Oregon Public Broadcasting

Two billion dollars in cuts to state services.  $800 million in higher taxes.  Those are the key elements to the long-awaited spending plan unveiled Monday in the Oregon Legislature.  Salem correspondent Chris Lehman explains.

Lawmakers are staring in the face of a $4 billion budget deficit.  $4 billion.

They’ll plug part of that with federal stimulus money.  They’ll plug another part by tapping the state’s reserves.

Beyond that, Oregon lawmakers have basically two options:  Cut services or raise taxes.  This spending plan would do both.  

Democrat Peter Buckley is the chief budget writer in the Oregon House.  He says lawmakers plan to raise taxes on corporations and the wealthy.

Rep. Peter Buckley:  “Not on lower, middle class working Oregonians, not on small businesses.  We’re determined to put together a proposal that will ask individuals and businesses that have thrived even in this economic climate to help keep the state whole.”

Republicans quickly jumped on the spending plan, saying it was full of, quote, job-killing taxes.  They proposed their own version of the budget without raising any taxes.  But one social service advocate said the tax hikes proposed by majority Democrats don’t go far enough.  

Cathy Kaufmann of the Human Services Coalition says lawmakers should raise even more revenue to minimize cuts that affect low income parents and foster children.

Cathy Kaufmann:  “It’s devastating to look at the cuts that are on this list, and I appreciate the fact that the co-chairs had a tough job in front of them to come up with this budget, but the amount of cuts that are on here that are going to impact struggling Oregonians across the state are just too severe.”

About 1700 state jobs would disappear under this proposal.  College students would face steep tuition hikes, and the Oregon School for the Blind would close.  

Lawmakers will work out specific details of the spending plan over the coming month.