OT: Hein - This one is for you.

mschulz · Since 29 May 2007 530 Posts Reno, NV Addicted

I find it shocking after 66 and 67 passed this state still does not have enough money. Now what, new measures 68 and 69 taxing the middle class?

http://capwiz.com/o4ad/issues/alert/?alertid=14666811&queueid=4652017716 Evil or Very Mad

2/9/10: From the Statesman Journal - more revenue forecast news

February 9, 2010
Recovery will be slow, state economist says

Governor calls latest state economic forecast 'manageable,' despite projected budget shortfall of more than $100 million

By Peter Wong
Statesman Journal
Monday's economic forecast, the seventh in a row to show declining tax collections, will prompt lawmakers to find more than $100 million in spending cuts, reserve shifts or reduced tax breaks to balance the state budget.
State Economist Tom Potiowsky said the latest forecast, which he presented to lawmakers on the House and Senate revenue committees, was in line with recent trends toward a slow economic recovery from the worst downturn in three decades.
"We think it's a jobless recovery," he said. "We think there's a little bit of a soft patch in the second half of this year, but no recession - and it will be 2011 before we really see things grow strongly."
Potiowsky said job growth should occur in the next quarter and pick up the rest of this year, but that real growth would take place in 2011. He said that growth would come from jobs in new or growing sectors, such as alternative energy and electronics, and less from traditional sectors such as construction.
But his latest quarterly projection indicates that tax collections and other income into state coffers will drop another $183 million from the previous forecast Nov. 19. It would leave the two-year state budget $106 million short of balancing, after an ending-fund balance is subtracted.
Virtually all of that projected loss, Potiowsky said, is from personal income taxes. He said it is based on lower estimated tax payments from the self-employed and higher-income individuals, who do not have their taxes withheld from wages. Unpaid furloughs and reduced work hours also result in less taxes.
The forecast showed a slight uptick in corporate income taxes. Potiowsky said pending restrictions in business energy tax credits - though required to balance the current budget - could trigger a "kicker" rebate to corporate taxpayers at the end of the 2009-11 budget cycle. Businesses need to generate only $16 million more in taxes to reach the threshold.
Lottery proceeds also continued on a downward trend.
Senior Economist Josh Harwood said the Oregon Lottery is taking steps to counteract the trend, but there are indications that during the economic downturn, "some people are not playing at all - they're not playing less."
Gov. Ted Kulongoski said the latest shortfall is "manageable."
"I will continue to work with the Legislature to find a prudent and responsible path to balance this budget," he said.
The House Revenue Committee took one step Friday toward closing the latest budget gap by approving new restrictions on business energy tax credits, particularly on large wind projects. The restrictions, which were not taken into account in Monday's forecast because they have not yet become law, would gain state coffers $55 million for the current budget cycle.
Legislative leaders planned on additional budget trimming to make up most of the rest of the gap.
"Our strategies and principles for rebalancing the budget do not change with this news," said House Speaker Dave Hunt, D-Gladstone. "We will focus on job growth. We will protect core services of education, health care and public safety. And we will balance the budget with a combination of very modest cuts and reserve funds."
Lawmakers have the most discretion over the tax-supported general fund and lottery proceeds, which together added up to $14.7 billion for the current two-year budget that started in mid-2009. The three projections since June 2009, including Monday's forecast, have brought down the combined total to $14.5 billion.
"Fewer jobs mean less revenue," said Senate Minority Leader Ted Ferrioli, R-John Day. "Every declining forecast is merely a signal of the pain being felt by the 209,000-plus Oregonians who are searching for work. This Legislature must address the job shortfall if they ever want to see an end to budget shortfalls."
pwong@StatesmanJournal.com or (503) 399-6745
- Tom Potiowsky, Oregon's state economist
Additional Facts
Gov. Ted Kulongoski is worried less about Monday's quarterly economic and revenue forecast - and more about what the future brings beyond his governorship, which is scheduled to end in 11 months.

Armed with new public-opinion survey results, he renewed his call to divert part of future excess income-tax collections, known as the "kicker," to build up a state reserve fund to offset slow-growth projections in the next few years.

Kulongoski said those projections and a pending loss of federal economic-recovery funds after the current two-year budget cycle should prompt lawmakers to act on his proposal for changes in the "kicker," which voters put into the Oregon Constitution in 2000.

His political action committee paid for a Jan. 16-19 survey of 500 voters, who split 58 percent in favor and 35 percent against such a proposal. The margin of error was 4.5 percentage points. The governor's office released the results after a public-records request filed by the Statesman Journal and other news organizations.

"If we do not act now to reform the kicker law, we will never be able to adequately protect core services during bad times and we will never be able save during good times," he said in a statement. "Oregon's long-term fiscal stability and prosperity is dependent on a strong reserve - and the time to move forward on this effort is today, during this legislative session."

Republican leaders are opposed, and leaders of the Democratic majorities say the question is one of timing. They have said it is too soon after a multimillion-dollar campaign on budget-balancing tax increases that pit labor unions against business groups - both potential allies in a "kicker" campaign. Voters upheld the tax increases on Jan. 26.

But the pollster based in San Diego, Heidi von Szeliski, wrote: "There is a path for pursuing a 'new' approach to kicker reform that can appeal to a broader constituency than may have been the case in the past."

Individual taxpayers got $253 million in "kicker" checks in 2001 and $1.1 billion in 2007 - both before the start of major economic downturns.

Sasquatch · Since 09 Mar 2005 2102 Posts PNW Bigfoot

If I had wanted to read about Oregon politics, I would have gone to a political website.

Personally, I much prefer SlingShot products over Air Rush. Their customer service is great. What is better? Havocs from North or the Helix from Naish?

Ocean Rodeo boards kick ass over Jimmy Lewis.

There, brand vs brand. . . lock it down.

Hein · Since 08 Mar 2005 1314 Posts Possessed

Go Beavers, LOL

Moto · Since 03 Sep 2006 2698 Posts Still a gojo pimp! Moto Mouth

DROCK999 · Since 31 May 2007 852 Posts Left Coast Opinionated

INB4 it's on lockdown, although i don't see why a discussion like this should really be locked down.

mschulz · Since 29 May 2007 530 Posts Reno, NV Addicted