Oregon legislative leaders announce plan to restore some cuts to senior, disability programs

Published: Monday, July 19, 2010, 8:02 PM     Updated: Monday, July 19, 2010, 8:05 PM

Michelle Cole, The Oregonian

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Prisons closures, elderly aid cut-off top list of proposed Oregon budget cuts

Published: Wednesday, June 09, 2010, 10:28 AM     Updated: Wednesday, June 09, 2010, 11:08 AM

Harry Esteve, The Oregonian
Three Oregon prisons would close and about 1,000 minimum-security prisoners would be let go, under a proposed set of state budget cuts released this morning.

Also on the chopping block: Oregon Project Independence, which helps seniors stay out of nursing homes by providing them in-home care; a state program that delivers meals to 240 seniors and people with disabilities; and a program that subsidizes daycare costs for low-income parents, affecting about 5,000 people.

These are among the options outlined by state agencies, who have been ordered by Gov. Ted Kulongoski to slice 9 percent from the final 12 months of their two-year budgets. Kulongoski ordered the cuts after state economists projected a $577 million shortfall in the 2009-11 budget.

If the scenarios of freed prisoners and abandoned elderly seem familiar that's because they are. Similar proposals have been made in recent years as state revenues continue to plummet.

It's unclear at this point whether this time the cuts will stick, or if Kulongoski or the Legislature will find another method for balancing the budget. For example, closing prisons requires either legislative action or special commutation of inmates by the governor.

"The governor received these plans at the same time the public did," said his spokeswoman Anna Richter Taylor.

In a news release, Kulongoski called the list of cuts, which have come from every agency, "the next step in this difficult process" of rebalancing the current budget. "There are no good answers and no easy solutions."

Also unclear early is how many state workers face layoffs under the proposed list of cutbacks. Many agencies, such as the state police, are leaving positions unfilled, but not issuing pink slips. State police would delay hiring 24 recruits, which also will postpone its goal of providing 24-hour patrols on state highways.

In other agencies, layoffs are unavoidable. School districts, which must find $250 million in cost savings, already have announced some layoffs and shortened school years.

Kulongoski and other state leaders continue to hold out hope of a federal bailout. Congress is considering two measures that could provide hundreds of millions of dollars to public schools and health programs.

Read Thursday's Oregonian for more details of the proposed cuts.

- Harry Esteve

© 2010 OregonLive.com. All rights reserved.

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Special session possible

GOP request was rejected last week, but budget realities loom

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Democrats trim unemployment bill for support

WASHINGTON - Republicans and a dozen Democratic defectors in the Senate dealt a defeat to President Barack Obama Wednesday, just days after he pressed Congress to renew pieces of last year's economic stimulus bill.

A catchall measure combining jobless aid for the long-term unemployed, aid to cash-strapped state governments and the renewal of dozens of popular tax breaks for businesses and individuals failed to muster even a majority in a test vote, much less the 60 votes that would be required to defeat a GOP filibuster.

Now, Obama's Democratic allies have been forced back to the drawing board in their efforts to pass the measure, which also would protect doctors from a looming cut in Medicare payments and raise taxes on investment fund managers. A new, scaled back version of the measure is likely to be revealed Wednesday afternoon.

Finance Committee Chairman Max Baucus, D-Mont., said after the vote that "Plan B" is to do some "shuffling, rearranging of some of the provisions" of the bill but not making wholesale changes.

Just on Saturday, Obama made a plea for the measure, including $24 billion in aid to cash-strapped state governments to help avoid tens of thousands of layoffs and ensure the economy doesn't slip back into a recession.

To try to revive the bill, top Democrats are expected to roll back last year's $25 a week increase in unemployment checks and give doctors just a short reprieve from scheduled cuts in their Medicare payments instead of relief until the end of next year. Democratic leaders promise to restore the $24 billion in state aid that was struck by Wednesday's vote.

Wednesday's defeat of the measure was unexpectedly lopsided as Democratic moderates — who almost uniformly voted for an earlier version just three months ago — joined with every Republican against the pending version on a 45-52 tally.

The vote reflected rising voter anger over deficits and the nation's $13 trillion debt. And it's by no means certain the measure can be revived to win moderate Democrats back and garner the handful of GOP votes needed to eventually pass it.

"They've laid the straw that broke the camel's back as far as I'm concerned," said Sen. George Voinovich, R-Ohio, who provided a critical vote to advance an earlier version of the measure in March. "We're talking $50 billion in new taxes, $80 billion in new borrowing. ... I've gotten to the point where I've had it."

The likely cuts mean that people on unemployment insurance are likely to see their benefits reduced by $25 a week. Doctors are likely to win only a seven-month reprieve from a 21 percent cut in their Medicare payments that's set to take effect Friday. Those steps would appear to cut about $20 billion from the measure.

Over the weekend, President Barack Obama renewed his push for the measure, warning that "hundreds of thousands" of state and local government jobs could be lost without $24 billion in Medicaid money to help states balance their budgets and $23 billion more to prevent layoffs at local school districts.

The pending bill is a catchall measure anchored by a six-month extension of jobless benefits for people who have been out of work for more than six months. It also includes the $24 billion in help for cash-starved state governments, dozens of expired tax breaks for individuals and businesses, a fivefold increase in the per barrel tax on oil drilled offshore and a new tax on investment fund managers.

Nine Republicans supported the earlier version of the bill against a GOP filibuster, as did every Democrat but Ben Nelson of Nebraska. Now, a lot of that support has eroded.

"I'm very concerned about the cost of the bill," said Susan Collins, R-Maine.

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By Peter Wong

Statesman Journal

May 30, 2010

With a potential gap of $2.5 billion looming between projected tax collections and current state services and aid to schools in the next two-year budget, the major-party candidates for Oregon governor are pledging change.

Republican Chris Dudley, who has never held elected office: "I will end the practice of automatic spending increases." Democrat John Kitzhaber, who has been governor twice before: "We must all recognize that the Oregon state government of tomorrow will not do as many things as it does today, nor in the same way."

Candidates for governor in 36 other states — and for thousands of legislative seats across the nation — are saying similar things. But a national expert said it is one thing for candidates to say they will control spending — and another for officeholders to do it. In terms of tax-supported general funds, over which governors and lawmakers have the most discretion, states spend an average of 35.1 percent on aid to schools and 16.2 percent on Medicaid, the jointprogram of state and federal health insurance for low-income people.

"If you take those off the table, you have to balance the general-fund budget from a much smaller part of the pie," said Scott Pattison, executive director of the National Association of State Budget Officers.

"But I say you have to go where the money is." In Oregon, 40 percent of the general fund and lottery proceeds go to schools — the largest chunk — and 7 percent to Medicaid. "If governors and legislators do not make major structural changes to schools and Medicaid, those programs will suck up all the new money," Pattison said.

"What is going to happen is that all other parts of government are disproportionately going to receive less or be cut more. It's simple math. I think you will see tight budgets from state funds to higher education, corrections, mental health and social services — and this is a years-long situation."

In Oregon, the crisis — or opportunity — came early in the form of a newly projected shortfall of $577 million in state tax collections for the current two-year budget cycle.

Twenty years ago, the state paid 30 percent of school operating costs, and local property taxpayers paid 70 percent. But after Oregon voters limited property tax rates in 1990 — and shifted the burden onto the state budget — the ratio is reversed today. School spending is popular with both parties because every legislative district contains schools.

With a few exceptions, Republicans joined Democrats in the Oregon Legislature last year to add $200 million to school spending and override vetoes by Democratic Gov. Ted Kulongoski. The total was $6 billion, which roughly is the same as in 2007-09. Under Kulongoski's requested across-the-board cut in the aftermath of the latest shortfall of $577 million, more than $240 million would come from aid to schools. Salem-Keizer's share is estimated at $17 million.

"I do not see how our schools withstand an added $240 million in cuts in the course of the next year," said House Speaker Dave Hunt, D-Gladstone.

The case is different with spending on Medicaid, which every state has — but which relies on federal money.

Although Oregon has budgeted $6.1 billion in the current two-year cycle for Medicaid, which is in the Oregon Health Plan, $4.2 billion of it is federal funds.

As part of the federal economic-recovery act, the state share for the current budget is $3, and the federal share is increased from $5 to $7. Slightly under $1 billion of the state's share is from the tax-supported general fund. The rest comes from earmarked cigarette and hospital taxes — voters approved a specific cigarette-tax increase in 1996 — and other sources. One fact about Medicaid that many people are unaware of, Pattison said, is that 68 percent of its costs result from just 26 percent of those covered — mostly older and disabled people with chronic medical conditions. As the nation ages, Pattison said, those costs are expected to rise while Congress has just broadened health-care coverage.

"As we see the implementation of federal health-care reform in the next few years, I expect that cost to continue to go up," he said.

In the case of the Oregon Department of Corrections, its 1993-95 spending was just short of $400 million, virtually all of it from the general fund, and it had capacity for 6,625 inmates and 196 special-purpose beds.

Under Kulongoski's across-the-board cut, the agency would lose $50 million. But even Kulongoski conceded that because of various restrictions — including other state laws, federal requirements for inmate medical care and representation by labor unions — the agency was "boxed in the most."

"The Legislature is going to have to provide additional funding for them to be able to work their way out of this," he said.

Senate President Peter Courtney, D-Salem, said the corrections budget is not the only one with heavy dependence on the general fund. Oregon Youth Authority and Oregon State Police also face substantial cuts.

"One of the core functions of government is public safety," he said. "You cannot release dangerous people to the streets."

Corrections Director Max Williams, himself a former Republican legislator, sits on a governor-appointed "reset Cabinet" that is going to put forth suggestions in June about broadly reshaping public-safety services, not just his agency.

"They are going to challenge us on the way we have always done business," he said. "They will force us to decide how much are we willing to spend, for what services, and what ultimately makes sense, judged against other state services."

pwong@StatesmanJournal.com or (503) 399-6745

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By Peter Wong

Statesman Journal

May 30, 2010

For Oregon and other states, it is no surprise that tax collections are down — even if Oregon officials were taken aback with the lower-than-expected numbers for income taxes in the quarterly forecast last week. But one national expert said all states are being hit harder than might be expected. And he said the ups and downs are greater in states such as Oregon, which rely on income taxes. In addition to people who are unemployed for long periods, working fewer hours or have had unpaid furloughs, states are not collecting as much from the higher-end earners more likely to have capital gains and investment income.

According to the National Association of State Budget Officers, 41 states are collecting less than projected for the year ending on June 30, six are collecting about as projected, and just three are collecting more. It reported some improvements in March; another survey is planned for release Thursday.

Most states levy both income and sales taxes; Oregon is one of five states without a general sales tax. "State tax revenue is more volatile and does not necessarily track economic activity," said Scott Pattison, executive director of the national group. "We have had huge declines in state revenue, well below the actual decline in the economy, and most starkly after Sept. 11, 2001."

He said it is even worse in the current downturn, which is more severe than the 2001-02 recession — and it will take years for states to recover to pre-2008 levels. Forty-three states, including Oregon, levy income taxes. Nevada and Washington are among the seven that do not. In five Western states with income taxes chosen for comparison by the Oregon Office of Economic Analysis, income tax collections were down in all but Arizona for the fourth quarter of 2009.

"A huge percentage of state income-tax revenues comes from those people," Pattison said. "Some argue that's good because it's progressive, based on the ability to pay. But we're reliant on them and it creates volatility." During the economic boom of the late 1990s, Oregon's taxable income from capital gains rose steadily until it reached $6 billion on 2000 tax returns. In the following three years, however, that income dropped by half — resulting in big losses in tax collections for the 2001-03 budget cycle. But it took a while for experts to figure it out. A similar pattern occurred in California, whose population and state budget dwarfs Oregon's. Barely three years ago, Oregon's taxable income from capital gains set a record at nearly $9.5 billion. But based on early tax returns filed for 2009 and due April 15, that amount is estimated at $2 billion. Although it's not final, that total would be the lowest since 1994.

"Capital gains are always a problem to forecast," said Josh Harwood, senior economist with the state Office of Economic Analysis. "They are not only extremely volatile, they show up in our revenue stream in April. It gets down to individuals — very segmented at the high end with a small number of returns.

"It's a reality that we are going to see volatility — but I hope not like this going forward." Oregon provides no special tax breaks for most capital gains, which are the profits from the sale of assets such as stock. They are treated as ordinary income, which has been taxed at a maximum of 9 percent.

Under Measure 66, which lawmakers passed in 2009 and voters upheld Jan. 26, individuals earning more than $125,000 and households earning more than $250,000 pay at higher marginal rates. Some of the increases are temporary, through 2012, and some are permanent. If they owe extra taxes on 2009 returns as a result of the increases, they can pay by Oct. 15 without interest or penalties.

State Economist Tom Potiowsky said experts will have a better idea by then of the effects of Measure 66 and 67, which lawmakers passed to raise a total of $727 million to balance the budget.

"A big increase in capital gains does not look very plausible in terms of something to rescue us," said Rep. Vicki Berger, R-Salem, a member of the House Revenue Committee who opposed Measure 66. "Yet this is the basket we put our eggs in when we did the tax increase last year."

But Chuck Sheketoff, executive director of the Oregon Center for Public Policy based in Silverton, has a differing view. "Without Measures 66 and 67, there's no question we would have been in worse shape," said Sheketoff, who has been critical of proposals for capital-gains tax cuts.

Dudley opposed Measure 66. Kitzhaber supported it, but said he agreed with critics that it increased Oregon's dependence on income taxes. "We have to ask ourselves three basic questions about the tax code: Is it fair? Is it stable? Does it align with our economic development objectives or enhance the kind of economicactivity we want to occur in this state?" he said.

Copyright © 2010 - StatesmanJournal.com All rights reserved.

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© 2010 OregonLive.com. All rights reserved.

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Error makes Oregon state budget shortfall even bigger

By Harry Esteve, The Oregonian

May 27, 2010, 2:56PM

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To read the full revenue forecast, please visit:

 http://www.oregon.gov/DAS/OEA/economic.shtml#Most_Recent_Forecast

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Recovery will be slow, state economist says

Governor calls latest state economic forecast 'manageable,' despite projected budget shortfall of more than $100 million

By Peter Wong
Statesman Journal

Monday's economic forecast, the seventh in a row to show declining tax collections, will prompt lawmakers to find more than $100 million in spending cuts, reserve shifts or reduced tax breaks to balance the state budget.

State Economist Tom Potiowsky said the latest forecast, which he presented to lawmakers on the House and Senate revenue committees, was in line with recent trends toward a slow economic recovery from the worst downturn in three decades.

"We think it's a jobless recovery," he said. "We think there's a little bit of a soft patch in the second half of this year, but no recession — and it will be 2011 before we really see things grow strongly."

Potiowsky said job growth should occur in the next quarter and pick up the rest of this year, but that real growth would take place in 2011. He said that growth would come from jobs in new or growing sectors, such as alternative energy and electronics, and less from traditional sectors such as construction.

But his latest quarterly projection indicates that tax collections and other income into state coffers will drop another $183 million from the previous forecast Nov. 19. It would leave the two-year state budget $106 million short of balancing, after an ending-fund balance is subtracted.

Virtually all of that projected loss, Potiowsky said, is from personal income taxes. He said it is based on lower estimated tax payments from the self-employed and higher-income individuals, who do not have their taxes withheld from wages. Unpaid furloughs and reduced work hours also result in less taxes.

The forecast showed a slight uptick in corporate income taxes. Potiowsky said pending restrictions in business energy tax credits — though required to balance the current budget — could trigger a "kicker" rebate to corporate taxpayers at the end of the 2009-11 budget cycle. Businesses need to generate only $16 million more in taxes to reach the threshold.

Lottery proceeds also continued on a downward trend.

Senior Economist Josh Harwood said the Oregon Lottery is taking steps to counteract the trend, but there are indications that during the economic downturn, "some people are not playing at all — they're not playing less."

Gov. Ted Kulongoski said the latest shortfall is "manageable."

"I will continue to work with the Legislature to find a prudent and responsible path to balance this budget," he said.

The House Revenue Committee took one step Friday toward closing the latest budget gap by approving new restrictions on business energy tax credits, particularly on large wind projects. The restrictions, which were not taken into account in Monday's forecast because they have not yet become law, would gain state coffers $55 million for the current budget cycle.

Legislative leaders planned on additional budget trimming to make up most of the rest of the gap.

"Our strategies and principles for rebalancing the budget do not change with this news," said House Speaker Dave Hunt, D-Gladstone. "We will focus on job growth. We will protect core services of education, health care and public safety. And we will balance the budget with a combination of very modest cuts and reserve funds."

Lawmakers have the most discretion over the tax-supported general fund and lottery proceeds, which together added up to $14.7 billion for the current two-year budget that started in mid-2009. The three projections since June 2009, including Monday's forecast, have brought down the combined total to $14.5 billion.

"Fewer jobs mean less revenue," said Senate Minority Leader Ted Ferrioli, R-John Day. "Every declining forecast is merely a signal of the pain being felt by the 209,000-plus Oregonians who are searching for work. This Legislature must address the job shortfall if they ever want to see an end to budget shortfalls."

pwong@StatesmanJournal.com or (503) 399-6745

— Tom Potiowsky, Oregon's state economist

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Oregon’s economy slowing recovering, state economist says

Lawmakers will have to find savings of $100 million or more, either by spending cuts or reduced tax breaks, to balance the budget in the aftermath of today’s economic forecast.

State Economist Tom Potiowsky said today that Oregon’s economy is recovering, although slower than in previous projections, from its biggest downturn in almost 30 years.

But his latest projection, which he presented to lawmakers this morning, indicates that tax collections and other state income will drop another $183 million from the previous forecast Nov. 19. It would leave the state budget $106 million short of balancing, after an ending-fund balance is subtracted.

Oregon requires a balanced budget.

Lawmakers on the House Revenue Committee took one step Friday toward closing that hole by approving new restrictions on business energy tax credit. The restrictions, which were not taken into account in today’s forecast, would gain state coffers $55 million for the current budget cycle.

Legislative leaders were planning on additional budget trimming to make up most of the rest of the gap.

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Analyzing Measure 66

What the proposed income tax increase would cost you

By Peter Wong
Statesman Journal

Even though fewer than 3 percent of Oregon taxpayers would have to pay more, every Oregon voter will have the chance in a Jan. 26 statewide election to decide the fate of increased personal-income taxes contained in Measure 66.

Unlike a couple of previous across-the-board increases that voters rejected in 2003 and 2004, Measure 66 would raise personal income taxes only on higher-end households — generally more than $250,000 in taxable income for joint returns, and $125,000 for individual filers.

Those households would face higher marginal rates on income exceeding the limits, and a phase-out of the maximum $5,850 they can subtract in federal taxes on their state returns.

"The two policies that raise revenue are concentrated on those filers at the top end of the income distribution," said a November report by the Legislative Revenue Office, the nonpartisan staff that analyzes tax measures for lawmakers.

Measure 66 would raise an estimated net of$472 million from personal income taxes, after $32 million is subtracted for a partial tax break on unemployment benefits.

Together with Measure 67, which would raise a net of $255 million in corporate taxes and fees, Oregon expects to collect $727 million to help close a $4 billion gap projected between income for state coffers and amounts required to maintain services at 2007-09 levels.

Lawmakers also cut$2 billion, tapped about$1 billion from federal economic-recovery aid, and shifted $255 million from reserves and other funds to balance the current two-year budget.

Measure 67 was the focus of a question-and-answer story on Oct. 25.

Although businesses are primarily affected by Measure 67, Measure 66 would have the effect of increasing personal income taxes on some business owners and shareholders — those who do not pay corporate income or minimum taxes but pay taxes on profits channeled through businesses.

Although lawmakers approved both increases with the 60 percent majorities required by the Oregon Constitution, opponents — led by business groups — gathered enough signatures to force a statewide election on the measures. Neither can take effect until voters decide their fate Jan. 26. Mail ballots will reach voters starting Saturday.

A "yes" vote upholds the increases, which would take effect 30 days after the election; a "no" vote rejects them.

Measure 66 refers to voters House Bill 2649, which deals with the personal income tax.

Below is a closer look at Measure 66, based on a November report by the Legislative Revenue Office on the two tax measures and Oregon public finances. Some information also comes from the Oregon Department of Revenue and the National Conference of State Legislatures.

Background

Question: How many taxpayers will be affected by the higher taxes?

Answer: The best estimate is about 38,000 (2.5 percent) of the 1.54 million personal-income tax returns filed annually, according to Rosemary Hardin, a spokeswoman for the Oregon Department of Revenue. That share is projected to increase to 3.6 percent by 2013.

Of the 1.8 million returns filed in 2008 for the 2007 tax year, according to the department, 26,866 joint returns and 3,784 individual filers reported adjusted gross income of $250,000 or more. There also were 19,677 individual filers reporting adjusted gross income of between $100,000 and $250,000 in 2007. However, the higher tax rate under Measure 66 kicks in after $125,000 AGI, so not all individual filers in this category would have to pay more.

Q: What is adjusted gross income?

A: Adjusted gross income is the sum of various sources of income, such as wages, net business income, pensions and capital gains. It is the starting point for calculating Oregon taxable income, which is AGI plus additions minus subtractions, such as the deduction for federal taxes, which is explained below.

Q: What is taxable income?

A: For most taxpayers, "taxable income" is about 70 percent of AGI, but increases to 90 percent for filers with an AGI exceeding $500,000. Taxable income is almost always less than adjusted gross income, according to the Legislative Revenue Office. The difference is important because of the two ways that Measure 66 affects higher-end households (see below).

Q: When did Oregon begin to tax personal income?

A: In 1930, when the top rate was 5 percent and the top tax bracket for a joint return was $8,000. There were five brackets back then. The top marginal rate, top bracket and numbers of brackets have fluctuated over the years. The top rate was as high as11.6 percent in 1955-56 and 10.8 percent in 1982-84 — both periods during which lawmakers faced budget shortfalls.

Q: When was the current top rate set?

A: In 1987, following a 1986 overhaul of the federal tax code, definitions from which Oregon uses with some exceptions. The 1987 change collapsed seven tax brackets into three — the top bracket for a joint return is just $10,000, although it is adjusted for inflation — and the top rate was trimmed from10 percent to the current9 percent. (The 1987 law also reduced corporate income taxes from 7.5 percent to 6.6 percent.)

Q: How much does the personal income tax raise?

A: According to the Department of Revenue, the 2007 returns raised about $5.6 billion in 2008. It is by far the largest source of money for the state general fund, which pays for most state services and aid to public schools

The changes

Q: How would things change under Measure 66?

A: There are three basic changes, according to the Legislative Revenue Office.

The simplest change is a tax cut averaging $120 for an estimated 270,000 taxpayers, because Measure 66 would shield the first $2,400 in unemployment benefits from state taxes. It would follow a similar federal tax break, which was contained in the economic-stimulus legislation that President Obama signed on Feb. 17. This break actually costs the state $32 million.

Q: What about the actual increases?

A: The change that has received the most attention is higher marginal tax rates for individual filers with taxable incomes of at least $125,000 and joint returns with taxable incomes of at least $250,000. These amounts are usually less than "adjusted gross income."

For individuals with taxable incomes between $125,000 and $250,000 — and joint returns with taxable incomes between $250,000 and $500,000 — they will pay a marginal tax rate of 10.8 percent on the excess amounts.

Example: For a couple earning $260,000 in taxable income, the first $250,000 will continue to be taxed at 9 percent maximum — $22,500 — but they will pay 10.8 percent, instead of 9 percent, on the remaining $10,000. That's an extra $180 on top of the $900 they would pay now.

For individuals with taxable incomes exceeding $250,000 — and joint returns with taxable incomes exceeding $500,000 — they will pay a marginal tax rate of 11 percent on the excess amounts.

Example: For a couple earning $550,000 in taxable income, the first $250,000 is taxes at 9 percent, the second at 10.8 percent, and the remaining $50,000 at 11 percent. Their tax bill at a flat 9 percent is $49,500; at the new marginal rates, it would be $55,000.

Q: What's the other change that affects higher-end earners?

A: The change has drawn less attention, but Measure 66 phases out the maximum subtraction of federal taxes they can take on their returns. This change is linked to "adjusted gross income," not taxable income.

For 2009, personal-income tax filers may subtract up to $5,850 — but for individual filers with more than $125,000 adjusted gross income or joint returns with more than $250,000 adjusted gross income, that amount is reduced in steps until it is phased out at $145,000 and $290,000 AGI. Households with greater AGIs could not take this deduction under Measure 66.

Example: A joint return with $260,000 AGI could subtract only $4,680 in federal taxes, not the maximum of $5,850.

Q: How much more overall in taxes will these households pay?

A: It depends on how close they are to the limits. For joint returns between $250,000 and $500,000 AGI, the average tax increase is projected at $1,130; for joint returns exceeding $500,000, the average increase is $14,969.

Q: How long do these increases last?

A: For tax years 2009 through 2012. (See below for a discussion of permanent increases contained in the measure.) The changes would raise a projected $504 million for the 2009-11 budget, although as noted above, $32 million is subtracted for a tax break on unemployment benefits.

Q: Were insufficient taxes withheld for some of these households for 2009?

A: Probably, but Hardin of the Department of Revenue said these taxpayers can pay the difference by April 15 in a lump sum or by credit card, or through monthly payment plans arranged through her agency. For 2010 and subsequent years, Hardin said affected taxpayers can change their estimated tax payments to account for the higher marginal rates.

Other effects

Q: Are some business owners affected?

A: Yes, depending on how their business is organized.

Oregon's 33,000 C-corporations, which are subject to federal corporate income taxes under subchapter C of the U.S. Internal Revenue Code, do not pay personal income taxes. They will be subject to higher corporate income taxes — or a higher corporate minimum tax, but not both — contained in Measure 67.

However, shareholders and owners of about 55,000 S-corporations — which are not subject to federal corporate income taxes — limited-liability companies, limited-liability partnerships and sole proprietorships are subject to personal income taxes on profits passed through their businesses.

Virtually all S-corporations now pay only the corporate minimum tax of $10, which would increase to $150 under Measure 67.

Q: What about the permanent increases in Measure 66?

A: For individual filers with more than $125,000 in taxable income, and joint returns with more than $250,000 in taxable income, Measure 66 would impose a top marginal rate of9.9 percent on the excess amounts starting in 2013. It would raise a projected $375 million for the 2011-13 budget.

For a couple earning $260,000 in taxable income, as mentioned above, they still would pay $22,500 on the first $250,000 — but under Measure 66, $990 on the additional $10,000,$90 more than they would pay under current law.

Q: Doesn't Oregon already have a high personal income tax?

A: Yes, but according to the Legislative Revenue Office report, its ranking among the states would not change if voters uphold Measure 66. Measured by percentage of income, Oregon would remain second highest; measured per-capita, Oregon would remain fifth highest.

Oregon would remain low among the states in total taxes. It is one of five states without a general sales tax, it does not levy a statewide property tax, and local property taxes are limited by state ballot measures.

Q: How do Measures 66 and 67 differ from previous tax measures?

A: The personal income tax increases contained in Measure 66 are focused on higher-end earners. That was not the case with Measure 28, which lawmakers referred in 2002 but voters rejected in 2003, or with Measure 30, which lawmakers passed in 2003 but voters rejected in 2004 after opponents petitioned successfully for a statewide election.

There has been no statewide election on corporate tax changes, such as proposed in Measure 67, in at least 30 years.

Q: Have other states increased personal income taxes to balance their budgets?

A: Yes. According to the National Conference of State Legislatures, they are California, Connecticut, Delaware, Hawaii, New Jersey, New York, North Carolina and Wisconsin. Increases were proposed in other states, but failed in the legislature or were vetoed by the governor. More states may consider increases this year as their tax collections lag behind the national economic recovery.

Q: Do those other increases have anything in common?

A: Yes. In all states except California — which simply increased income-tax rates by 0.25 percent across the board — the increases are targeted on upper-income households. Perhaps the biggest increases were in Hawaii, where lawmakers — over the governor's veto — raised rates from 8.25 percent to 11 percent on individual filers earning more than $150,000 and joint returns of more than $300,000.

pwong@StatesmanJournal.com or (503) 399-6745

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Chris Dudley declares GOP candidacy for governor

By Jeff Mapes, The Oregonian

December 16, 2009, 8:23PM

Chris Dudley

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Hanna passes on race for governor

By Jeff Mapes, The Oregonian

December 16, 2009, 6:21PM

House Minority Leader Bruce Hanna, D-Roseburg

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December 1, 2009

Lawmakers release spending-cut options

Tax Measures 66, 67 at stake in January affect schools, prisons, families

By Peter Wong
Statesman Journal

Potential spending cuts, which lawmakers released late Monday, could reduce aid to public schools and universities, result in less help for families and seniors, close three Salem-area prisons and trigger layoffs of state troopers and court workers.

A list was compiled by the Legislative Fiscal Office, the Legislature's budget experts, from proposals submitted by agencies for cuts of 5 and 10 percent of their current two-year budgets.

House Speaker Dave Hunt said the potential cuts make the case for Oregon voters to approve Measures 66 and 67, which would raise $733 million in taxes on higher-end households and businesses to avert the cuts.

"These cuts — on top of $2 billion in cuts we made earlier this year — would do great harm to our schools, our colleges and universities, and to core services that Oregonians are relying on in these tough times," said Hunt, a Democrat from Gladstone.

"Cutting beds from our youth justice facilities and prisons, cutting services to seniors, disabled kids and veterans, cutting programs that people are relying on in these tough economic times — those are the choices we have before us should the revenue measures fail."

But a spokesman for the opposition campaign said the list was compiled to influence the election, which will be Jan. 26.

"It's an effort to create a disaster scenario that says if these measures do not pass, the world as we know it will come to an end," said Pat McCormick of Oregonians Against Job-Killing Taxes.

"Schools will close, teachers will be fired, and grandma will be on an ice floe with a tin of cat food. I think it's all part of the political rhetoric of the campaign that proponents are waging in favor of the taxes."

The Legislature already has scheduled a four-week session starting Feb. 1, six days after the election.

The $733 million amounts to about 5.5 percent of the $13.3 billion general-fund budget, which relies mostly on personal and corporate income taxes — or 5.1 percent of the combined $14.2 billion in general fund and lottery proceeds.

The taxes fall on households earning more than $250,000 on a joint return ($125,000 for a single filer) and corporations netting more than $250,000. But small businesses object to the restructured corporate minimum tax, which would be raised from $10 to at least $150 — and as high as $100,000 on businesses with $100 million in Oregon sales.

In requesting proposals for cuts of 5 and 10 percent, lawmakers were repeating what they did back in February to eliminate a projected shortfall in the 2007-09 budget cycle that ended June 30. They coupled spending cuts, some as deep as 30 percent, with federal aid and fund shifts to balance the budget.

Some of the latest proposed cuts would be noticeable if they are carried out.

The Department of Corrections would close six prisons — including Mill Creek and Santiam correctional facilities near Salem, and the minimum-security unit at Oregon State Penitentiary — triggering release of 1,869 inmates and layoffs of about 500 workers.

State courts would be closed one or two days per week, and there would be fewer court workers. Employees already are taking unpaid days off, but not on the same days as other state workers, so that courts can maintain operations for a full week.

"Despite the claims of the corporate lobbyists running the opposition, these reports make it obvious that there is not a way to cut $1 billion from the state budget without some real harm," says Scott Moore, a spokesman for the Vote Yes for Oregon campaign for the measures. "It's clear that Measures 66 and 67 are necessary to fund the schools and basic services Oregonians depend on."

The cuts actually would have a deeper effect, because by the time lawmakers meet again Feb. 1, seven months will have elapsed in the current 24-month budget cycle.

"While I am confident that voters will approve Measures 66 and 67 in January, it is our job to prepare for the possibility of having to enact deep budget cuts should the measures fail," said House Majority Leader Mary Nolan, D-Portland.

Some agencies would lose more than their shares of the tax-supported general fund.

The Department of Human Services proposed $345.8 million in potential cuts — 10 percent of its $3.5 billion budget — which also would cost it another $385.4 million in matching federal grants.

Aside from administrative savings, the agency's list of cuts would affect direct services — more than 85 percent of which are delivered by hospitals, doctors, and other community providers.

"We are also experiencing record increases in caseloads, so it doesn't leave a lot of leeway for us," said Patty Wentz, an agency spokeswoman. "Many people did not figured they would ever be out of work, let alone turn to the state for things as basic as food."

pwong@StatesmanJournal.com or (503) 399-6745

Additional Facts

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Val Hoyle of Eugene will fill the District 14 vacancy in the Oregon House that was created when Democrat Chris Edwards moved to the Senate earlier this month.

Hoyle, 45, was appointed by Lane County commissioners. She is the director of the 100 Percent Access health-care initiative of United Way of Lane County; she is a former chairwoman of Lane County Democrats, and a former domestic and international sales manager in the bicycle industry. Hoyle also was a legislative aide to Sen. Floyd Prozanski, D-Eugene, and a former chairwoman of the Federal District Export Council of Oregon.

She will be sworn in at 5:30 p.m. Tuesday at the Capitol.

The other candidates were Carol Horne Dennis, a board member of the Lane Education Service District, and Steve Orton, a mental health counselor with the county.

— Peter Wong

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News Release

Contact:    Robin Maxey                                                                  September 14, 2009

                   (503) 986-1605   

                   robin.maxey@state.or.us                                                             

(SALEM) -- Senator Chris Edwards (D-Eugene) has been appointed to the powerful

The

“I am honored to be appointed to the Ways and Means Committee and I welcome the opportunity to provide increased opportunity for Oregonians and the responsibility to enforce the fiscal accountability taxpayers expect and deserve," Edwards said.

Edwards took the oath of office as the newest member of the Senate, Sept. 2. He was appointed by Lane County Commissioners to fill the seat vacated by former Senator Vicki Walker in July.

In the 2009 Session, Edwards served on the Ways and Means Sub-Committees on Education and Natural Resources as a member of the Oregon House of Representatives.

“Chris’s first two terms have been all about making sure Oregonians’ tax dollars are being spent wisely and efficiently,” Courtney said. “His business education, background in natural resources and budget writing experience in the House make him a natural choice for Ways and Means – the committee which will be at the center of the February session.”

Also today, Courtney announced Edwards’ appointment as the Senate representative on the Oregon Commission on Autism Spectrum Disorder. Edwards sponsored the legislation last session that created the commission.

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By Michelle Cole, The Oregonian

September 21, 2009, 4:19PM

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By Harry Esteve, The Oregonian

September 25, 2009, 9:30PM

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By Susan Goldsmith, The Oregonian

September 25, 2009, 8:52PM

View full sizeBruce Ely/The OregonianFormer State Sen. Vicki Walker (third from left) listens to a prison inmate state his case during a recent Oregon Parole Board hearing at the Oregon State Penitentiary. Walker, who was picked by Gov. Ted Kulongoski to chair the board, won't lead the agency after all, because of budget constraints. Former state Sen. Vicki Walker, handpicked by the governor to chair the parole board in July, will not take the job after all.

In a surprise announcement Friday, the governor's office said Walker will accept a position at the agency through the end of the year.

Walker was slated to be confirmed as chairwoman of the Board of Parole and Post-Prison Supervision next week along with Aaron Felton, a former Polk County prosecutor selected by Gov. Ted Kulongoski to be vice chairman. The two appointees were part of Kulongoski's plan to expand the board from three to four members.

In July, Kulongoski announced Walker's appointment, bypassing the recommendation of an advisory group that had interviewed three applicants, including Felton but not Walker. Walker resigned her seat in the Senate and had started work.

But now, citing the September revenue forecast decline of $180 million, the governor's office said it would seek Senate confirmation only for a third parole board member, which is already funded. Felton is in, and Walker is out.

According to the governor's office and Walker, the former senator agreed to remove her name from consideration and accept a limited position with the board through the end of the year at a reduced salary.

Walker, 53, was slated to make $97,000 a year as chairwoman. Her new, temporary administrative position pays $82,668 a year, though it is not scheduled to last that long.

Walker would have brought unique experience to the position. She is a survivor of child sexual abuse and her brother spent 17 years in an Alaska prison for murder before being paroled.

Oregon's parole board sets post-prison supervision conditions for every inmate released from state prison and considers parole for offenders who committed crimes before 1989 when there weren't required sentences.

The governor's office said Walker stepped up and offered to leave.

"This is a fiscal issue, and there's not the money now," said Anna Richter Taylor, a spokeswoman for Kulongoski. "She will be working to secure funding for a fourth position, and we will have to revisit this at the end of the year."

The dismal financial situation prompted Walker's decision, the Eugene Democrat said.

"There's a budget problem," she said. "It is bad, and it's getting worse by the day."

Former state Rep. Chris Edwards, a Eugene Democrat, was selected last month to fill Walker's Senate seat.

Walker said her future is up in the air.

"I am taking one for the Gipper," she said. "As soon as the September forecast came out, that did it for me. As a legislator, I'd be asking how can we be funding (a fourth position) in this environment? I wasn't prepared to put myself in that position."

-- Susan Goldsmith

© 2009 OregonLive.com. All rights reserved.

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Sen. Bill Morrisette, D-Springfield, will run for Lane County commissioner instead of seeking a third term in the Oregon Senate.

Morrisette will seek the commission seat being vacated by Bill Dwyer of Springfield, who himself was a senator before election to the commission in 1998.

Morrisette, who turns 78 next month, taught at Springfield High School from 1962 until 1990. He was a Springfield city councilor from 1987 to 1989, and then was Springfield mayor 10 years. He was mayor when the Thurston High School shootings left two students dead and 25 injured on May 21, 1998; the 15-year-old shooter, Kip Kinkel, was sentenced to 112 years in prison.

Morrisette was elected to the House in 1998, and has been a senator from District 6 since 2002.

— Peter Wong

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By Michelle Cole, The Oregonian

September 21, 2009, 4:19PM

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By Jeff Mapes, The Oregonian

September 21, 2009, 5:01PM

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Bradbury takes on his pal Kitzhaber in governor's race

Posted by hesteve September 17, 2009 17:17PM

Bill Bradbury, a fixture in Oregon politics for the past 30 years, formally launched his bid to be the state's next governor Thursday, pledging to fully fund public schools, put people back to work and protect the environment.

Bradbury's announcement sets up a Democratic primary contest against his longtime friend, former Gov. John Kitzhaber, who jumped in the race last week. Kitzhaber already has begun socking away tens of thousands of dollars in campaign donations.

In a spirited talk, and surrounded by supporters at Portland Community College Sylvania Campus, Bradbury dismissed the notion that Kitzhaber can't be beat.

"No one is entitled to be governor," he said. "It is a position that must be earned." He pledged a grassroots effort and set off on a two-day tour of the state, including stops in Salem, Eugene, Medford Ashland and Bend.

"This will be a campaign not won with millions of dollars in television ads," Bradbury said, "but in discussions in living rooms and union halls and neighborhoods across this state."

Bradbury, 60, represented the southern Oregon coast in the Legislature for 14 years, including a stint as Senate president. He was appointed to be secretary of state in 1999 by then-Gov. Kitzhaber, then was elected to the post in 2000 and re-elected in 2004.

Since then, he has worked on climate change issues, traveling the state giving presentations based on former Vice President Al Gore's movie "An Inconvenient Truth" about the environmental threats posed by global warming.

Bradbury said he wants to overcome the malaise he sees settling over Oregon politics because of chronic budget shortfalls and the prolonged employment slump. He did not offer specifics, but said "it's time to stop making excuses and pushing our troubles to the next generation."

He was introduced by former Gov. Barbara Roberts, who took an oblique swipe at Kitzhaber.

"This is no time for resting on our past laurels or polling numbers," Roberts said. Oregon needs leaders like Bradbury who work in the open to build consensus, she said, "not behind-the-scenes policymakers."

Two other Democrats say they're thinking about entering the race. Clackamas County Chairwoman Lynn Peterson, 40, is gauging support, as is Steve Shields, 52, a former Hewlett-Packard executive. On the Republican side, businessman Allen Alley, state Sen. Jason Atkinson and former state Rep. John Lim say they're running.

Bradbury, who has difficulty walking because of multiple sclerosis, rolled up to the microphone astride a battery-powered Segway, which he said he uses instead of a scooter to get around. The machine's handlebars were festooned with red, white and blue tassels.

He addressed his disease in blunt terms. "My legs don't work so well these days and I may not have much of a chance competing in the Portland marathon or Cycle Oregon. But I want to be very clear, MS has not affected my strength of spirit or my resolve to push through difficult times."

Bradbury spent only a few minutes addressing what he said would be the main themes of his campaign. He said that while others "have given up" trying to find a stable source of money for schools, he has not, although he stopped short of saying where the money would come from. On jobs, he said Oregon is poised to be a leader in a "new economy" based on production of renewable energy, such as wind and solar. His top environmental issue is the effect of climate change on Oregon.

Although he didn't mention Kitzhaber by name during his speech, Bradbury made reference to the former governor's famous quote that Oregon is "ungovernable."

"While some have said our state cannot be governed, I know that Oregonians are ready to be led by someone who believes in their future," Bradbury said. In a brief follow-up after the speech, Bradbury says his differences with Kitzhaber are primarily over "style."

He said he and Kitzhaber have an agreement to wage a "positive" campaign against each other. Steve Marks, a spokesman for Kitzhaber, backed that up. Kitzhaber "has not a bad thing to say about Bill Bradbury," Marks said.

Kitzhaber entered the race as the clear frontrunner, but Bradbury warned against writing any Democrat off this soon. "I don't think anybody is a slam-dunk to be governor."

So far Kitzhaber has raised about $77,000 in campaign contributions, and has most of it still in the bank. Bradbury, who started raising money months ago, reported raising about $100,000 but has about $22,000 still on hand.

Asked how much he expects the race to cost, Bradbury replied, "I don't know -- a lot."

-- Harry Esteve; harryesteve@news.oregonian.com

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Atkinson says he'll join governor's race on GOP side

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John Lim says he's also running for governor

by Jeff Mapes, The Oregonian September 04, 2009 12:00PM

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September 16, 2009

Tax increases could be issue in governor's race

Kitzhaber backs Oregon package, and three GOPcontenders oppose it

By Brad Cain
The Associated Press

Democratic gubernatorial hopeful John Kitzhaber says he supports the Oregon Legislature's $733 million tax increase. But Kitzhaber says he also would be open to a discussion of modifying those taxes in a future legislative session.

It's likely that a referendum campaign by opponents will force a January election on the tax increases on high-income households and corporations.

Kitzhaber, who served as governor from 1995-2003, said he does not think it would be responsible to repeal those budget-balancing taxes, which are meant to protect schools and other state services from cuts.

However, Kitzhaber said if the voters uphold the tax increases, it might make sense to have the 2011 Legislature look at possible changes in the taxes.

Business groups had wanted the tax increases to be temporary, but the Democratic majorities in the House and Senate made some of the taxes permanent.

Regardless of the outcome of the January special election, the tax increase could become an issue in next year's governor's race.

The three announced Republican contenders — state Sen. Jason Atkinson, former businessman Allen Alley and former legislator John Lim — oppose the tax increase.

"It shows a clear delineation between the two political parties," Alley said. "There is a big difference. I'm going to be talking about why we shouldn't have supported those taxes in the first place."

Kitzhaber, the former two-term governor who's hoping to make history by reclaiming the office in the 2010 election, noted that he had no role in crafting the $733 million tax package.

"I wasn't there when this was done; I wasn't a party to it," he said. "But repealing it is not the answer. Repealing this measure without a plan for how you deal with the fiscal consequences is just not responsible."

At the same time, Kitzhaber noted that business groups and even some Democrats opposed making some of the tax increases permanent.

At one point, Democratic Sen. Mark Hass of Beaverton voted against the package, saying the tax increases shouldn't last beyond four years. Hass ended up supporting the tax increase after Democratic leaders advanced legislation saying that after four years any extra revenue gained from an increase in the corporate minimum tax will be directed to the state's rainy day fund.

Kitzhaber said that if voters approve the tax increases — and he's elected the next governor — he would be open to a renewed debate about the tax package.

"If we want to have a discussion about modifying or sunsetting portions of it, it should be done in the context of the next full session of the Legislature in 2011, where we can fully weigh the consequences," Kitzhaber said.

While Republicans say they plan to make an issue of the tax increase in the governor's race, Portland pollster Tim Hibbitts said he's not sure it's going to play a big role.

"It could be a factor, but I think it is likely to be more of an issue in legislative races" with Republicans targeting swing-district Democrats who supported the taxes, Hibbitts said.

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September 2, 2009

Kitzhaber says he will seek third term as Oregon governor

Peter Wong
Statesman Journal

Updated at 9:54 a.m.

John Kitzhaber announced this morning he will seek a record-breaking third term as Oregon governor.

“I am an optimist; I believe our best days are ahead of us,” he said this morning.
When he left office at the end of 2002, he said Oregon was “ungovernable.” He said today he was frustrated then, but also hopes through his latest campaign to change politics to bring “an increased tone of civility.”
Kitzhaber said Oregon will have tough choices ahead, and everyone will have to share in them.
If the state does not, he added, “we’re going to end up like California — and we are headed in that direction.”
He said he agrees with the Oregon Business Plan, put out by business executives and elected officials, that economic progress and educational preparation go hand in hand.
But he also said Oregon needs to pare the burdens of rising costs in health care and energy. Kitzhaber already has spoken of reshaping the delivery of medical care, not just expanding coverage or reforming payments.
Democrat Kitzhaber was governor from 1995 to 2003, when he was succeeded by Democrat Ted Kulongoski, who cannot run again in 2010.
Also in the running for Democrats were state Rep. Brian Clem of Salem — who said he would support a Kitzhaber candidacy — and former Secretary of State Bill Bradbury, a one-time Kitzhaber ally who plans his own announcement for governor Sept. 17.
Already in the race as a Republican is Allen Alley of Lake Oswego, the party’s 2008 nominee for state treasurer, a former deputy chief of staff to Kulongoski, and a co-founder and board chairman of Pixelworks. State Sen. Jason Atkinson of Central Point, who ran in 2006, also is considering a run.
Filing for the May 18 party primaries officially opens Sept. 10 and closes March 9.
Kitzhaber said he was ready to give “110 percent” and face both primary and general-election challengers.
“I am totally prepared and I don’t expect this to be handed to me,” he said.
Oregon’s Constitution bars a governor from more than two elected terms during any 12-year cycle. The limit dates back to the original 1857 document, drafted before statehood in 1859.
The only former governor who attempted a comeback after waiting out the four-year minimum was Tom McCall, who lost the 1978 Republican primary to Vic Atiyeh. Atiyeh went on to win two terms of his own, including a 1982 re-election over Kulongoski.
Kitzhaber, 62, is a physician who grew up in Eugene and earned his medical degree at Oregon Health & Science University. From 1974 to 1988, he was an emergency-room physician, mostly in Roseburg.
He was a state representative from Roseburg from 1979 to 1981, and a state senator from 1981 to 1993 — the last eight years as president of the Oregon Senate. While president, he was the chief author of changes that transformed a traditional Medicaid program into a broader Oregon Health Plan.
An avid fly fisherman and rafter, he also was a supporter of environmental protection.
He moved from Roseburg to Eugene in 1993, and to Portland after his election as governor.
He won in 1994 after he challenged Democratic Gov. Barbara Roberts, who for family reasons dropped out before that year's primary. Roberts’ husband, Frank, died of cancer in 1993. Kitzhaber defeated former U.S. Rep. Denny Smith, the Republican nominee.
He was re-elected in 1998 against Republican Bill Sizemore by the largest margin in a governor's race in 48 years.
But he faced Republican majorities in both chambers of the Legislature all eight years he was governor, and received the nickname “Dr. No” for his record 202 vetoes, only three of which were overridden. Democrats now hold 60 percent majorities in both chambers going into the 2010 election.
On leaving office, Kitzhaber called the state “ungovernable.”
Since he left office in 2003, Kitzhaber has continued to champion change in health care and founded the Archimedes Movement in 2006. He has been a fellow at the Estes Park Institute, based in Colorado and focused on health care, and holds a position in his name at the Foundation for Medical Excellence in Portland.
He passed up chances to run for the U.S. Senate in 2002 and 2008, and against Kulongoski in 2006.
He was mentioned as a potential Cabinet pick by President Obama for two agencies — Interior, and Health and Human Services — but never went through a formal clearance process. He has made no secret that he dislikes the Washington, D.C., political arena.
He married Sharon LaCroix a few days before he took office in 1995. They announced their divorce in 2003 a few days after he left office. They have one son, Logan, born in 1997.

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Committee Membership by Committee

Senate Committees           

Business and Transportation

Membership:
Rick Metsger, Chair
Bruce Starr, Vice-Chair
Larry George
Martha Schrader
Joanne Verger

Staffing:
Patrick Brennan
Cindy Hupp

Commerce and Workforce Development

Membership:
Diane Rosenbaum, Chair
Chris Telfer, Vice-Chair
Larry George
Rod Monroe
Floyd Prozanski

Staffing:
Theresa Van Winkle
Cindy Hupp

Consumer Protection and Public Affairs

Membership:
Suzanne Bonamici, Chair
Larry George, Vice-Chair
Ginny Burdick
Fred Girod
Diane Rosenbaum

Staffing:
Anna Braun
Annola DeJong

Education and General Government

Membership:
Mark Hass, Chair
Jeff Kruse, Vice-Chair
Suzanne Bonamici
Rick Metsger
Frank Morse

Staffing:
Dana Richardson
Debbie Malone

Environment and Natural Resources

Membership:
Jackie Dingfelder, Chair
Jason Atkinson, Vice-Chair
Brian Boquist
Mark Hass
Floyd Prozanski

Staffing:
Beth Patrino
Sue Hampton

Finance and Revenue

Membership:
Ginny Burdick, Chair
Frank Morse, Vice-Chair
Mark Hass
Diane Rosenbaum
Chris Telfer

Staffing:
Paul Warner
Mazen Malik
Steve Meyer
Chris Allanach
Dae Baek
Corinne Gavette

Health Care

Membership:
Laurie Monnes Anderson, Chair
Jeff Kruse, Vice-Chair
Alan C Bates
Bill Morrisette
Frank Morse

Staffing:
Rick Berkobien
Patsy Wood

Human Services and Rural Health Policy

Membership:
Bill Morrisette, Chair
Jeff Kruse, Vice-Chair
Laurie Monnes Anderson
Chris Telfer
Joanne Verger

Staffing:
Sandy Thiele-Cirka
Mike Reiley

Judiciary

Membership:
Floyd Prozanski, Chair
Brian Boquist, Vice-Chair
Suzanne Bonamici
Jackie Dingfelder
Doug Whitsett

Staffing:
Anna Braun
Annola DeJong

Rules

Membership:
Richard Devlin, Chair
Ted Ferrioli, Vice-Chair
Jason Atkinson
Ginny Burdick
Rick Metsger

Staffing:
Erin Seiler
Mike Reiley

Veterans' Affairs

Membership:
Martha Schrader, Chair
Brian Boquist, Vice-Chair
Jason Atkinson
Laurie Monnes Anderson
Bill Morrisette

Staffing:
Bill Taylor
Annola DeJong

Agriculture, Natural Resources & Rural Communities

Membership:
Brian Clem, Chair
Wayne Krieger, Vice-Chair
Suzanne VanOrman, Vice-Chair
E. Terry Beyer
Vic Gilliam
Mary Nolan
Arnie Roblan
Matt Wingard

Staffing:
Beth Herzog
Ian Tolleson

Business and Labor

Membership:
Mike Schaufler, Chair
Brent Barton, Vice-Chair
Kevin Cameron, Vice-Chair
Chris Edwards
Sal Esquivel
Paul Holvey
Bill Kennemer
Greg Matthews
Kim Thatcher
Brad Witt

Staffing:
Theresa Van Winkle
Debbie Malone

            Business and Labor Subcommittee on Workforce Development Subcommittee

           Membership:
           Brad Witt, Chair
           John E Huffman, Vice-Chair
           Michael Dembrow
           Sal Esquivel
           Mitch Greenlick
           Paul Holvey
           Bill Kennemer

           Staffing:
           Theresa Van Winkle
           Debbie Malone

Consumer Protection and Government Accountability Committee

Membership:
Paul Holvey, Chair
Vic Gilliam, Vice-Chair
Chuck Riley, Vice-Chair
Jean Cowan
Wayne Krieger
Greg Matthews
Jefferson Smith
Carolyn Tomei
Gene Whisnant
Matt Wingard

Staffing:
Patrick Brennan
Cindy Hupp

Education

Membership:
Sara Gelser, Chair
Michael Dembrow, Vice-Chair
Sherrie Sprenger, Vice-Chair
Chris Harker
John E Huffman
Betty Komp
Ron Maurer
Arnie Roblan
Kim Thatcher
Suzanne VanOrman

Staffing:
Dana Richardson
Debbie Malone

Environment and Water

Membership:
Ben Cannon, Chair
Bob Jenson, Vice-Chair
Jefferson Smith, Vice-Chair
Jules Bailey
Phil Barnhart
Cliff Bentz
Deborah Boone
Jim Thompson

Staffing:
Beth Patrino
Sue Hampton

Health Care

Membership:
Mitch Greenlick, Chair
Chris Harker, Vice-Chair
Ron Maurer, Vice-Chair
Scott Bruun
Ben Cannon
Chris Garrett
Bill Kennemer
Tina Kotek
Nancy Nathanson
Jim Thompson

Staffing:
Sandy Thiele-Cirka
Mike Reiley

Human Services

Membership:
Carolyn Tomei, Chair
Deborah Boone, Vice-Chair
Andy Olson, Vice-Chair
Jean Cowan
Michael Dembrow
Tim Freeman
John E Huffman
Ron Maurer
Suzanne VanOrman

Staffing:
Sandy Thiele-Cirka
Mike Reiley

Judiciary

Membership:
Jeff Barker, Chair
Judy Stiegler, Vice-Chair
Gene Whisnant, Vice-Chair
Brent Barton
Kevin Cameron
Chris Garrett
Wayne Krieger
Andy Olson
Chip Shields
Jefferson Smith

Staffing:
Bill Taylor
Annola DeJong

Revenue

Membership:
Phil Barnhart, Chair
Jules Bailey, Vice-Chair
Cliff Bentz, Vice-Chair
Vicki Berger
Scott Bruun
Sara Gelser
Nick Kahl
Tobias Read
Chuck Riley
Sherrie Sprenger

Staffing:
Paul Warner
Mazen Malik
Steve Meyer
Chris Allanach
Dae Baek
Corinne Gavette

Rules

Membership:
Arnie Roblan, Chair
Vicki Berger, Vice-Chair
Chris Edwards, Vice-Chair
Bill Garrard
Sara Gelser
Bruce L Hanna
Bob Jenson
Tina Kotek
Mary Nolan
Tobias Read

Staffing:
Beth Patrino
Sue Hampton

Sustainability and Economic Development

Membership:
Tobias Read, Chair
Cliff Bentz, Vice-Chair
Larry Galizio, Vice-Chair
Jules Bailey
Chris Garrett
Vic Gilliam
Paul Holvey
Dennis Richardson
Kim Thatcher
Brad Witt

Staffing:
Beth Herzog
Ian Tolleson

Transportation

Membership:
E. Terry Beyer, Chair
George Gilman, Vice-Chair
Nick Kahl, Vice-Chair
Jules Bailey
Cliff Bentz
Vicki Berger
Deborah Boone
David Edwards
Mike Schaufler
Greg Smith

Staffing:
Patrick Brennan
Cindy Hupp

Veterans and Emergency Services

Membership:
Jean Cowan, Chair
Tim Freeman, Vice-Chair
Greg Matthews, Vice-Chair
Deborah Boone
Sal Esquivel
Chuck Riley
Judy Stiegler
Jim Weidner

Staffing:
Bill Taylor
Annola DeJong

Emergency Board

Membership:
Sen. Peter Courtney, Co-Chair
Rep. Dave Hunt, Co-Chair
Sen. Alan C Bates
Sen. Margaret Carter
Sen. Fred Girod
Sen. Betsy Johnson
Sen. Rod Monroe
Sen. David Nelson
Sen. Joanne Verger
Sen. Doug Whitsett
Sen. Jackie Winters
Rep. Vicki Berger
Rep. Peter Buckley
Rep. David Edwards
Rep. Bill Garrard
Rep. Bob Jenson
Rep. Betty Komp
Rep. Nancy Nathanson
Rep. Chip Shields
Rep. Greg Smith

Staffing:
Ken Rocco
Gina Rumbaugh

Fujian Sister State

Membership:
Sen. Peter Courtney, Co-Chair
Sen. Larry George
Sen. Betsy Johnson

Staffing:
Theresa Van Winkle
Cindy Hupp

Justice System Revenues

Membership:
Sen. Joanne Verger, Co-Chair
Sen. Suzanne Bonamici
Sen. Doug Whitsett

Staffing:
Erin Seiler
Mike Reiley

Online Learning Task Force

Membership:
Sen. Richard Devlin, Co-Chair
Rep. Sara Gelser, Co-Chair
Sen. Suzanne Bonamici
Sen. Frank Morse
Rep. Michael Dembrow
Rep. John E Huffman
Dennis Dempsey
Larry Glaze
Mark Horning
Cindy Hunt
Brad Linn
Krista Parent
Bobbie Regan
Kathleen Scalise
Nikki Squire
Gary Tempel
Courtney Vanderstek

Staffing:
Dana Richardson
Ian Tolleson

Public Education Appropriation

Membership:
Sen. Rod Monroe, Co-Chair
Sen. Fred Girod
Sen. Mark Hass

Staffing:
Dana Richardson
Ian Tolleson

Ways and Means

Membership:
Sen. Peter Courtney, Co-Chair
Rep. Peter Buckley, Co-Chairman
Sen. Betsy Johnson, Vice-Chair
Rep. Nancy Nathanson, Vice-Chair
Sen. Alan C Bates
Sen. Chris Edwards
Sen. Fred Girod
Sen. Rod Monroe
Sen. David Nelson
Sen. Joanne Verger
Sen. Doug Whitsett
Sen. Jackie Winters
Rep. David Edwards
Rep. Larry Galizio
Rep. Bill Garrard
Rep. George Gilman
Rep. Bob Jenson
Rep. Betty Komp
Rep. Tina Kotek
Rep. Dennis Richardson
Rep. Chip Shields
Rep. Greg Smith

Staffing:
Ken Rocco
Gina Rumbaugh

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**All Meetings will be held at the Capitol.

Senate Finance and Revenue

House Revenue

*Revenue Forecast and meeting.

Senate Commerce and Workforce Development

Senate Education and General Government

Senate Veterans Affairs

House Sustainability and Economic Development

House Veterans and Emergency Services

Senate Consumer Protection and Public Affairs

Senate Human Services and Rural Health Policy

Senate Rules

House Consumer Protection and Government Accountability

House Rules

Senate Finance and Revenue

Senate Judiciary

House Education

House Judiciary

Senate Environment and Natural Resources

Senate Health Care

House Health Care

House Transportation

House Agriculture, Natural Resources and Rural Communities

House Environment and Water

House Business and Labor Subcommittee on Workforce Development

House Business and Labor

House Human Services

House Revenue

Joint Ways and Means Committee

Senate Session on Executive Appointments

House Sustainability and Economic Development

House Veterans and Emergency Services

House Consumer Protection and Government Accountability

House Health Care

House Rules

Senate Environment and Natural Resources

Senate Health Care

House Agriculture, Natural Resources and Rural Communities

House Environment and Water

Senate Consumer Protection and Public Affairs

Senate Human Services and Rural Health Policy

House Business and Labor

House Human Services

Senate Business and Transportation

Senate Finance and Revenue*

Senate Judiciary

House Business and Labor Subcommittee on Workforce Development

House Judiciary

House Revenue*

*Revenue Forecast Released

Senate Commerce and Workforce Development

Senate Education and General Government

Senate Veterans Affairs

House Education

House Transportation

Senate Commerce and Workforce Development

Senate Education and General Government

Senate Veterans Affairs

House Sustainability and Economic Development

House Veterans and Emergency Services

Senate Consumer Protection and Public Affairs

Senate Human Services and Rural Health Policy

Senate Rules

House Consumer Protection and Government Accountability

House Rules

Senate Finance and Revenue

Senate Judiciary

House Education

House Judiciary

Senate Environment and Natural Resources

Senate Health Care

Senate Business and Transportation

House Health Care

House Transportation

House Agriculture, Natural Resources and Rural Communities

House Environment and Water

House Business and Labor Subcommittee on Workforce Development

House Business and Labor

House Human Services

House Revenue

Joint Ways and Means Committee

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You can view the recently released Co-Chairs Proposed Budget at:

http://www.leg.state.or.us/budget/2009_11Co_ChairRecommendedBudget.pdf

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Economist: State is $3.8 billion short

By Peter Wong
Statesman Journal

The continuing slump in Oregon’s economy will result in $3.8 billion less than experts say is needed to maintain state services and aid to public schools in the next two years, according to a forecast issued today.
The quarterly projection by State Economist Tom Potiowsky, which he made at a joint meeting of the Legislature’s revenue committees, is important because it is the forecast on which the next two-year state budget will be based.

The gap is less than had been feared by many legislators, but there’s bad news, too. Lawmakers will still have find $350 million in cuts before the current two year budget period ends in June.
Lawmakers hope to end the 2009 session by June 30, one day before the new two-year budget cycle starts.
They have the most discretion over spending personal and corporate income taxes and lottery proceeds, all of which are down in today’s forecast.
The gap between projected income and current services was estimated at $3.3 billion in the previous forecast issued Feb. 26.
Legislative budget analysts have said it would take $16.7 billion to continue programs at the current two-year level, which does not account for mid-cycle hiring of state police troopers and others, phase-in of programs and increased costs such as medical care. But lawmakers already cut more than $300 million from the current budget of $15.1 billion back in March. Other potential cuts were averted through use of federal economic-recovery funds and state funds other than reserves.
Legislative budget writers already were planning for a gap of about $4.4 billion.
The chief budget writers, both Democrats, are set to release the outlines of a spending plan on Monday. The plan will rely on using all $911 million remaining in federal economic-recovery funds and about half of $900 million in state reserves to make up some of the gap; spending cuts and higher taxes will make up the rest.
More than 90 percent of state government’s discretionary spending goes to education, health and human services and public safety, including state police, courts and prisons. The biggest single chunk goes for aid to the 198 school districts, which get about 70 percent of their operating income from the state.
Earlier this week, minority Republicans released the outlines of their own two-year budget — based on the higher income projection in the Feb. 26 forecast — that assumes no new taxes and promises the same dollar amounts for state services and schools as in the current budget.
“Ultimately, core services and functions of government can be preserved without raising taxes,” said Sen. Frank Morse, R-Albany.
But majority Democrats said the GOP proposal contains flawed assumptions about income projections, use of other-fund reserves and savings from spending cuts.
Human-services and education advocates also said the proposal underfunds human services at a time of record demand for food stamps, unemployment benefits, cash assistance and medical care. State officials now estimate those added costs will exceed $250 million.
“To work our way out of this economic crisis, we must take a balanced approach that involves cutting spending, tapping our reserve funds, and asking big corporations and the wealthiest Oregonians to contribute their fair share,” said House Majority Leader Mary Nolan, D-Portland.

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Today's Oregon Revenue FOrecast is available at:

http://www.oregon.gov/DAS/OEA/economic.shtml#Most_Recent_Forecast

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Download file

To access the budget questionnaire handed out at the Ways & Means hearings, please click the link above. These questionnaires should be submitted to the Committee Administrator - gina.rumbaugh@state.or.us and to the Co-Chairs, sen.margaretcarter@state.or.us and rep.peterbuckley@state.or.us.

Posted by armstrongpac at 08:17 PM | Permalink | TrackBacks (0)

	OREGON LEGISLATIVE ASSEMBLY OFFICE OF THE SENATE PRESIDENT OFFICE OF THE HOUSE SPEAKER
NEWS RELEASE Contact:
ROBIN MAXEY (503) 986-1605 robin.maxey@state.or.us	GEOFF SUGERMAN (503) 986-1210 geoff.sugerman@state.or.us
January 23, 2009
Ways and Means Public Hearings Planned in Eight Cities Across Oregon Budget Information Now Available at www.Oregonbudget.gov (SALEM) – Senator Margaret Carter and Representative Peter Buckley -- co-chairs of the Legislature’s Joint Ways and Means Committee – announced today they will hold eight public budget hearings around the state over the last two weeks of April. The hearings will begin in Lincoln City on April 20 (see full schedule below) and will include stops in Pendleton, Ontario, Portland, Bend, Eugene and Ashland, as well as a hearing at the State Capitol where participants from Hood River will be able to participate via video conferencing. Members of the committee will also stop in Klamath Falls during their drive from the Bend hearing on April 29 on their way to Jackson County the following day. While there, they intend to fan out across Klamath Falls and meet individually with local citizens as they go about their day. “We wanted to try something a bit different. So in Klamath Falls, rather that a formal public hearing, we’ll walk around town, visiting restaurants, City Hall and local businesses and ask people their opinion on the challenges facing us as we work our way out of this economic recession,” said Buckley (D-Ashland). “We want to hear what services are critical to folks in rural Oregon, as well as what matters most to the people in our larger population centers. So please take this chance to come tell us how you feel.” “The budget is not just a collection of spreadsheets. It’s a living, breathing document that has tremendous impact on the daily lives of the people our state” Carter (D-Portland) said. “Oregonians from every corner of the state will have the opportunity to let us know what is important to them. From the Pacific to the Snake and from the Willamette Valley to the Columbia River Gorge we bring the budget process to the people we represent.” At each one of the public hearing, attendees will also receive a survey instrument, allowing them to make choices about proposed service cuts, potential revenue increases and other critical budget issues. Public hearings will be held 5:30 to 8 p.m. in Lincoln City on April 20, Portland from 6 p.m. to 9 p.m. on April 21 and 5:30 p.m. Salem on April 23. The Salem hearing will include testimony from individuals in Hood River and McMinnville, who will go before the committee via video link. On Saturday, April 25, members of the Joint Ways and Means Committee will be in Pendleton and Ontario to hear from local residents. The following week, the committee will hold official public hearings from 5:30 to 8:30 p.m. in Bend on April 29 and Ashland on April 30 and a 1 to 4 p.m. hearing in Eugene May 1. Also this week, Buckley and Carter unveiled oregonbudget.gov, a new simplified internet address where Oregonians can find information on the state budget. The budget information, including proposals for potential service cuts provided by each state agency, was first released last week on the internet website of the Legislative Fiscal Office. “While the information itself hasn’t changed, the new easy-to-remember web address will help more Oregonians connect to the budget process. Anyone in Oregon with a computer and an internet connection can go to www.oregonbudget.gov and see how the state’s $4 billion budget deficit will affect them,” Carter said. “This is part of our efforts to have an open and transparent process. We want to make sure everyone knows the numbers we are working with, how we are constructing the budget and how we are responding to the needs and concerns expressed to us by Oregonians,” said Buckley. “We want public input. The public hearings and the website are two ways we can meet that goal of openness. We know working our way out of the recession means we need a balanced approach. What we need now is public input on how to achieve that balance.” The schedule is as follows: Monday, April 20 Lincoln City Cultural Center 540 NE Hwy 101 Lincoln City 5:30 to 8 p.m. Tuesday, April 21 Portland Community College -Cascade Campus  Auditorium, Moriority Building 705 N. Killingsworth Street 6 p.m. to 8:30 p.m. Thursday, April 23 Oregon State Capitol Hearing Room F 900 Court Street NE Salem 5:30 to 8 p.m. Including Hood River via video link  Saturday, April 25 Pendleton Oregon National Guard Armory 2100 N.W. 56th Drive 10 a.m. to noon Saturday, April 25 Ontario Treasure Valley Community College 650 College Boulevard 3 to 5 p.m. (Mountain View or ontario time) Wednesday, April 29 Central Oregon Community College, Bend Cascades Hall Room 117 5:30 to 8 p.m.  Thursday, April 30 Southern Oregon University, Ashland Rogue River Room Stevenson Union 1250 Siskiyou Boulevard 5:30 p.m. to 8:00 p.m. Friday, May 1 University of Oregon, Eugene Prince Lucien Campbell Hall (PLC 180) 1415 Kincaid Street 1 to 4 p.m. --  30  --

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 The 30% agency proposed cuts list can be viewed at: http://www.leg.state.or.us/budget/home.htm.

 Contact:  Robin Maxey                       Geoff Sugerman                 April 2, 2009

            (503) 986-1605                           (503) 986-1904

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Download file

Please click on the link above to download a pdf version of O4AD's talking points on the Governor's Recommended Budget proposed change in income eligibility to cut long-term care services for seniors and people with disabilities.

Posted by armstrongpac at 08:17 AM | Permalink | TrackBacks (0)

Download file

 Please click on the link above to download a pdf version of O4AD's talking points on the Governor's Recommended Budget cut to in-home services for clients receiving less than 80 hours of in-home care.

Posted by armstrongpac at 08:14 AM | Permalink | TrackBacks (0)

Download file

The Senate & House announced committee schedules. Please click on the link to download the complete listing.

Posted by armstrongpac at 07:45 PM | Permalink | TrackBacks (0)

Contact: Robin Maxey December 9, 2008

robin.maxey@state.or.us

SALEM –Senate President Peter Courtney today announced chairs, vice chairs and membership of the Senate committees for the 2009 legislative session, along with the Senate members of the Joint Ways and Means Committee and its subcommittees.

"In a truly bi-partisan way, I believe this committee line-up puts the Senate team in the best position to succeed for the people of Oregon in these challenging times," said Courtney, D-Salem/Gervais/Woodburn. "Every Senator – Democrat and Republican – brings a different set of skills to the playing field and I believe they have each been matched with committee assignments that will allow them to reach their full potential."

Democrats will chair the 10 Senate committees with Republicans serving as vice chair of each committee. Meanwhile, a member of the Republican minority is among the seven Senate co-chairs of the Ways and Means subcommittees.

Legislative leaders have agreed that each of the Ways and Means subcommittees will have Senate and House co-chairs in 2009. Additionally, leaders have created a Capital Construction and Information Technology Subcommittee in anticipation of early session efforts to create jobs through bond funding for deferred maintenance projects. In the past, the subcommittee has not been added until late in the legislative session.

Courtney also re-aligned the Senate committee structure to include committees that will focus on rural health policy, consumer protection and veterans’ issues.

Sen. Jason Atkinson

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Oregon's 'budgetary bulimia'

Social service programs are big losers in purge cycle

by Jack Roberts, The Oregonian,  December 06, 2008 19:13PM

Undoubtedly it's just a coincidence that the stock market fell nearly 700 points on the day that Ted Kulongoski unveiled the last budget over which he will preside as governor. Still, that juxtaposition may be a harbinger of things to come.

While Republicans have been quick to jump on the nearly $2 billion in new taxes the governor has proposed, Democrats fixate grimly on the budget cuts and wonder if this is what it means to be the majority party. Looking ahead, however, both parties should bear this in mind:

You ain't seen nothin' yet.

As pessimistic as the revenue projections seem today, they are more likely to get worse than better. That is why the governor was smart not to propose dipping into the rainy day fund or the education stabilization fund in his initial budget. More likely than not, if expected revenues continue to decline, the Legislature will find it hard to resist the temptation to tap these resources before they adjourn sometime in July ... or August ... or September.

Thus we enter the purge cycle in our latest round of budgetary bulimia. The one silver lining for Democrats may be that the economic crisis has masked the likelihood their spending binge in 2007 would have produced an unsustainable level of spending for the next biennium in any event. Now, at least, they get to blame it all on George W. Bush.

Not all of the governor's proposals will survive, of course. Facing a particularly rocky road may be the new children's health care program -- not because it is a bad idea but because it is the wrong biennium. The only thing worse than its timing is the plan for funding it. By proposing to tax hospitals and health insurance providers, the governor seems to think health care is still not expensive enough. Or maybe following the logic that raising the gas tax discourages people from driving, he believes that raising the tax on health care will discourage people from getting sick.

While painful cuts were inevitable in the governor's budget, without question the big losers were clients of social service programs. Perhaps the Democrats' answer to compassionate conservatism is callous progressivism. I guess if the poor, the sick and the disadvantaged wanted government programs to be there when they are needed most, those folks should have formed a union and endorsed Kulongoski two years ago.

And is it too cynical to note that many of the services being cut are ultimately provided by counties and nonprofit social service agencies? Unfortunately, these are not major players in the game of political roulette that has replaced the lottery as Oregon's biggest gamble. In a world of pay-to-play politics, these folks can't even afford the ante.

I've long believed there is a natural affinity between Republicans and social services. Part of the social contract with entrepreneurs who take big risks in search of big rewards is some sense that those who are left behind will be cared for. The commitment to a strong social safety net should be a central tenet for those of us who believe that economic growth is an essential component of quality of life.

This is not an alien concept. While social service workers tend to be Democrats, their agency's board members and major donors are often Republicans. I remember a time when the champions of social service funding included Republican legislators such as Mary Alice Ford, Jeannette Hamby, Delna Jones and Marie Bell. And no, I don't think it is an accident that those leaders who come to mind were women. But I believe there are Republican legislators of both genders who could step forward now and lead the fight to rebalance some of the governor's priorities in order to restore funding to these vital programs.

There are no easy solutions to the fiscal problems facing the state, and the final budget, as always, will represent a bundle of compromises. But speaking for myself, I would love to see Republicans leading the fight for something other than just lower taxes and less government.

Jack Roberts was Oregon state commissioner of labor and industries from 1995 to 2002.

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The right medicine for an ailing budget

by Charles Sheketoff, Guest Opinion

Tuesday November 18, 2008, 4:28 PM

While a revenue shortfall certainly calls for belt tightening by agencies, a dramatic cut in state spending would be a big mistake. Leaving aside the harm that it would cause many Oregonians, particularly the most vulnerable, slashing services is the wrong medicine for what ails Oregon.

The revenue shortfall stems directly from the country's economic downturn. As demand for goods and services from both consumers and businesses has shrunk, employers have laid off workers or even shut their doors. With business activity and employment down, income tax revenue has declined.

What's needed most to turn around a recession is spending. And when consumers and businesses can't or won't spend, the only sector able to do so is the state.

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News Release 

Contact:    Robin Maxey                                                                  November 17, 2008

                   (503) 986-1605   

Download file

 Follow the "download file" link to view the 10% reduction options presented by the Department of Human Services.

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November 7, 2008

CONTACT:    Molly Woon, Senate Majority Office, (503) 367-4327

ASTORIA – Demonstrating their commitment to fight for Oregon’s middle class and those working hard to get ahead, the Senate Democrats today announced their leaders for the 2009 legislative session.

At a retreat held in Astoria this afternoon, Senate Democrats elected the following:

• Senate President:  Sen. Peter Courtney (D-Salem)
  
• Senate President Pro Tempore:  Sen. Rick Metsger (D-Welches)
  
• Senate Majority Leader:  Sen. Richard Devlin (D-Tualatin)
  
• Senate Deputy Majority Leader:  Sen. Laurie Monnes Anderson (D-Gresham)
  
• Senate Majority Whip:  Sen. Alan Bates (D-Ashland)
  
• Senate Majority Whip:  Sen. Mark Hass (D-Beaverton)
  
• Senate Assistant Majority Leader:  Sen. Floyd Prozanski (D-Eugene)
  
• Senate Assistant Majority Leader:  Senator - Elect Diane Rosenbaum (D-Portland)
  

At the same meeting, the caucus also reiterated its support for the Oregon Agenda 2009.

“The members elected today are a testament to the strong and experienced leadership in our caucus,” said Senator Devlin. “I am honored to have the support of my colleagues and I am confident that this team will be effective advocates for our 2009 agenda and the people of Oregon.”

Many of the Senate Democratic leaders elected this weekend have held their positions previously. Senator Courtney has been Senate President since 2003 and Senator Devlin was elected Senate Democratic Leader in July 2007.

Under Senate Rules, Senators Courtney and Metsger must receive 16 votes each from the full Senate to be elected President and President Pro Tempore, respectively. Democrats hold 18 seats in the Senate, which will convene January 12, 2009.

###

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Hunt Will Be House Democrats’ Nominee For Speaker

Mary Nolan Named House Majority Leader for 2009 Session

House Majority Leader Dave Hunt (D-Clackamas County) will be the House Democrats’ nominee for Speaker of the Oregon House of Representatives following today’s House Democratic Caucus meeting.  Rep. Mary Nolan (D-Portland) will assume Hunt’s current role as majority leader.

Democrats, who will hold 36 seats in the 2009 session, unanimously selected Hunt to be their choice for Speaker to replace U.S. Senator-elect Jeff Merkley. Thirty-one votes are required to win election for Speaker which will be held on January 12, the first day of the 2009 session.

“I am honored to be my colleagues’ choice to be Oregon’s next House Speaker,” said Hunt, who was first elected to the House in 2002.  “Our job in the 2009 session is to strengthen our economy and protect the gains we made in 2007-08 in education, health care, public safety, renewable energy, infrastructure, and fiscal responsibility.  Our focus will be on helping Oregon families make it through these tough times and I am pleased to have such a strong group of colleagues by my side.”

Nolan, who was first elected in 2000, said House Democrats are honored by the strong show of support from Oregon voters, and pledged to get to work immediately on the critical issues facing Oregon.

“This is a diverse and talented group of people who have been charged by the voters of Oregon to take on our economic challenges and move us to a better future,” said Nolan. “House Democrats are ready to lead all of Oregon forward.”

House Democrats also elected these members to their Leadership Team:

Speaker Pro-Tem: Arnie Roblan (D-Coos Bay)

Majority Whip:      Peter Buckley (D-Ashland)

Deputy Majority Whip: Tina Kotek (D-Portland)         

Assistant Majority Whip: Tobias Read (D-Beaverton)

Assistant Majority leader (policy): Sara Gelser (D-Corvallis/Philomath)

Assistant Majority Leader (political): Phil Barnhart (D-Central Lane and Linn counties)

Contact Geoff Sugerman - 503-510-3704. House Majority Office

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September 15, 2008

Editorial

Gambling With Medicaid

Rhode Island is seeking a federal waiver to change much of its Medicaid program from an open-ended entitlement with no limit on spending to a capped budget with fixed expenditure limits.

Gov. Donald Carcieri, a Republican, is hoping to close his state’s looming budget deficits and curb rising Medicaid costs, two problems that are bedeviling many states. But prudent leaders would be wise to watch what happens — and especially what happens to Rhode Island’s poorest residents — before following this path.

Medicaid has traditionally been an “entitlement program” that pays the medical bills of all residents whose incomes are sufficiently low to qualify for coverage. There is no limit on how many people can enroll or on how much the state and federal governments must spend to provide services. In the current fiscal year, Rhode Island’s Medicaid program is costing about $1.9 billion — with slightly more than half paid by the federal government and the rest by the state.

Under the proposed waiver, the federal government would contribute a fixed annual amount for the next five years (roughly what it was projected to spend anyway), but Rhode Island would limit its contribution to 23 percent of its general revenue budget.

That would mean substantially less money for Medicaid. An analysis by the Center on Budget and Policy Priorities estimates that if the waiver is granted, the state’s Medicaid budget will fall $231 million short of the projected $2.07 billion needed next year — with the gap increasing every year.

The state is hoping to make up the difference, without harming patients, by providing health care more cheaply. It wants to require most long-term care patients to get treatment at home or from community-based services rather than in expensive nursing homes and would put virtually all beneficiaries in managed care.

If that isn’t enough, it wants flexibility to charge higher co-payments, put people on waiting lists for treatment, and limit the duration and scope of services.

States already have great leeway when it comes to Medicaid, so it may be reasonable to give Rhode Island the flexibility to try something new. This is still a risky path. If costs escalate more rapidly than expected and savings don’t materialize, the state might feel obliged to cut Medicaid spending even more drastically. Rhode Island’s most vulnerable citizens would pay the price.

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