SALEM - Rising caseloads and other changes have increased the estimated cost of state health care and other social services by at least $66 million since Gov. Ted Kulongoski submitted his proposed 2005-07 budget in December.

State Human Services Department officials gave that report Monday to Senate and House budget leaders, who said most of the added costs already have been addressed in their separate budget plans.

The department's $2.5 billion budget covers hundred of programs, and lawmakers have known for weeks that cost estimates would be revised.

The report spells out numbers that lawmakers can use in negotiating a final state budget for the two-year period starting July 1.

Most of the projected increases are in programs for seniors and disabled people.

The department has the second-largest general fund budget in state government, next to school funding. Resolving those two spending issues is key to balancing the overall $12.4 billion budget.

The higher estimate for human services spending was a major factor in a move last week by Sen. Kurt Schrader, D-Canby, the Senate budget chief, to reduce his K-12 school funding proposal by $50 million, to $5.27 billion.

That's still $50 million more than a school funding bill that has been passed by the House.

Though Human Services cost estimates have risen, economists have increased their estimated revenue for the next state budget by more than $400 million since Kulongoski proposed his initial plan.

Human Services regularly revises its budget to account for changes in demand for services and for technical reasons such as changes in laws and regulations for programs partially paid for by the federal government.

The agency's other programs include health coverage for low-income people, public health services, mental health and welfare assistance.

"This is in the ordinary flow of business," said Department Director Bryan Johnston. "It is trying to predict people's behavior."

Schrader said he believes his proposed budget can cover the cost increases, as did Rep. Wayne Scott, R-Canby, the House Budget Committee chairman.

"Our budget will support it," Scott said.

Differences over the overall budget between the Senate's Democratic majority and the Republican-run House are relatively small.

The most recent proposals by each side for total human services spending were $20 million apart.