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DNS FOG Temp: 36 °F Wind: CLM at 0 mph Friday, December 6, 2002 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 September 12, 2002 New state budget plan is mostly taxes, borrowing Biggest point of contention: whether lawmakers or voters should approve tax increase By DANI DODGE Mail Tribune SALEM — As the nation mourned the losses of 9/11, legislators scrambled Wednesday to line up votes for yet another plan to deal with the state’s half-billion-dollar revenue shortfall. This plan includes $315 million in higher taxes, $200 million in bond borrowing and $62 million in cuts, said state Rep. Rob Patridge, the Medford Republican who drafted the proposal. "We were just trying to come up with a compromise that would get us out of the building," Patridge said. "This has elements that everybody hates. ... But this is the last best offer for a reasonable compromise." By late Wednesday morning, 11 Republicans were lined up behind Patridge’s new bill, and Rep. Alan Bates, an Ashland Democrat, was in a Democratic caucus meeting gauging support. Legislators were in their 11th day of the fifth special session trying to balance a budget thrown out of whack by declining tax revenues. After the defeat of the Democrats’ $407 million tax increase Tuesday, a bipartisan group of House members and the governor worked late Tuesday night, crafting a package with less reliance on taxes. But the usual politicking was interrupted at noon Wednesday by a ceremony remembering Sept. 11 in a park near the Capitol. About 3,000 people attended, many standing shoulder to shoulder, some with tears in their eyes. House Speaker Mark Simmons, in a black suit, stood steps away from a 20-something with a dagger and a skeleton tattooed on his bare legs. In his address at the ceremony, Gov. John Kitzhaber urged people to strengthen democracy by voting, volunteering and believing in America. "If we renew our faith in ourselves, and in our country, and in our public institutions, and if we work to strengthen the freedom that defines America, we will fashion a future of prosperity and justice that all the world can share," Kitzhaber said. "Let’s make that the legacy of Sept. 11, 2001." But quickly after the ceremony, Democrats and the group of moderate Republicans trying to compromise on a bill went to work on the biggest point of contention in Patridge’s bill: whether the tax increase will go to voters or be approved by the Legislature alone. Republicans want to refer the tax increase to voters because they assume anti-tax advocates will collect enough signatures for a referendum, putting the issue on the February ballot anyway. But Democrats believe legislators must make a decision, and don’t believe opponents will necessarily get enough votes to force a referendum. Wednesday afternoon, Bates called the issue the bill’s "breaking point." "But who knows who’s going to break?" he said. "Will it be the Democrats or the Republicans? ... It’s right on the edge now." The latest plan assumes a budget deficit of $497 million. If passed, it would refer a three-year personal and corporate income tax increase to voters that would raise $315 million to bridge the deficit. The average family making $50,000 a year would pay about $12 a month, Bates said. The $200 million in bonds would be backed by the national tobacco settlement money. Republican backers would like to get a measure on the Dec. 10 ballot. The $62 million in cuts would be targeted to certain programs like Oregon Public Broadcasting and Oregon Health & Science University, Patridge said. But additionally, the plan creates a list of cuts totaling $315 million, so if voters don’t approve the tax, cuts can immediately be implemented. "To have the cuts with the tax measure out there is a clear way to tell the voters what the options are," said Rep. Lane Shetterly, a Dallas Republican. But that package of cuts also could cause a meltdown in the heated-up political atmosphere because schools, along with other precious programs, will be hit. Simmons, who expected a vote on Patridge’s plan today, said if it goes down, the next plan to come forward will likely be similar to one he proposed at the beginning of the session: bonds and cuts without new taxes. But that couldn’t get the votes to pass last week. If the Legislature fails to come up with a plan, the governor will make across-the-board cuts. Simmons said he didn’t think it would come to that. "I don’t think failure is a good option," Simmons said. "I think it’s a terrible option. We have to produce some kind of answer to this problem." The House will reconvene today at 10 a.m. Reach reporter Dani Dodge at 776-4471, 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 1997-2002 Mail Tribune. All rights reserved. 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