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IN BRIEF
House Democrats
demand look at tax breaks
SALEM — Lawmakers should
scour hundreds of tax breaks now on
the books to look for ways to get rev
enue for schools, a coalition of House
Democrats said Tbesday.
The majority Republicans said
ending a break is a tax increase by
another name.
“I’m not enthused about solving
our shortfall by shifting the burden
onto businesses,” said Rep. Tom But
ler, R-Ontario, chairman of the House
Revenue Committee.
His panel has jurisdiction over bills
to raise revenue.
The Democrats, who are in the
minority in the House and have few
moderate Republican allies left,
pitched a “strong schools plan”
with mostly familiar themes, includ
ing a hard look at tax breaks they
said cost the state $8.8 billion in
general fund revenue.
School advocates are sharply criti
cizing Democratic Gov. Ted Kulon
goski’s proposed $5 billion school
support budget as inadequate, saying
it will cause more classroom crowd
ing and shortened school districts in
some places.
“For four years our schools have
been on a downward slide,” said
House Minority Leader Jeff Merkley,
D-Portland. “Today we draw a line
in the sand.”
r
Kulongoski’s proposed school aid
for 2005-07 is a relatively small in
crease — $84 million — from current
spending. Fiscal analysts estimate
that maintaining all existing services
would require an additional $300 mil
lion to $400 million.
Kulongoski, along with legislative
leaders of both parties, acknowl
edge there’s little or no chance of
any outright tax increases, especial
ly after voters have defeated pro
posed budget-balancing tax boosts
twice in the past two years.
“We absolutely must look at the
tax giveaways,” said Rep. Steve
March, D-Portland.
Democrats didn’t specify which
breaks should be ended but in the
past have criticized allowing tax
credits to businesses for the costs of
complying with pollution control
laws, for example.
Butler said it’s “fertile ground to
at least examine” some tax breaks
but that he doubted whether there
are enough votes on his panel to re
scind many of them, if any.
He noted also that it requires
three-fifths approval in the House —
36 votes — to pass any revenue
raising bill. Republicans outnumber
Democrats 33-27 in the chamber.
White House: Deficit will
hit record $427 billion
WASHINGTON, D.C. — The
White House will project that this
year’s federal deficit will hit $427 bil
lion, a senior administration official
said Tliesday, a record amount partly
driven by wars in Iraq and
Afghanistan. The official, among
three who briefed reporters on con
dition of anonymity, said the esti
mate was a conservative one that as
sumed some higher spending than
other analysts use. Last February, the
White House projected that the 2004
shortfall would hit $521 billion, only
to see it come in at $412 billion.
Oscar nominations set up
Scorsese-Eastwood duel
BEVERLY HILLS, Calif. - Martin
Scorsese may finally be positioned
for Academy Awards glory, but his
Howard Hughes epic “The Aviator”
will have to duke it out with Clint
Eastwood’s boxing drama. The best
picture and best director honors are
shaping up as a two-film race be
tween Scorsese’s and Eastwood’s
flicks, with “The Aviator” having the
inside track, leading the pack with 11
nominations Tliesday.
Officials: Israel ends
targeted killings
JERUSALEM — Israel has stopped
targeting Palestinian militants for
death, according to Israeli security of
ficials, fulfilling a key Palestinian de
mand for a truce to end four years of
violence. The officials, speaking on
condition of anonymity, said Israel
has informed the Palestinians of their
decision. It came after generals from
the two sides met Tuesday to plan de
ployment of Palestinian police in cen
tral and southern Gaza, to prevent
militants from attacking Israelis.
National guard would give
bonuses to bolster ranks
WASHINGTON — Looking for
new ways to bolster its thinning
ranks, the Army National Guard is
seeking legal authority to offer
$15,000 bonuses to active-duty sol
diers willing to join the Guard — up
from the current bonus of $50. Lt.
Gen. H Steven Blum, chief of the
National Guard Bureau, told re
porters Tuesday that the Guard is
15,000 soldiers below its normal
strength of 350,000, and he expects
further short-term declines despite
recent gains from tripling re-enlist
ment bonuses for guardsmen de
ployed abroad.
— The Associated Press
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