Kate Nass D.J. Vogt

Policy and Budget Analyst Policy and Budget Analyst Performance Management Coord.
Policy and Budget Analyst
Kristin Keith Michele Nichols
Administrative Manager Project and Budget Analyst Deanne Wachtler
SABR Auditor
Michael Kennedy
Policy and Budget Analyst
Special Thanks To:

♦ Cover photo courtesy of Kim Courtright.
♦ The Department of Administrative Services, Publishing and Distribution Section of the State Services Division.
♦ Lonn Hoklin and Summer Warner, Department of Administrative Services, for contributing to the budget document.

BUDGET Full Budget

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BUDGET Full Budget

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LAYING THE FOUNDATION

GOVERNOR’S BUDGET MESSAGE

John A. Kitzhaber, M.D.

PROGRAM AREA AND AGENCY INFORMATION

HUMAN SERVICES ...................................................................................................................................................C-1

PUBLIC SAFETY ...................................................................................................................................................... D-1

ECONOMIC AND COMMUNITY DEVELOPMENT .....................................................................................................E-1

NATURAL RESOURCES ............................................................................................................................................ F-1

TRANSPORTATION .................................................................................................................................................. G-1

CONSUMER AND BUSINESS SERVICES ................................................................................................................... H-1

CONSUMER AND BUSINESS SERVICES (cont.)

LEGISLATIVE BRANCH ............................................................................................................................................J-1

JUDICIAL BRANCH.................................................................................................................................................. K-1

INDEX ..................................................................................................................................................................... Q-1

ECONOMIC PERFORMANCE AND OUTLOOK

• As of fall 2010, the number

business cycles. Large local

• Per capita personal income

(see Figure 2). Oregon’s 6%

• Oregon’s severe recession

house price appreciation 10%

• Across Oregon’s industries,

operations, resulting in a T otal Nonfarm

in the U.S. Nationwide, Manufacturing

manufacturing employment -30 % -2 0% -10 % 0% 10% 2 0% 30% 40 %

has fallen by 33 percent this

Figure 5: Rise in Joblessness Across Regions

JOSE PHINE JAC KSON KLAM AT H LAKE HAR NEY M AL HEUR

Below 6% 6 to 7.5% 6.5 to 8% Over 8 %

• Oregon can be expected to Figure 6: Housing Is Affordable Once

Figure 7: County Population Growth, April 1, 2000 – July 1, 2010

JOSEPHINE KLAMATH LAKE HARNEY MALHEUR

Below 0% 0 to 10% 10 to 18% Over 18%

Change in Age Structure

Figure 8: Population by Age Groups

100,000 200,000 Forecast

Race and Ethnic Composition

Figure 9: Population by Race and Ethnicity, 2009

2.0% 1.6% 4.0% 2.6% 11.2%

Figure 10: Oregon’s Population Growth by Race & Ethnicity, 2000-2009

White alone 9.9%

African American alone 34.0%

Asian & Pacific Islander alone 36.8%

Two or more races 29.8%

Hispanic (of any race) 55.6%

Source: U.S. Bureau of Census.

2011-13 Governor’s Balanced Budget A-12 2011-13 General Fund/Lottery

2011-13 Governor’s Balanced Budget A-13 All Funds

2011-13 Governor’s Balanced Budget

Economic & Consumer &

Development Programs Programs Programs Services

State of Oregon Organization Chart

PROGRAM AREA AGENCIES

2007-09 2009-11 2011-13

Positions 18,712 18,756 19,249

2011-13 Governor's Balanced Budget B-1 Education

Transforming Public Education in Oregon In order to successfully transform Oregon’s economy, it is

2011-13 Governor's Balanced Budget B-2 Education

Key elements of the 2011-13 Governor’s Balanced Budget are:

2011-13 Governor's Balanced Budget B-5 Education

DEPARTMENT OF COMMUNITY COLLEGES AND

2011-13 Governor's Balanced Budget B-6 Education

Community College Support Fund