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Rep.
Richardson's March 23, 2007 Update
Co-Chair’s Budget Unveiled
“Happy Day Are Here Again”
Oregon’s biennial budget is crafted each session after months of long hours and tedious work performed by the Joint Senate/House Ways and Means Committee members. The head “Budgeteers” for the Senate and the House are the Co-Chairs of the Ways and Means Committee. This session the Senate Co-Chair is again Senator Kurt Schrader (D-Canby). On the House side the Co-Chair is Representative Mary Nolan (D, Portland).
This session marks Senator Schrader’s third term as Senate Co-Chair. He has earned the reputation as a no-nonsense numbers man, and the Senate Democrats are fortunate to have him as their Co-Chair. Representative Mary Nolan is a mathematician. Although she was inexperienced in the Ways and Means process, Mary was my recommendation (for whatever that was worth), to the Speaker to serve as House Co-Chair.
As you can see from their proposed “Co-Chairs Budget,” the Senate and House Co-Chairs assume there is nearly $15 billion in tax and lottery revenues to spend. This $15 billion (actually $14.923 billion), represents an 18% increase in income tax and lottery revenues over the current biennium. In addition to the 18% increase in spending, the Co-Chairs want to add the following additional streams of revenue to the pool:
(1.) $170 million in proposed tobacco tax revenues;
(2.) $60 million in proposed additional revenues from more than doubling the costs for real estate document recording fees;
(3.) $232 million proposed extension of health care and other “provider” taxes; and
(4.) $350 million in proposed additional long-term debt, including $100 million additional “Connect Oregon II” bonds and $250 million in additional “Light-Rail” bonds—both bonding proposals to be paid from lottery proceeds. Thus, the total spending contemplated by the Co-Chairs is $15.8 billion.
In sum, the Co-Chairs have proposed a General & Lottery Funds budget of $14.9 billion, plus $812 million of additional “other funds” spending, and have assigned the Ways and Means Subcommittees the job to determine how best to allocate the $15.8 billion. To guide the Subcommittees the Co-Chairs suggest the following be included in the allocations:
- $6.245 billion to K-12 education (an 18% increase over the current budget and $185 million above the Governor’s Recommended Budget—regrettably the GRB’s community college’s budget was reduced by $25 million and the University system by $15.4 million.
- $47 million for “Shared Responsibility” grants to make college more affordable for students.
- $100 million to affordable housing programs.
- $50 million to counties suffering from loss of O & C timber replacement funds, for road repairs.
- $222 million to add 100 new Oregon State Troopers (Notably, these new troopers are to be funded without the Governor’s proposed tax on automobile insurance policies).
- $29 million to expand Head Start’s preschool program (down from the $40 million proposed by the Governor).
Although not part of the budget, $139 million is to be transferred to Oregon’s new Rainy Day Fund, from the budget’s proposed $173 million “ending balance.”
The Co-Chairs’ proposed budget also endorses the Governor’s transportation-improvement program, his renewable-energy initiatives and his expansion of state-subsidized day care expenditures. In addition, it would boost payments to the child-care providers. The Co-Chairs also support substantial increases in funding for parks and salmon habitat, environmental regulation and enforcement, and taking the next step for building a new mental hospital in Salem.
In sum, the Co-Chairs Budget provides (a.) substantial increases in funding for all divisions of government, (b.) substantial increases in the size of government and number of government employees, and (c.) substantial increases in Oregon’s long-term debt. The Co-Chairs are quick to remind us that they could have spent more by recommending the additional tax increases desired by the Governor, and by incurring even greater levels of indebtedness than they have. To their credit, the Co-Chairs did fund the additional 100 State Troopers without the tax increase required by the Governor.
Nevertheless, when the euphoria over the increased funding for nearly every agency and program subsides, we fiscal conservatives are left with the nagging question, “How will such increases be sustained in the future?” Even when you allow for the 1% allocated to the new Rainy Day Fund, a net spending increase of more than 18% above the current biennial budget is breath-taking. I can only sit here and shake my head. After all, the voters have spoken; the liberals are in charge; and, who am I to rain on their parade. It’s like the Roaring Twenties…Happy Days are here again.
Sincerely,
Dennis
Richardson
State Representative
 Capitol Calendar
Monday, March 26, 2007
Elections, Ethics and Rules Committee
8:30 a.m. HR E (Public Hearing)
HJR 14 Proposes amendment to Oregon Constitution to modify double majority voting requirements in property tax elections so the double majority requirement does not apply to local property tax measures submitted to electors in elections in May or November of any year.
Judiciary Committee
8:30 a.m. HR 357 (Work Session)
HB 2536 Requires motor vehicle passengers who are under 13 years of age to sit in the rear seat of motor vehicle.
Wednesday, March 28, 2007
Consumer Protection Committee
1:00 p.m. HR E (Public Hearing)
HB 2871 Sets maximum interest rate at 36 percent per annum for all consumer loans of less than $50,000.
Watch or listen to Legislative Sessions or Committee Hearings online.
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House Profile: Representative John Lim
Representative John Lim (R-Gresham) has the distinction of being the longest serving member of the Legislature. Elected in 1992 to the Oregon State Senate, Lim represented the people of Senate District 11 for two terms. He was elected to the House of Representatives in 2004 and was reelected in 2006 to represent House District 50.
Currently, Representative Lim serves on the House Education Committee, the Education Subcommittee on Higher Education and as Vice Chair of the Workforce and Economic Development Committee.
Born in Yeoju, Korea, Representative Lim immigrated to the United States in June 1966 after completing a bachelor’s degree in religious studies at Seoul Theological College. Later he studied at Western Evangelical Seminary in Portland earning Masters and Doctorate degrees. He and his wife Grace have been married for over 40 years and have raised three children.
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