Location: Warner Pacific College, Kardatzke Hall (Street map) (Campus map) Parking for Kardatzke Hall is off of SE 68th Ave., north of Division St. Kardatzke lies directly below the Schlatter Prayer Chapel.
On Thursday March 29, from 7 to 8:30 pm, guest Senator Ryan Deckert will join hosts Rep. Ben Cannon, Rep. Jackie Dingfelder, and Sen. Avel Gordly at a Town Hall on Revenue Reform. More info here.
Results from the First Online Dialogue with the District
On March 1, I launched an experimental online dialogue about issues that Oregon faces. It started with a hope to begin a meaningful exchange of information and values with you, to better understand your priorities and concerns, and to give you a sense of how I think about issues. We started with state revenue as the dialogue's first topic.
Many thanks to the 77 people who have participated so far! I am continually impressed with the thoughtfulness of constituents who are in touch with me by email, at the Capitol, over the phone, at events in the district, and in this online dialogue. Some of your quotes are at the bottom of this e-mail.
I write today to share the results of the first round of responses in the dialogue, reply to your thoughts, and share how you can help make a difference on some of the issues we covered. We will be continuing this conversation at the forum Thursday night, as well as with additional online questions.
Dialogue Responses
77 of you have completed the revenue-reform dialogue, answering four basic questions on revenue and submitting an additional 116 textual responses. In what follows, I've included some of my own general responses to the questions as well as responded to some of the specific points you raised. We will also be responding to some of you individually.
1. Education Funding
I agree with the majority of respondents (68 of 77, or 88%), who said that we aren't investing enough to educate our children. I think funding is a primary shortcoming in our schools, though it isn't the only one. Along with good health and safe neighborhoods, a quality education is the best mechanism we have for providing equality of opportunity. Oregon schools are not excelling. One participant described them as "totally broken." Out of duty to Oregon's children and its economic future, we have no greater priority than adequate funding of our public schools.
While funding stability isn't mentioned in this question, I also point out the revenue fluctuation in our general fund and in our schools since the passage of Measure 5 in 1990. Oregon has cut school days and faced school closures during economic downtimes. In the last few years, Oregon schools have dropped into the bottom five nationally for student-teacher ratios -- one of the best predictors of academic performance and a number that is difficult to improve through efficiency and innovation, which some participants in the dialogue also stressed.
In many ways, our schools are still operating the same as they were a century ago. Further, many kids now have more distractions and fewer responsibilities at home and in the community, so it can be harder to capture their attention.
I serve on the Subcommittee for Education Innovation, and would welcome thoughts on how we can move our education system into the twenty-first century, and improve the competitiveness of Oregon and our country.
In this case, the dialogue has affirmed my thinking. I will continue to press for increased school funding, as well as improved funding stability. You can help by writing or calling your state representative, senator, and governor. If your representatives share your views, talk to your friends and relatives in other districts, and encourage them to get their representatives behind school funding.
2. Human Services and Public Safety
A smaller majority (41 of 77, 53%) also replied that we are spending too little on human services and public safety.
Some of you mentioned the higher return on investment that is made possible by investing in communities, schools and neighborhood rehabilitation than we get out of incarceration, which is both expensive and inversely correlated with rehabilitation. Of course, our prisons have their place.
As I consider the question posed in the dialogue, I realize it might have been more helpful to separate the two categories. To the degree that our constitutional sentencing laws allow it, and to the degree that we can still safeguard the public by incarcerating dangerous criminals, I will prioritize early intervention social services, police, and a quality education system over prison construction.
3. Revenue Source
Fifty-three percent (47 of 77) respondents thought a combination of income and sales taxes would be best for funding state government. And, demonstrating your understanding of the importance of the distribution of contributors, 67 participants also gave textual responses regarding the makeup of the tax stream. Overall, the greatest concern that participants voiced, mentioned by 14 respondents, was the possible regressiveness of a sales tax. Six also called sales taxes "annoying."
It has been over a decade since Oregon last tried to implement a sales tax and I will watch with great interest the progress of House Bill 2530. This bill would cut income and capital gains taxes in half, reduce property taxes on owner-occupied homes, provide earned income and renter relief credits and replace the lost revenue with a 5% sales tax on goods and services that excludes groceries, medicine, housing, education, gas, cigarettes, and alcohol.
At this point, I am still listening to feedback from constituents regarding this package, as well as testimony in committee, before I take a definite position on HB 2530. However, principles that I follow in assessing any proposed tax reform include:
Capping tax giveaways. Out of every $1 of potential income tax revenue, the state gives away $0.45 in credits, deductions, and exemptions -- sometimes with no corresponding public benefit. A 10% reduction in these tax breaks would generate as much as $1 billion in new revenue for schools and other vital services. Tax giveaways ought to be given the same level of scrutiny as other government expenditures.
The legislature took an important step towards revenue reform this session by suspending this year's corporate kicker and starting a rainy day fund. Other ideas before the legislature this session include asking voters to permanently repeal the corporate kicker and raising the corporate minimum tax. I support both wholeheartedly.
4. Overall State Funding Level
Again, I agree with the majority of respondents (47 of 77, 61%) who believe that on the whole, Oregon revenue should be higher. Per-capita taxes in our state are $1791, ranking us 41st among the states and 18% below the average of all other states.
Your Quotes
Some of the thoughts that participants shared:
"I feel sales tax is profoundly unfair for those in lower income brackets."
"I feel that the solution for the "educaton crisis" is rather simple: pay TEACHERS!"
"Why keep throwing money at a system that is so totally broken...Really work for the reform of education. Quit throwing money at it."
"I support increasing the corporate income tax."
"I think property taxes - and taxes on big-ticket items like cars and inefficient appliances - are good."
"A sales tax excluding food is a fair way to have everyone participate and have choices to spend or not to spend...I would favor whatever is the most equitable balance."
"I would support a sales tax only if you get rid of the income tax."
"We need a way to generate more revenue."
"Your government has enough money."
"The sales tax would capture revenue from out-of-state visitors."
"Sales taxes are obnoxious."
"Our current system is untenable."
"This is NOT a state that cares for children. If we spend more at the grade-school level on children, we just might get away with spending less on corrections."
"I am willing to give up some progressivity in the tax system for stability."
"I believe that those who choose to consume more should pay more."
"The important point is to keep the entire tax system progressive, even if parts of it are not as progressive as some might like."
"Capital gains should not be lower than income...working incomes shouldn't be taxed higher than wealth assets."
"The burden has been falling too heavily on private citizens."
What's Next
At the town hall this Thursday, we will have a chance to talk about revenue reform and the dialogue in person. Because this first stage of the dialogue focused on revenue raised more questions just as it gave us some answers, we plan to follow it up with another revenue-related dialogue. I hope to continue to have your thoughts on this work!
Best regards,
State Representative Ben Cannon
900 Court St. NE, H-487
Salem, OR 97301
rep.bencannon@state.or.us
http://www.repbencannon.com/
(503) 986-1446
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