Over time, more of the state’s General Fund budget has become devoted to mandates. There are mandates that cannot be changed by the Governor or the Legislature: constitutional initiatives or referendums, federal law, court decisions, and debt service. In most cases, a service or program is required, but the specific service level and how much it costs to fund that level is negotiable. For example, the Oregon Constitution provides for a right to a K-12 education, but it does not specify how much money is devoted to this education or what kind of quality is required. However, the state constitution was modified in 1990 with Ballot Measure 5 to shift the burden for the primary funding of K-12 from local property tax to state income tax.

 

Other requirements specify a dollar amount that must be spent. For example, federal "maintenance of effort" requirements establish that if the state wants to participate in a certain program receiving federal matching funds, the state must dedicate a specific percentage or amount of money to qualify for participation. With "maintenance of effort" programs, the state could opt out to reduce costs, but the federal dollars provided would not cover the operating costs for the program.

 

The Governor’s 2005-07 budget funds all mandated programs first, but remains committed to ensuring all taxpayer dollars – state and federal – are invested within the legal requirements to achieve the greatest results for the people of Oregon today and for our future.