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Business Oregon outlines $19.36 million of 5% reduction options; agency proposes project pauses and program trims
Summary
Business Oregon told the subcommittee it could meet a 5% reduction target with proposals totaling about $19.36 million, prioritizing preservation of contracted and health/safety projects while proposing elimination of the uncontracted Oregon Metals Initiative and reductions to arts projects.
Business Oregon Director Supon Ting and Deputy Director Chris Cummings told the interim subcommittee how the agency approached the legislatively requested 5% reduction exercise. The agency described its fiscal picture: general fund is roughly 5% of its budget, lottery fund about 6% (≈$127 million), and other funds and bond/ARPA proceeds make up the majority of its ~ $2 billion program portfolio. For the 5% target (presented in 2.5% increments), staff identified options that add up to approximately $19,358,696.
Ting said the agency prioritized minimizing health and safety impacts and preserving projects already under contract. “We are not cutting anybody,” he said, emphasizing the proposal pauses one‑time funding and targets uncontracted or lower‑priority projects. Deputy Director Chris Cummings explained the approach: eliminate some one‑time infrastructure projects not under contract, reduce certain arts infrastructure projects (CREF) by 10%, and propose a judgment call to eliminate the Oregon Metals Initiative because it was not under contract or part of the agency’s pre‑session budget.
Members asked for program‑level detail and alternatives: representatives requested full lists of programs and asked whether grantees have unspent funds that could be reallocated. The agency said it would provide program lists and project information sheets for specific projects queried by members (Dundee waterline, Monmouth recycled water site, Veneta wastewater plant expansion). Committee members pressed the agency to explore alternatives to cutting Small Business Development Centers funding and to consider vacancy savings or other administrative trims.
Next steps: Business Oregon will provide detailed program lists and project sheets to the committee and the OLIS record; members said they will continue to work with the agency to identify alternatives before final decisions.
