November 13, 2012 – Gov. John Kitzhaber plans to propose more money for Oregon schools in the next two years by squeezing savings from other programs, including the public pension system. Although Kitzhaber did not lay out specifics during a speech to the Oregon School Boards Association, he signaled his intent to reverse a declining share of state spending on education in the budget that he is scheduled to unveil Nov. 30. He did say that some of that additional money, “hundreds of millions,” will come from savings he will propose in the Public Employees Retirement System and health care provided in separate plans to state employees and school employees. Other savings will come from curbing state prison costs. Without action, he said, per-student costs will increase by $1,000 in the 2013-15 budget cycle because of rising amounts for pensions, salaries and other benefits. Kitzhaber said projected pension costs account for half that amount.