On the day he took office, Governor Kulongoski made a commitment to Oregonians that under his leadership, state government would no longer conduct "business as usual." He pledged to set a new tone in Salem and build the public’s trust. He committed that government will hold itself accountable; live within its means; and be a partner for the private sector, a catalyst for the creation of living-wage jobs, a champion for working families and a steward for our environment.

 

During the past two years, the Governor has worked successfully toward these goals. He balanced the budget during one of the state’s worst fiscal periods by approaching the 2003-05 state budget like a private sector business would – cutting overhead costs and aligning targeted investments with critical outcomes to build a more profitable and sustainable future for Oregon.

 

The Governor has made it his top priority to grow Oregon’s economy and make Oregon a great place to do business, recognizing that when Oregon businesses are successful, Oregon is successful. The Governor is leading an aggressive economic development strategy that is delivering clear results.

 

The Governor’s regulatory streamlining initiative has already made Oregon more business-friendly through the successful completion of over 300 projects to streamline regulations, reduce the time and cost of acquiring permits, and save the private sector money by reducing needless regulatory barriers.

 

His industrial lands initiative has resulted in the certification of 20 new "project ready" industrial sites, helping Oregon attract new businesses – and jobs – to our state. The Governor has also invested in rebuilding our roads and bridges, improving access to post-secondary education, training workers, spurring investment in research and development, and attracting visitors to Oregon.

 

The result? Since July 2003, more than 10,000 new jobs have been created because of the state’s economic development efforts. The unemployment rate has dropped and 44,000 more Oregonians have jobs today than two years ago.

 

The progress of the last two years is only the beginning of Oregon’s bright future. This budget, and the process that guided its creation, continue the Governor’s commitment to changing how state government does business and improving Oregon’s economy. This budget also provides the foundation and direction for how Oregon can succeed today and sustain that success into the future.

 

Governor Kulongoski’s budget not only recommends to the Legislature where to allocate state dollars; it aligns investments with the outcomes they will deliver to grow Oregon’s economy, and expand educational and professional opportunities for Oregonians.

 

The Governor’s Recommended Budget also identifies areas where demands for services could not be met. Due to a combination of population growth, increased costs, a slow national economy and new requests for services, there are billions of dollars more demands than the state can accommodate with the available resources.

 

Instead of starting with the "current service level" budget and making decisions about where to cut, the Governor identified six core Oregon Principles that are the foundation for a prosperous future and that guided his decisions about where to invest.