SALEM, Ore. (KPTV) - Oregon Governor Tina Kotek says the state is facing a big budget shortfall for the next two years, and she’s telling all state agencies to cut back on spending.

The state legislature just passed a budget bill for 2025-27 in June, and already Gov. Kotek says the state is set to be about $327 million short of the money budgeted.

In a letter to state agencies, Kotek places the blame on the Trump administration and its economic policies for a projected downturn in tax revenue.

The governor also says the state must prepare for the effects of the so-called “Big Beautiful Bill,” which will remove about $15 billion in federal funding from the state over the next decade.

In her letter, Kotek outlined several steps that she wants state agencies to take right away. The gove

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