Budget game must protect school funding 1

Ashland Daily Tidings (Ashland, OR — Wayback)

2003-11-26

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--> --> Budget game must protect school funding As Oregon lawmakers head into Friday's special session to tackle the $700 million-plus budget shortfall, there are more approaches being taken than there are state senators, and the irony is that none of them will be adopted. However, some version of each will probably end up in the final solution, with parts of all strewn across the cutting room floor. First there was Gov. Kitzhaber's version. He advocated for repeal of a voter-passed income tax cut (easy if you're in your last year of office and not running in 2002); cutting school funding by $101.4 million (a staggering loss to the school system); raising the cigarette tax by 30 cents per pack and beer and wine by 5 cents a drink (a favorite ploy to offer up sin taxes); and increasing auto registration fees by $15 (see repeal of tax cut, above). Then came the so-called Group of Five - Sen. Lenn Hannon, R-Ashland, Sen. Peter Courtney, D-Salem, Rep. Susan Morgan, R-Riddle, Ben Westlund, R-Bend, and Kurt Schrader, D-Oregon City. Key components of this task force included restoring the governor's $101.4 million to schools (a wise, but obvious choice); reducing the School Improvement Fund (robbing Peter to pay Paul?); borrowing from the Common School Fund - a dedicated trust fund that bears interest while the capital remains untouched (a raid on a 143-year-old program); and taking $50 million from the tobacco settlement (a curious tactic as the monies are earmarked for anti-smoking education). Now, Sen. Kate Brown, D-Portland, and Rep. Deborah Kafoury, D-Portland, have countered the Group of Five. Their plan would also eliminate the K-12 cuts (knowing a good thing when they see one); eliminating the raid on the Common School Fund (a mandatory gesture); increasing the cigarette tax by 50 cents instead of 30 cents (it must be a sin to leave this one alone); and creating a School Stabilization Fund by utilizing the current Education Endowment Fund to the initial tune of $100 million (this one is the zinger). In all fairness, the governor's version was the most difficult because it was the first one. And the Group of Five gets lots of credit for making some tough choices and restoring school funding. Brown and Kafoury had the optimal position of hindsight, but nevertheless created the most solid proposal. The endowment fund, which is funded with on-going lottery proceeds, is much like a savings account. A constitutional referral would be required to establish rules for withdrawing money from the fund. Hannon, in a meeting at The Tidings Tuesday, hinted at the same endowment fund and was using it as an ace up his sleeve. According to Hannon, there's up to $300 million sitting there. Brown and Kafoury played a $100 million ace. Hannon admits his group's plan is not perfect. "Hell no," he said. "Can you find fault with it? Hell yes. Is this the final version that will pass? Probably not." But it was a good effort. Brown and Kafoury's is even better. It is necessary for the Legislature - which is mired in a quagmire needing a three-fifths vote to raise taxes, and a two-thirds vote to override a veto, none of which will ever happen - to turn over the best cards that have been flipped onto the table over the past week by the respective players, protect school funding, and make the high-stakes game affordable for all Oregonians. Email your... Technical questions & comments to: WebMaster Daily Tidings editorial comments & questions to: Editor Visit our other Oregon Newspapers... | Albany Democrat-Herald | Ashland Daily Tidings | Corvallis Gazette-Times | | Lebanon Express | Newport News-Times | Springfield News | Cottage Grove Sentinel | Ashland Daily Tidings 1661 Siskiyou Blvd. Ashland, OR 97520 Telephone 541-482-3456 © Copyright 2001 Lee Northwest Publishing