As state officials wrestle with a projected budget hole on top of $640 million in health cuts, they are counting on a federal lifeline.

Gov. John Kitzhaber and his top health officials said Friday they are now confident that a little-discussed state request of $2.5 billion over five years will in large part be fulfilled.

Their optimism stems from a trip to Washington D.C. last week.

Federal officials there were so positive about Oregon's reforms that talks now focus on when and how much money would be forthcoming, rather than if, said Bruce Goldberg, director of the Oregon Health Authority.

"They were fruitful conversations," Kitzhaber said.

Instead of a simple pitch for new cash, Oregon is framing its request as a down payment on savings health care reforms will achieve. Oregon could cut its use of federal funding by $20 billion over the next 10 years under the reforms, state health officials say.