“This vote sends a message to other state legislatures” says Schatz

(Washington, D.C.) – Citizens Against Government Waste (CAGW) today applauded the voters of Oregon, who,  despite a $310 million deficit in an $11 billion two-year budget, this week rejected a measure to raise taxes by 5 percent over three years.  The watchdog group urged states across the country with budget deficits to listen to Oregon voters and resist the temptation to raise taxes at the expense of long- term economic growth.

“It is clear that voters understand the key to growth is to cut government spending and increase growth, not hike taxes,” CAGW President Tom Schatz said.  “States facing similar crunches must come to the same realization as they prepare their budgets for this year.  During the late 1990s, politicians increased many states’ spending far more rapidly than the rate of economic growth.  Now, these politicians are having trouble cutting back.”

In Oregon, the legislature threatened the tax increase measure in an effort to avoid layoffs in the state police force, reduction of medical services, the early release of prisoners, the elimination of medical benefits to thousands of elderly and disabled citizens, and a shorter school year.  These cuts are on top of the $700 million in cuts made last year.  Despite all of this, the measure was soundly defeated 54 percent to 46 percent.

“Unfortunately, the Oregon legislature is cutting some important programs as a result of overzealous spending in the past,” continued Schatz.  “However, these cuts should not all be necessary as there is plenty of wasteful spending in the Oregon budget that could be eliminated.”

In September 2002, CAGW released the Oregon Piglet Book, which combines elements of two perennial CAGW publications, the Congressional Pig Book and Prime Cuts, both published annually and dealing with federal government pork and waste.  Oregon spending practices questioned by CAGW include: state Rep. Jim Hill resigning to take a $100,000 annual salary as an Internet program manager with the state—a position he helped create; the purchase of a fleet of seven Ford Excursions equipped with CD players totaling $208,000 by the Oregon Department of Administrative Services; and spending $212,000 for Public Utility Commissioners to travel throughout Europe and South America educating countries on Oregon's utility system.

“In order to reduce such wasteful spending even beyond these recommendations, Oregon should establish a commission similar to President Reagan’s Grace Commission, which consisted of scholars, business leaders, and citizens whose sole purpose was to root out government waste, fraud, and abuse,” concluded Schatz.  “This would provide a long-term solution to the problem of deficits, save taxpayers money, and hold off the cuts in crucial government services.”

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.  Please visit http://www.cagw.org/site/DocServer/Oregon_Pig_Book_-_Finalpdf.pdf?docID=161 for more information or to view a copy of the Oregon Piglet Book.