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SUNNY Temp: 88 °F Wind: SW at 6 mph Thursday, July 24, 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 June 8, 2003 Budget impasse hogties Legislature By DON JEPSEN for the Mail Tribune SALEM — A budget stalemate has virtually shut down the Oregon Legislature while Republicans and Democrats haggle behind closed doors over spending for the 2003-05 biennium. Democrats want permanent tax reform to make sure schools are adequately funded and social services and public safety programs are restored. That, party leaders argue, means a new tax. "You reach a point," said Rep. Alan Bates, D-Ashland, "where you have to cut out a lot of programs or you have to raise revenue. "Anything else is smoke and mirrors," added Bates, a member of the Ways and Means Committee. "It won’t work anymore." Advertisement At a minimum, Democrats want to add $2 billion to the proposed $10.4 billion general fund-lottery budget for the next biennium. Republicans are willing to raise only an additional $1 billion. "We’ve agreed on nothing," said a frustrated Senate President Peter Courtney, D-Salem. Other legislative leaders thought some progress was being made in the closed-door negotiations that often include Gov. Ted Kulongoski. "It’s definitely a slow process," said Rep. Deborah Kafoury, D-Portland, House minority leader. "I’m a little more optimistic than Peter." "I’m feeling that things are very, very positive at this time," said Senate Democratic leader Kate Brown, D-Portland. With a general tax increase very unlikely, the Republican-controlled House may initiate some smaller revenue measures to reach its goal of a $11.5 billion spending plan. That won’t satisfy Democrats, who want to bump that figure to between $12.3 billion and $12.6 billion. Even that target amounts to a "bare bones" spending program — "what Oregonians need to survive," Kafoury said. Without new revenue, education and social programs in particular will continue to suffer, she said. Bates predicted that the Legislature eventually will suspend or eliminate some tax exemptions to generate new revenue. This, he said, could be the bridge to permanent tax reform in the next regular session. Rep. Randy Miller, R-West Linn, the co-chairman of the Ways and Means Committee, defended the Republicans’ reluctance to pass new taxes in the current economy. "We need to impose discipline on our spending, just as any family or business does in hard economic times," he said. As in the special sessions that followed the 2001 Legislature, Miller is counting on a limited revenue raising program and tapping existing resources. He would like to see the tax credit for political contributions done away with — he has pushed this in the past — as well as the credit for donating to the Cultural Trust. Eliminating those two credits would realize nearly $18 million in new revenue. A $260 million windfall in federal aid that Congress included when approving Bush’s tax cut will help, Miller said. Of that amount, $116 million will be reserved for Medicaid coverage. Another proposal being discussed would allow the Oregon Lottery to establish online games. That would generate an estimated $90 million a biennium. But critics argue the patchwork approach amounts to a repeat of the last Legislature when plunging revenues resulted in five special sessions to find one-time revenues to shore up the budget. "We’re just repeating history," said Rep. Steve March, D-Portland, who has been involved in the budget discussions. "Instead of a long-term solution, we will face another round of special sessions just to scrape by." No one is predicting when the 2003 session will end. But it’s clear the end-of-June adjournment hoped for by the House leadership will not be met. Don Jepsen is a free-lance writer living in Salem. 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 | Terms & Conditions Website Feedback A D V E R T I S E R S SPECIAL SECTIONS Rogue Valley Auto Finder Rogue Valley Job Finder --> Rogue Valley Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times