Oregon Senate Dems pursuing ‘Dirty Dozen’ partisan proposals

In the aftermath of a contentious legislative session defined by partisan politics, the majority party is determined to abuse the short February session by once again advancing a partisan, polarizing agenda backed by special interests. What was originally sold to Oregonians as a chance to adjust the budget and correct legislative mistakes and omissions has turned into a strategy for advancing ideological, controversial political issues that lack transparency and pay off wealthy campaign donors.
Read more at the Oregon Catalyst Read More......

New laws effective Jan 2016: ‘Lumps of coal’ for Oregon’s economy

With the end of a tumultuous year in Oregon government drawing to a close, Senate Republicans highlighted a number of new laws that will harm working families and small businesses in the New Year.


Bills passed by the Democrat majority absent bipartisan support during the 2015 legislative session going into effect January 1, 2016 include:


Read more at the Oregon Catalyst Read More......

House OKs rewrite of driver’s license ballot title

SALEM (AP) — The Oregon House voted Thursday to rewrite the ballot title for a referendum to restore driving privileges for people who can’t prove they’re legally in the United States, taking the rare step of throwing out language written by the attorney general. Ballot titles are intended to provide a brief, neutral description of a measure. They’re regarded as crucial information for swing voters or those who haven’t done homework on an issue.

• The attorney general’s ballot title says the measure “provides Oregon resident ‘driver card’ without requiring proof of legal presence in the United States.”
• The Legislature’s ballot title say the measure “establishes limited purpose, duration driver card for individuals who prove Oregon residency, meet driving requirements.”

Read more at Hearald And News

UPDATE:  Good job people! This rewrite was so bad-- and the people put up such a fuss-- that the Senate did not pass the House's misleading title change! Read More......

Oregon driver card bill headed to the November 2014 ballot

Note: Jeff Kropf was extremely unhappy with the highlighted sentence below. The numbers of verifiable signatures were higher than shown in this report. He asks supporters of the initiative to read the article and comment if they believe the reporting was biased.

Voters will weigh in next year on a bill granting “driver’s cards” to Oregonians unable to prove they are in the U.S. legally. ✧ The Oregon Legislature passed Senate Bill 833 earlier this year, but opponents, led by Oregonians for Immigration Reform [OFIR] and Protect Oregon Driver Licenses [PODL], vowed to refer it to the ballot, hoping voters would overturn the law. ✧ Earlier this month the groups submitted nearly 71,000 signatures to refer the measure to voters and Friday morning Secretary of State Kate Brown announced on Twitter that the referral qualified for the ballot. ✧ The measure barely qualified for the ballot. Of the 70,973 unverified signatures submitted to the Secretary of State’s office, 58,291 were validated. Supporters of the referral needed 58,142 valid signatures to qualify. Read more at OregonLive... Read More......

Dan Lucas: Oregon Democrats have a PERS dilemma

The thrust of the Democratic rocket in Oregon reached its zenith recently, and we witnessed its stall in the legislative session that just ended. ✧ Democrats controlled everything in state government, but they were paralyzed by the huge PERS dilemma. Like the stages on the old Saturn rockets, the older tiers of PERS that helped get Democrats where they are have started to become a drag. ✧ So how long before Oregon Democrats jettison the older tiers of PERS retirees?

Read more at Statesman Journal... Read More......

Is Oregon Writing the Worst Gun Law Evah?

IMPORTANT! The Benton County Republican Women are organizing a campaign to write, call and email the Oregon legislators (all Democrats) responsible for this "Emergency" gun grab bill. Watch for details and please join the effort.

Hot Air, February 23, 2013 by Jazz Shaw - Living in New York, we’re no strangers to really restrictive new gun laws, but you sort of expect that out here. We now have real competition in the race to the bottom, though, if Democratic legislators in Oregon have their way. In fact, if HB 3200 gets passed into law on the 25th, pack up and leave the state if you have any interest in Second Amendment rights. Read more at Hot Air... Read More......

Oregon Legislature set to erase 190 state government positions

SALEM -- About 190 positions, mostly mid-level managers, would be eliminated throughout Oregon state government under a proposal scheduled for action this week by the Legislature.   ✧ Most of the cuts would come in the health and human service agencies and to prisons and state police. Although the state often "reduces" its ranks by not filling vacancies, this round could involve dozens of layoffs. It's all part of an effort to increase the ratio of line workers to managers in state government, which has been criticized as too top-heavy, and to shrink the size of the state workforce.  Read more at Oregon Live... Read More......

Rep. Richardson: Final Gavel Falls-2012 Legislative Session Adjourned

Rep. Richardson's Newsletter, March 7, 2012

This week the final gavel fell ending Oregon’s five-week, 2012 legislative session. For a complete list of what was accomplished during the 2012 Legislative Session, See 2012 Key Votes PDF. ✧ There were four key goals for this short, even-year session: Rebalance the State Budget, pass transformative legislation for education and health care, and create a clear path for Oregon’s economic recovery and jobs for Oregon workers. ✧ Bipartisan cooperation and compromise enabled legislative success in meeting the first three of Oregon’s key goals. Read Rep. Richardson's full newsletter...

Read More......

CPI: Rural Oregon Is Tired of Being Ignored

CASCADE POLICY INSTITUTE, 5/31/2011 by Karla Kay Edwards - A statistic commonly used to highlight the economic hardship Oregonians bear is that Oregonians on average earn 91 cents to every dollar of average earned income nationwide. But that story is even more dramatic for rural Oregonians, who earn a mere 75 cents on the dollar when compared to personal income nationally. Yet, the Oregon legislature has done nothing significant to begin to change this dire... Read more at CPI... Read More......

Madison in Federalist 57

From the book, We Still Hold These Thruths: Rediscovering Our Principles, Reclaiming Our Future by Matthew Spalding...

If the American people, Madison wrote in Federalist 57, “shall ever be so far debased as to tolerate a law not obligatory on the legislature, as well as on the people, the people will be prepared to tolerate any thing but liberty.”

What did our legislators just do in passing the health care bill? Next Tea Party is April 15th (see Events Calendar)! Read More......

Legislative leaders speak out on special session

OREGON POLITICO, 2/28/2010 - [Excerpt] Roseburg Republican Bruce Hanna, House Minority Leader, made clear his frustrations on the legislature’s attempts to improve job creation in the state. ∴ “There was a lot of talk about creating jobs, but the only jobs that were created this session were 200 new government positions that’ll be difficult for us to sustain in the future,” stated Hanna. ∴ “It’s unfortunate that rather than curbing spending, legislative leaders drained reserves, increased state debt and then called for a federal bailout for the next budget.” Read more at Oregon Politico... Read More......

State spending on unsustainable path

PORTLAND INSIGHT/Opinion, 2/25/2010 - Huge budget shortfalls have become a tradition for Oregon’s state government – and the latest prediction from Salem is that they will continue for as far as the eye can see. Read more at Portland Insight... Read More......

Democrats play election-year politics with public safety

OREGON REPUBLICAN PARTY, 2/17/2010, House Republicans Join Crime Victims, Law Enforcement in Calling for Repeal of 2009 Earned Time Law - SALEM: House Republicans today joined Oregon’s crime victims and members of the law enforcement community in calling for the repeal of a 2009 law that has allowed violent criminals to seek- and in many cases win- early release from prison. They opposed the Democrats’ effort (SB 1007) to suspend these early releases until after the November elections have passed. ∴ “The Legislature can’t ‘fix’ the damage that has been done to crime victims by the expansion of the earned time law,” said Rep. Andy Olson (R-Albany). “Suspending this expansion for the campaign season, rather than repealing this flawed policy, is yet another insult to these victims. It is also an insult to Oregon’s law enforcement community that has worked hard to put these criminals behind bars.”

During the 2009 session, Democrats pushed the suspension of Measure 57 and the expansion of the earned time law in order to save $6 million in a $52.9 billion state budget. Since HB 3508 was passed last year, 4,800 early releases have been granted and some of the criminals who’ve been released have already re-offended.

“The horse has left the barn; 4,800 felons have already been granted early release under the 30 percent law,” said State Representative Kim Thatcher (R-Keizer, Newberg, St. Paul). “We’re trying to close the barn doors for a couple of years but that just doesn’t make any sense. It’s bad public policy now and it will continue to be in the future.”

Rather than passing an election-year freeze of the law, House Republicans favor repealing the earned-time portion of the 2009 law and reinstating the maximum 20 percent earned time law that has protected the public for 20 years.

“The Attorney General, Oregon State Sheriff’s Association, Oregon Chiefs of Police and the District Attorney’s Association have begged this institution to repeal this law,” said Rep. Tim Freeman (R-Roseburg). “Unfortunately, this plea has fallen on deaf ears in the Legislature. It is a mistake to destroy truth in sentencing in Oregon and send the wrong message to career criminals.” Read More......

Special Session: Employer gag bill update

OregonWatchdog.com - The [Oregon] House Business Committee will introduce yet another re-write of the “employer gag bill,” again at the behest of the AFL-CIO. This is the second re-write in addition to the passage of the original SB 519 last year. The new bill will expand the political content that employers are prohibited from discussing with employees to include ballot measures. However, the new bill will specify that employers are allowed to hold mandatory meetings on such things as workplace safety and other topics directly related to the job. AOI’s legal counsel has assured AOI that the new bill will not sidetrack our pending federal lawsuit challenging the validity of SB 519.

AOI’s lawsuit against SB 519 (2009) is progressing toward a hearing for Summary Judgment in early April in federal court in Portland. AOI, in conjunction with the US Chamber of Commerce, is challenging SB 519 as an illegal intrusion on federal labor law as well as an unconstitutional abridgement of an employer’s First Amendment free speech rights.

See reports on three additional business related bills at OregonBusinessReport.com. Read More......

Newsletter: Rally with us (2/15)!

"War is an ugly thing, but not the ugliest of things. The decayed and degraded state of moral and patriotic feeling which thinks that nothing is worth war is much worse. The person who has nothing for which he is willing to fight, nothing which is more important than his own personal safety, is a miserable creature and has no chance of being free unless made and kept so by the exertions of better men than himself." …. John Stuart Mill (1806 - 1873)

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“WE WANT LESS!” say Oregonians at Rally
Oregonians will gather Monday on the steps of the Oregon State Capitol from 11 a.m. to 1:00 p.m. Monday, February 15 with a unified message, “WE WANT LESS!” ∴ Oregon families and businesses will gather to ask the Legislature and the governor to avoid the temptation to raise additional taxes, including the taking of the “Kicker.” Instead, the Legislature should focus on reducing the tax and regulatory burden on hard-working Oregon families and businesses. This exciting event will include a march around the Capitol . BRING A HOMEMADE SIGN URGING FISCAL RESPONSIBILITY, LOW TAXES AND JOB CREATION!! ∴ Prior to the rally, Americans for Prosperity will hold a “Thank You” event on the West Capitol steps at 10:00 a.m. Also, important statewide and local initiatives for 2010 and 2012 will be introduced. AFP chapters are FIGHTING TAX AND FEE INCREASES. ∴ After the rally, you are invited to visit your Legislators.

• Sen. Frank Morse (R-District 8) represents Albany, Corvallis and Philomath.
• Sen. Brian Boquist (R-District 12) represents Alsea, Monroe, and rural Benton County.
  
• Rep. Andy Olson (R-District 15) represents Lewisburg, Adair and North Albany.
  
• Rep. Jim Thompson (R-District 23) represents northwest, western, southwest and southern Benton County.
  
• Rep. Sara Gelser (D-District 16) represents Corvallis and Philomath.

Multiple articles follow: Join the rally to support Sarah Palin in Eugene on April 23
Although all seats are already sold at the Lane County Republican Lincoln Day Celebration on April 23, a rally is being organized outside the Eugene Hilton in support of Sara Palin’s appearance there. Please make your sign and plan to go to Eugene that day to let the town know that Sarah has many supporters in this area. The time will be announced later. Watch for more announcements.

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“Oregon Train Wreck” being worsened by Democrat decisions
Projected state revenue income from tax collection and lottery fund profits is projected to be DOWN by more than $190 million since the December 2009 forecast. It has dropped more than $400 million since July 1, 2009. Also, the 2009 fourth quarter report was the seventh consecutive month of job losses and declining revenue.

IT’S TIME TO REEVALUATE THE POLICIES THAT HAVE CREATED THIS ONGOING TRAIN WRECK. Oregonians need to reconsider the wisdom of raising taxes, enlarging fees, and expanding regulation on the business community. We must preach loud and long that it is the business community that sustains our private sector jobs and state economy!!! But unfortunately, in the early days of the 2010 “Emergency Special Session” it does not appear that the majority of the Dems are reconsidering their policy choices.

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“Emergency Special Session” is an excuse to attack private property rights

Rules of the “emergency special session” allow each senator to request two bills to be drafted and each Representative can request that one bill be drafted. And true to form, the D’s are stacking the deck by creating exceptions to the time limits and time frames, which will allow themselves to introduce any bill at just about any time.

Rep. Doug Whitsett (R-Klamath Falls, District 28) says that the only thing special about the emergency special session is that it appears to be designed to virtually exclude public participation in the law making process !! When a public hearing and work session on the bill is going to be held, the public gets only one days’ notice!! This just about eliminates the opportunity for most people in Eastern, Southern or Coastal Oregon to participate in the law making process. By the time the people find out what is being done to them, the opportunity to testify at a hearing or work session has already passed. ONE HOUR COMMITTEE NOTICE can be forced on the Legislature at any time. IT MUST BE THE NATIONAL DEMOCRAT POLICY TO LEGISLATE BEHIND CLOSED DOORS. Washington D.C. has nothing on Oregon!!

BILLS THAT CONCERN THOSE WHO LIVE AND WORK IN RURAL OREGON:

SB 1060 (introduced by Sen. Alan Bates of Ashland) proposes to CHANGE the term “Navagable stream” to “floatable stream”. It then defines a floatable waterway as any stream, lake, or reservoir that is capable of floating any device at any time of the year, in spite of shallow riffles and cobbles. The bill prevents any obstruction across the stream that would potentially interfere with floating devices, like a fence or a diversion dam, even if it is located on PRIVATE LAND. This bill forces owners of private land to let the public cross their land to get to these streams. Three proposed amendments to this bill make it even worse. THIS IS A HUGE ATTACK ON PRIVATE PROPERTY RIGHTS!!!

HB 3661 proposes to exert draconian restrictions on the construction and use of domestic wells that provide water for families and livestock. Landowners currently have the right to construct domestic wells on their property without a water right permit. This has always been an inherent property right in Oregon. The landowner is entitled to beneficially use up to 15,000 gallons per day from the well for family household use. In addition, the landowner is allowed to water his livestock and to irrigate up to one half acre of lawn and garden from the well. Those who have group domestic wells and who have wells for industrial uses have similar property rights. HB 3661 PROPOSES TO REDUCE THE TOTAL AMOUNT OF ALLOWABLE USE FROM ANY NEWLY CONSTRUCTED DOMESTIC WELL TO 5,000 gallons per day INCLUDING WATER NEEDED FOR GARDEN, LAWN AND LIVESTOCK WATERING. Group domestic wells would allow only one ½ acre parcel to be irrigated from each group domestic well! Industrial use would also be limited to 5,000 gallons a day, including water for landscape maintenance.

BOTH THESE BILLS HAVE CONSTITUTIONAL “TAKINGS” ISSUES. In addition, these bills are not needed!! They will certainly reduce the opportunities for building new homes and businesses dependent on groundwater, thereby costing jobs, hurting the economy and reducing state revenue. And most certainly, THEY WILL NOT BE GOOD FOR RURAL OREGON.

STAND UP FOR RURAL OREGON! Stop government from destroying those who produce our agriculture!!

GOVERNMENT WILL COME FOR YOU NEXT!

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JOB ALERT: Workers to conduct the 2010 U.S. Census are now being hired. Call the Central Clearing House at 866-861-2010 and ask for a referral for U.S. Census Workers to find out if you can get a job helping with the census.

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J. Nelson Read More......

Senator Frank Morse 2009 Session: Looking Back…

John Detweiler suggests that we read Sen. Morse's Newsletter, particularly his "...comments on a rainy-day-fund and his letter from a friend to get an idea of what the additional taxes will do. As this tax flap heats up, the ideas in this newsletter are good fodder for letters-to-the-editor." Senator Morse's entire newsletter (Volume 14) is reproduced below.

FURTHER REFLECTIONS ON THE 75th LEGISLATIVE ASSEMBLY
FISCAL - This legislature may ultimately be known for what it didn’t do as opposed to what it did do. At a time of unprecedented economic implosion, a time when the most glaring weaknesses in our state’s fiscal policies have been brutally exposed, what did the legislature do to address the weaknesses? Regrettably, nothing. $2.0 billion in new taxes were enacted, but nothing was done to address the lack of a meaningful Rainy Day Fund, the presence of which would have eliminated the need for new taxes.

The fact that our income tax structure is the most volatile of any tax structure is not a new concept. We have known this for years. And that our dependence on this one form of revenue is singular to all other states is also not new information. We have known this for years also. We also know that a majority of Oregonians do not want to create any new tax structure, even if it means greater stability and reduces the total tax burden now paid. In the mind of taxpayers, the legislature is not to be trusted and we have known this for years as well.

What is new is that in this time of economic stress, when the absence of an adequate Rainy Day Fund could never have been more exposed to the consciousness of Oregon’s citizens, the legislature did not seize on this opportunity to refer to voters a means to create a constitutionally dedicated Rainy Day Fund.

My highest priority this session was to refer to voters SJR 29. One hearing was held with particularly strong support from business. The bill’s summary is as follows: “Establishes reserve fund intended to provide funding in response to economic decline. Establishes mandated savings rate from surplus revenues. Transfers surplus revenue above estimate for biennium to reserve fund. Returns surplus revenue that exceeds certain thresholds to taxpayers. Refers proposed amendment to people for their approval…”

The bill would create a mandated 1% savings from current revenues which would require the legislature to budget for the 1% savings. The bill also would amend the “kicker” provision of the constitution to provide that unanticipated personal income tax evenues up to 6% in excess of the forecasted revenue, would go into the Rainy Day Fund. Any excess above the 6% would be returned to tax payers and when the fund then equals 10% of the previous general fund budget, ($1.4 billion current dollars), any excess above the forecast revenue would be returned to taxpayers. Corporate income taxpayers would be treated similarly.

Had this bill been in effect in 2007, we would have had an extra $1.4 billion to provide funding for critical services and no new taxes would have even been considered.

So, what we now have are highly contentious tax increases that dampen any expected economic recovery and likely will be referred to voters for a January 2010 election. Citizen referendums of legislative tax increases have always succeeded in Oregon and this history is not likely to change come January.

What disappoints me the most is that this legislature has sacrificed the opportunity to build desperately needed stability into funding for education, public safety and human services. If voters overturn the tax increases, the well of cynicism and distrust will have only been dug deeper, and any chance of referring SJR 29 to voters in the February session will have been lost. Quite simply, the legislature has sacrificed the opportunity for stability on the altar of an ill conceived tax increase plan. Oregon has not been well served in this legislature’s rush to new taxes.

A Poignant Letter From a Friend
Of the many excellent letters we receive, I cannot recall sharing any of them in our previous newsletters. I believe the following letter is particularly worth sharing. It was written to the leadership and Governor and shared with me as the author is a close friend.

“I write to express extreme displeasure with your votes to impose permanent Oregon income tax increases without making necessary real spending cuts or considering long overdue structural reform of our tax laws. Furthermore I have been shocked by your comments in the media reflecting a total lack of understanding regarding the unintended consequences of your actions, not to mention openly celebrating the highest income tax in the country on the floor of the legislature.

Our company is family owned with roots going back over 100 years. We are a Sub S company with over 300 employees earning generous wages and benefits, and we do not rely on the lavish tax credits and loans that you regularly dole out to trendy new endeavors with flawed business models (ethanol). Our shareholders receive a modest dividend ( they would earn more risk free if the company is sold) and the “wealth” reported on their Oregon income tax returns remains in the company to grow the business, secure jobs, and retain the confidence of our lenders during difficult times such as we are currently experiencing. We compete with the largest agribusiness companies in the country and our industry is highly capital intensive so it is imperative that we maintain a strong balance sheet. Our family is actively engaged in non-profit work and annually contributes between 3% and 5% of pretax profits to worthy organizations.

The tax and spend policies as proposed and implemented on the federal and state levels will extract over $600,000 in additional taxes from our company. In order to maintain the financial strength of the company we will reduce the dividend that goes to our shareholders and eliminate our corporate giving program. From a longer term standpoint we will not re-invest in the state, but focus our investments in other western states where we do business. My family came to Oregon in 1863 and I love our state, but with the government now totally controlled by the public employee’s union and with the repeated failure of leadership in Salem I have never been more pessimistic regarding Oregon’s economic future. I have always dismissed those who chose to move across the river and I am depressed to find myself weighing the pros and cons of retirement in another state. I am a fervent supporter of a progressive tax structure and I want to responsibly fund education, infrastructure, and public safety. But you have crossed the line by placing inordinate tax burdens on small and family owned businesses thereby stifling new job creation and precluding a balanced approach to financing our community needs.”

It is my sincere hope that the Governor and Legislature will take up the task of building the financial foundation our state so desperately needs.

Best wishes for a safe and enjoyable summer.

Frank Morse Read More......

Oregon 2009 Session by the Numbers

OREGON HOUSE REPUBLICANS, July 13, 2009 (Hat tip: Lou Copes)

$1.6 billion - The total amount in new taxes and fees approved by the 2009 Legislature. The revenue increase from these legislative actions will increase to $2 billion in 2011-13.

$733 million
The total amount in permanent, job-killing income and corporate tax increases.

43,000
The number of jobs that independent economist Randall J. Pozdena, Ph.D. estimates Oregon will lose due to the income and corporate tax increases alone.

12.2 percent
Oregon's June 2009 unemployment rate. Oregon currently has the second highest unemployment rate in the nation.

241,000
The number Oregonians who are unemployed.

98,000
The number of Oregon jobs lost since June 2008. (Oregon's unemployment rate a year ago was 5.5 percent.)

542
New jobs "created" by the Democrats' $255 million borrow-and-spend stimulus plan ("Go!Oregon").

$19 million
General Fund cost per year to service Go!Oregon's debt costs.

$1.259 billion
The amount of new government debt backed by General Funds and Lottery Funds. (This does not include the $168.3 million in debt passed at the beginning of session.)

$52.9 billion
The amount of Oregon's 2009-11 Total Funds budget.

9.3 percent
The increase in Oregon's Total Funds budget compared to the previous Legislatively Approved Budget.

$1.258 billion
The total amount in one-time stimulus and savings account funds in the 2009-11 budget- money that will not be available again to sustain 2009-11 spending levels.

$581.5 million
Estimated amount of state employee benefit premiums. Oregon is the only state that doesn't require its workers to contribute towards their benefit premiums or pay deductibles.

$237 million
The estimated 2009-11 roll-up costs of pay raises awarded by Democrats to state employees and managers during the 2007-09 biennium.

26 percent
The percentage of Oregonians who say they approve of the 2009 Legislature's performance (The Riley Report: Oregon Voter Survey, June 2009. Riley Research Associates) Read More......

AFP: A Teachable Moment

From America for Prosperity (AFP) Blog, 6/6/2009 - A Teachable Moment: Last Friday, I attended the Senior awards ceremony for my daughter's high school class. She attends a large suburban school which has a good mix of students from differing cultures and economic circumstances. It was about a 90 minute event at which numerous recognitions and scholarships were handed out to the graduating class of about 400. ∴ One of the scholarships took the form of a free laptop that was presented to the class Valedictorian by Best Buy, which has a large store less then a mile from the school. This was just one of several presentations by local businesses. ∴ As the Best Buy award was being announced, I turned to my wife and said, "I wish I had 60 seconds at the mic right now." I saw an opportunity to make a connection for the audience that they were unlikely to make for themselves. ∴ I would have explained to the crowd of students, parents, administrators and community members that the Legislature was currently engaged in an effort to make it very difficult or impossible for Best Buy and other businesses to continue to provide scholarships for students. That the Legislature wanted to force Best Buy to give money to schools through higher taxes - after running it through the government employee unions so they could skim off their take. Read more at AFP... Read More......

Sen. Morse: Taxes & The Budget

2009 Oregon Legislative Session News Update by Senator Frank Morse, Volume 11

“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” ~ Winston Churchill

“The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.” ~ Mark Twain

By the end of this session, I hope we have something more than skin and a handle left. As the session begins its final weeks, the overshadowing issue is the budget: how big and who pays. In the context of the worst economy since the Great Depression, two schools of thought have emerged. As would be expected, (though unfortunate), they are partisan. One is represented by Democrats, the other by Republicans.

The Democrat school of thought is to begin with what is called the Essential Budget Level as determined in the Governor’s Recommended Budget which was prepared in 2008, long before the full depth of this recession was known. The EBL assumes a roll up of all costs to continue existing programs, plus the costs of what is known as policy option packages to add new services and programs. When “cuts” are mentioned in the Democrat plan, they represent cuts from the EBL and not cuts from existing spending. Further, the Democrat plan calls for $800 million in new taxes from businesses and high income taxpayers. It is important to remember that raising the personal income tax from 9% to 11% for the 31,000 taxpayers who have incomes above $125,000 is mostly a tax on small businesses who are incorporated as Sub S, LLC’s and partnerships.

On the other hand, the Republican school of thought is to begin with the Legislatively Adopted Budget for 2007-09 as the starting point and then add targeted increases based on the most critical needs. The Republican “Back to Basics Budget” plan proposes to increase spending by 5% over the 07-09 Legislatively Approved Budget and assumes that a combination of reducing costs and utilizing the very un-transparent Other Fund Reserves is preferable to raising taxes. One of the most obscure parts of state government is the reserves held by fee supported regulatory agencies. The Republicans believe the use of these reserves is much preferred to raising taxes.

Generally, there is a very basic difference in philosophy between the parties. There is the belief within the Democrat plan that businesses and high income taxpayers do not pay their fair share; therefore, raising taxes on these groups is the equitable thing to do. Republicans believe that businesses and the private sector are the foundation of our economy and that increased taxes will lead to fewer jobs. The Legislative Revenue Office has determined that the result of $400 million in increased taxes will “result in an estimate of 5,865 less jobs due to the short-term demand side effects of the tax increase”. The Democrat proposed $800 million tax increase would result in nearly 12,000 estimated fewer jobs. The Republicans believe it makes little sense on the one hand to spend money to stimulate jobs and then on the other hand to tax money out of the economy that results in fewer jobs.

Additionally, businesses will be faced with legislatively mandated insurance cost increases of an additional $250 million. (Premium tax to insure more uninsured, increased mandates and Oregon Medical Insurance Pool increased assessment). Republicans believe that putting a $1 billion + stress on business is not only unwise, it is dangerous at this particular time.

Obviously, there are no easy decisions to be made. What follows is the Back to Basics Budget as proposed by the Senate and House Republicans. I welcome your comments.

Back To Basics Budget Highlights – Updated on May 21, 2009
• The Back to Basics Budget is a fundamental shift in the way Oregon begins its budget process. Rather than starting with a number based on unsustainable growth the budget starts with what state agencies are spending today. The budget recognizes Oregon is a different place than it was in 2008 when the “Essential Budget Level” was set.

• The Back to Basics Budget does not rely on $800 million in new taxes.
  
• The Back to Basics Budget provides $6.245 million to K-12 education.
  
• The Back to Basics Budget makes an additional $500 million investment in human services for the upcoming budget cycle.
  
• The Back to Basics Budget funds voter approved Ballot Measure 57 (2008) with savings proposed by groups including the Oregon District Attorneys Association.

Background
The Ways and Means Co-Chairs recently released a budget based on a potential $4 billion shortfall from Essential Budget Level (EBL). The EBL is based on numbers from May 2008. Much has changed since the number was released and the EBL is clearly unsustainable. In the Back to Basics Budget we are basing our recommendations on the 07-09 Legislatively Adopted Budget (LAB). This is the budget that was approved in 2007. From the 07-09 LAB we are then asking agencies to justify any increases.

The attached spreadsheet is a roadmap to a 2009-11 balanced budget without the need for tax increases. It is based on the 2007-09 LAB, the use of federal stimulus and some state reserve funds along with a hard look at the ending fund balances in agencies that use other fund dollars. The Back to Basics Budget is a bridge through the current economic downturn and does not rely on tax increases from Oregon families. It allows agencies to continue current operations at current levels.

Starting Point
The Back to Basics Budget is based on the 2007-09 Legislatively Adopted Budget. We begin by holding services such as K-12 Education, colleges and universities, public safety agencies and human service providers harmless from cuts. The groups will have the same amount of money for the 2009-11 budget cycle that was approved in 2007.

Additional Funds
The Back to Basics Budget relies on two types of additional funds. The budget uses $941 million in Federal Stimulus money and $436 million in Rainy Day and Education Stability Funds (state reserves). The Federal Stimulus money does come with Maintenance of Effort (MOE) requirements meaning we cannot reduce state support to certain programs without jeopardizing federal money. To comply with these requirements the Back to Basics Budget prioritizes those programs within education and Human services which have MOE requirements.

Spending
The Back to Basics Budget is based on spending levels from the 2007-09 Legislatively Adopted Budget. The plan holds services like K-12 education harmless from cuts. Targeted increases include $28 million to fully fund the new Oregon State Police Troopers which were phased in over the 2007- 09 budget cycle. The budget also increases spending on human services by more than $500 million to compensate for increased caseloads based on the economic downturn.

For reference, total program area spending (after budget reductions) for the 2007-09 biennium was $14.373 billion.

To fund Ballot Measure 57 (2008), in which voters demanded increased prison time for those who commit property crimes, we are implementing cost savings measures proposed by groups including Oregon’s District Attorneys. With these cost savings Ballot Measure 57 can be implemented in a cost-neutral manner.

Other Sources of Savings or Enhancements
The Back to Basics Budget contains $529 million in funds based on an attached list of targeted savings. The budget also uses $500 million from the ending balances of agencies that receive “Other Funds.” On June 30, 2009 those accounts are projected to have more than $2.5 billion that was not used during the 2007-09 budget cycle. The Legislative Fiscal Office has confirmed we can use $500 million to help with the 2009-11 budget.

For 2009-2011 Budget Proposal Comparisons please download Sen. Morse’s full report HERE (pdf).

For the Oregon's Back to Basics Budget see HERE. Read More......

ORP Daily Briefing

Thursday May 28th, 2009
From the Oregon Republican Party (ORP) Communications Office

Message of the Day: The Senate Republicans have produced an excellent document about the budget: The Senate Top Ten Truths about the State Budget. This, at a time that State Agencies have $4.9 Billion in ending fund balances. It’s time for the Back to Basics Budget! Click here

ORP Theme of the Week: Referring tax increases to the voters preserves the basic political right of Oregonians to have a say in how much they are taxed and what government spends OUR money on. The Salem D’s know they are out of step with Oregonians on increasing taxes. It’s time to cut deeper and not rely on new tax revenue to balance the State Budget.

ORP News: The Oregon Republican Party is coordinating with a variety of groups opposing the Democrats’ tax increases. We are pleased to work with our partners in giving the opportunity to say NO to new taxes. We can support basic government services without raising taxes – support the Republican Back to Basics Budget! Stay tuned!

Top Story: “Dr. NO” – the former Governor who called Oregon ‘Ungovernable’ wants a ‘makeover’ as Oregon Governor. John Kitzhaber is planning a comeback. Knowing what we know about how John Kitzhaber messed up Oregon last time around should make it much easier to elect a Republican in 2010! Read More......