(1) The Oregon Department of Administrative Services and the Legislative Fiscal Officer shall prepare a tentative budget for the next biennium for which the Governor’s budget is prepared. The tentative budget shall consist of the estimated revenues under ORS 291.342 for the next biennium and a preliminary estimate of the projected costs of continuing currently authorized programs for the next biennium.
(2) The Legislative Fiscal Officer shall, during the development of the legislatively adopted budget, review and update projected costs of continuing currently authorized programs for the next biennium, including:
(a) Position vacancy assumptions;
(b) Standard and exceptional inflation adjustments;
(c) Mandated caseloads; and
(d) Other assumptions used in developing the tentative budget.
(3) When estimating the projected costs of programs funded by State School Fund distributions, the Oregon Department of Administrative Services and the Legislative Fiscal Officer shall consult with the Department of Education and:
(a) Base the projections on the second year of the current biennium, with the assumption that distributions of general purpose grants and transportation grants were made as described in ORS 327.008 (2)(b); and
(b) Take into account annual information for projected local revenue, as described in ORS 327.011.