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Oregon may hike tax to close budget. Republicans cave.
The Oregonian ^
| 9/3/2002
| HARRY ESTEVE
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."
Try Our Classifieds
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
TOPICS: Government; Politics/Elections; US: Oregon
KEYWORDS: biggovernment; bloat; boilingthefrog; moretaxes; rinosonparade; socialism; welfarestate
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To: Jack Black
I guess I could protest and vote "L", but it will have the same effect, one more Dem in the state House. Just remember that if the democrats had controlled the congress this past regular session, they couldn't have spent one single dime more than the republicans did. The republicans spent to the limit of the law. Now they are pushing for increased taxes without even considering any cuts in spending. If the Libertarian candidate represents your values, then you owe it to yourself and to your state to vote for him. Tom Cox is the only valid candidate for governor as far as I'm concerned, and it would be an offense against my own principles not to vote for him -- even though I'm a registered republican.
To: nightdriver
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. What do you think about those eight brand new Ford Expeditions with full leather and premium sound systems that the state just purchased a week ago? They've got money to burn on nothing but the best for themselves. Notice that Kitzhaber does not intend to cut his salary or staff. That would be too "essential." Better to dump a few violent criminals back on the street.
To: Sir_Ed
I still miss North Idaho a lot... Me too. :-(
To: Jolly Rodgers
"
Better to dump a few violent criminals back on the street."Yes, and 4,000 is quite a few!!
To: Jolly Rodgers
Something (Kitzhopper) is wrong with the picture you posted! Republicans need to let the state government know we are not happy about this.
To: nightdriver
It's not an empty threat, either. They're already doing it in the Portland area. We've got whole wings of jails sitting empty because they claim not to have the funds to staff them. And, at the same time they are playing catch and release with people who commit crimes against property, and even some crimes against people. There has got to be some way to punish the bureaucrats who use this kind of extortion against us. Something more effective than voting against them. Otherwise it is going to build frustration until people start relieving the pressure through targeted violence.
To: Jack Black
An amazing Editorial from the
StatesmanJournal
Legislators, your job is to make decisions
Too often, lawmakers pass on the responsibility to voters.
September 5, 2002
Here’s a challenge for the 2003 Legislature: Make the tough decisions yourselves. Don’t duck them by referring measures endlessly to voters.
That may be too much to ask of the current special session, which finally is considering a mix of borrowing, cuts and new revenue to fill a shortfall of nearly half a billion dollars. Legislators have been trying to reach a deal in time to put part of it before voters on Nov. 5.
That may be political necessity this time around. But it’s still a lousy way to do business.
All too often, Oregon legislators refer measures to voters so they won’t have to take the heat for raising taxes or fees. “I didn’t vote to raise taxes,” they can say with great innocence. “I just voted to let the people decide.”
Come on. Our state’s founders, in their wisdom, arranged for citizens to elect representatives to make decisions for the good of the state. They didn’t insist that every detail be thrown out for the populace to vote on.
Case in point: Measure 20, the
60-cent-a-pack cigarette tax hike on the Sept. 17 ballot. It was a key part of the deal that solved another budget crisis, way back in June. In this session, there’s been considerable discussion about borrowing against that money, even before it’s approved. But Measure 20 seems destined to get lost in shuffle as newer crises and solutions arise.
Part of the problem is Oregon’s initiative process run amok. Lawmakers fear that if they take a stand on a money measure, critics will gather signatures to put it on the ballot. So they leave the decision to voters, just in case.
We’ll never escape having to vote on some referrals by legislators. Any move to change the state’s constitution has to go out for a public vote. That’s why Measure 19, the rainy-day fund, is on the Sept. 17 ballot. (The Statesman Journal’s editorial board recommends a yes vote on both.)
But when it comes to lesser matters, legislators, stand up and take responsibility. If you truly believe that a tax or fee is the best thing for Oregon, have the gumption to say so directly. Make your case with Oregonians, not just one another. Take the heat; lead.
To: Salvation
Republicans need to let the state government know we are not happy about this. We have been, but they just do like Republican Bill Witt did on the radio last night. He claimed his constituents have been telling him they want him to raise their taxes. We all know that's a lie. He knows we know it is a lie. He knows we want lower taxes and less spending. He knows we want public safety funded first and junk programs eliminated. But, he doesn't care. He wants access to more of our money so he can spend it on government boondoggles and vote buying. It is corrupt to the core and the only thing we can do at this time that will have ANY effect is to vote Libertarian or Constitution party.
To: Jack Black
I know I will get flamed for this.
But maybe, just maybe it is time for Oregonians to start thinking about a sales tax.
To: Salvation
The editors are saying the right thing for the wrong reason. They don't want to see the money measures passed to the voters because they fear they will be defeated like the sales tax initiative was a few years ago.
To: Salvation
I know I will get flamed for this. But maybe, just maybe it is time for Oregonians to start thinking about a sales tax. Consider yourself flamed. Burned to a crisp. Nothing but ash.
Okay, I'll bite. What is the reasoning behind your assertion?
To: Jack Black
You get what you vote for.
I have NO sympathy for you.
To: Salvation
But maybe, just maybe it is time for Oregonians to start thinking about a sales tax. Come now. If you are going to advocate additional taxation, you should at least explain why.
To: Jack Black
only your friends can betray you. hope the rest of you pubbie koolaid drinkers start waking up to the obvious.
54
posted on
09/05/2002 11:36:35 AM PDT
by
galt-jw
To: Askel5
Republicans cave. Shocking.
To: Salvation
But maybe, just maybe it is time for Oregonians to start thinking about a sales tax. I think about it frequently. Then I go clean my CAR-15.
I'd trade the income tax for a sales tax, straight across, just to get the State tax pukes out of my personal affairs - but there's no way I'd vote for both at the same time, even if I were promised a "transition period". There'd have to be an end-to-end substitution, period.
Sales taxes are great, by themselves, though - they make socialist Lieberals whine and scream about "regressive taxes" - music to my ears.
MEANwhile... Howcome nobody is posting phone numbers to call in the State Capitol, here? That's what I was hoping to find here... Or is it too late? (Or have we just all given up like good little go-along-to-get-along RINOs?).
56
posted on
09/05/2002 1:00:04 PM PDT
by
fire_eye
To: Jolly Rodgers
Come now. If you are going to advocate additional taxation, you should at least explain why.Therefore lowering the state income tax and the outrageous property taxes in Oregon.
To: Salvation
Having an income tax allows people to arrange their lives like the corporations and big boys do to lower taxes. On the other hand sales taxes fall on the shoulders of those least able to pay.
In pennsylvania I paid state income tax plus sales tax plus a right to work tax, which was a county or local tax on wages. On equal incomes I paid equal amounts of state income tax in Pennsylvania and Oregon but no Oregon sales tax. i know which is the best and it aint a sales tax.
In Arkansas we paid sales tax on food from the grocery store as well as other purchases. We paid a sales tax on electricity plus an energy replacement fee or tax. Roughly 1/3 of the electric bill had nothing to do with electricity for our apartment.
Now the Oregon economy is the worst in the nation but we do have the benefit of much better tax structure than most other places.
58
posted on
09/05/2002 6:12:12 PM PDT
by
lobo59
To: All
59
posted on
09/05/2002 6:12:40 PM PDT
by
Bob J
To: Scarlet Pimpernel
Huh? Could you explain? Your mad about my primary vote?
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