ORGOP: Republicans' Back to Basics Budget

PRESS RELEASE, 5/22/2009 - State Budget Forecast Confirms Need for Republicans’ ‘Back to Basics Budget’

PORTLAND, Ore. – Oregon Republican Party Chairman Bob Tiernan commented today on the state revenue forecast released by the state economist showing a worsening state revenue picture. “This confirms what we have been saying: now is not the time to raise taxes on Oregon families and small businesses. At a time when Oregon currently has the second highest unemployment rate in the country at 12.1% and a business climate which is struggling with the worst economic downturn since the great depression, we need solutions focused on growing our economy. Democratic plans to raise taxes on Oregonians will only prolong the current economic situation.”

Tiernan also said, “Now that we know revenues will be worse than previously expected, the principles of responsible spending and lower taxes outlined in the “Back to Basics Budget” proposed by Republican legislators represent a viable solution to dealing with the current budget crisis.”

Without the need to raise taxes, the Republican plan funds a full school year, protects prioritized service areas like public safety and human services by giving them the same funding levels they received in the last two year budget and creates a $1.374 billion surplus for targeted legislative add-backs and contingency reserves.

“To understand the current budget crisis, we need to understand how we got here,” Chairman Tiernan continued, “under Democrat control, the out of control spending during the last few budget cycles has lead to unsustainable budgets that are out of line with the spending priorities of the majority of Oregonians – school spending, public safety and helping those who are truly in need. What we see instead is the Democrats choosing to give pay raises to bureaucrats rather than funding these crucially important priorities.”

“The Democrats’ insistence on increasing taxes and fees at this point in Oregon’s recession will make it longer, deeper, and harsher for families and more difficult for business to generate the jobs and incomes Oregonians need to recover financially, “ Tiernan added. “Their continued reliance on higher taxes and untenable spending levels is why we are facing our current situation. Now is the time for Oregonians to say NO to the Democrats’ plans to increase taxes and hold them accountable in the next election.”