Groups sue Kitzhaber over budget

SALEM (AP) - Foes of budget cuts made last week by Gov. John Kitzhaber are fighting them in court, claiming the governor exceeded his constitutional powers.

The lawsuit brought in the Oregon Court of Appeals says the governor infringed on the Legislature's turf by making selective cuts in agency programs.

Past governors have made across-the-board cuts in times of budget shortfalls, but Kitzhaber is the first to make major cuts by picking and choosing between programs. The suit could have far-reaching implications for political showdowns over state spending, even though the short-term budget picture is likely to change.

"When there are selective cuts it necessarily implies a value judgment," said Portland attorney John DiLorenzo, who filed the lawsuit.

Plaintiffs in the case include the Oregon Health Care Association, which represents about 300 nursing homes and other assisted living facilities, and Oregonians for Food and Shelter, made up of farmers and timber growers.

The groups were upset because Kitzhaber cut Medicaid payments for long-term care facilities and reduced funding for Oregon State University's agricultural and forestry research programs.

Kitzhaber made those and other cuts after vetoing parts of a budget-balancing plan passed during the lawmakers' special session that ended March 2.

He vetoed legislators' use of some reserve funds to help close an $846 million budget gap, requiring him to make nearly $81 million in spending reductions of his own.

The governor is expected to call legislators back into special session after the next revenue forecast is issued on June 1. Analysts estimate a new federal tax break for business could create another $150 million hole in the budget.

Past attorneys general have differed on the governor's budget-trimming powers. Kitzhaber said he had advice from Attorney General Hardy Myers that he can make specific program cuts.

"We believe we're on firm legal footing," Kitzhaber spokesman Bob Applegate said Tuesday.

DiLorenzo often has done legal work for the majority legislative Republicans, who claim the Democratic governor aimed his knife at programs Republicans sought to protect.

"That's nonsense," Applegate said. "We had to cut programs important to Democrats, Republicans and ourselves."