Tuesday, January 19, 1992
Eugana, Oregon
Oregon daily
Volume 83
Number 81
emerald
Governor calls
for new ‘image’
By Ron Hunt
Ot Um CmeriM
When the eye of the beholder is in a business
man, Oregon is anything but a beauty
A "miserable image" Gov Vic Atiyeh called it
Monday
And to counteract businesses' perception of the
state, Atiyeh urged legislators to — among other
measures — appropriate $500,000 for a "high-tech"
education program
In his "State of the State” address, Atiyeh
unveiled details of his economic recovery plan that
includes half a million dollars for a "comprehensive
engineering and high-technology education and
training program" within the State System of Higher
Education
"Our tough-on-business image is as much an
impediment to economic development as today's
high interest rates,” Atiyeh said He asked the
Legislature to adopt the “high-tech” proposal of
Rep Vera Katz, D-Portland, as part of a new image
for Oregon.
Her plan would establish a consortium of
educators and high-technology leaders to develop
an educational plan The Education Coordinating
Commission would evaluate programs and needs
and would be responsible for recommending the
most efficient methods to implement the plan
In addition, Atiyeh has assigned the Department
of Economic Development to establish "new chairs
of technology and business at one or more of the
institutions of higher education "
Atiyeh did not mention higher education else
where in his speech, except indirectly: "I have
chosen a plan that relies more on reduced spending
than on new revenues " He has, prior to his "State of
the State,” directed legislators to cut 10 percent
from the state s higher education budget
The governor reiterated his preference for cuts
in state programs like higher education: he does not
support measures — including a "raid on the
property tax relief fund" — that would raise taxes
"The ill-timed notion that higher taxes now is an
acceptable remedy is no different than saying a sack
of cement is an acceptable life preserver to a
drowning person," Atiyeh said
"Obsession” must not continue regarding his
proposed cut-backs, he said "The reductions
amount to a 10 percent rollback This means that 90
percent remains to serve and protect our citizens ”
Several legislators disagreed
Immediately after Atiyeh's "State of the State,”
the Speaker of the House, Hardy Myers, D-Portland,
gave a speech of his own
The Legislature should "fairly spread the deficit
burden among the people of our state,” Myers said
Budget cuts should not be limited to state services
The cuts to state service budgets place an un
necessary burden on students and other people
Continued on Page 3B
Photo by Mark Pynes
Gov. Vic Atiyeh
Atiyeh offers
recovery plan
Gov. Vic Atiyeh’s economic recovery plan
would:
• Declare a statewide economic emergency so
that local governments could receive assistance
without going ihrough time-consuming hearings.
• Make the Department of Economic Develop
ment directly responsible to the governor.
• Increase staffing in the Department of Econ
omic Development, specifically “business ad
vocates” to "literally take industries by the hand
to lead them through the regulatory maze."
• Use $60,000 to create a computerized inven
tory of lands suitable for industrial development.
• Appropriate $250,000 to the Emergency
Board for the development of a marketing pro
gram — to “se»i” Oregon to the rest of America
and other parts of the world
• Add $37,000 to the Office of Economic
Analysis for economic planning efforts.
• Allocate $500,000 to the Emergency Board to
develop, within the State System of Higher
Education, an engineering and high-technology
education program.
• Intensify tourist promotion by an additional
$400,000 routed through the Emergency Board.
• Finance “seed money” for counties by fund
ing $500,000 for the Oregon County Development
Revolving Fund.
Subcommittees
limit initial cuts
By Debbie Howlett
Ot ttf Emtratd
For Gov. Vic Atiyeh's wife, Dolores, "it’s a day
like all days.”
For higher education and state service's
proponents, it was a day to breathe a sigh of relief.
The full committee on Ways and Means met
Monday afternoon to hear the recommendations of
six subcommittees after reviewing Atiyeh’s propo
sals.
Of Atiyeh's recommendations to cut about $147
million, the subcommittees agreed to $63 million
worth.
What higher education proponents heard most
clearly was the voice of Sen. Jim Gardner, D-Port
land, head of the education subcommittee. Gardner
informed the budget panel the education subcom
mittee would "reluctantly” recommend a
4.4-percent cut in higher education.
The subcommittee also said it would recom
mend a 5-percent cut in community colleges and no
reductions in National Direct Student Loans and
Oregon State Scholarship Commission funds.
The 4.4-percent cut is closer to 3.5-percent,
says Ed Fadeley, D-Eugene, who co-chairs the full
Ways and Means committee. The recommendation
was for $7.5 million of Atiyeh’s requested $23.5
million cut, he says.
In reports from five other subcommittees, the
budget ax was clearly dulled, although some of the
governor’s suggestions were sustained. Most legis
lators used adjectives such as reluctantly, painfully
and hesitantly.
The subcommittee on general government,
headed by Sen. Jack Ripper, D-Coos Bay, called for
a $1.75 million dollar cut to the legislature to show
"an example that we can take a cut too.”
Sen. Tony Meeker, R-Amity, spoke for the public
safety subcommittee and asked that the OLCC be
cut by $1 9 million.
The subcommittee also recommended a
$250,000 reduction in mental health services.
From the subcommittee on human resources,
Rep. Vera Katz, D-Portland, recommended to the
panel cuts totaling $36 7 million.
The committee decided $35.1 million should be
cut from the Department of Human Resources by
reducing spending $8.8 million and garnering an
ticipated federal funds.
The human resources subcommittee opposed
Atiyeh’s recommended cuts to welfare recipients,
Katz said.
In the proposal from the subcommittee on trans
portation, Rep. Ed Lindquist, D-Gladstone, asked
that public transportation be left as is because of
unexpected revenue totaling $87,900
The subcommittee on economic development,
headed by Max Simpson, D-Baker, called for cuts
totaling 6 4 percent, saying his subcommittee “bas
ically approved” of the governor's recommenda
tions
Legislature ponders myriad amendments
SALEM, Ore. (AP) — Oregonians
would vote in the May primary election
on whether to limit property taxes to 1 5
percent of market value under a
proposed constitutional amendment
introduced Monday
The proposal was among 32 meas
ures introduced as the Legislature
opened its special session Many of the
bills involve Gov Vic Atiyeh’s proposed
spending cuts and revenue increases
to erase a projected $240 million bud
get deficit.
The tax limit proposal (HJR44) was
introduced by the House Revenue
Committee at the request of a commit
tee member, Rep George Trahern,
R-Grants Pass He asked that the
measure be drafted as a point for dis
cussion as lawmakers consider state
property tax relief programs.
A bill introduced in the Senate
(SB974) at the request of the state
Executive Department would raise
judges' salaries.
Circuit court judges' pay, now
$48,356, would go to $52,297 retroac
tive to Jan 1, to $53,866 on July 1 and
to $56,021 next April 1 Salaries of
district court judges, now $43,344,
would go to $48,283 on July 1.
Supreme Court justices' salaries
would rise from $53,308 to $61,758 by
next April. State Court of Appeals
judges' pay would increase from
$52,039 to $60,287 by next April.
Another bill introduced in the House
would exempt from state Energy Facili
ty Siting Council regulations plants that
generate electricity by burning solid
waste.
Other major bills introduced Monday
include ones to:
• Reduce interest rates charged peo
ple who assume state veterans' home
and farm loans (SB966).
• Require the Bureau of Labor to
charge a fee of up to $5 for issuing work
permits to minors (SB972).
• Make parents of people under 18 at
state mental institutions and spouses of
people in mental institutions liable for
part of their costs of care (SB973).
• Raise the interest charge on delin
quent state income taxes from 12 per
cent annually to 18 percent (SB980).
• Double state taxes on beer and wine
(HB3296).
• Combine the two state property tax
relief programs into one based on in
come and end relief for households
with more than $50,000 annual income
(HB3297).
• Require state agencies to issue or
deny permits within 60 days after an
application is filed (HB3305).
• Require accelerated employer with
holding tax payments (HB3298).