“I am directing state agencies to begin immediate cost-saving measures and prepare for further reductions,” she said in a statement. But by the time state economists provided their next quarterly revenue forecast in late August, that surplus had turned into a $373 million deficit. Oregon expects to lose about $888 million in revenue over the next two years, in large part because the state tax code automatically aligns with changes to federal tax policy. An earlier analysis Kotek’s office released estimates that cuts to federal programs will cost the state $15 billion over the next decade. This is not what we had planned for, but it is what we must do,” Kotek wrote in her letter to agency directors.