Kitzhaber says his budget will restore stability for schools
SALEM, Ore. (AP) — Oregon lawmakers should change criminal sentencing laws to keep the prison population flat for the next 10 years, Gov. John Kitzhaber said Friday as he unveiled his budget proposal for the next two years.
The governor also urged lawmakers to cut pension benefits for retired government workers, saying the politically risky decisions are necessary to reinvest in education.
The proposed spending plan would lower the cost of government and restore public confidence in the state's priorities, setting the stage to ask voters to revamp the tax code sometime in the future, he said.
"We're in a much better place today than we were two years ago," Kitzhaber said, noting the state was looking at a $3.5 billion deficit when he took office at the beginning of 2011.
But Kitzhaber's budget rests on big gambles, and his proposal would be a net cut in funding for schools if he loses the bets.
He's assuming the Legislature will sign off on his plans to cut pension benefits and prison spending. His health care funding plan assumes lawmakers will extend a tax on hospitals and that the health care system will be able to significantly reduce the rate of health inflation.
Kitzhaber did not discuss specific changes to stop growth in the prison population, saying a commission he appointed will release recommendations next month.
"We're not talking about anyone who's locked up now. We're not talking about letting anybody out. We're not talking about shortening sentences," Kitzhaber said.
He added that the plan is to find "more creative ways to manage the nonviolent offenders."
Kitzhaber's proposal for $6.15 billion in K-12 school spending would not be enough to reverse years of cuts to teachers and school days. But if the Legislature allows them to save money on employee pensions, Kitzhaber said, school districts would be able to begin reversing the downward trend in school funding.
The proposal got a tepid reaction from some on both sides of the political spectrum, as liberals and conservatives found things to dislike.
The liberal group Our Oregon said the governor "missed an opportunity to provide real money for schools and critical services by closing big tax loopholes for large corporations and the rich."
Spokesman Scott Moore said it was too soon to say which tax breaks the governor would have eliminated.
On the right, House Republican leader Mike McLane of Powell Butte said the Legislature should cut deeper than Kitzhaber proposes into public pension benefits. There are elements that Republicans could support, McLane said, but the governor doesn't set aside enough money to guard against a slowdown in the economic recovery.
"Oregonians should understand that this budget is based on a number of assumptions that haven't been fully vetted by the Legislature," he said.
Kitzhaber's proposal would pay for $1 billion in new building projects, including Oregon's $450 million share of a new Interstate 5 bridge spanning the Columbia River. He did not recommend a specific funding mechanism, but others have proposed increasing the gas tax or vehicle license fees. About $275 million in bonds would pay for new buildings at community colleges and universities, including a new Oregon State University campus in Bend.
While the budget would continue funding for most safety-net programs at their current levels, it would require cutbacks in Temporary Assistance for Needy Families, the welfare program that provides cash assistance for low-income families. Federal rules cap participation at five years, but Kitzhaber proposes scaling the cap back to three years.
Kitzhaber proposes boosting spending on Child Protective Services and expanding the earned-income tax credit that helps low-income taxpayers.
He also would allow the state to accept 200,000 new Medicaid patients under the federal health care overhaul beginning in 2014. The new costs would be initially shouldered by the federal government.
Read more: Governor's budget proposal
Watch the governor's entire news conference:
So one of the criminals that you let go because of funds. Committed a crime less then one hour after being released and was sent back to prison for robbing a bank. I wonder how that releasing criminals before they have finished their term is working for you. See here in Texas they don't mess around. If you break the law you do the time. I have lived here for 6 months and Wow! Like almost every two weeks they are giving someone their due justice and ending their life if they got the death penalty.When I was living there in Oregon I never heard about it even when someone was begging you too. Also, you know Texas is so much better the teacher really care and guess what they are actually learning something. Lastly they don't have teacher work days or budget reduced days here. My kids go to school more here than they ever did there in Oregon. Oh yeah the unemployment here is one of the lowest in the country.
Kitzhaber has proposed a budget with gaping holes for revenue sources that the Legislature has to fill via new taxes or program cuts. Meanwhile the proposed budget goes soft on criminals; doesn't address why Oregon's prison incarceration costs are 50% above the national average; promotes more socialistic hand-outs; promotes new education facility construction without any assurances the institutions will have the funds to properly maintain the buildings; and depends on PERS cuts that may not be legally sustainable. Instead of addressing the real problems with government Kitzhaber just wants to throw more money into treating symptoms.Â
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There is a reason recycling failed politicians is an unwise choice. Kitzhaber demonstrates that daily.Â
Doesnt sound good.....too much spending. Â Not cutting enoughÂ
Im shocked
A liberal increasing spending! Will wonders never cease.
So we are 'doing better' than when he took office. Really? how much better? are we only $3billion in debt now?
Some of the highest unemployment in the nation. Nice work you old fool.
And the liberal think tank (oxy moron if ever there was one) thks the Gov should of stuck it to the job creators even more.
Gotta love this state. Just throwing gasoline on the fire started by the last liberal fool to hold the office.
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"......as soon as you vote in my new taxes .......or ill take away police, fire, schools.......but not welfare or any other social hand out, them's my peps!"
Typical gutless liberal response to a system that is imploding. More money without accountability. Dedication results in achievement not money without accountability.
"But Kitzhaber's budget rests on big gambles, and his proposal would be a net cut in funding for schools if he loses the bets."
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John Kitzhauber tried to win the Powerball Lottery,... and lost. Guess the schools are losing more than they originally thought they would.
 Dr. Goodytwoshoes just don't get it. I think he should change his name to Dr. Clueless.
 @theobserver How about Dr. Caboyboots??
 @boned  @theobserver ??
I can hardly wait when some of his changes get challenged in court that will cost ORYGUN taxpayers many more millions in attorney fees and he will lose. The sad part is that he does not care, because he has more money than most folks collectively make in a life time. A short little man with a Napoleonic Complex that was a failure as an ER doctor and bigger failure as a two-term gubner...
 @boned The word is Oregon. If you don't like it here there are exits conveniently located to the east, north and south, by all modern modes of travel.
 @Playanekes  @boned Same old tired response "If you don't like it....". Some people would prefer to stand their ground and not run away from problems. I say stand your ground Bones, and kick the basement dwelling freeloaders back to Kalifornia.
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 @boned  @Playanekes Boned.... Rodger that. Born and raised in Seaside. Most kids had paper routes... I dug Clams, and trapped for school money.
 I've been all over the world, and still would not want to live anywhere else. This is where I will make my stand against the looters.
 @Razor1  @Playanekes 'ORYGUN' was our favorite t-shirt on campus during the early 70's - I still wear one because I am a Native Oregonian - a true minority!!
'Kitzhaber says his budget will restore stability for schools'Â Â And unicorns are real too.
 @theobserver Yes they are.. kind of.
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http://www.geekologie.com/2012/09/theyll-love-that-inflatable-unicorn-horn.php
 @theobserver According to North Korea they are - they found the Unicorn's Lair...
 @boned  @theobserver Glorious Leader needs to keep his pants zipped better, or everyone will see his Unicorn.
This fool has not been able to stabilize the school budget in the past and will not be able to do it now! Remember he already stated that Oregon was ungovernable, which really means that he is incapable of managing Oregon. This budget is a joke at taxpayers expense!
The governor proposes to make a budget yet he's the leader in trying to close the
Columbia river to commercial fishing after a million Oregonians rejected this measure via the ballot box. He's trying to take jobs away not create them
@something fishy .......the revolution is afoot. And Oregonians keep putting the leaders into office.
"He's assuming the Legislature will cut benefits for retired government workers and enact changes to criminal sentencing laws that prevent the prison population from growing. His health care funding plan assumes lawmakers will extend a tax on hospitals and that the health care system will be able to significantly reduce the rate of health inflation."
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Read this VERY carefully! Cutting benefits for retired government workers (Yes, we get the PERS idea, but it should be required for current workers as well!); enacting changes to criminal sentencing laws to prevent prison growth (which will cause more felons to be out on the street earlier and not serve the time that they are originally sentenced to); extending taxes to the healthcare system (Does that include the OR Healthcare program as well?)
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Assuming that the governor actually has not spoken to some savvy business minded people, he is the ant moving a rubber tree plant.Â
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Ridiculous! The only way for this to work is for current workers to have their PERS cut as well, for a freeze on all salary increases, and to get rid of the top-loaded government offices. No major remodeling (only repair work orders, with in reason) and ZERO Â pet projects.Â
 @washcomom Are you a private business owner in OR? You must be in order to speak the truth, Sir!!
Nothing but BS. Where are the cuts to spending? And hiring more state employees? You don't get it do you?, we can't afford any more state employees.
 @last boyscout I helped write a budget for a gubmint agency one time - spend every penny in the old budget and scream for more. Sadly it works and the sole reason for city, county, state and federal gubmint is to 'scream' for more money while they continue to get bigger!!
@boned .....it's called "we have an unlimited funding source for what we want to do...........taxpayers"!
Educating Oregon's anchor babies and meeting the current NCLB level will be very costly. Has Oregon decided to bail on NCLB?
 @TimBurr I am just a stupid white-boy with only three degrees on my wall and have no idea what NCLB means even after all the reading I do. Is it Twitter, or Twatter speak??
 @boned  @TimBurr No Child Left Behind. You know, the Bush product? You couldn't even Google it? Yeesh.
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Three degrees of -what-?Â
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Here, let me show you how people with actual educations find answers to things like this. Open up your web browser, go to www.google.com, and type in NCLB. THREE POINT THREE MILLION RESULTS IN .13 SECONDS!!!Â
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...Amazing, isn't it? Seriously, don't you think that's worth a Master's degree on my wall or something?
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The first reform with PERS should be eliminating the Police & Fire benefits the legislators allowed themselves to get. They are niether. Then you can look at the rest of the benefits they garnered for part-time work.
 @Brownknight Forever.
"Budget will restore stability"......... Yeah, just like all the rest of his budgets did !!
 @Rob C 503 Come on now, Uncle John is a very small man with huge aspirations of saving OR no matter what the cost to the taxpayers. I do not drive a Volvo or a Subaru and actually hate this guy having dealt with him in the past, Sir.
@boned ........"dealt with him"....... Really? How? I'll bet that was an eye opener !
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As a former state employee, I do not believe a word you say. You people were told furlough days in 24 hr facilities would create massive overtime. You merely thumped your chests and said : Across the board. Thus cutting the pay of every state employee. That is except yourselves. Now you are going after retirement. You and your fellow politicians receive full salary the rest of your lives and better insurance than anyone else in the state.What are you giving up?
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No, Mr Kitzhaber. I beg to differ. Your proposed budget is a fairy tale that will bog down the legislative process for the remainder of your term in partisan infighting. Even IF (and, OMG, that's a BIG if) it does somehow come to pass just as you have written it, it will end up getting run through the courts when the inevitable lawsuits against your proposed PERS reforms are enacted. Which, in short, means that it will end up costing MORE money. As opposed to realizing any sort of savings.Â
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Dreams, fantasies and ideological proposals are fine for grandstanding and campaigning. They are, however, incredibly counter-productive ways to budget.
The schools are a perpetual black-hole of money. You could give them all them money in the world and they'd come up short EVERY SINGLE TIME!
 @Jamie I put my kid through private school but my front lawn is a public school bus stop for the Russians down the street. Every school day is Red Dawn in my yard. Nobody asks me if I want to pay taxes for schools or other public entitlements that half the people on this forum's children or grandchildren use. In fact, nobody asked me if I wanted my yard to be an elementary school bus stop in the first place. Isn't that strange?
@Jamie ......on that point, we agree !
"The governor said Friday his spending plan would restore financial stability to schools reeling from years of budget cuts, even if it wouldn't provide all the money he believes they need." Â (from the story)
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That's right, just keep throwing money at them; that's worked out soooo well..! Â (s/o)
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The only way the schools (and therefore, the kids) will benefit from additional money is if it can somehow be channeled directly to the classrooms; that is, with NO other spending options (eg: administrative hiring or pay increases). Â Â
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I'd also like to know what this "$1 billion in new building projects" is..! Â Â
"His proposal would pay for $1 billion in new building projects, increase spending for Child Protective Services and boost funding for the earned-income tax credit that helps low-income taxpayers."
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Yeah... cut benefits for retired workers, of which some are on a fixed income and will be screwed by that move, so you can spend 1 billion on new building projects? Really?
No such thing as stability in government.