A local impact
State revenue plans could hit hard right here at home
By Larry Meyer
Argus Observer
Sunday, April 19, 2009 12:56 AM PDT
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| Larry Meyer | Argus Observer
Marvin Hug, an employee of Teramura Farms, checks the water as he irrigates a field of onions for Ken Teramura. A proposal in the Oregon Legislature would charge every water-right holder in the state $100 to raise money for the Oregon Water Resources Department. |
ONTARIO-The balancing act regarding the state budget may not be over, and lawmakers are wading through a host of new fee increases in an effort to find a financial solution, even as Oregon’s economy continues to sink.
“Every day, we face another fee bill. In this economy there is no way to raise taxes,” State Rep. Cliff Bentz, R-Ontario, said Friday morning during the weekly Legislative Hotline session at the Ontario School District.
The focus, Bentz said, of the Legislature now is finding money for essential services.
Already, state agencies face a difficult funding blueprint. With projected revenues of $14 billion, the Legislature called for a 30 percent cut from department budgets. That mandate, though, may not be enough.
Bentz, who is a member of the Oregon House of Representatives Revenue Committee, said when individuals arrive before the Ways and Means Committee to save a specific service, lawmakers have a single question.
“What tax would you vote for?” he said.
A clear example of the budget squeeze with a local impact is the funding proposal for the Oregon Water Resources Department. That agency boasts 144 employees, but with a budget slash of 30 percent, the department will drop its staff to 100 workers to cover the entire state, Bentz said. A cash-generating plan to help the department would charge anyone in Oregon with a water right $100.
“The funds would go to the Department of Water Resources,” Bentz said.
Another proposal introduced in the Legislature would allow counties to charge cities and other taxing entities a fee for completing property appraisals, Bentz said.
The idea would be to allow the county to hire additional appraisers to catch up on their assessments and increase collections. Bentz said the fee being discussed is 2 percent, which for the Ontario School District could be equal to the cost of one day of school, according to Superintendent Dennis Carter, who was participating in the session and who made a quick calculation. Ontario Mayor Joe Dominick, who was also on hand for the session, said the appraisal plan was “interesting.”
“But it’s not right,” he added.
Other tax proposals being bandied about include a corporate value added tax and a boost in the personal income tax at the higher income levels.
Bentz also brought up a bill of concern to municipal governments which opponents, including Ontario City Manager Henry Lawrence, assert would mean a loss of existing franchise fees.
The legislation, House Bill No. 2405, would ban cities and other entities, which receive franchise fees from utilities, from regulating Voice-over Internet Protocol services and Voice-over Internet Protocol enabled services.
Lawrence said the legislation would not only impact revenue but would probably spark new litigation from telecommunications providers, which would still be subject to the franchise fees. Verizon is one of the main supporters of the bill. Lawrence also voiced concern that League of Oregon City lobbyists were being left out of the House Bill No. 2405 process.
Bentz said, after going through a public hearing, House Bill No. 3153, which would restrict siting of a utility facility in an exclusive farm use, is now headed for a work session scheduled April 28. Its chief sponsor is now Brian Clem, D-Salem, Bentz said, along with the transmission issue in Eastern Oregon, there is concern about siting of liquefied natural gas facilities.
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