Oregon state budget
From Sunshine Review
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Oregon faced a $3.8 billion biennium FY 2010-11 budget deficit,[1]relying heavily on new taxes and federal stimulus money to close the gap in the final budget signed by Gov. Ted Kulongoski and passed by the Oregon Legislature.[2] Figures released by the Oregon House Republicans show the Oregon Legislature's FY 2010-11 biennial budget has $1.6 billion in new taxes and fees and uses $1.258 billion in one-time federal stimulus money for a $52.9 billion total funds budget (two-years) 9.3% larger than the previous budget. [3]
The most controversial tax increases passed by the 2009 Legislative Session are the combined $733 million from raising individual and corporate income taxes, $472 million and $261 million respectively, in a state with the highest unemployment rate (12.2%) second only to Michigan.[4] Oregonians Against Job-Killing Taxes filed paperwork for a referendum in late July 2009 and qualified on October 8, 2009 with double the signatures necessary for the Secretary of State to put the $733 million tax hike issue for a special election on January 26, 2010 as ballot measures 66 and 67. The coalition turned in around 129,000 signatures for the personal tax measure and around 126,000 for the corporate tax measure, needing 55,000 to qualify for the ballot.[5] Ballot Measure 66 is on the individual income tax increase and Ballot Measure 67 is on the corporate income tax increase[6]
The titles for ballot measures 66 and 67 have become controversial as they were written by a legislative panel dominated by members who passed the tax increases. Some of the specific concerns include:[7]
- Allegations that the ballot titles were not written in an impartial manner
- Important information that might reflect negatively on the tax increases was omitted
- Uses "poli-tested words" and "speculative language" aimed to persuade voters to vote in favor of the measure
Oregonians Against Job-Killing Taxes have filed injunctions against the ballot titles that may require a decision from the Oregon Supreme Court. [8]
[edit] Budget Background
Oregon's budget covers two fiscal years (a biennium). This means it runs from July 1 of an odd-numbered year to June 30 of the next odd-numbered year. The current fiscal period is from July 1, 2009 to June 30, 2011. The budget development process has three major phases: Agency Request, Governor’s Recommended and Legislatively Adopted.[9]
Agency Request Budget Agencies start the budget early in even-numbered years to develop their Agency Request Budget. This lays out agency finances and policies for consideration by the Governor. The Budget and Management Division (BAM) gives agencies guidelines to use in this process. Agencies send their budget request to BAM by September 1.[10]
Governor's Recommended Budget The Governor and BAM review the budget request. They use the Governor’s priorities, budget policies and current law to make budget decisions. The Governor’s Recommended Budget document summarizes those decisions. It gives data on all the state’s revenues and expenditures. It also gives information on each agency’s budget. The Department of Revenue puts together a Tax Expenditure Report that is published at the same time. The Tax Expenditure Report outlines the various reductions available to residents for the income tax.[11]
Legislatively Adopted Budget The Governor presents the Recommended Budget to the Legislature when it meets at the start of the next calendar year (January of 2009, during the 2009-11 biennium). Legislative committees review the proposed budget. They hold public hearings to hear from each agency and the public. Each budget bill has a Budget Report that presents the committee recommendations. The Legislature votes on each budget bill. The budget bills that are enacted into law make up the Legislatively Adopted Budget. Agencies carry out, or execute, the budget over the two year budget period. The Emergency Board can make some changes to the budget between legislative sessions. Special sessions may also be called to deal with budget issues. The Legislatively Adopted Budget and the changes to it make up the Legislatively Approved Budget.[12]
The Oregon State Legislature convenes every two years in regular session on the second Monday in January during odd-numbered years, a date set by statute. Oregon Constitution does not specify a limitation on session length, however most sessions last approximately six months. During the interim, legislators serve on interim committees and task forces that study issues likely to be faced during the next legislative session.[13]
[edit] Budget figures
The following table provides a history of Oregon's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $24.1 [14] | $112.4 [14] |
| 2001 | $25.9 [14] | $110.9[14] |
| 2002 | $27.7 [14] | $117.1 [14] |
| 2003 | $28.0 [14] | $121.6 [14] |
| 2004 | $28.2 [14] | $132.8 [14] |
| 2005 | $29.1 [14] | $138.1 [14] |
| 2006 | $30.5 [14] | $151.0[14] |
| 2007 | $32.0 [14] | $165.1 [14] |
| 2008 | $33.6 [14] | $165.8 [14] |
| 2009 | $35.3* [14] | $173.8* [14] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
- See Oregon state budget (2008-2009) for more information.
[edit] Accounting Principles
The Oregon Audits Division is the only independent auditing organization in the state with the authority to review programs of agencies in all three branches of state government and other organizations receiving state money. Authority for the responsibilities of the Audits Division is found in sections 297.010 through 297.990 of the Oregon Revised Statutes. Their audit reports are published online in a user-friendly, searchable format. The Division of Audits was established in 1929 by the state legislature to carry out the duties of the Secretary of State as the constitutional Auditor of Public Accounts. Gary Blackmer is the Director of the Audits Division under Oregon Secretary of State Kate Brown. Kate Brown was elected Secretary of State in 2008.[15]
The Institute for Truth in Accounting (IFTA) rates Oregon “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Oregon's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[16] Oregon's CAFRs are annual publications of the Oregon Statewide Accounting and Reporting Services (SARS), State Controller's Division, Department of Administrative Services. The State Controller’s Division is responsible for statewide financial accounting, financial reporting, and administration of the statewide accounting system for state government. It prepares the Statewide Comprehensive Annual Financial Report (CAFR); administers statewide central disbursements; and provides professional fiscal guidance, training, and consultation to state agencies. John Radford has been Oregon's State Controller since his appointment by the Governor in 1989.[17]
| Credit Rating | Fitch | Moody's | S&P |
| Oregon[18] | AA | Aa2 | AA |
On June 27, 2009 the Oregon state senate unanimously passed House Bill 2500 which will lead to the creation of a website that tracks state spending. On June 30, 2009 the bill was unanimously adopted by the House. The non-partisan bill was written by State Representatives on both sides of the aisle, including: Arnie Roblan, Jefferson Smith, Kim Thatcher, and Gene Whisnant. The passing of HB 2500 marks the largest step towards government transparency in Oregon history.[19] Oregon House Bill 2500: states that "taxpayers should be able to easily access the details on how the state is spending their tax dollars and what performance results are achieved for those expenditures." The bill calls for an easily accessible and interactive website. The site would be developed and maintained by the Oregon Department of Administrative Services. The site will provide: the location, purpose, and results of Oregon taxpayer investments; agency budget figures; contracting information; and audit reports issued by the Secretary of State.
Gov. Kulongoski signed HB 2500 into law on July 28, 2009.[20]
[edit] Budget transparency
Oregon currently has no statewide, official spending database online. However in February, a group of 27 legislators said they are sponsoring a bill, the "Open Books Oregon Project," that would require the state to create a searchable website by Jan. 1, 2010, listing revenue and expenditures for all state agencies.[21]
- On June 27, 2009 the Oregon state senate unanimously passed House Bill 2500 which will lead to the creation of a website that tracks state spending. On June 30, 2009 the bill was unanimously adopted by the House and will now move to the Governor’s Desk. The non-partisan bill was written by State Representatives on both sides of the aisle, including: Arnie Roblan, Jefferson Smith, Kim Thatcher, and Gene Whisnant. The passing of HB 2500 marks the largest step towards government transparency in Oregon history.[22]
- Oregon House Bill 2500: states that "taxpayers should be able to easily access the details on how the state is spending their tax dollars and what performance results are achieved for those expenditures."
- The bill calls for an easily accessible and interactive website. The site would be developed and maintained by the Oregon Department of Administrative Services. The site will provide: the location, purpose, and results of Oregon taxpayer investments; agency budget figures; contracting information; and audit reports issued by the state secretary of state.
[edit] Legislation
Oregon House Bill 2500 (2009) would direct the "Oregon Department of Administrative Services to develop and make available [an] Oregon transparency website for [the] purpose of allowing people to view information that is public record and not exempt from disclosure."[23] The bill passed in the Senate and the House by June 29, 2009.[23]
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Limitations and Suggestions
[edit] Public employee salary information
The Statesmen Journal has a database of state employee salary information available here.
[edit] Economic Stimulus Transparency
- The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[24]
- Oregon will receive an estimated $1,686,263,846.[25]
- The economic recovery website to show how legislators and government officials in Oregon are spending Federal funds is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[26][27]
According to the ARRP website, Oregon’s Congressional Districts almost tripled from 5 to 14, including a non-existent District 00, which took home nearly $3.4 million in stimulus funds. The website shows that $4,932,024 went to fictional districts to create/sustain 15.1 jobs.[28]
[edit] See Also
Oregon taxpayer-funded lobbying
[edit] External links
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Cascade Policy Institute
- Oregon Budget and Management Division
- Oregon State Legislature, Budget and Taxation
[edit] Additional Reading
- Salem-News,Governor Delivers 2009-2011 Recommended Budget to the Legislature, December 2,2008
- Statesman Journal,"Lawmakers alter off-session scheduling for panels," July 30, 2009
- Statesman Journal,"Budget will haunt 2010 session," July 6, 2009
[edit] References
- ↑ Daily Vanguard, "Co-chair budget released," May 20, 2009
- ↑ Oregon House Republicans Newsletter, "2009 Session By the Numbers," July 13, 2009
- ↑ Oregon House Republicans Newsletter, "2009 Session By the Numbers," July 13, 2009
- ↑ Oregon House Republicans Newsletter, "2009 Session By the Numbers," July 13, 2009
- ↑ Daily Journal of Commerce, "BREAKING NEWS: Tax hike measures qualify for Oregon ballot," October 8, 2009
- ↑ Salem-News.com, "Tax Policy: Measures 66 & 67," November 3, 2009
- ↑ Ballotpedia, "Oregon Measure 67 (2010)," retrieved November 9, 2009
- ↑ Ballotpedia, "Oregon Measure 67 (2010)," retrieved November 9, 2009
- ↑ Oregon.gov Web site, retrieved November 9, 2009
- ↑ Oregon.gov Web site, retrieved November 9, 2009
- ↑ Oregon.gov Web site, retrieved November 9, 2009
- ↑ Oregon.gov Web site, retrieved November 9, 2009
- ↑ Oregon State Legislature Web site, retrieved November 9, 2009
- ↑ 14.00 14.01 14.02 14.03 14.04 14.05 14.06 14.07 14.08 14.09 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 ,"Oregon state and local spending," retrieved February 23,2009
- ↑ Oregon Secretary of State Web site, retrieved November 9, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ Oregon State Controller Web site, retrieved November 9, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ "Source", New Website for State Budget Transparency Gets Final Approval, June 30, 2009
- ↑ Gov. Kulongoski's Web site, "Governor's Legislative Action - 2009 Regular Session," retrieved November 9, 2009
- ↑ USA Today,"States put spending details online," February 23,2009
- ↑ "Source", New Website for State Budget Transparency Gets Final Approval, June 30, 2009
- ↑ 23.0 23.1 The Oregonian, Bill Status: House Bill 2500
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal,"Stimulus Spending by State," March 12,2009
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Oregon, Watchdog.org, November 17, 2009
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