Governor to boost building projects
Thursday, December 28, 2006 2:18 PM PST
SALEM (AP) — Gov. Ted Kulongoski has proposed a bricks and mortar budget totaling more than $3 billion for education buildings, railway station improvements, emergency radio towers and other construction projects.
Kulongoski often calls himself a ‘‘public works’’ Democrat in the mold of Franklin Roosevelt, whose New Deal borrowed to pay for dams, park trails and other jobs-creating projects.
He said his proposal to raise capital spending from $1.2 billion in the current two-year budget to $3.2 billion in the next reflects his social and economic goals.
‘‘You end up improving the infrastructure, you create jobs, and I think you improve the economy overall,’’ he said. ‘‘So I think it’s a win, win, win every way you look at it.’’
Kulongoski’s capital plan for universities would be the highest since World War II, and also includes $113.5 million to whittle a list of deferred maintenance items.
Among other proposals are:
— $82 million toward replacing Oregon’s psychiatric hospital with three regional facilities.
— $486 million — spread over a period of several years, and including radio towers and equipment — to install a communications network for first-responder agencies such as police and fire departments.
—$100 million in lottery-backed bonds for ‘‘Connect Oregon’’ transportation projects. The governor and the Legislature launched Connect Oregon with $100 million in 2005.
Even before the governor’s budget recommendation, past borrowing had ensured that a growing share of Oregon’s general fund would go toward repaying debt — from 3.7 percent this year to a projected 5 percent in 2009.
The State Debt Policy Advisory Commission indicated in April that because total personal income in the state has increased, the percentage of state general fund money going to debt payment should start dropping in 2010. But Kulongoski’s recommendation reopens questions about that projection, state officials say.
Outgoing House budget chief Wayne Scott, R-Canby, worries that if the economy sours, money being committed for debt repayment will be badly needed to keep basic services intact and avoid higher taxes. ‘‘It’s a recipe for a lot of heartache in the future,’’ he said.
Democratic Sen. Kurt Schrader, co-chairman of the Senate Joint Ways & Means Committee, said the Legislature most likely will reduce the list so that debt costs don’t crowd out spending on services.
