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P/CLOUDY Temp: 43 °F Wind: CLM at 0 mph Tuesday, April 1, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend March 22, 2003 Budget realities could prove taxing for Legislature By DAMIAN MANN Mail Tribune As the reality of Oregon’s budget free fall begins to sink in, some legislators are beginning to soften over the possibility of new taxes. "I think people are finally looking into the abyss," said Republican Rep. Rob Patridge of Medford. With the projected budget for 2003-05 pegged at $10.6 billion, the state is looking at paying for education, public safety and health services with about $2 billion less than the last fiscal cycle. The Joint Ways and Means Committee will formulate a preliminary budget by April 15 that will outline some of projected cuts. "We’re going to end up with some kind of (new) revenues," predicted Patridge, who sits on the committee. "The budget is too grim." However, Patridge said, before any discussion of new revenues is raised seriously, lawmakers need to convince themselves and the public that they have wrung every efficiency they can out of every buck they’ve got. Given the current budget scenario, Patridge said the shortfall could trigger releasing prisoners and mean a $200 million cut for public safety. "Even if we laid off the entire state patrol division, that is only $70 million (savings)," he said as an example. Legislators are going through state programs looking to make them more efficient, something Patridge said could generate $100 million to $200 million in savings. Another $200 million to $500 million could be saved if legislators can make a significant dent in the $15 billion Public Employees Retirement System debt. Patridge said voters don’t want to consider tax measures unless the Legislature has done its homework. "Oregonians don’t want to be held hostage," he said. But whether that translates into increases in property or income taxes, Patridge said it is too early to tell. He believes legislators will begin serious discussions of new revenue sources toward the end of next month. Democratic Rep. Alan Bates of Ashland said legislators have been discussing ways they can make government more efficient and also make modest increases in revenues. At the end of the day, he said, these budget maneuvers might only provide $1 billion of the $2 billion shortfall. "That’s only halfway there," he said. "We are still going to be way short." There has been discussion of getting rid of tax deductions that could generate $200 million to $300 million in extra revenues, said Bates, who also sits on the ways and means committee. Discussions include eliminating the tax break for a second home or capping the deduction on expensive homes. Bates, who along with Republican Sen. Lenn Hannon of Ashland have supported a sales tax, said Oregon’s tax system needs to be overhauled to make it more stable. The depth of the state’s fiscal problems is beginning to become more apparent to many of his colleagues, he said. "The right wing says we can go ahead and make the cuts, but there is some softening, particularly as the reality of this sinks in," he said. "If they can vote for this (the cuts), I will be amazed." Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy Website Feedback A D V E R T I S E R S