 |
  |
 |
||||||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
||||||||||
MEASURE
30 With Measure 30 consistently trailing in polls, the state faces a billion dollar budget hit that could kick 85,000 poor people off health insurance, force prisons to release inmates and force schools to lay off teachers or close early. The prospect has left state leaders gloomy and mum. Gov. Ted Kulongoski's lips aren't moving on the new taxes. A Register-Guard editorial recently dubbed him "Gov. Eeyore" on Measure 30. But if Kulongoski's an Eeyore, there's a lot of Tiggers bouncing in the grassroots. "My phone is ringing off the hook with people wanting to volunteer," says Joy Marshall of Eugene, who's campaigning for the measure as state director of Stand for Children. "This is a passable, doable measure." "People are really, really concerned about this, and they're coming out to support this big time," says Dan Bryant, co-chair of the Lane County Yes on 30 campaign and a minister at First Christian Church. Bryant says Eugene will be a key part of passing Measure 30. The failed attempt last year to pass state revenue Measure 28 actually passed in Eugene by a 61 percent vote. Eugene's strong support, particularly in 13 precincts around the UO and in the South Hills where more than 70 percent voted yes, was enough to push all of Lane County into the yes column. With turnout in the Feb. 3 mail election expected to be low, Bryant says, "we can make the difference in the entire state, if we get out to vote."
Cost of Taxes Measure 30 will cost taxpayers $1.2 billion through 2007, but supporters say the burden will be spread fairly, based on ability to pay. About two-thirds of the revenue will come from a temporary increase in income taxes. The increase will vary from 0 to 9 percent, depending on income. Taxpayers earning more than $200,000 a year will pay an average of $1,929 in additional taxes a year while those earning $30,000 to $40,000 would pay only $43 more. Those earning less than $10,000 pay nothing.
The steeply graduated tax increase means that the 68 percent of state taxpayers who earn less than $50,000 will pay only 11 percent of the personal income tax increase. The elite 7 percent of taxpayers earning more than $100,000 will pay 60 percent of the tax increase. Marshall says Measure 30 is the most progressive tax measure to come out of the Legislature in decades. "It's fair, affordable and very well written." Besides personal income taxes, 21 percent of the tax increase will come from an increase in corporate income taxes. The corporate minimum tax will go up from $10 and corporate tax loopholes for outside state income and tax credits will be tightened. An additional 11 percent of the new revenue will come from halving the discount taxpayers get for paying their property taxes on time. The remaining 3 percent of Measure 30 comes from extending a 10 cent tax on cigarette packs.
Cost Without Taxes If Measure 30 fails, state schools, health care, poverty programs, courts, prisons, police and other services will take a $1.2 billion wallop.
Here's a rundown of the estimated state and local impacts for the current two-year budget:
Education - Cut $363.7 million K-12 schools would lose $338 million or $503 per student, forcing up to five more kids into every class and laying off 8,000 teachers or shortening the school year by about a month. Universities would take a $16 million hit, and community colleges would lose another $10 million, causing cuts in classes and tuition increases. Locally, Eugene 4J would lose $12.24 million, Springfield schools $7.5 million and Bethel schools about $4 million. The blow to Bethel and 4J would be cushioned this year by funds from the recent city of Eugene tax levy for schools, but the full impact will be felt next year. Smaller outlying county districts with no reserves could be faced with immediate dramatic cutbacks. "It will get real drastic," says Virginia Farkas, a
4J parent serving on the district budget committee. She says her daughter
The UO would lose about $3 million and LCC $1 million, with possible tuition hikes, class cuts and deferred maintenance.
Human Services - Cut $231 million Up to 85,000 poor people would lose their Oregon Health Plan medical coverage. The state would also stop helping the poor with subsidized drugs and mental health and drug treatment. Locally, human services in Lane County would take a hit of roughly $6 million to $8 million. County assistance to seniors and the disabled would lose $800,000. Private charity can't come near to making up for the loss in government funding, says Bryant, whose church provides services to the poor from its downtown location. "I see that directly in just the amount of people that walk into our office who are just desperate," Bryant says. Measure 30 "provides absolutely critical funding for essential services."
Public Safety & Courts - Cut $69 million Kid jails would lose $9 million, cutting counseling and treatment programs for delinquents. Adult prisons would take a $7 million hit with reduced treatment for drugs, mental disorders, anger and sexual deviance. The state police would lay off half their crime lab workers and underfunded courts could clog. Locally, the county jail and parole and probation would lose $1.8 million.
Pooh-Poohing State anti-government conservatives, backed by the Washington,
D.C.-based But Measure 30 supporters say the economic boom in the 1990s boosted income tax revenue and disguised the impact of Measure 5 until the recent bust. Measure 28 cuts were real and 90 districts closed their schools early. "It's not a case of crying wolf," Bryant says. Opponents also argue that a recession isn't the time to increase taxes and that Measure 30 will cost jobs. But an economic analysis by the Oregon Center for Public Policy (OCPP) shows that killing the measure will suck $1.9 billion from the state economy in state spending and lost federal matching dollars, costing thousands of jobs. A similar tax increase in the 1980s didn't keep Oregon from bouncing back from a recession, supporters also say. Measure 30 won't make Oregon's already low business tax burden much higher, according to OCPP. On the other hand, if it doesn't pass, businesses will be reluctant to locate in a state with such underfunded schools. Supporters also point out that gutting the Oregon Health Plan will flood local emergency rooms with indigent patients that can't be turned away, increasing hospital costs and, subsequently, private insurance premiums for most Oregonians. Measure 30 opponents say government needs to cut fat rather than raise taxes. But supporters say there's little fat left to cut. The state Legislature already froze state salaries, cut pensions, eliminated 1,000 positions and still had to borrow $450 million to make ends meet. "There are only so many cuts that can be made," Marshall says. The waste argument "is a myth that has been perpetuated by the anti-government factions." If the conservative Republican-controlled Legislature couldn't come up with less painful cuts, it's because there aren't any, Bryant says. "We're not talking about tax and spend liberals here." Opponents complain Oregon taxes have already grown too
high and need to be trimmed. But supporters say state taxes have fallen
behind the needs of state population growth. Compared to other states,
Oregon's tax burden actually ranks 44th highest, While they say they have the facts on their side, politically, Measure 30 supporters know they have their work cut out for them. Measure 28 was trounced despite similar arguments. With the state hovering near the highest unemployment rate in the nation, Oregonians may not be in the mood for a tax increase. But Farkas says she hopes voters will look closely at what the state will lose by saving a few dollars in taxes. "I'm hoping that people will realize it's not worth it." Bryant and the other grassroots Tiggers say they're not giving up the fight. "Not only can we do it, but it's really important that we do."
To volunteer for Lane County Yes on 30 call 607-8031.
OPINION Oregon's anti-tax fever continues. Unfortunately, too high a fever can kill the patient. On Feb. 3, Oregon voters will make an important decision — let the fever run its course and gamble on the outcome or provide the medicine necessary for a healthy state. Tax myth says Oregon is a high tax state; but according to The Public Policy Institute of New York State, Oregon ranked 37 in 1998 for total state taxes per capita. Oregon has dropped further since then. Citizens demand services but don't want to pay for them and blame public employees or "government waste" for the problem. With budgets being cut over the last 10 years, little "waste" exists, certainly not $800 million. What is waste to one person is a necessity to another. In considering Measure 30, voters should avoid automatic no tax responses and look at outcomes. The legislative tax package is more progressive than the current state tax. Individuals with higher incomes pay more and those with lower incomes pay little to no additional tax. If voters reject Measure 30ôthey can expect higher fees for mandated services. Also, further reductions in state services will mean additional job losses and higher unemployment rates. Oregon needs tax reform, but that will not happen in time to address current state needs. Income taxes paid to the state are deductible from federal income taxes and keep more of the funds in the state to provide services locally. According to the Oregon Department of Revenue, "in general, the federal tax cuts and Oregon taxes are not changed by Oregon's disconnect bill." An editorial in The Oregonian (Jan. 4) states, "$120 million in reduced federal income taxes, due to the deductibility of state income taxes on federal taxes, would be available for Oregon's economy." Oregon would also lose millions in federal matching funds and bond ratings would be lowered. Some citizens will pay more for necessary services with the defeat of the tax measure than they would with the approval of the measure. The Oregonian editorial Jan. 4 concludes "the small tax increase is much better for the Oregon economy than big reductions in spending." Oregon's infrastructure is breaking down — roads and bridges require repair; the criminal justice system can not fulfill mandates of Measure 11 and offenders are being released because of lack of space; some schools no longer provide full years or important programs like art, music, counseling and libraries; recent news stories say entire rural school districts may have to close rather than just eliminate days. According to the Oregon Center for Public Policy, the defeat of Measure 30 would draw $1.9 billion from the state economy whereas only $347 million if it succeeds. While I will not speak to the conditions of the K-12 districts or those of the university system, I do know how reduced state funding impacts Lane Community College. In the previous two years, Lane's share of state funding has dropped $7.25 million even though enrollments remain stable. In response to loss in state support, the college eliminated programs and increased tuition by 27 percent in each of the last two years. In addition, the college has added fees. Students are finding education less affordable and the college is less flexible and less able to meet requests for programs from the community. If Measure 30 fails, LCC will lose another $900,000 this biennium and possibly more if the Legislature diverts more funds to rescue K-12. An educated workforce is the key to economic development in the community and state. Concerned with the negative impact upon education and the community college in particular, The Lane Community College Board of Education passed a resolution in support of the legislative tax package. We urge voters to look beyond anti-tax myth and vote "yes" on Measure 30 to help return Oregon to a healthy state. Youth in schools now cannot wait until the economy prospers or serious tax reform goes into effect. Oregon cannot afford not to pass Measure 30; the fever might kill the patient.
Michael Rose is chair of the Lane Community College Board.
|
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
 |
||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
