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Budget prompts dire warning from Hannon With much of its reserves used up, the state had better hope the economy improves, the senator says By DANI DODGE Mail Tribune The Oregon Senate's senior member and budget chief said Tuesday that the recently passed state budget should bring people to their knees. "I suggested my colleagues should get on their knees and pray this economy turns around," said Lenn Hannon, R-Ashland, "because if it doesn't, we are headed for a financial crisis this state has never seen in its ... history." The Legislature passed a budget Saturday that slashes state spending by $350 million and uses about $500 million in one-time revenues and reserves to balance a budget hammered by a recession and declining income tax revenue. On Monday, Gov. John Kitzhaber announced he will allow most of the Legislature's budget decisions to go into law, although he considers them irresponsible. Hannon agreed it was a bad decision to use most of the state's reserves to balance the budget. "The Senate came up with a $350 million cuts package and we sent that over (to the House), recognizing they had to make additional cuts or come up with additional revenues," Hannon said. "They did neither. "It took eight years to build up money in the school trust fund, and in one fell swoop, the House members voted to use it. If I ran my private business the way these legislators are trying to run state government, I'd be in bankruptcy court." But several legislators Tuesday said they are proud of what the elected officials accomplished in Salem last week. "I think we did a lot of good work," said Rep. Cherryl Walker, R-Murphy. "One-time money and savings should be used for the purpose intended, which is rainy days. "So when we have a financial crisis, just as you do in your family, you go to your savings." Walker and state Sen. Jason Atkinson, R-Jacksonville, said they were glad to be able to balance the budget without increasing taxes that would have hurt people already struggling in the recession. "I think it's great the fact we didn't raise taxes," Atkinson said. State Rep. Rob Patridge, R-Medford, said he hopes "like everyone else" the economy will turn around, "but we didn't manage the state in the most fiscally prudent way we could." "It's OK to say 'no new taxes' if you are willing to stand up and make some substantial cuts in the state budget, but you can't have it both ways," Patridge said. "You either have to step up for cuts or step up for new revenue. "I voted for the budget because I knew there weren't the votes to do anything different, but I did file some vote explanations." State Rep. Alan Bates, D-Ashland, said the cuts in the budget will further erode the state's educational and social service systems. He said cigarette and beer and wine tax increases should have been more strongly considered by House Republicans. "We basically passed a budget that keeps RJ Reynolds and Pall Mall safe and encourages more teenagers to smoke and takes care of Pabst and Budweiser," Bates said. "It's unconscionable what the Republicans did up there." Hannon noted, though, that not only Democrats were upset about the budget that came out of Salem on Saturday. "I think there was disappointment in the Senate even among the Republicans who had to vote for it," Hannon said. "There were several colleagues in addition to myself who would have liked to see the House act more responsibly than they did." Reach reporter Dani Dodge at 776-4471, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.