SALEM (AP) — The state Department of Human Services faces an almost $72 million budget deficit because of a decrease in tobacco tax revenue and an increase in the number of people asking for cash, food and medical assistance.

Nearly 500,000 Oregon residents received food stamps last month, an almost 10 percent increase over August 2007. And more than 50,000 got state welfare cash assistance — an 18 percent jump over this time last year.

And with a worsening national economy spreading to Oregon, the number of children and families in poverty is expected to grow next year, according to the state’s fall caseload forecast.

“People are struggling with the high costs of making ends meet,” said Dr. Bruce Goldberg, Human Services director.

Goldberg says he’ll lay out a plan next week to the Legislature’s Emergency Board detailing how his agency can trim the $71.6 million hole in its $3.3 billion 2007-09 budget without cutting services.

“There are things we can do to manage this,” Goldberg said.

But the cost of rising caseloads will need to be addressed. Increased demand for services, beyond what had been anticipated, accounts for $41.8 million of the deficit. The department has also seen an unexpected $21 million loss of tobacco tax revenues.

Rising caseloads have been particularly noticeable in Central Oregon, which has been hit hard by layoffs and foreclosures. The number of people receiving cash welfare assistance in the Bend/Redmond area increased almost 60 percent and the number of individuals receiving food stamps was up almost 30 percent in August compared with last year.

“We’re seeing people who — a month, two months or six months ago — were solid middle class. They’re in a pinch and finding themselves for the first time ever coming through our doors,” said Patrick Carey, the local Human Services district manager.