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--> --> Kitzhaber makes another veto threat to legislators SALEM (AP) - Gov. John Kitzhaber made another veto threat, and Libertarians threatened to run "spoiler" candidates against any lawmakers who vote to raise taxes as a budget stalemate remained unresolved. A special legislative session begins at 9 a.m. Friday to deal with a $715 million shortfall caused by slipping tax revenue as the state's economic picture worsened. Chances of bipartisan budget-balancing agreement ahead of time look slim. Democrats are backing the Democratic governor's call for a cigarette tax increase, which the majority Republicans say has no chance of passing. Republicans want to borrow $100 million from a school trust fund, a measure Kitzhaber says he would veto. The governor's second veto vow involves a joint committee's approval Wed-nesday of a draft bill to authorize up to $600 million in additional road and bridge projects. Kitzhaber proposed more bonding as part of an economic stimulus plan to create jobs. His plan includes doubling two-year auto license fees, to $60, which is drawing little support among lawmakers. He objects to the panel's $600 million in added bonding authority without new revenue to pay it off. "It is truly irresponsible to incur that level of debt and blithely repeat the 'no new taxes' mantra," Kitzhaber wrote. Kitzhaber and the Republicans are squared off over the governor's proposed cigarette, beer and wine tax increases to balance the budget. Senate Majority Leader Dave Nelson said Wednesday there's no support for higher taxes in the GOP caucus, which controls the Senate 16-14. Republicans run the House on a 32-28 count. "I don't see any tax proposal at this point going through," the Pendleton Republican said. Nelson expects Republicans will pass "something close" to a budget-balancing plan drafted by a bipartisan group of five legislators, including borrowing from the common school fund. The fund is made up of income from state-owned lands, abandoned and unclaimed property and some other sources. Only the earnings now are allocated to schools, and Kitzhaber opposes dipping into the main fund. Despite the veto pledge, Nelson said, if the Legislature sends Kitzhaber that measure "he has to look at that very seriously." Meantime, Oregon Libertarian Party leaders held a news conference to say they'll field their minor-party candidates against any lawmakers who vote to raise taxes. 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