Faced with a $96 million budget shortfall, the Oregon University System is looking to members of the state Legislature to ease their budget blues. But that relief may be hard to come by, now that the state revenue projection for March has come in more than $100 million lower than expected.
Legislators made clear at a rally on the capitol steps last week that they support funding the OUS, but admit that finding the dollars to do it will be difficult.
Tom Anderes, OUS vice chancellor for finance and administration, said there are funds available in the state’s tobacco settlement and other areas, so the situation is not that bleak.
“It isn’t a matter of if a revenue estimate goes down, everything is lost,” he said.
He said with three weeks of hearings coming in which the OUS can make its case for funding, and with support from legislators, there remains plenty of room for more higher education funds.
“I think all of that will hopefully come together for some positive impact,” he said.
Rep. Phil Barnhart, D-Eugene, said funding education is one of his top priorities.
“I talk about that incessantly,” he said. “I think people get bored with Barnhart talking about that.”
Barnhart said he has introduced legislation that would increase the corporate income tax by 1 percent. He said this would raise $136 million.
“There would be enough to cover higher education and all the holes in senior services,” he said.
Sen. Tony Corcoran, D-Cottage Grove, said the lower revenue estimates “make that deeper of a hole to climb out of,” but said that doesn’t mean it’s impossible.
He said the key to finding the funds for higher education will be through increasing general fund revenue. This could come through using tobacco funds, or implementing a cigarette tax or a beer and wine tax, though Corcoran said he doesn’t support “sin taxes.”
The most direct method to raise revenue would be to change the state’s tax model, which Corcoran said has helped create the shortfall. He blamed Republicans for retaining a tax system that does not place enough burden on the higher brackets.
Speaker of the House Mark Simmons, R-Elgin, said he supported raising higher education funding two years ago, and pointed out that the co-chairs of the Ways and Means Committee had already found an extra $29 million for higher education.
While the Democrats are pushing for revenue-generating measures to fill budget holes, Simmons said the Legislature needs to look at every possible source for funding in the budget and do a better job of allocating funds.