Student leaders reacted with surprise to Gov. John Kitzhaber’s announcement Thursday calling for an additional cuts to higher education.
Speaking one day before the Legislature will meet in a special session to balance Oregon’s budget deficit, Kitzhaber said the deepening recession has forced him to call for even more spending cuts and ask for additional tax increases. The state’s deficit is now estimated to be between $750-$830 million, but Kitzhaber warned that it could hit $930 million.
Kitzhaber’s new proposal called for $10.1 million in cuts “in education, primarily in universities and other education services.”
Jon Coney, the governor’s spokesman, said the complete details for the new plan had yet to be worked out, so he could not speculate on how much of the cuts will hit the Oregon University System.
John Wykoff, legislative director for the Oregon Student Association, said while he was surprised at the announcement, he believes the governor may be forcing legislators to understand the full extent of the dire fiscal straits afflicting the state.
“These cuts are nowhere near as bad as all the budget cuts, but he is raising the stakes a little,” Wykoff said, referring to an earlier proposal in which Kitzhaber outlined nearly $830 million in program cuts, which would cost the OUS $84 million.Kitzhaber’s latest proposal also included $17.3 million in additional cuts in human services and $3.1 million in cuts to public safety. He also urged the Legislature to limit a tax deduction for senior citizens’ medical expenses. The deduction allows all people over 62, regardless of their income, to deduct all medical and dental expenses.
Since early January, both the governor and different members of the Legislature have created proposals to balance the budget deficit. Each of these plans has proposed cuts to the OUS. The plan by the bi-partisan legislative budget committee, a group of two Democrats and three Republicans, calls for $526 million in program cuts, including $48.5 million for OUS. Kitzhaber’s previous plan recommended $414 million in program cuts, including $44.5 million for the OUS.
“I hope through this process that the governor and the Legislature will understand that it is in the best interest to insulate the university system from these cuts,” said Tim Young, a student representative to the State Board of Higher Education.
Before Thursday, higher education funding had been partially spared during the informal budget negotiations between the Democratic governor and the Republican-controlled Legislature. Most of the disagreement between the two parties centered on the governor’s plan to raise certain taxes and the legislators’ plan to raise revenue by spending money from the Common School Fund and the Health Care Trust Fund.
The governor’s revenue proposals include repealing Measure 88, passed by Oregon voters in 2000, which allows Oregon taxpayers to deduct federal tax payments up to $5,000 on their Oregon taxes. He also proposed raising taxes on most beers and wines by 5 cents a glass and called for a 30-cent per pack increase to the cigarette tax. Thursday, he increased his cigarette tax proposal to 50 cents a pack.
Many Republican lawmakers have taken a no-tax pledge during this election year and are bracing for a long fight over the governor’s tax plans.
“I’m not looking forward to (the special session),” said state Sen. Gary George, R-Newberg. “It is going to be World War III.”