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M/SUNNY Temp: 68 °F Wind: NNE at 11 mph Monday, September 29, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine Joy Magazine Tempo A & E RogueValleyAutoFinder RogueValleyHomeFinder Real Estate Showcase Wellness Connection 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 Employment Contact Us Media Kit Email Story to a Friend February 20, 2003 Hannon, Bates shelve sales tax By SEAN WOLFE for the Mail Tribune Backing off a controversial proposal for a sales tax, Rep. Alan Bates and Sen. Lenn Hannon said Wednesday that the Legislature is running out of time to find new sources of revenue. "We're going to delay committing to the sales tax proposal until the (2001-03) budget crisis is settled. Right now we're pushing against the window of being able to solve the budget prior to July 3," said Hannon, an Ashland Republican. Bates and Hannon made the announcement during a weekly conference call sponsored by the Ashland Chamber of Commerce. Earlier this month, the state Department of Revenue found a new shortfall of between $90 to $300 million. Concrete figures on the size of the deficit should be available next week, but it’s another hole legislators have to patch before beginning on a new budget. "What we didn't count on is the ’01-’03 mess. This chasm has opened up," said Bates, an Ashland Democrat. "We were thinking we could barely skate through after the ’01-’03 budget, and then a few weeks later we get another hit. Now we have to open up the old budget, and we have two weeks to fix it. It's like another special session — it puts everything else on hold. "We're looking every place we can to find or steal money — there's discussions about borrowing $110 million from the rainy day fund, and discussions about borrowing against the tobacco settlement revenues. But we're still left with making cuts that are dramatic and breathtaking." Hannon said a temporary solution doesn’t bode well for the state. "What these issues highlight is that we're back to the mode of one-time borrowing," Hannon said. "It's not good, and it takes away our future options when there's still a great deal of uncertainty here in Oregon." Hannon said a possible war in Iraq and a potential decline in federal matching funds for the state are worsening the situation. "The thing is, somebody's got to pay for the war effort, and it becomes a domino effect. If one goes, then other things throughout the state will be impacted," Hannon said. Hannon and Bates had been working on putting a sales tax proposal together to help diminish the state's massive budget shortfall. Despite the fact that Oregonians have a long history of being hostile to new taxes, both lawmakers said they felt the state should search for new sources of revenue, rather than face draconian cuts to state services. With a sales tax on the back burner, both Hannon and Bates said they are working with other legislators to put a budget proposal together by the end of the month. "We're continuing to look for new ideas about how to cope with the revenue shortfall, and we'll be asking for support when we push to get new revenue in the future," Bates said. Whether they'll get support from other legislators in Salem over a sales tax — or other revenue measures — remains unclear. "It depends on whose ox is being gored," quipped Hannon, who later on Wednesday introduced SJR13, a bill that would send to voters a proposed constitutional amendment allowing gas tax and auto license revenue to fund highway police patrols. "Some people in this process are going to have to have a reality check. Our opportunities are limited, and we're bound by the Constitution to balance the budget," Hannon said. "If we can't balance the budget, we're obligated to find new revenue sources. I really wish (other legislators) would read the constitution — not for their rights, but for their responsibilities." Sean Wolfe is a reporter for the Ashland Daily Tidings. Reach him at 482-3456. 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