Party-line votes
give OK to budget
■ Higher education receives
a smaller budget cut than was
proposed in the last session,
but the process may continue
By Brook Reinhard
Oregon Daily Emerald
The Oregon Legislature con
cluded its second special session
to balance the budget late Satur
day night, passing the buck to
Gov. John Kitzhaber, who has yet
to formally indicate whether he
will veto the proposal.
The Legislature was meeting
for the second time this year to
rid the state of an $846 million
budget shortfall caused by Ore
gon’s faltering economy. The final
budget, which passed entirely on
party line votes, cut $343 million
from state programs, upheld
$98.6 million of pre-approved
cuts and drew $480 million from
Medicaid funds, tobacco settle
ment money and the Education
Endowment Fund.
Higher education’s budget was
cut by $43.3 million, a smaller
amount than was proposed in the
last special session.
Erin Watari, a student member
of Oregon’s higher education
board, said the Legislature’s cuts
weren’t unexpected.
“I don’t think it’s satisfactory, but
look what’s going on in the state,”
she said. “I don’t think higher edu
cation is a state priority.”
Joelle Lester, executive director
of the Oregon Student Association,
agreed that the Legislature could
have harmed higher education far
more than it did in the plan ap
proved Saturday.
“Of course I’m not happy with
it, but I do think we’ve mini
mized the damage,” Lester said.
“We’ve made the best of a very
tough situation.”
The proposal passed Saturday
night did not include any “sin
tax” increases for beer, wine or
cigarettes. Kitzhaber indicated
Cuts to Oregon
universities
The Oregon Legislature ended its
second special session Saturday
night with a plan trimming about
$43.3 million from the Oregon
University System, including:
$33,141,866 from OUS General
Fund
$1,968,759 from the state extension
service /
$3,133,390 from pneral research
funds for agriculture and forestry
SOURCE: Oregon legislature
earlier this week that he would
allow the Legislature’s budget to
pass if it included a 50-cent-per
pack tax on cigarettes.
“This Republican plan really
doesn’t solve anything,” the gov
ernor said to reporters Saturday
night. “The convoluted Enron
like financing scheme that this is
predicated on pushes the state of
Oregon out onto a very dangerous
financial ledge that’s both irre
sponsible and unnecessary.”
"I don’t think it’s
satisfactory, but look what’s
going on in the state. I don’t
think higher education is a
state priority.”
Erin Watari
student member,
State Board of Higher Education
Kitzhaber was referring in part
to the Legislature-created Educa
tion Endowment Fund, which vot
ers must approve in the May 21
election for the balancing plan to
work. Saturday’s legislation uses
the fund to cover nearly 25 percent
of Oregon’s budget shortfall.
E-mail community reporter Brook Reinhard
atbrookreinhard@dailyemerald.com.
OLCC
continued from page 1
The Oregon State Legislature
passed the bill last week, and
Gov. John Kitzhaber said he won’t
veto it. The Oregon Legislative
Revenue Department said the law
should generate about $3 million
annually in state taxes, much of
that money being earmarked for
Oregon’s education system. But
local liquor store owners doubted
the bill will live up to the project
ed revenue predictions.
Ken Hand, owner of the Down
town Liquor Store in Eugene, said
his store will not open Sundays.
“It really doesn’t make a lot of
sense,” he said. “How much of
your Sunday business will end
up being what was your Saturday
business?”
But owners of stores in major
tourist areas may benefit from
keeping their doors open all
week. Mike DeGiusti, owner of
Dexter Liquor and Blue Moon
Video, near Dexter Lake, said he
may forego his day off and stay
open, especially during summer
when tourism is high.
He added he’ll probably make
money from staying open the ex
tra day because people will rent
videos.
“I’ll try it for^a while and see
how it goes,” DeGiusti said.
Even Kitzhaber has expressed
reservations about the bill’s im
pact. A nearly identical version of
the bill reached the governor’s of
fice last week, and Kitzhaber sent a
copy to Oregon Attorney General
Hardy Myers with a cover letter
that said he does “not believe that
the bill will result in the anticipat
ed increased revenues.”
He also said in the letter that “I
think this measure sends the wrong
message to young Oregonians.”
“It really doesn’t make a lot
of sense. How much of
your Sunday business will
end up being what was
your Saturday business?”
Ken Hand
owner, Downtown Liquor Store
Kitzhaber said he won’t sign or
veto the bill, which will become
law automatically after 10 days of
inactivity from the governor.
The current bill is identical to a
previous one Kitzhaber said he
would let pass. The previous one
failed because legislators forgot to
include a provision stating that it
would take effect immediately.
E-mail reporter Marty Toohey
at martytoohey@dailyemerald.com.
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