(1) The Governor shall prescribe rules the Governor considers necessary for the guidance of agencies in the preparation of agency request budgets. The Governor shall use the classifications of expenditures provided in ORS § 291.216 (6)(a) and shall prepare and prescribe classifications of revenue for the purpose of budget-making and accounting.

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(2) Insofar as practicable, agency request budgets and appropriation measures shall be prepared in a manner that reflects state governmental organization and state agency duties, functions and powers under the law in effect on January 1 of the following year. The Oregon Department of Administrative Services shall maintain agency request budgets in the form in which they are submitted.

(3) As supplemental information, each agency request budget shall include options for a 10 percent reduction from the estimate of the projected costs of continuing currently authorized activities or programs for the next biennium, excluding debt service. Each state agency shall describe the 10 percent reduction in terms of the activities or programs that the agency will not undertake. The activities or programs must be ranked in order of importance and priority on the basis of lowest cost for benefit obtained.

(4) As supplemental information, each agency request budget shall include a racial impact statement, which must be developed in consultation with the Racial Justice Council. The racial impact statement must describe the impact of programs, policies and budget modifications on Oregonians who are Black, Indigenous or other people of color. [Amended by 1969 c.173 § 1; 2016 c.117 § 15; 2021 c.612 § 4]