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P/CLOUDY Temp: 49 °F Wind: WNW at 7 mph Sunday, March 2, 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 January 12, 2003 Lawmakers return to work By DAMIAN MANN Mail Tribune Oregon legislators, preparing to tackle a massive budget shortfall and a huge debt in the state’s retirement system, are hoping for a little luck this session. A new Legislature convenes Monday, and bipartisan cooperation — while hoped for — could be a tall order with Republicans dominating the House, a 15-15 party split in the 30-member Senate and Democrat Ted Kulongoski taking over as governor. The Legislature’s biggest concern is a state revenue shortfall in the next biennium estimated at $1.5 billion, which will lead to more budget woes for education, health services and public safety. And the governor’s office, legislators and unions already have begun the debate on resolving the $15 billion debt of the Public Employees Retirement System. Republican Sen. Lenn Hannon of Ashland anticipates bipartisan cooperation, something lacking last year when the Legislature held an unprecedented five special sessions to deal with a previous shortfall. "There is an indication by leaders on both sides that they are willing to work together," he said. Despite continued Senate wrangling over the choice of a president, Hannon said that doesn’t necessarily portend future problems since leadership positions are often decided after the Legislature convenes. To counter Oregon’s funding problems, Hannon and other legislators are considering a sales tax, which has been rejected by voters nine times since 1933. Kulongoski has said he would reject any new tax bills that come across his desk. "I remember a former president saying ‘no new taxes,’ and he had to change his mind," Hannon said. Rep.-elect Dennis Richardson, a Central Point Republican, said the public has lost confidence in government. He predicts any proposed taxes would go down in flames. Richardson said that when voters see a school superintendent such as Steve Wisely of Medford receiving full retirement benefits while also getting a $114,000 base salary, they are shocked. "It may be justified, but to the average taxpayer they are saying, ‘I can’t believe it,’ " he said. "It only adds to the distrust in public sector workers and in bureaucrats." Before there is talk of a sales tax, Richardson said he wants to go on a fact-finding mission to determine what Oregonians expect from government. Citing recent opinion polls, he said, "Oregonians want all of the levels of service without raising taxes." Richardson said that in resolving the budget shortfall, legislators must determine what the public wants out of government and how much they are willing to pay. "The current mood among House members is that a sales tax is not on the top of the list as far as alternatives," he said. Rep. Alan Bates, an Ashland Democrat, anticipates the Legislature will tackle the PERS problem fairly rapidly, bringing to an end a guaranteed 8 percent return on investment and a program that has given some government workers 105 percent of their former salaries. Bates blames the PERS board for bringing the retirement program to its crisis state. "I think that basically the PERS board has shown fiduciary irresponsibility in the manner in which they’ve handled the program during the past five years," he said. A more daunting problem will be how to handle the state’s budget shortfall. Bates supports a sales tax of about 6 percent dedicated to fund kindergarten through 12th grades and higher education. At the same time, property and income taxes would be reduced to offset the sales tax. Still, this will not solve the immediate budget problems, he said. "Even if a sales tax flies, it’s going to be cut, cut, cut," said Bates. 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