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Final Budget Decisions Take Shape
February 22, 2008
Author: CFM Staff
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Legislative budget-writers, admitting they are mostly shifting money from one pot to another, will approve what amounts to a stand-pat budget in the face of a potential recession that could shrink available tax revenue.
The bulk of spending decisions - for increased staffing at the state mental hospital and for child welfare and higher payment rates for adult foster care and residential care for seniors - depend on money reshuffled in the Department of Human Services budget.
Budget-writers also squeezed out slightly less than $500,000, which will be available in the last month of the current biennium, to hire 30 more state highway patrolmen. Lawmakers approved money for an additional 100 troopers during the 2007 regular session.
The Big Look task force, charged with recommending ways to update Oregon's pioneering land-use system, will be refunded with slightly less than $500,000. Additional money will be given to the Department of Land Conservation and Development to handle new claims under Measure 49, which was approved by voters last fall.
A little more than $1.5 million will go to OMSI to help with debt service on a state loan. Another funding approach to bail out OMSI was vetoed by Governor Kulongoski after the 2007 session.
In addition to a budget reconciliation bill, the Ways and Means Committee will advance a bonding measure, highlighted by authority for $200 million in revenue bonds to help finance a new basketball arena at the University of Oregon. Budget-writers asked UofO President David Frohnmayer for clearer assurances in case revenue projections for the new facility fall short of projections.
Bonding authority also will be granted to start a statewide telecommunications network and for projects at the Oregon Institute of Technology and Clatsop Community College.
Some bills sent to Ways and Means because of their fiscal impact won't emerge. Perhaps the highest profile casualty is the climate change bill championed by Rep. Jackie Dingfelder, D-Portland. A coalition of business interests blocked approval of the bill, which would have required businesses to start an inventory heir greenhouse gas emissions.
There is one major tax expenditure bill that expands business energy tax credits for renewable energy manufacturers and includes $4 million in tax credits for affordable housing.


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