(Salem, OR) -- Oregon Governor Tina Kotek says state budget cuts won't be as bad as expected. State agencies had been told to plan for two-and-a-half and five percent cuts, but the reductions are expected to be one percent. Part of the decline is due to a better-than-expected revenue forecast. The Legislature is also working on a way to reduce federal tax cuts for some businesses adding 300 million dollars to state revenue. Kotek says uncoupling Oregon taxes from the federal tax cuts will keep budgets level for K through 12 schools, community colleges and state higher education.