AN OPAQUE STATE GOVERNMENT BUDGET RETURNS AT THE CAPITOL IN SALEM

PERSPECTIVE FROM THE 19TH HOLE: This is the title I chose for my personal blog, which is meant to give me an outlet for one of my favorite crafts – writing – plus use an image from my favorite sport, golf. Out of college, my first job was as a reporter for the Daily Astorian in Astoria, Oregon, and I went on from there to practice writing in all of my professional positions, including as a Congressional press secretary in Washington, D.C., an Oregon state government manager in Salem and Portland, press secretary for Oregon’s last Republican governor (Vic Atiyeh), and a private sector lobbyist. This blog also allows me to link another favorite pastime – politics and the art of developing public policy – to what I write.

Whatever your views of public processes, it is tough to watch the Oregon Legislature disintegrate into chaos as lawmakers grind forward, sort of, in the last third of their session at the Capitol in Salem.

Republicans in the Senate have taken their toys and gone home, meaning the Senate does not have a quorum to act. I guess I can almost understand that, if, as Republicans contend, the super-majority Democrat have shut them out of any part in deciding whether to impose a sales tax on Oregon business – one that will produce $2 billion.

But what really struck me about this was not the to-ing and fro-ing of political clowns, but the fact that the budget shenanigans underlined fact in my 25 years as a lobbyist in Oregon. The state government is so opaque as to be unintelligible even to a practiced eye.

If new money comes into Oregon – via new taxes or from federal sources – there is no way to be sure that the funds go to improve the intended programs.

In this case, Republicans believe that the $2 billion in business taxes might appear to go, as intended, to K-12 education. But, with the new money, two things could happen:

  1. Members of the Joint Ways and Means Committee could take the new money, then remove general funds out from behind the new money so the $2 billion has no particular effect. In budget lingo, it’s called “supplanting” and it happens routinely.
  2. Or, in new biennia after the tax is imposed, the proceeds just become “new money” with no strings attached.

All of this came to light late this week when the Oregonian newspaper wrote this:

“Legislative Republicans oppose the education funding bill awaiting a vote in the capitol but they’re proposing an amendment to enshrine it in the state constitution anyway.

“Republicans argue that there’s nothing to prevent future legislatures from diverting the new tax money in the bill for purposes other than schools and early childhood programs.”

According to the Oregonian, Senate President Peter Courtney added to Republican concerns when he testified on the tax bill at a hearing.

From the Oregonian, Courtney was quoted as saying this: “Asked at the hearing about underfunded community colleges, which get no additional revenue in the new tax bill, Courtney said the new tax dollars could ‘free up the general fund money so we can have a really strong conversation, not exclusively about the amount of money in community colleges.

“Republicans say his comments suggest Courtney would like to re-allocate money from the general fund’s education budget into other programs – using the new tax money to offset the education cuts rather than create an overall increase in classroom spending.”

In the Oregonian story, Courtney insisted that’s not what he meant.

All of this to-ing and fro-ing reminded me of my years as a health care lobbyist.

The State of Oregon would get new money ticketed for health care programs – from a federal court settlement against tobacco companies or from taxes on Oregon hospitals and health insurers – and then the money would disappear into a vast budget hole never to be seen again.

Intended to improve health care programs, but supplanting would occur. General funds would be removed from the programs after the new money arrived.

This was one more example of a failed state government budgeting process. For all those who favor the hackneyed phrase in government – “more transparency” – they ought to look at the verse: An opaque budget that will never inspire public confidence in government.

Senate Republicans have made that point this week at the Capitol. But here’s betting that’s all they have made – a point. They won’t win this budget battle in Salem.

Leave a comment