Gov. Ted Kulongoski is talking about the need to reshape Oregon state government.

Gov. Ted Kulongoski is talking about the need to reshape Oregon state government.

His "reset" proposals are the topic for a luncheon speech today at the Portland City Club.

The Statesman Journal reports the issues are likely to become part of the debate among candidates for the November election. Oregon is already facing a projected $2 billion deficit in the next two-year budget.

An interim report from Kulongoski's Reset Cabinet suggest changes in spending on education, health care, human services and public safety.

On Tuesday Kulongoski ordered a 9 percent spending cut to help close a $577 million gap in the current budget.

— The Associated Press