Elected leaders point to balanced budget as key challenge for Legislature
By Larry Meyer
Argus Observer
Sunday, February 8, 2009 1:07 AM PST
ONTARIO—Oregon state lawmakers still need to erase a nearly $1 billion deficit before the end of the current biennium, state Rep. Cliff Bentz and State Sen. Ted Ferrioli said during Friday’s Legislative Hotline at the Ontario School District office.
The two lawmakers said the Legislature is still wrestling over how the budget will be balanced.
A big part of the problem is that the state did not save when it had money, Ferrioli said, with the governor handing out a series of salary increases. “Revenue is down in the lottery. Revenue is down in liquor sales,” he said, naming a few areas. “We think we can get there (to a balanced budget), but not without pain.”
Currently, there is a debate raging over whether to cut across the board or slash funding according to priorities, Ferrioli said. He said he favored prioritizing services, putting such issues as health and public safety at the top of the list.
“There is a lot of spending which is not critical to health and safety,” he said. Also discussed was the proposed boost in vehicle registration and title fees. Ferrioli said because of the number of vehicles used on farms, those fees fall disproportionately on agriculture.
Democratic Senate President Peter Courtney’s stimulus package was passed by the Oregon House of Representatives Friday, as expected, and went to the governor for his signature.
Bentz said he voted against it, as did most Republicans, adding that it was a difficult decision since the bill will bring money for projects in Malheur County.
Bentz said he opposed the funding matrix because the package does not create long-term jobs and the long-term debt incurred to create the short-term jobs.
Also passed in the House was a measure to disconnect Oregon Tax law from federal tax law, which was approved along party lines, Bentz said. There is a significant tax benefit to Oregon taxpayers if state law tracks federal law, he said, but an estimated loss to the state of around $60 million. Bentz said the legislation could have waited until the provisions of the federal stimulus bill are known.
