Voters reject Measure 30 (Oregon rejects a state tax increase)

For the second time in just over a year, Oregon voters have voted to reject a tax increase crafted by state lawmakers.

Just minutes after 8 p.m., early unofficial returns in Yamhill County are not much different than they are around the state. Of nearly 25,000 ballots counted so far, 16,443, or nearly 66 percent, are in the "no" column. Little more than 8,400, or about 34 percent, supported the measure.

With 22 percent of the vote counted, Measure 30 is failing 58 percent to 42 percent.

"It's not going to be close," Portland pollster Tim Hibbitts told KATU-TV a few minutes ago. "It's going to be considerably wider than I expected."

The Legislature narrowly passed the $800 million tax package last August in a bid to balance the state budget without inflicting even more pain on schools, welfare programs and law enforcement.

Anti-tax groups, led by Citizens for a Sound Economy, easily collected enough petition signatures to refer the tax measure to the voters.

The core of Measure 30 is a temporary income tax surcharge. A household with the state's median $41,000 annual income and filing a joint return would pay about $36 a year more in tax.

Opponents of Measure 30 said Oregonians couldn't afford more taxes and that raising taxes would hinder economic recovery in a state that has had the nation's highest jobless rate for much of the past two years.

Backers of the tax said failure of the tax package would be yet another black mark for Oregon and would inflict suffering on some of the state's most vulnerable citizens.

"The margin of defeat is larger than expected," said Kevin Mannix, state GOP chairman and opponent of the $800 million tax package.

"It's not just a defeat. It's a swift kick in the pants to business-as-usual politicians who have ignored the need for reform," he said.

Gov. Ted Kulongoski has said he is "not inclined" to convene a special session of the Legislature to consider retooling spending cuts already designated for implementation should Measure 30 fail.

"I will insist a special session be required should it go down," Mannix said earlier Tuesday night.

On Jan. 28, 2003, Oregon voters rejected a $310 million income tax boost that was intended to balance the previous state budget.

As a result, the school year was shortened, state police troopers were laid off, and thousands of low-income people lost state health plan services. In Yamhill County, offices trimmed programs and staff.

Voter rejection of the Measure 30 tax package automatically triggers $544 million in spending cuts. Schools are expected to take the biggest hit; $285 million would come from aid to local schools.

The Oregon Health Plan, which extends health insurance to low-income people who don't qualify for traditional Medicaid and once was touted as an example for the nation, would lose $182 million.

As a result nearly 50,000 of the state's "working poor" will lose their state health insurance coverage.

I know what you are going through and that is one of the reasons I voted with my feet to Washington state. Reading through the whine-athon on some of the Oregonian threads, the tax advocates are saying how medical care care will be cut for the "most vulnerable citizens."

I have personal experience caring for these people and many of them are not "citizens" of even the United States. I have cared for many Oregon "citizens" who had just moved to Oregon 3-4 weeks prior to their need for medical care.

So long as they are trying to provide generous benefits (compared to surrounding states), Oregon will be a magnet for the indigent. At the same time, they are driving out people like me who are sick of paying that much in taxes.

I must say I do miss Portland, though.

Some early reflections on the Measure 30 defeat:

Measure 30 defeat prompts range of emotions

Excerpts:

"What we are trying to say is that we are not happy with administrators making six figures, whether in state agencies or school districts. They may say we get what we pay for, but this is public service."

Though a critic of government, Schavland is a military and law enforcement retiree who said that he supports basic services." ...

"Jan Fortune of Salem said defeat of Measure 30 will mean that her family will have to pay more tuition for two daughters at Chemeketa Community College and Oregon State University. Officials already have said that tuition is likely to increase.

Fortune also has two daughters at Parrish Middle School and North Salem High School.

"I am concerned for public schools,” she said. “I think this is going to mean that parents will fund more activities — and children with parents who cannot or choose not to fund them will be unable to participate. And that’s not equal education."

Fortune said she wants to see more details before supporting specific actions by school boards. It is up to the districts, not the Legislature, to deal with about $300 million in cuts to state aid.

Roger Fitts, a farmer outside Independence, said he wants to see lawmakers come back and approve cost-cutting measures such as eliminating more middle managers and vacant positions, and restricting state-supported health insurance and environmental regulation.

(Can't resist one comment: I don't think vacant positions are a budget problem unless they are drawing a salary!)

Oregon Voters Trounce Tax Plan

Excerpts:

"It's not just a defeat. It's a swift kick in the pants to business-as-usual politicians who have ignored the need for reform," said Oregon Republican Chairman Kevin Mannix, an opponent of the $800 million package. ...

Political analyst Jim Moore said Tuesday's overwhelming vote showed that Oregonians weren't swayed by warnings that schools and other key services would suffer big cuts.

"People are suspicious of government, and they simply weren't buying the doom and gloom thing," Moore said. ...

Effects of vote

Examples of effects of state budget cuts that will be triggered by voter defeat of the Measure 30 tax increase Tuesday, unless the Legislature decides to retool them:

• A reduction of nearly $300 million in state school aid; officials say this would raise average class sizes by two to four students if all local districts absorbed cuts with layoffs or would end the school year about three weeks early if all cuts were handled that way.

• End state health plan coverage for about 50,000 low-income people.

• Eliminate dental, vision, mental health and substance abuse coverage for about 125,000 elderly, disabled and poor adults remaining on the health plan.

• Layoffs of about one-half of state police crime lab employees, slowing evidence processing.

• Delays in court handling of property crimes, traffic violations and civil matters such as small claims cases.

This will be an interesting year in Oregon. I can see one group that will be extremely pleased: school-age children! Summer vacation in May!

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