Disenfranchised South Coast residents who feel Salem politicians are out of touch can take a lesson from Senate President Peter Courtney: Talk about hospitals, education, community colleges and community corrections and you'll find a welcome ear, even among urban legislators.

"That will connect you, in many, many ways," the Salem Democrat told a group of more than 70 people gathered for a Coos Bay-North Bend Rotary meeting Tuesday at the Red Lion Inn in Coos Bay.

Some South Coast residents may share yet another commonality with Courtney and urban legislators - pessimism that the state will find a meaningful solution to tax reform. Courtney, who has spent more than 20 years in the Legislature, said he has little hope that politicians would agree this summer to reform the state's taxing structure and smooth the bumps in the state's boom and bust economy.

He said the state's more pressing needs to hedge deep cuts and minimize the impact of Measure 30's failure on Feb. 4 - the largest taxing increase in Oregon history - will depend on funding from the Legislative Emergency Board.

Courtney said he was certain forensics labs would be maintained and said he places particular priorities on the Oregon Youth Authority and community corrections.

"The April E-board really needs to be watched to see if we can offset some of the Measure 30 cuts," Courtney said.

Yet, when asked earlier about the future of the Oregon Health Plan and whether the system would be scrapped or merely reworked during a breakfast meeting with local officials and business leaders, Courtney struggled for an answer.

"We're trying to save as much as possible but a number of people are going to go off of it," he said, adding "I don't have a handle on the number."

"We will not get rid of it," Courtney said, "but it's been badly hit."

Emergency Board member Sen. Ken Messerle, R-Coos Bay, said the interim funding committee has approximately $40 million to carry the state through until June 30, 2005. While Messerle said he is willing to consider using some of those funds to help defer small cuts to the state's services, he said he is unwilling to drain the emergency fund solely for a one-year boost to save programs.

"We don't know yet what the governor is going to do," Messerle said. "As far as using what's left in the E-board, I'm opposed to that. We still have 14 months to go. A lot of things can happen, such as a forest fire."

As a long-term solution to Oregon's budget woes, Messerle said he favors a strong limitation on the growth of the general fund and would like to see a formula for deriving the cap based on the growth of the economy. He said the rainy day fund would be a necessary part of passing the cap and something he would be willing to support.

"Depending on their proposal on the rainy day fund, I would be very open to using part of the kicker, if we have a good tight limitation on expenditure."

While remaining discouraged that tax reform would happen, Courtney said that creating a rainy day fund in conjunction with setting a growth cap on the general fund might present the most significant change to the state's taxing system.

Courtney would not say how large a cap he would support but added that any rainy day fund is unlikely to pass unless mitigated by a spending cap.

Rep. Joanne Verger, D-Coos Bay, one of several Legislators charged with exploring ways to reform taxes during the off session, agreed with Courtney that tax reform is unlikely this year.

"I am trying to keep an open mind as a member of the committee," Verger said. "But I will absolutely be shocked if at the end, the committee will say we agree on something with one voice."

Verger said a spending cap tied to the growth of the Oregon economy might provide the most likely option to be passed.

"Something tied with the economy might be something the voters would be comfortable with," Verger said.

Verger is concerned with voters like resident William J. Wright, who told Courtney that the state needs to reprioritize where it wants to spend money, not how to collect it.

"It's not tax reform," he told Courtney. "It's budget reform."

The failure of Measure 30 and its $800 million tax increase means budget reforms are ongoing although it remains unclear how many programs will be cut.

In a sweeping speech that touched on several funding issues, Courtney announced on Tuesday that the Oregon Judicial Department, which will face $13 million in cuts, will allow individual districts to implement cuts on their own rather than mandating certain closures.

Two Coos County judges - Circuit judges Richard Barron and Michael Gillespie - were pleased to hear Courtney's announcement that judicial districts may be able to make their own decisions about budgets. Barron said he relishes the flexibility to be able to decide which areas of the district can be reduced with as little impact on the operation as possible.

"Each local district has it's own area of concern," Barron said.

Meanwhile, as the debate over what Oregonians were saying when they voted against Measure 30 continues, Courtney was sure of one thing - the legislature would not reconvene to deal with potential cuts to state services.

"We are not going into special session because of Measure 30 and we are not going into special session ... because of the economy," Courtney said.

Courtney made a two-day visit to the Bay Area this week to support Verger's bid for the Senate. Verger filed to succeed Messerle as the coastal senator after the Republican announced he would not seek re-election.

During his visit to the Bay Area, Courtney said he felt a deeper understanding for issues revolving around natural resources and said urban legislators can loose site of the importance of their environmental decisions by being so far removed from the rural areas.