Posted on 09/03/2002 8:37:07 PM PDT by Jack Black
Borrowing, income tax are options for House
09/03/02
HARRY ESTEVE
Democrats 32-28 -- was far from certain. Even the chairman of the committee working on the proposal, Rep. Ben Westlund, R-Bend, called it "half a plan."
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The Legislature is meeting in a record fifth special session of the year to deal with a $482 million shortfall caused by plummeting tax revenues. With the borrowing plan Simmons supports, a little more than half the shortfall would be covered by selling cigarette tax bonds. State agencies would have to trim their budgets to cover the rest.
A second option appeared to be picking up steam, however. Rep. Bill Witt, R-Cedar Mill, said he and Rep. Lane Shetterly, R-Dallas, met twice Monday with Kitzhaber and agreed on a financial package that would cover the entire shortfall.
Witt said the agreement includes $290 million from a temporary, three-year increase in income tax rates; about $100 million in either borrowing or use of the Common School Fund; and $80 million to $100 million in budget cuts. With the plan, income tax rates would notch up to 5.2 percent, 7.3 percent and 9.4 percent, instead of 5 percent, 7 percent and 9 percent.
"We've reached a point where tax increases have to be part of the solution," Witt said. He said 10 to 12 House Republicans are prepared to support a package that includes some sort of tax increase. Combined with Democrats, that would be enough to send the bill to the Senate.
"The challenge now is to get the speaker to allow us to get it in bill form and get it to the floor," Witt said. "The speaker hasn't conceded that yet."
The Senate has yet to weigh in on Simmons' proposal.
"We're not doing anything. We don't have any committees meeting," said Senate Majority Leader Dave Nelson, R-Pendleton. "We're just waiting to see what the House does."
Tom Towslee, a spokesman for Kitzhaber, said the governor isn't ready to talk in detail about his discussions with Republicans. But he said Kitzhaber likes the fact that they are willing to go beyond mere borrowing and cutting to fix the budget problem.
"We're moving from a two-legged approach to a three-legged approach," Towslee said.
One of the biggest concerns Republicans have about Simmons' proposal is that it would require voter approval to take effect. That question couldn't be answered until November, two months into the school year.
The plan Witt and Kitzhaber worked on would not require voter approval, unless someone gathered enough signatures on a referendum petition to force it to the ballot.
The Legislature called itself into special session Sunday -- the first time it has done that -- after the latest revenue forecast showed that the state would fall an additional $482 million short of the two-year, $12 billion budget approved last year. It is another in a string of state shortfalls brought on by Oregon's rocky economy.
Last week, Kitzhaber presided over a hearing in which state agency directors detailed deep cuts that would have to be made unless lawmakers approved new spending. Among them: layoffs of thousands of teachers, release of almost 4,000 state inmates because of prison closures and layoffs of more than 100 state troopers.
Kitzhaber has argued against borrowing and bonding measures, unless they are accompanied by more direct revenue sources, such as a tax increase. He said his biggest concern, in addition to immediate cuts, is a growing hole in the 2003-05 budget, estimated at $1.5 billion.
Harry Esteve: 503-221-8234; harryesteve@news.oregonian.com Dave Hogan: 503-221-8531; davehogan@news.oregonian.com
That's because:
"Arts and culture is who we are." -Ben Westland.
Unless you end up working in Portland. Then you pay the worst of both worlds. All the Washington sales tax and all the Oregon income tax. Ouch!
When is the GOP just going to just get it over with, dump the elephant and go with the R(h)ino as its mascot?
"What a lying sack of dung. "
My sentiments, exactly.
I'm sorry to hear you are considering leaving the area. We need all of the conservatives we can get! However, I totally understand your reasoning behind that decision, should you decide to move.
It appears to be true...
I could ask why?, but there is no satisfactory answer to that. I will say, "thank goodness my grandkids are in private school!"
I'm pinging AuntB...she should be able to help you.
AuntB, would you be so kind as to help Lizavetta with a few questions about KFalls?
Notice how they always attack the schools and things that affect public safety like cutting police and releasing convicts, but no cutbacks in the parasitic regulatory agencies like the DEQ, which does nothing constructive.
Kitzhaber and his democRAT cohorts have shut down the core businesses of Oregon, like the wood products industry, and now they wonder where "their" money is. Clinton cut the wood products industry back to 20% of what it was and Kitzhaber's regulatory cronies would only allow about 40% of what's left.
DUH!!!!
This is exactly what the Legislature is NOT counting on. On this thread alone, you and Jolly are considering leaving the state. California deja vu, all over again. How supid are those folks in Salem? BTW, Sizemore will be on Jayne Carroll's show @ 5 PM tomorrow, in case you're interested.
"Isn't Mannix (who I voted for in the Primary) now out of the closet as a tax raiser too."
Yes, the Mannix (who I voted for in the Primary) is out...BIG TIME!
"dim(Witt)"
I LOVE IT! I just had to throw that in there.
"I guess I could protest and vote "L", but it will have the same effect, one more Dem in the state House."
Interesting you should mention that...
on the Jayne Carroll show today they were discussing the Constitution Party. I'm going to check it out.
"What States do Conservatives (low tax types) control with some viable medium term majority? Washington seems a lot like Oregon. Nevada seems more independent and has the casino income source."
My guess is that, in the west, Nevada or Idaho is your best bet. However, speaking from experience, the South (and I don't mean California) has the most conservative governments. I have to say, though, that the snow birds are more plentiful now so it may not be as good as it was when I lived there.
It's a scam. They threaten to cut the things that most people care about, like schools and parks, because they know they will get the votes they want. If they threatened to cut the DEQ, they would get nothing but cheers! ;o)
Also, the DEQ is a scam, but that's another story...
Basically, ya' got a bunch of farmers, rednecks, mill workers and ranchers down here (and in Eastern Oregon, excluding Bend) who are about as conservative as the other Western states.
I still miss North Idaho a lot, and NW Montana, and Alaska, as all of those areas I used to live in are far prettier and wilder than Oregon, but the weather's a lot nicer.
One thing....Josephine County is becoming WAY too populated. In the 15 years I've lived in Southern Oregon, I've seen it almost double in population. In fact, on most days, you'll find heavy, bumper-to-bumper traffic on most of the main roads in town: 5th, 6th, 7th, GP Parkway and Redwood Hwy. LCDC to the contrary, the commisioners just keep approving all these huge subdivisions without regards as to whether we have the infrastructure to support it...which we don't. Hence, heavy, stop-and-go traffic, bumper-to-bumper, and entire hillsides being bulldozed to make room for more houses.
A few years ago, I started calling Grants Pass Grants Angeles, and I truly believe that the developers and commissioners want to keep building us up until we hit 100,000 population and look exactly like the Hollywood Hills, with only a remnant of trees or forests lefdt.
But...K-Falls has escaped all that, and it's more wild, more rugged, but the snow's a lot worse and the amenities are less. No Britt, no Shakespeare, no Chamber Orchestra...so there are downsides.
Ed
And yet all we hear is continuous screeching about how education is being shortchanged and underfunded. They demand an "adequate and stable" funding source for education that insulates them from economic realities. I wonder what the hell they would consider adequate and stable in light of what they've received over the last eight years? Would they be happy with guaranteed 25% growth per year? 50%? 100%? Infintite? For crying out loud, I think I'm going to punch the next person who tells me that education is being underfunded in Oregon. I'm that angry.
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