Deficit rises $100 million;
Atiyeh submits proposals
Salem (AR) — Gov. Vic Atiyeh
planned to submit new
proposals to the Legislature
today to deal with a projected
budget deficit that soared by
almost $100 million in an updat
ed forecast issued Monday
The governor said Monday he
was considering numerous
revenue-raising measures to
help erase a potential deficit
now estimated at $337 million in
the current two-year budget.
Atiyeh said he won't propose
additional state agency spend
ing cuts beyond the $120 million
he sought when the lawmakers
began their special session Jan.
18
The Legislature was to
reconvene today after a week
long recess sparked by
preliminary reports of the
deepening budget crunch
The lawmakers were dead
locked in a largely partisan
struggle over whether to raise
income taxes when they
recessed Tuesday
Chang Sohn, economist for
the state Executive Department,
told a joint meeting of the House
and Senate revenue commit
tees Monday that the projected
deficit is $99.8 million larger
than was previously estimated,
mainly because of declining es
timates of income tax collec
tions.
Atiyeh didn't specify what
new measures he had in mind
but indicated that reducing
state property tax relief was a
possibility.
"I’m looking at everything,”
he told a news conference
Legislative leaders said they
might adjourn the special ses
sion while committees work on a
new budget-balancing plan and
ask Atiyeh to convene a new
session in a week or two
Adjourning the session would
eliminate a legal obstacle con
fronting lawmakers seeking
donations for the May primary
election
State law forbids legislators
from soliciting campaign money
from lobbyists during legislative
sessions The Legislature tech
nically remains in session dur
ing recesses but not if the ses
sion adjourns and reconvenes
later.
House Speaker Hardy Myers,
D-Portland, and Senate
President Fred Heard, D
Klamath Falls, said they
wouldn’t decide whether to
adjourn and let most legislators
go home for awhile until they
knew details of Atiyeh's recom
mendations.
Heard and Myers said some
lawmakers fear that the budget
crunch may get even worse, but
the governor disagreed.
"I think this projection is
pretty close to the worst case,”
Atiyeh said
Dorms
Continued from Page 1
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