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SUNNY Temp: 53 °F Wind: CLM at 0 mph Thursday, November 21, 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 17, 2002 Another tax plan package fizzles Oregon Democratic holdouts want the Legislature to forgo a referral to voters AP and local sources SALEM — The Oregon Legislature appeared poised to send out a budget balancing bill Monday, but the proposal died when Democrats in the Senate continued to insist that lawmakers impose a temporary tax themselves rather than send a measure to voters. The House voted 36-21 to hold a statewide election on Jan. 14 on an income tax increase of $315 million, but the measure failed in the Senate. The measure was then revived and returned to committee. So lawmakers are now in their third week in the fifth special session Monday without reaching a consensus on eliminating a $482 million budget shortfall. The tax boost ballot measure passed in the House with the minimum needed for approval. Tax increase bills require three-fifths approval, which means 36 House votes. Rep. Alan Bates, D-Ashland, provided the 36th vote, he said, despite his concerns that the Jan. 14 date would send out vote-by-mail ballots in the midst of the Christmas holiday. He said Senate supporters had promised to change the election date to Jan. 28 or possibly Jan. 21. But the date became a moot point, at least for now, after the Senate vote. "I thought we had it," Bates said. "We were that close and it fell apart again." The Senate vote was 15-14 for the bill, but it requires 18 votes in that chamber to pass a tax increase measure. "This is the last best chance to strike a compromise," said Rep. Ben Westlund, R-Bend, in House debate. Bates said three Democrats refused to give up their position that the Legislature should enact the temporary tax increase without referring it to voters. Their preference — the so-called straight-up vote — will now get an airing. "That will probably fail," Bates said. "Then we’ll bring it (the referral proposal) back and my guess is it will probably pass then." Election timing was also a sticking point in Monday’s debate, with many Democrats who favor the measure pushing for the later date. Rep. Jeff Merkley, D-Portland, said the Jan. 14 date would mean mail-in ballots would be sent out between Christmas and New Year’s Day, when people are preoccupied with the holidays. "That would make it incredibly hard for the message to get out," in a campaign for the measure, he said. Backers of the Jan. 14 date said it would be less disruptive to early income tax return filers to get a decision sooner on the tax measure. Analysts say the three-year tax increase would cost the average taxpayer $114 a year. Defeat of the measure would cause across-the-board budget cuts of $315 million, including a $95 million reduction in state school support. The temporary increase would raise the top tax rate from 9 percent to 9.5 percent through 2004. The maximum rate applies to annual income above $6,450 for single taxpayers and $12,900 on joint returns. Lawmakers had yet to act on two other ingredients in the budget package. The Senate on Sunday passed a bill authorizing borrowing $150 million against the state’s future revenue from the national tobacco settlement. The measure was a scaled-down version of a $400 million borrowing bill approved by the House. The bill went to a negotiating committee to try to work out a compromise. The other part of the budget-balancing plan would cut about $50 million in spending. 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. Privacy Policy webmaster feedback A D V E R T I S E R S