Labor settlement adds budget woes for Oregon


Gov. Kitzhaber’s settlement with state labor unions is coming in $42 million over the original pay increase limit, causing more financial woes for Oregon.

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Gov. Kitzhaber’s settlement with state labor unions is coming in $42 million over the original pay increase limit, causing more financial woes for Oregon.

The additional cost of the union settlement means that lawmakers may have to cut more deeply into public services when they meet in February. State economists already predict that revenues will be about $200 million lower than legislators thought when they ended their last session in June — and continued national economic woes could drive the forecast even lower. 

The news of the higher-than-anticipated costs of the settlement particularly angered Republican legislators who had already complained that the state was picking up too much of the cost of retirement and health care for employees.

Read more at OregonLive.com.

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