Oregon Governor And Lawmakers At Budget Impasse

RYAN KOST

SALEM, Ore. (AP) — Gov. Ted Kulongoski's veto threat failed to stop the Legislature's budget committee from advancing a $5.8 billion plan to fund Oregon schools Thursday.

Legislators and the governor's staff have been at an impasse over how much money the state ought to allocate to the K-12 budget. Earlier in the week, the governor threatened to veto the budget after he learned legislators wanted to shrink the state's reserves to give more cash to schools.

On Thursday, the situation seemed more relaxed but just as unresolved. The governor continued to push for a revision even as legislators, confident they could override a veto if needed, readied the package for a vote in the Senate Friday.

"I think we all understand where the other is coming from," said Anna Richter Taylor, a Kulongoski spokeswoman. "It's a bit of an agree-to-disagree."

Democratic leaders and the governor had planned to provide $5.6 billion to K-12 with a promise of an additional $400 million if economic conditions improved by next year. That would have left the state with about $700 million in reserves.