Published:Friday, January 9, 2009 11:03 AM PST
Serving the South Coast of Oregon

AP Photo
Gov. Ted Kulongoski speaks with gathered media during a meeting at the State Capitol in Salem on Thursday.
Kulongoski hopes bailout will help human services
Friday, January 9, 2009 11:03 AM PST

SALEM — Gov. Ted Kulongoski hopes to use the ballooning federal bailout package to bolster Oregon’s human services, which would be hard hit under his December budget proposal.

Speaking at the Capitol Thursday, Kulongoski said the state might be able to use federal Medicaid allocations to free up some of the state’s own cash for various social services.

In his budget proposal, Kulongoski called for reducing the amount of money to provide in-home care for some 6,500 seniors and the disabled as well as state child care subsidies for 3,500 low-income working families. Another 100,000 adults could lose dental and vision benefits under the Oregon Health Plan while about 3,000 low-income Oregonians could lose access to community-based mental health and drug and alcohol treatment programs.

But Kulongoski told a group of reporters, editors and publishers at a meeting sponsored by The Associated Press Newspaper Executives organization that some of those losses could be made up if Medicaid match rates are increased.

“That is the one thing that directly impacts this legislature,” Kulongoski said, explaining it would give the lawmakers more to work with as budget forecasts continue to shrink.

Though talk about the federal bailout package has centered on public works and infrastructure projects, Kulongoski said attention has since switched to what he called the “social safety net.”

Kulongoski has been criticized for his proposal to cut back on social services, even from members of his own party.

Senate Majority Leader Richard Devlin said the changes in Medicaid would help take some of the bite out of the cuts. “It would solve some our issues, though not all of our issues, in human services.”

Aside from the issues of social services, Senate President Peter Courtney indicated other aspects of the budget — including education — might be cut if the federal package doesn’t come through.

“If the feds do not come and come pretty fast, I would say if I were in higher education I would get my seat belt on,” he said. “You better have a full-shoulder harness seat belt on.”

Added House Majority Leader Mary Nolan: “I think the whole state is going to need some support.”

Republican leaders, however, warned that relying on the package is shortsighted, not to mention risky considering it has already been pushed back to February.

“You’re delaying the problem,” said Sen. Larry George, R-Sherwood.

“It’s not sustainable funding,” added Rep. Kevin Cameron, R-Salem.

Both men said that it was a matter of priorities.

Kulongoski, however, said that he was sticking by his original decision to support education, transportation, health care and renewable energy. “I think you have to have a long-term perspective about where the state should be.”

Still, he also indicated that his December budget proposal was “old news” and that February and May forecasts would likely lead to steeper cuts.


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