Main Street, not the Capitol, can offer the best solutions

SALEM, 2/22/09 Statesman Journal OPINION by Bruce Hanna - Oregon is facing chronic budget deficits, a deteriorating state economy and one of the worst unemployment rates in the nation. The Legislature received a gloomy revenue forecast last week, but declining tax revenues is only one part of the story. We also received a grim economic forecast. The state government can't balance the budget without successful businesses and employed Oregonians. Under Oregon's current leadership, we have fewer of both.

The state also can't balance the budget without fiscal discipline. Only two years ago, your state government received record revenues. Rather than prioritizing spending and saving more money, the Legislature spent money as if the boom times would never end. This unsustainable spending left Oregon vulnerable to the shortfalls we're experiencing today.

Republicans recognize that government's declining tax revenue is a direct result of Oregon's poor economy and high unemployment. Unfortunately, the first major bill approved by the Legislature this session was a measure to disconnect Oregon from the federal tax code. In addition to making our tax system more complicated, the Legislature denied Oregon businesses state incentives for investing in equipment, machinery and other goods.

The second major bill was a state "stimulus" plan that increases debt to fund short-term projects such as moss removal and light bulb replacement. The state's stimulus plan will fail because it helps government more than businesses and workers. The plan doubles the costs of routine deferred maintenance projects and saddles Oregon with more government debt that we're already struggling to repay.

We believe the best solutions come from "Main Street" and not the state Capitol. That's why House Republicans proposed the Main Street Incentive Program to encourage businesses and home owners to immediately invest in improvements to their property through a tax credit. Projects supported by the Main Street program would create immediate jobs in all parts of our state. Local property owners and businesses would determine where jobs will be created, not the powerful politicians at the Capitol.

We'll work hard to pass the Main Street plan, but Republicans are minority members of a Legislature committed to higher taxes, excessive regulations and more unsustainable spending. Republicans believe the Legislature has an important responsibility to help businesses succeed, create jobs and lead Oregon's economic recovery. We're confident Oregon can weather this recession, but not until Oregon has leaders capable of managing finances and giving businesses the support they need to survive and re-hire workers.

Rep. Bruce Hanna, R-Roseburg, is the Oregon House Republican leader. Contact him at (503) 986-1407 or rep.brucehanna@state.or.us.