GOP legislative leaders have agreed to work toward a mid-June adjournment date, after acknowledging the need to wait for the critical May 15 revenue forecast to finalize major budgets. Senate President Gene Derfler had pressed for an earlier adjournment, but that effectively would mean budgets would have to based largely on March 1 revenue forecast. A strong argument for reserving budget action until after the May 15 forecast is that a further revenue decline also could cancel the personal income tax kicker. That, ironically, would yield a net revenue increase, giving lawmakers a few extra dollars to patch budget holes and send members home happy with a few pet projects in their pockets. There is growing dismay among lawmakers who will return to the 2003 legislative session that current state funding levels aren't sustainable with likely revenues available in the 2003-05 biennium.
Some legislators think the solution involves some kind of tax increase.
Others point to budget reforms. Yet another option is to rethink funding strategies for one or more state services such as higher education. A looming economic downturn is giving political wings to the concept of a rainy day fund that can be tapped when state revenues dip to keep public schools afloat. Governor Kitzhaber supports a rainy day fund cobbled together from a mix of sources including a portion of tobacco settlement revenues. The Senate will vote this week on a legislative referral asking Oregon voters to approve annual legislative sessions.