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Oregon graded 'D' for fiscal policies
Monday, January 31, 2005 | 1 comment(s)
SALEM (AP) - Oregon's fiscal policies get a "D" in a new study of all 50 states' budget systems.
Oregon's lack of a rainy-day fund, its "dysfunctional" tax system that is overly reliant on income taxes and its "kicker" policy of refunding excess income tax revenue to taxpayers hampered the state's ability to weather the recession, the study said.
The result has been that Oregon has faced budget shortfalls year after year that forced cuts in spending on various state programs, according to the nationwide study issued by the Government Performance Project.
The project, funded by the Pew Charitable Trusts, also cited Oregon's initiative and referendum system that allowed opponents of the 2003 Legislature's $800 million tax plan to force a statewide vote on the tax, which was soundly defeated by voters in February 2004.
Nationally, the study concludes that the financial downturn of the last few years left states with ailing tax systems, neglected infrastructure and aging work forces. It also says that many states struggle with basic flaws in their tax systems, bringing their governments too little money to pay for everything from roads to health care to schools.
The silver lining, according to the Government Performance Project released today, was that the fiscal crisis drove many states to become innovative and more efficient.
"There isn't any state that can't learn from the others," said Don Kettl, a political science professor at the University of Pennsylvania and the project's academic coordinator. "No state really has everything under control. And different states have different lessons to teach."
The study awarded letter grades to each state on how it handled finances, personnel, infrastructure and modern information systems through the downturn, plus an overall grade.
No state failed. Utah and Virginia scored the highest overall, each with an "A-minus." Alabama and California scored the worst, each with a "C-minus." Oregon's overall grade was a "C-plus."
A spokeswoman for Gov. Ted Kulongoski said the study underscores the importance of the governor's plan to create a "rainy day" fund reserve fund by setting aside 4 percent of revenue by the 2007-09 budget period.
"It would help Oregon have a stable, sustainable budget" in the future, said Kulongoski spokeswoman Marian Hammond.
Oregon's lack of a rainy-day fund, its "dysfunctional" tax system that is overly reliant on income taxes and its "kicker" policy of refunding excess income tax revenue to taxpayers hampered the state's ability to weather the recession, the study said.
The result has been that Oregon has faced budget shortfalls year after year that forced cuts in spending on various state programs, according to the nationwide study issued by the Government Performance Project.
The project, funded by the Pew Charitable Trusts, also cited Oregon's initiative and referendum system that allowed opponents of the 2003 Legislature's $800 million tax plan to force a statewide vote on the tax, which was soundly defeated by voters in February 2004.
Nationally, the study concludes that the financial downturn of the last few years left states with ailing tax systems, neglected infrastructure and aging work forces. It also says that many states struggle with basic flaws in their tax systems, bringing their governments too little money to pay for everything from roads to health care to schools.
The silver lining, according to the Government Performance Project released today, was that the fiscal crisis drove many states to become innovative and more efficient.
"There isn't any state that can't learn from the others," said Don Kettl, a political science professor at the University of Pennsylvania and the project's academic coordinator. "No state really has everything under control. And different states have different lessons to teach."
The study awarded letter grades to each state on how it handled finances, personnel, infrastructure and modern information systems through the downturn, plus an overall grade.
No state failed. Utah and Virginia scored the highest overall, each with an "A-minus." Alabama and California scored the worst, each with a "C-minus." Oregon's overall grade was a "C-plus."
A spokeswoman for Gov. Ted Kulongoski said the study underscores the importance of the governor's plan to create a "rainy day" fund reserve fund by setting aside 4 percent of revenue by the 2007-09 budget period.
"It would help Oregon have a stable, sustainable budget" in the future, said Kulongoski spokeswoman Marian Hammond.
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