GOP leaders still cool on bargain

Published 5:00 am Thursday, August 1, 2013

SALEM — Gov. John Kitzhaber continued Wednesday to travel the state drumming up support for the so-called “grand bargain,” a deal that would trim state pensions and raise tax revenue.

Kitzhaber is contemplating calling lawmakers back for a special session this fall if he thinks he can get the votes to strike a deal. He’s hit the road to participate in roundtable discussions focusing on a possible package, which failed during the 2013 legislative session. Success could mean more money for Oregon’s public schools.

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The governor said earlier he is hoping lawmakers will have cooled off after adjournment. But some of his Republican counterparts’ talking points have not changed since lawmakers headed home July 8.

“If the strategy is let people cool down and look at it, well, we were cool during session,” said state Sen. Tim Knopp, R-Bend, who was part of the Senate negotiations on changes to the Public Employees Retirement System. “The issue is, the plan he was pitching didn’t create jobs and it didn’t solve the PERS problem. I don’t know why anyone would sign up for that.”

Senate Republican Leader Ted Ferrioli of John Day said his caucus, which is key in getting the grand bargain passed, has a hard time believing the state needs more revenue. But, he said, he likes what the governor is doing to kick up the pressure, and he’s hopeful it could result in a deal.

A deal, however, remains tenuous.

Ferrioli said any deal must include a tax break for small businesses before Republicans sign on.

“If there is a single missing component, someone walks,” Ferrioli said. “If the PERS (reform) isn’t big enough, someone walks. If the small business isn’t there, someone walks. If the revenue isn’t robust enough … someone walks.”

The governor held roundtables in Hillsboro, Salem, Hood River and Happy Valley in the past week. Next month, he expects to visit La Grande and Hermiston. His spokesman, Tim Raphael, said more are likely to be scheduled.

The grand bargain would include raising about $200 million in taxes and cutting the pension system’s unfunded $14 billion liability by about $5 billion. Raphael said a small-business tax break is also still on the table.

“The governor … believes that providing certainty for small businesses is something he’s interested in looking at,” Raphael said. “He’s talked about a capital gains reduction, he’s talked about a property tax piece as well … He certainly thinks a small business element is likely to be part of it.”

And, Raphael said, the governor is optimistic that a deal can be reached.

“He feels like he’s getting great feedback and there have been good sessions so far. He’s looking forward to continuing around the state,” he said.

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