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Page 63

Oregon

John Kitzhaber, Democrat

Legislature: Republican

Took Office: 1/95

Grade: F

John Kitzhaber, a physician, is arguably the nation's

most fiscally liberal governor.  His 16-year career in the

state legislature culminated in the passage of the Oregon

Health Plan, which expands health care coverage by rationing

treatment.  That plan was funded by a temporary 10-cent

cigarette tax hike.  In Kitzhaber's first year as governor

he supported extending that tax hike and later supported a

30-cent cigarette tax increase, which was approved by the

voters, to expand the Oregon Health Plan.  Despite laudatory

appraisal by the media, the Oregon Health Plan has been most

noteworthy for its exploding enrollment and costs.  In 1997

Kitzhaber proposed increasing the gas tax and vehicle regis-

tration fees to fund mass transit spending and road improve-

ments.  The legislature rejected that proposal, and later in

November voters in a number of counties rejected local road

tax hikes as well.  Oregon has a "kicker" law under which,

if tax collections exceed the original estimate by 2 percent

or more, that surplus must be returned to the taxpayers.  In

1997 Kitzhaber asked the legislature to spend the extra tax-

payer dollars on education and social services rather than

return them.  His biennial budget proposal for FY98 and FY99

called for a huge double-digit increase in spending.  He

later increased his own, already astronomic, spending pro-

posal, twice.  The legislature rejected Kitzhaber's proposal

to keep the surplus tax dollars but passed a biennial budget

that still increased spending by about 18 percent.  Under

Kitzhaber, state general fund spending has mushroomed by 40

percent.  Kitzhaber, like many Oregonians, describes himself

as "skeptical of growth."  If his tax-and-spend policies

continue, Oregon can, indeed, expect less growth.

Score

Grade

Rank

Overall Fiscal Policy Score

27

F

46

Spending Score

5

F

46

Revenue and Tax Rate Score

36

D

43

Amount

6.1%

Average Annual Change in Real Per Capita Direct General Spending through 1996

2.7%

Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996

5.3%

Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999

1.8%

Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98

3.0%

Average Annual Change in Real Per Capita Tax Revenue through 1997

-0.3%

Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997

0.1%

Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999

0.0%

Average Annual Change in Real Per Capita General Fund Revenue 1996-98

1.9%

Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999

0.0

Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)

0.0

Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)

15.6

1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)

0.0

Change in Sales Tax Rate, proposed and/or enacted (% points)

6.0

Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)