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Feb 17, 10:20 AM EST

PSU study finds state needs revenue to battle pension costs

PORTLAND, Ore. (AP) -- A new study from Portland State University suggests that a rise in compensation costs for Oregon's public employees could lead to a reduction in the number of people providing key public services.

The Oregonian/OregonLive reports ( ) that according to a study from PSU's Center for Public Service, compensation costs are outpacing projected revenue growth. Without new revenue from somewhere like new taxes, state government employers will have few options other than reducing their workforce by as much as 10 percent.

The study found that the cost increases are largely driven by the spike in employers' required contributions to the state's underfunded pension system, which are expected to double as a percentage of payroll over the next five years.


Information from: The Oregonian/OregonLive,

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