Across the Board Cuts the Wrong Solution to Oregon’s Budget Crisis

By Rep. Sal Esquivel (R-Medford)

 Earlier this year Oregon voters were asked to approve $733 million in permanent income and corporate tax increases.  Proponents of Measures 66 and 67 told Oregonians the increases were needed to avoid cuts to education and other important programs.  Opponents argued the tax increases would hurt our economy and fail to solve our budget problems.  The tax increases- retroactive to the 2009 tax year- were approved in January.  Today, our economic recovery is struggling to gain traction, and state economists have announced a $577 million shortfall in the current budget.

 Democratic leadership in Salem not only hoodwinked voters, they completely mismanaged our state’s finances. Our current budget problems are not due to a lack of government revenue.  Over the past 18 months, the Legislature increased new government spending by over $8 billion and passed $1.6 billion in total new taxes and fees.  Yet, with all the new spending, Democrats are threatening nine percent across-the-board cuts that will further damage our schools, Oregon State Police and vital senior’s programs. Locally, Medford schools are facing a $4.7 million cut during this biennium.

 As State Representative, I believe across-the-board cuts are the wrong solution to rebalancing the state budget. In 2009, the Legislature provided significant funding increases to several state agencies while cutting funding to schools. Across-the-board cuts will only reduce these agency spending increases at the same time school districts are forced to lay-off teachers or even shorten the school year.

Recently, I joined fellow Republican colleagues in the House and Senate in calling for a special session to prevent these across-the-board cuts.  Rather than spreading reductions evenly, we believe a better solution is to re-prioritize spending to protect critical programs from drastic cuts.  We also believe that there are significant savings that can be found in the current budget, such as redirecting excess agency cash balances that have been allowed to accumulate. We can also cut wasteful spending in the budget, such as tax dollars the state spends on XM satellite radio, magazine subscriptions and memberships to out-of-state organizations.

 In addition, the Legislature should address escalating personnel benefits and pension costs, which are already expected to blow a $300 million hole in the next budget.  For example, the state spends $55 million a month to provide benefits to state workers.  Oregon is the only state in the nation that doesn’t require its workers to contribute toward their premiums or pay a deductible.  We could save nearly $100 million if we simply required state workers to contribute at the same rate Oregon teachers pay.

Unfortunately, Democrats unanimously rejected our call for an immediate special session to prevent these across-the-board cuts, citing the need for ‘further analysis’ and yet another taxpayer-funded bailout from the federal government.  While Oregon Democrats dither, we are receiving signals from Washington D.C. that we shouldn’t expect more dollars to rebalance the budget. 

 I don’t believe Oregon needs another bailout from the federal government, which is already borrowing and spending at historic and unsustainable levels.  I believe the Legislature simply needs the courage to make the tough decisions and cut wasteful spending.  We must also refocus our efforts on improving our economy and creating jobs, which is the only way we can ever generate the revenue needed to balance the budget.  Democrats didn’t make this task easier with Measures 66 and 67.

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Rep. Sal Esquivel can be reached at 541-734-4369 or rep.salesquivel@state.or.us