January 18, 2004

Oregon Eyes Taxpayers Bill of Rights

While Tennessee's governor is foolishly planning to spend Tennessee's rapidly growing revenue surplus - rather than save it for a rainy day - out in Oregon they may set a better example, by embracing the Taxpayers Bill of Rights concept.

Reports the Portland Oregonian newspaper:

The rapid growth in state revenues, and the corresponding increase in state spending, has prompted calls for a rainy day fund to get the state through hard times, and for stricter limits on lawmakers' ability to increase the budget.

State Republican Party Chairman Kevin Mannix is pushing a plan similar to the Taxpayer Bill of Rights passed by Colorado voters in 1992. "Tabor," as it's known, links state spending growth directly to inflation and population figures and requires the state to return immediately any surplus revenue it receives above those limits. It also requires voter approval for tax increases.

Colorado, Mannix and others note, is similar in size and population to Oregon, although it relies on both income and sales taxes to pay for state programs. Since the spending limit was enacted, yearly budgets in Colorado have increased by less than 5 percent.

Critics say - and many lawmakers tacitly agree - that the pressure can be overwhelming on the Legislature to spend all the money the state brings in.