SALEM— Gary Coe, a recognized community leader, successful business owner and accomplished creator of family wage jobs, filed paperwork with the Secretary of State to run for State Senate in District 14 Thursday.  District 14 encompasses Beaverton, Raleigh Hills, Garden Home, Aloha and Murray Hill. 
 

“I am running for State Senate because too many people in our community can’t find a job, and for too long the Legislature has done nothing about it,” said Coe.  “I believe my lifetime of first-hand experience creating jobs is just what Oregon needs right now.  I know what it means to sign both sides of a paycheck, and I believe Oregon needs that type of leadership to put our families back on the path towards success.” 
 

For 45 years Gary Coe has been a partner in Speed’s Towing, the most prominent tow service serving greater Portland and beyond.  Coe has been recognized as the Service Entrepreneur of the Year and Corporate Citizenship Award by The Volunteers of America.  Gary Coe is a founder and past president of both the Oregon Tow Truck Association and The Towing and Recovery Association of America.
 

In the community, Gary Coe served two terms as President of the Central Eastside Industrial Council, and Speed’s Towing currently handles the auto donation programs for 21 charities and non-profits, raising an average of $37,000 per week for that group.
 

Gary Coe owns several other small businesses, including Pacific Cascade Towncar, which largely provides transportation to and from the Portland airport and Retriever Towing, which since 1975 has served property management companies, business owners, and the Portland Police with parking problems.
 

“Oregon should be a place where families can thrive and prosper,” said Coe.  “Unfortunately, current leaders have been unable to find a path out of double-digit unemployment.  I believe with a common sense focus on job creation and fiscal responsibility, Oregon will begin to look like the place it should be.”  
 

Gary Coe is the father of 4 adult children and lives in the Sylvan area.

Salem, OR – The 2011 Legislative Session adjourned in the mid-afternoon on Thursday.  With an increased number of Republicans in leadership positions, the legislature was able to secure key wins for school choice, education reform, and spending control, but Democrats again stymied any significant action to aid Oregon’s sputtering economy.

“Oregonians can be proud of what Republicans were able to accomplish this session: defeated new tax increases, held the line on spending, and enacted sweeping education reform,” said Senate Republican Leader Ted Ferrioli (R-John Day).  “Two years ago, education and budget reforms would not have stood a chance.  Oregon families will have access to better educational opportunities and, for the first time in a long time, the legislature budgeted based on existing resources rather than a wish list.”

Similar to a budget proposed by Senate Republicans two years ago, the legislature built a spending plan for the next two years based on the March revenue forecast as a hard ceiling for total spending.  The budget set aside a prudent $400 million in reserves to protect important services and guard against a potentially increased or prolonged recession.  The budget preserves funding in K-12 education at the same funding levels of the last two year, with the opportunity to add more in the February session.

“This is the first legislature in more than a decade to say no to budgeting-as-usual and the run-away spending that accompanied it,” said Senator Jackie Winters (R-Salem).  “Instead, we started by asking the question how much we could prudently spend, rather than what we wanted to buy.  This sounds simple, but it is a big paradigm shift.”

Senate Republicans were also able to help secure three groundbreaking education reforms.  House Bill 3681 allows students to enroll in the school district of their choice and opens the door to competition in our education system. House Bill 2301 raises the enrollment cap on virtual charter schools.  House Bill 3645 empowers community colleges and public universities to create charter schools.

“Oregon needs to be preparing today’s students to be competitive in the world economy of tomorrow,” said Ferrioli.  “These bills give Oregon students choice and opportunity, empowering them to find the educational environment that will best prepare them for success.  These are major reforms that will help transform Oregon’s education system.”

Senate Republicans spent much of the session highlighting the need for family wage jobs in Oregon, which continues to boast a functional unemployment rate of 17%.  A recent Oregonian article declared that many Oregon cities will take more than a decade to reach pre-recession employment levels.

“Oregonians have one thing on their mind: jobs,” said Senator Alan Olsen (R-Canby).  “They are looking to the legislature for big ideas and leadership that will transform this state into a place where families don’t just survive, but thrive.  Unfortunately, it is the one area where this legislature failed to provide any long term vision or major policy changes.”

After failing to get traction on a jobs agenda in the Democrat controlled Senate committee process, Republicans forced seven job-creating bills to the floor.  The bills were all defeated on party line votes.

The Senate Republican Jobs Agenda included:

Senate Bill 190: designates thirty-two million acre feet of excess Columbia River water for use by farmers and ranchers in Eastern Oregon, water that would otherwise flow uselessly to the ocean. Estimates put potential jobs created from the proposal at more than 16,000.

Senate Bill 472: lowers the tax rates applied to small business like sole proprietorships, partnerships, and family-owned S-corporations to a rate equal with big business.

Senate 476: would allow local governments to fast-track land use changes if new jobs were at stake.

Senate Bill 464: ends artificially low harvest levels in state owned forests and require sustainable management of timber production for maximum public benefit

Senate Joint Resolution 32: gives the legislature veto authority over job-killing agency rules

Senate Bill 897: eliminates the requirement that employers pay the six percent employee contribution to their Public Employees Retirement System account

Senate Joint Resolution 33: would bring Oregon doctors and surgeons under the state’s litigation awards limit

“This is the type of legislation that you would see Republicans passing if they controlled the State Senate,” said Senator Bruce Starr (R-Hillsboro).  “We believe this is the type of long-term, big picture thinking that Oregonians want and need to shake this recession.”

 ***Oregon and U.S. Alternative Measures of Labor Underutilization for May 2011, Oregon Employment Department

Cap on lawsuit damages would reduce cost of healthcare premiums
 

Salem, OR – Senate Republicans moved Tuesday to bring Senate Joint Resolution 19 to the Senate floor, a bill that would cap the non-economic damages allowed in medical malpractice lawsuits.  The bill failed on a party line vote 14 to 16.

“The rising costs of healthcare are obvious to all, and the underlying problems are varied and complex,” said Senator Chuck Thomsen (R-Hood River). “Reforming Oregon’s broken medical malpractice law is one simple idea that must be a part of that solution, and it is something the legislature could implement today.  While it isn’t the complete solution, it is a piece of the puzzle, and it will serve as a big first step towards deflating health care costs.”

The average family’s monthly insurance premium has increased by 26 percent over the last 20 years, more than double the increase in the minimum wage, per capita income and the consumer price index.  As insurance has become more expensive than many can afford, the state’s seven largest health insurers have lost 15 percent of their customers since 2007.

A portion of the medical inflation driving consumer costs can be traced back to defensive medicine and the over-utilization of health care services.  Oregon’s doctors and surgeons have been forced to adopt defensive medical practices as a result of Oregon’s unchecked litigation environment.  Studies have concluded that defensive medicine accounts for $650 billion every year in medical costs, which is 26 percent of all the money spent on healthcare.Defensive medicine is not intended for the health of the patient but to safeguard against potential malpractice lawsuits.

“Defensive medicine is pushing health care costs beyond the average consumer’s reach,” said Senator Fred Girod (R-Lyons).  “Families, individuals and small businesses especially are increasingly unable to afford even the most basic coverage because Oregon’s doctors and surgeons have been forced to adopt defensive medical practices. Senate Joint Resolution 19 would put a simple cap on the non-economic damages that can be awarded in medical malpractice lawsuits, and help make healthcare affordable again.”

Fearing the potential costs of malpractice litigation to state government, in 2009 the Oregon Legislature adopted a cap on non-economic damages that protects state agencies, but leaves Oregon health care consumers and medical practitioners out in the cold.

***Representative Tom Price, http://www.youtube.com/watch?v=ZRsHCV2aWkE

Senate Bill 457 would provide permanent funding for school energy upgrades
 

Salem, OR – Senate Republicans made a motion Thursday morning to take $100 million in corporate welfare and give it to Oregon schools for renewable energy upgrades.  The motion to pull Senate Bill 457 to the Senate floor failed on a party line vote, 14 to16.

“Cool Schools is a great idea, something we have been pushing for years,” said Senator Larry George (R-Sherwood).  “But we should pay for it by ending subsidies to mega-corporations, not maxing out the state credit card. The Senate voted to continue yesterday’s broken policies of borrow-and-spend.”

Oregon currently levies a 3% Public Purpose Charge on ratepayer utility bills, using a portion of the proceeds to subsidize energy upgrades for big corporations and other corporate welfare.  Senate Bill 457 would redirect $100 million of the Public Purpose Charge to help schools pay for projects that produce energy savings, like HVAC upgrades, solar panel installation and lighting upgrades.  Rather than a one-time investment, redirecting the Public Purpose Charge towards schools would create a rolling investment of $100 million every two years for school maintenance needs and upgrades.

Governor John Kitzhaber has taken up the call for energy investments in Oregon schools.  Labeled “Cool Schools,” his concept is similar in its purpose but is a one-time only invest and borrows $100 million to pay for the projects.  In the last few years, Oregon has been near its limit on borrowing capacity.  Last September, Oregon State Treasurer Ted Wheeler and the state's Debt Policy Advisory Commission called for a halt on new borrowing.

“We shouldn’t put these projects on the state credit card when we can pay for them with cash,” said George.  “By constantly asking for an advance to pay for projects like this, we are tying the hands of future generations.

Oregon ranks in the bottom 25% of states for school maintenance support.  Senate Republicans believe there is no reason that ratepayers should be subsidizing big businesses while schools are left out in the dark and cold.  Senate Bill 457 would prioritize Oregon schools over corporate welfare.

Salem, OR – Senate Republicans made a motion Thursday morning to bring a simple, save-before-you-spend rainy day fund to the Senate floor.  Senate Joint Resolution 18 would set aside 3% of income tax collections and lottery revenues at the beginning of every budget cycle to be used in the case of an economic downturn.  The straightforward plan was defeated on party lines, 11 to 16.

“This proposal would force the legislature to save for a rainy day, impose fiscal responsibility and give our schools and other state services stable, dependable funding,” said Senator Bruce Starr (R-Hillsboro).  “The complexity of other proposals in the process has them high centered.  This idea is elegant in its simplicity, and would protect the services Oregonians care about and depend on.”

Oregon has one of the most volatile systems for projections revenue in the nation, leaving state services like education and health care subject to constant budget whiplash.  Senate Joint Resolution 18 would provide funding stability for core state services by saving money when excess revenue comes in and ensuring a safety net for when revenue unexpectedly and steeply declines.

Runaway spending over the last few decades has lead from an all funds budget of $15.17 billion in 1991 to $59.6 billion in 2011.  Senate Joint Resolution 18 would help temper the impulse to spend every last penny available by mandating a 3% savings rate every two years.

“State government has two problems: a really bad spending habit and a volatile revenue stream,” said Senator Jackie Winters (R-Salem).  “Tax increases and painful cuts have been the poor solutions proposed to such problems.  There is a better way. We should start saving like Oregon families do.”

A historic simulation based on the parameters of SJR 18 predicts that $2.24 billion would have been saved over the last 30 years.  The savings would have been available at five points to help offset cuts and maintain stability for key services in numerous recessions since 1980.

Salem, OR – Senate Republicans filled a leadership vacuum Wednesday by forcing PERS reform legislation to the Senate floor.  Senate Bill 897, which would eliminate the requirement that employers pay the six percent employee contribution to their Public Employees Retirement System account, failed on a party line vote.

“It is obvious to everyone but the state legislature that something must be done about the PERS problem,” said Senator Chris Telfer (R-Bend).  “Ignoring looming deficits and skyrocketing rates only means less money to spend on classrooms, police officers, services for seniors and other vital priorities.  This bill could have been one piece of the solution to the PERS problem.”

Senate Bill 897 would end the statutory requirement that a six percent contribution be made to employees’ retirement accounts.  More than 70 percent of PERS members have this six percent contribution “picked-up” by their employers.  This solution, endorsed by The Oregonian, would save taxpayers $750 million every two years.

Recent studies have shown that PERS has an unfunded liability of $13.6 billion.  As a result, rates charged to employers in the system have more than doubled.  State agencies, school districts and local governments were all forced to shoulder an additional $1.1 billion in expenses this budget cycle alone, for a total of almost $2 billion in PERS charges. Additional rate increases are looming.  Every rate increase comes straight out of state and local budgets and means fewer dollars to pay for teachers, police officers and other services.

“PERS costs are eating school districts and other core services alive,” said Senator Alan Olsen (R-Canby).  “Ignoring this problem won’t make it go away, it makes the problem that much worse for future generations.  Ending the requirement that employers pick up all 6% of an employee’s PERS contribution is one thing we can do to increase funding for education and other important state priorities.”

Senate Republicans also introduced Senate Bill 970 to help stem the bleeding in PERS.  Senate Bill 970 would require employers to make yearly payments to fund projected liabilities in 25 years or less.  Many public employers know how much will be needed to pay for promised post-retirement benefits, but choose to spend money on more immediate needs instead, leaving future administrations to pay for the promises.

Responsible management of state forests would mean revenue boon for state government
 

Salem, OR – Senate Republicans again offered the opportunity for action on jobs legislation Wednesday morning.  Republicans moved to bring Senate Bill 464 out of committee, which would end the artificially low harvest levels in state owned forests like Tillamook and require sustainable management of timber production for maximum public benefit.  The bill failed on a party line vote

“For the last few budget cycles, we have underfunded Oregon’s most important state services, like K-12 education,” said Senator Larry George (R-Sherwood).  “Common sense policy changes like scientifically managing our state forests would mean more than $100 million more for our classrooms and local governments.  At some point the legislature has to start changing the way we do business.”

Thanks to productive jobs in Oregon forests, local and state taxes on income and timber proceeds used to provide a steady stream of revenue to pay for important services.  At its peak, timber taxes alone were bringing in $76.2 million a year to state coffers.  In 2008, it was a paltry $10.2 million.

Senate Bill 464 would direct the State Forester to manage state owned timber land like the Tillamook Forest for maximum public benefit and sustainability.  This would mean harvesting and replanting timber according to the Oregon Forest Practices Act and in a way that maximizes revenue produced for state services and protects the forest for use by future generations.  Managing state forests according to the standards of the Oregon Forest Practices Act could produce as many as 4,300 family wage jobs.

“There is a balance that can be achieved between family wage natural resource jobs and protecting the environment for future generations,” said George.  “These ideas aren’t mutually exclusive, but can work in harmony.

State and federal policy changes over the last 30 years have slowly eroded Oregon’s natural resource based industries, like timber, that used to be a foundation of the state’s economy.  In 1980, there were 405 timber mills operating in the state, providing more than 45,000 family wage jobs.  Today there, are 108 mills employing 15,000 people.

Salem, OR – Senate Republicans moved to bring House Bill 2337 to the Senate floor Wednesday morning.  The bill would help stem the onslaught of cougars threatening schools, kids and seniors on Oregon’s rural/urban boundaries. The bill, which has been stuck in the Senate Environment and Natural Resource Committee, failed on a party line vote _ to _ after a heated and emotional debate.

“This is a serious public safety issue, threatening the lives and peace of mind of Oregonians,” said Senator Fred Girod (R-Lyons).  “Until we do something to control the spread of cougars, kids, seniors, farmers and other rural Oregonians will continue to live in fear.”

House Bill 2337 directs the State Fish and Wildlife Commission to create a pilot program to control cougar populations by allowing the hunting of cougars with dogs. The bill is intended to reduce the number of conflicts between humans and cougars, which have risen drastically.  Cougars have been seen repeatedly pursuing individuals, stalking children around schools and killing livestock.

“If a child is attacked by a cougar, God forbid, their blood will be on the Senate’s hands for killing this bill,” said Senator Larry George (R-Sherwood).  “This is an issue of life or death, and it has been buried in committee.  This bill received bi-partisan support in the House, why can’t it get any traction in the Senate?”

House Bill 2337 passed the House of Representatives 45 to 14, with support from both rural and urban representatives.  It has not received a hearing in the Senate.

Salem, OR – Following evidence of racial discrimination in renting practices revealed by a city of Portland audit, Senate Republicans are calling for more assertive enforcement of the state’s Fair Housing Laws.  In a letter sent yesterday, Republicans asked Attorney General John Kroger and Labor Commissioner Brad Avakian to begin aggressively investigating and prosecuting violations of the Fair Housing Laws.

“Oregon was a trailblazer in the civil rights movement, adopting fair housing laws before it was a national trend,” said Senator Jackie Winters (R-Salem).  “News of this prejudice in Portland is disturbing, and proof that the battle against racism must be waged just as aggressively today as it was in the 1960s.”

A May 10^th Oregonian article outlined a pattern of discrimination against African American and Latino renters in the Portland housing market.  A city of Portland audit uncovered discrimination against renters in 64 percent of test cases.

Oregon has a strong set of laws prohibiting housing discrimination based on race, color, national origin, religion, and other classes of people.  Instead of enforcing these current laws with citations and prosecution, the city of Portland is opting for a campaign of “education and cooperation.”  Senate Republicans are asking statewide enforcement officials to take more assertive action against these law breakers.

A portion of the letter states, “This is not an isolated incident, the mere ignorance of one intolerant individual, but rather is evidence of a deeply rooted infection of prejudice that continues to run under the surface of our culture.  It is a sobering reminder that the scourge of racism was not defeated with the civil rights movement of the 1960s. We must continue to be alert to its presence and meet its ugly symptoms with intention and ferocity.”

Salem, OR – Following this week’s budget proposal by the Ways and Means Co-Chairs, Senate Republicans are calling for leadership to pass the K-12 education budget as soon as possible.  They say this budget will give local school districts stability and certainty as they plan for the next two years.

“The clock is ticking for our local schools,” said Senate Republican Leader Ted Ferrioli (R-John Day).  “We have a budget that holds funding steady. To delay this process any longer is a disservice to our local classrooms.”

Soon after the release of the $5.7 billion budget recommendation for K-12 education, some started calling for a delay in its passage.  This delay will only cost local districts valuable planning time and turn Oregon classrooms into political pawns.  In most cases districts must complete their budget work by July 1^st.  In past sessions the budget for local schools is often delayed until late June or early July, giving local districts little time to plan.

Senate Republicans see the $5.7 billion funding level as a floor.  Quick passage of this budget will let local school boards get to work.  If, later in the budget process, additional resources can be indentified a supplemental budget can be passed.

“The Oregon legislature can set the precedent that funding schools before the 81^st day of session can be done,” said Senator Jason Atkinson (R-Central Point).

For the last several legislative sessions Atkinson has pushed a bill to require lawmakers to fund K-12 education within the first 81 days of the session.  Members of the Republican caucus were encouraged when the Co-Chairs announced earlier this week that the K-12 education budget would move quickly through the process.

Salem, OR – In light of the consistent double-digit increases in medical inflation and insurance costs, Senate Republicans are urging the legislature to adopt a cap on damages allowed in medical malpractice lawsuits.  While government agencies currently enjoy such a cap, the liberal litigation allowances for private sector health care providers in Oregon means higher premiums for Oregon consumers.

Senate Republicans are urging passage of Senate Joint Resolution 33 which would bring Oregon doctors and surgeons under the state’s litigation awards limit.  Non-economic damages awarded in malpractice suits against the state are currently capped at $2 million.

“Oregon families and businesses are being forced to abandon health insurance thanks to skyrocketing premiums that are beyond what many can afford,” said Senator Frank Morse (R-Albany).  “While there are no simple solutions to control medical inflation, tort reform is one step that will drive down the Oregon family’s monthly health care cost.”

The average family’s monthly insurance premium has increased by 26 percent over the last 20 years, more than double the increase in the minimum wage, per capita income and the consumer price index.  As insurance has become more expensive than many can afford, the state’s seven largest health insurers have lost 15 percent of their customers since 2007.

A portion of the medical inflation driving consumer costs can be traced back to defensive medicine and the over-utilization of health care services.  Oregon’s doctors and surgeons have been forced to adopt defensive medical practices as a result of Oregon’s unchecked litigation environment.  Studies have concluded that defensive medicine accounts for $650 billion every year in medical costs, which is 26 percent of all the money spent on healthcare. Defensive medicine is not intended for the health of the patient but to safeguard against potential malpractice lawsuits.

According to the American Academy of Orthopaedic Surgeons and the Journal of the American Medical Association, 79 percent to 91 percent of doctors engage in defensive medical practices. A Pennsylvania study found that 20 percent of medical images ordered were for defensive purposes only, to protect doctors against potential lawsuits.

Fearing the potential costs of malpractice litigation to state government, in 2009 the Oregon Legislature adopted a cap on non-economic damages that protects state agencies, but leaves Oregon health care consumers and medical practitioners out in the cold.

“Businesses and families attempting to find health insurance deserve the same protection that state government enjoys,” said Morse.

Oregon’s free-for-all litigation environment has also been blamed for reducing access to medical services.  Many providers of high-risk services like obstetrics and brain surgery flee Oregon for states with friendlier tax and litigation environments.

Salem, OR – The Senate Finance and Revenue Committee heard several bills Wednesday that would reduce the rate at which Oregon taxes income from investments.  Senate Republicans have been pushing for significant reform to the capital gains tax as a way of empowering businesses to grow and create jobs.

“Relaxing capital gains taxes will increase investment and spur the creation of jobs in Oregon,” said Senator Alan Olsen (R-Canby).  “Oregon’s high capital gains tax drives businesses and investment outside of our borders to states with more welcoming tax structures.  A reduction of the capital gains rate will help create a place in our own backyard where businesses and families can grow and prosper.”

At 11 percent, Oregon has the highest capital gains tax rates in the nation.  High capital gains taxes have been identified as a chief enemy of business expansion and growth.  Compared with other states, Oregon’s tax rate is transparently uncompetitive and forces would-be entrepreneurs and job-creators to other states.  Neighboring states have significantly lower capital gains tax rates or, like Washington, no capital gains tax at all.  Any revenue lost by a reduction in the capital gains tax would be recuperated in the long term through the income tax collected from new jobs.

Olsen testified in favor of Senate Bill 883, which would cut Oregon’s current capital gains tax rate in half.  Senator Jason Atkinson (R-Central Point) testified on two similar bills he introduced, SB 714 and SB 715.

“Lowering the capital gains tax is like hanging a big sign around the state that says ‘Open for Business,’” said Olsen.  “These concepts will empower Oregon job-generators to locate and invest in Oregon and put our economy back on track.  If we want to end Oregon’s epidemic joblessness, the legislature must take action on concepts like these.”

Senate Republicans are optimistic that this legislature will encourage the creation of new jobs through some form of capital gains tax reduction.

Thanks to a dismal business climate and a stagnant national economy, one in every five Oregonians is functionally unemployed and one in five Oregonians are receiving food stamps.  Per capita personal income in Oregon totaled $36,125 last year, 9 percent lower than the national mark of $39,626, according to a report from the Oregon Employment Department.

Bill is one of ten initiatives from the Oregon Business Plan
 

Salem, OR – Citing the oppressive effect of Oregon administrative rules and permitting bureaucracy, Senate Republicans introduced Senate Bill 988 to the Senate Business, Transportation and Economic Development Committee Tuesday afternoon.  The bill is modeled after an Oregon Business Plan initiative to create a fair, predictable, timely and transparent regulatory and permitting process.  It is the third bill introduced by Senate Republicans to reform Oregon’s regulatory environment.

“Businesses large and small across Oregon routinely point to excess paperwork and regulatory burden as a leading enemy of success,” said Senator Chris Telfer (R-Bend).  “Cleaning up the administrative rule and permitting process is crucial to cleaning up the state’s business environment.  This is a solution that Democrats and Republicans should be able to unite around.”   

Senate Bill 988 would create a process to simplify and streamline Oregon’s regulatory and permitting requirements, with a focus on improving the state’s business climate.  Under the bill, the impact of administrative rules on Oregon’s job’s climate will be assessed, including the waiting periods for permits, pending enforcement actions and the effect of new regulation.  The bill aims to establish a one-stop permitting process and to coordinate regulation between local, state and federal agencies.

The bill is based on suggestions of the Oregon Business Plan’s regulatory and permitting initiative.  The Oregon Business Plan is guided by leaders from businesses, business associations, and public agencies.  Its goal is to increase and maintain high-wage jobs that support families and maintain strong communities.

“This is the type of legislation action that creates a place where business and jobs don’t just survive, but thrive,” said Telfer.  “It doesn’t cost taxpayers a cent like stimulus spending or tax breaks, and it puts businesses in the best position to succeed and create long-term, lasting jobs.”

For many Oregon businesses, monitoring and responding to agency regulatory demands and changes requires significant time and expense.

Senate Republicans introduced SB 812 which suspends all non-emergency state agency rulemaking for a two year period.  Washington Governor Chris Gregoire (D) issued an executive order suspending the development of new agency rules for 2011. Arizona Governor Jan Brewer (R) enacted a similar order in 2009.

Senate Republicans also sponsored Senate Joint Resolution 32 would require legislative approval of all state agency rules.

House and Senate Republicans announced a Back to Basics Budget plan on Tuesday. The plan funds a full school year, protects prioritized service areas like public safety and human services by giving them the same funding levels they received in the last two year budget and creates a $1.374 billion surplus for targeted legislative add-backs and contingency reserves.

“This budget protects our most important priorities: quality education for our kids, safe neighborhoods and services for the most needy and vulnerable,” said Senator Chris Telfer (R-Bend). “Republicans applied the same philosophy that Oregon families and small businesses are applying to their budgets, funding what is most important with what we have, tightening our belt and being fiscally responsible. If we do those things, we don’t have to talk about raising taxes on Oregon families and small businesses in these tough times.”

Highlights of the Back to Basics Budget include:

• The plan starts with the assumption that Oregon government does not need to increase taxes in order to provide the services that Oregonians need and value.

• The plan funds K-12 education with $6.245 billion, holding schools harmless with a zero cuts budget that ensures kids can receive a quality education through a full school year.

• The plan protects public safety, human services and other core functions by giving them at a minimum the exact budget they had last cycle.

• The plan leaves a $1.374 billion surplus for legislative add backs, enhancements, contingencies and reserves.

• The plan leaves $457 million of our state reserves intact.

Republicans built the Back to Basics Budget using a philosophy that funds the most important, core services first. This budget creates a starting point that holds services like K-12 education, higher education, public safety agencies and human services providers harmless from any cuts from their 2007-09 funding levels.

To protect these priorities, the budget uses $911 million in Federal Stimulus money and $457 million from the Rainy Day and Education Stability Funds, leaving $457 million left in reserves. The budget also uses $429 million in savings and efficiency enhancements. After funding each core service at their 2007-09 level, the budget leaves $1.374 billion for the legislature to make targeted add-backs to the most important priorities.

“The way Oregon budgets must be fixed,” said Senator Frank Morse (R-Morse). “Past practices are simply not sustainable. Government must find ways to improve performance and demonstrate the ability to reduce costs. Ultimately, core services and functions of government can be preserved without raising taxes. ”

In the past, the legislature has started the budget discussion with an automatic, no-questions-asked increase to state agencies, called the “Essential Budget Level.” The legislature doesn’t require agencies to come before the budget writing committee and justify why they need increases in their base levels of spending like a business would. The Legislature has handed out increases without asking tough questions about what drives the cost of state government and how we can better prioritize. The result is out-of-control spending and insurmountable deficits. In fact, over the last ten years our state budget has increased by more than 75%.

“This is a fundamental change to the way the legislature budgets,” said Representative Bruce Hanna (R-Roseburg). “Oregonians are hurting and having to make tough choices in their budgets at home and in their businesses right now. We think Oregon government should be making the same tough decisions and start managing taxpayer dollars with responsibility.”

Senate Republicans said the borrow-and-spend stimulus package on the Senate floor Wednesday doesn’t do enough to ensure the creation of long term jobs for families across Oregon. Republicans made a procedural motion to send the bill back to the budget writing Ways and Means Committee where more substantial stimulus efforts could be added with the help of both Republican and Democrat members. The motion failed, 12 to 18.”Our goal is to create jobs that will last,” said Senate Republican Leader Ted Ferrioli (R-John Day). “While this bill contains some investment in infrastructure, it also wastes a lot of tax dollars on petty projects and busy work without providing long-term job creation. Oregonians recognize that pork barrel spending is a poor way to stimulate the economy.”

The bond package, which was not crafted in a bi-partisan manner, borrows money to pay for deferred maintenance projects at state agencies, a financial maneuver most businesses would avoid. Deferred maintenance projects include sealing cracks on walls, pulling up juniper bushes and installing light bulbs. Many of the short term projects end after a few days and weeks, sending Oregonians back to the unemployment line. Long after the paint has pealed and the light bulbs are burnt out, taxpayers will still be paying the bill on the long-term bonds.
“Is this really the best, most responsible stimulus package we could craft?” said Senator Bruce Starr (R-Hillsboro). “I know we could put our heads together, Republicans and Democrats, and come up with a package which includes common sense investments in key infrastructure and extra money for Oregon families to buy food, heat and pay the rent.”

Republicans proposed a plan last week that would put money back into Oregonians’ pockets and create 2,453 new, lasting jobs. The plan would simply give Oregonians part of their tax refunds now, rather than next year, and put $100 million directly back into the Oregon economy. The plan does not cost the taxpayers and will start creating jobs quickly. The non-partisan Congressional Budget Office (CBO) echoed the views of many economists who say the most effective way to stimulate the economy is to provide money either through tax cuts or direct payments.
“Our proposal will give families help with their electric bills and grocery budgets, and at the same time creating thousands of jobs,” said Senator Brian Boquist (R-Dallas). “Oregonians are hurting, and paving new agency parking lots shouldn’t be our first priority. Our priority ought to be making sure families have the means to feed and clothe their children.”