Illinois Valley News, Cave Junction, OR Wednesday, April 2, 2003
AERIAL PHOTOGRAPH OF ROUGH & READY MILL APPROXIMATELY TWO YEARS AGO
Preliminary budget planned by Ways
and Means Committee outlines cuts
By MEDFORD
‘MAIL TRIBUNE’
As the reality of Oregon’s
budget free fall begins to sink
in, some legislators are begin-
ning to soften over the possi-
bility of new taxes.
"I think people are finally
looking into the abyss," said
Republican Rep. Rob Patridge
of Medford.
With the projected budget
for 2003-05 pegged at $10.6
billion, the state is looking at
paying for education, public
safety and health services with
approximately $2 billion less
than during the last fiscal cy-
cle.
The Joint Ways and
Means Committee will formu-
late a preliminary budget by
April 15 that will outline some
projected cuts.
"We’re going to end up
with some kind of (new) reve-
nues," predicted Patridge, who
sits on the committee. "The
budget is too grim."
However, Patridge said,
before any discussion of new
revenues is raised seriously,
lawmakers need to convince
themselves and the public that
they have wrung every effi-
ciency they can out of every
buck they’ve got.
Given the current budget
scenario, Patridge said the
shortfall could trigger releas-
ing prisoners and mean a $200
million cut for public safety.
"Even if we laid off the
entire state patrol division,
that is only $70 million
(savings)," he said as an ex-
ample.
Legislators are going
through state programs look-
ing to make them more effi-
cient, something Patridge said
could generate $100 million to
$200 million in savings. An-
other $200 million to $500
million could be saved if leg-
islators can make a significant
dent in the $15 billion Public
Employees Retirement System
debt.
Patridge said voters don’t
want to consider tax measures
unless the Legislature has
done its homework.
"Oregonians don’t want to
be held hostage," he said. But
whether that translates into
increases in property or in-
come taxes, Patridge said it is
too early to tell.
He believes that legisla-
tors will begin serious discus-
sions of new revenue sources
toward the end of next month.
Democratic Rep. Alan
Bates of Ashland said that
legislators have been discuss-
ing ways they can make gov-
ernment more efficient and
also make modest increases in
revenues.
At the end of the day, he
said, these budget maneuvers
might only provide $1 billion
of the $2 billion shortfall.
"That’s only halfway there,"
he said. "We are still going to
be way short."
There has been discussion
of eliminating tax deductions
that could generate $200 mil-
lion to $300 million in extra
revenues, said Bates, who also
sits on the Ways and Means
Committee.
Discussions include elimi-
nating the tax break for a sec-
ond home or capping the de-
duction on expensive homes.
Bates, who with Republi-
can Sen. Lenn Hannon of
Ashland have supported a
sales tax, said Oregon’s tax
system needs to be overhauled
to make it more stable.
The depth of the state’s
fiscal problems is beginning to
become more apparent to
many of his colleagues, he
said.
"The right wing says we
can go ahead and make the
cuts, but there is some soften-
ing, particularly as the reality
of this sinks in," he said. "If
they can vote for this (the
cuts), I will be amazed."
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