(2)(a) In reducing allotments under this section, the department and the Governor shall follow legislative funding priorities as expressed in statutes and in the legislatively adopted or approved budget for the biennium. Unless statutes or the legislatively adopted or approved budget indicate otherwise, the department and the Governor shall assume that all General Fund appropriations have the same priority and shall reduce allotments of General Fund moneys for each state agency receiving General Fund moneys by the same percentage.
(b) The department and the Governor may not reduce allotments under this section by a total amount that exceeds the amount necessary to bring the total estimated General Fund ending balance to zero.
(3) For purposes of this section, the department may declare that there is a projected deficit if a quarterly estimate made as provided in ORS 291.342 indicates that the projected balance in the General Fund at the end of the biennium will be less than zero.
(4) Subsections (1) to (3) of this section do not apply to an allotment, or a portion of an allotment, that is designated by a state agency for the payment of debt service. After an allotment that is designated by a state agency for the payment of debt service is made, the department and the Governor may not reduce the allotment or a portion of the allotment below the amount needed for the payment of debt service in the biennium.
(5) As used in this section:
(a) "Agreement for exchange of interest rates" has the meaning given that term in ORS 286A.001.
(b) "Bond" has the meaning given that term in ORS 286A.001.
(c) "Credit enhancement device" has the meaning given that term in ORS 286A.001.
(d) "Payment of debt service" means:
(A) The payment of principal, interest or other amounts owed under a bond;
(B) The transfer, segregation or other disposition of moneys to comply with bond payment amounts or required reserve amounts; or
(C) The payment of amounts owed under an agreement for exchange of interest rates, a credit enhancement device or a similar instrument. [2003 c.734 §12; 2009 c.1 §2]
Note: 291.261 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 291 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.