Legislators say pressure’s on Salem if tax measures fail

Wednesday debate highlights point to either a dire future or smart spending, depending on who's talking

By Jim Redden

The Portland Tribune, Nov 18, 2009, Updated Nov 18, 2009 (3 Reader comments)

Legislative leaders painted dramatically different pictures of the consequences of the two state income tax increases on the January ballot at a Wednesday morning debate in downtown Portland.

Democratic House Speaker Dave Hunt of Gladstone predicted that if ballot measures 66 and 67 fail, the Legislature would cut $1 billion from the state budget at a February special session — resulting in teacher layoffs, prison closings and poor people losing health care coverage.

“The path before us is clear and stark,” Hunt said. “Measures 66 and 67 or $1 billion in budget cuts.”

Republican House Minority Leader Bruce Hanna of Roseburg predicted that the tax increases would result in the loss of 70,000 private-sector jobs, however. He said the Legislature could close the budget gap by tapping reserves, freezing public employee salaries and stimulating the economy to create more jobs and generate more taxes.

“The Oregon Legislature has other options,” Hanna said.

Slowing economic recovery

The debate was sponsored by the Portland Business Alliance at the Governor Hotel. If approved by voters in the Jan. 26 special election, Measures 66 and 67 would raise $733 million for the state’s current two-year budget cycle. They will secure an additional $250 million or so in federal matching funds.

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