Kulongoski budget stabilizes education, cuts other services

By Brad Cain, Associated Press Writer
Monday, December 01, 2008 | 8 comment(s)

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SALEM — Gov. Ted Kulongoski released his proposed state budget  today for the next two years. It's a budget he says will protect education from cuts despite the recession, but require deep cuts in some social service spending.

Kulongoski, saying that the economic meltdown requires hard choices, called for reducing the amount of money for programs to help seniors and the disabled as well as cuts in state child care subsidies.

At the same time, the Democratic governor said his two-year budget will avoid cuts in the K-12 budget and for higher education on grounds that the state will need a well-educated work force for when economic recovery does come to the state.

He says his budget will bring health care coverage to 95 percent of all Oregon children within three years.

His $16 billion budget also includes funding for a transportation package intended to create thousands of jobs immediately and expand the business energy tax credit to bring new green industries to the state.

“We don’t have the money to do everything that needs to be done in the next two years,” he said. “But today I propose a budget that invests in the future by investing in children, working families, businesses and economic opportunity during these challenging times.”

Kulongoski’s budget contains various tax increases that could generate a lot of debate when the 2009 Legislature convenes Jan. 12.

To help pay for an expansion of health care coverage, Kulongoski is proposing an increase in the cigarette tax of 60 cents per pack. Voters shot down a larger cigarette tax hike in November 2007 for children’s health insurance.

This time, Kulongoski wants to tax hospitals to the tune of $700 million over the next two years to pay for expanded coverage for children and low-income adults who currently aren’t covered.

Further, the governor is proposing a 2-cent-a-gallon gasoline tax hike and sharp increases in vehicle fees to help pay for his transportation package.

He’s also proposing an increase in Oregon’s corporate minimum tax to increase the amount of money available for a program that provides cash grants to college students.
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Resident wrote on Dec 2, 2008 9:49 AM:

You guys read the comments on other stories. Most people think that spelling and punctuation are unimportant, and posts by young people are hard to even decipher. Since we aren't getting much for our education dollars, and the people receiving the education are rarely thankful for it, why not go ahead and cut some dollars from the school budgets?

RB wrote on Dec 2, 2008 9:46 AM:

Sooooo, four - count 'em - four new taxes. Go figure.

come on wrote on Dec 2, 2008 3:33 AM:

The economy is affecting us all, the government is no exception. No one likes the idea of seeing important services cut, but much like our household budgets; things have to tighten up.

When a state like Oregon has no sales tax, this is what we all have to face. I can't see what choice our legislators have. I think a gas tax is actually a good idea now that gas is the lowest we've seen in 3 years. I'd much rather share the gas tax burden with tourists than pay a sales tax.

Richard wrote on Dec 1, 2008 9:44 PM:

this numb skull gov teddy must have taken one cold shower to many when he was a marine,and froze up his one brain that most officers only have..he does need a padded room badly I never thought anyone could have such a case of idiocy as he has....

Joe Sixpack wrote on Dec 1, 2008 6:49 PM:

Green road work with no Diesel equipment just people with wheel barrows and shovels and one lane to cut down on cars and only jobs for legal workers . With schools that teach how to find a job out of state!

Al the Pal wrote on Dec 1, 2008 4:22 PM:

I wonder, in this time of financial woes, if perhaps a trip or two less overseas for the Governor might be in order.

Some of these junkets provide him with a trip that would be a vacation of a lifetime for most of us. Maybe not to Japan, but in terms of dollars spent.

If he raises my cigarette tax again to cover health insurance, I'll just stop buying cigarettes through Oregon and avoid those taxes. I get no benfit from that program anyway.

tax-and-gougeme wrote on Dec 1, 2008 3:38 PM:

Well said "What a shame". Unfortunately, that will never happen. Never happens in the private sector, won't happen in the public sector. I work for a private company. Everyone's hours get cut except for management.
It's nice for the kids to have health insurance - however, they won't have any schools to go to.

What a Shame wrote on Dec 1, 2008 3:10 PM:

If the "Gov." wants to decrease the budget and cut different programs, why don't he do us a favor and quit, or at least cut his pay and the pay for all of his cronies.


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