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Basic Rights Oregon Urges NO vote on Measures 41 and 48

Over 90% of Oregon’s general fund budget goes to fund education, health care and public safety. Ballot Measure 41 and Constitutional Amendment 48 will devastate health care and human services

Measure Overview(s):Measure 41 is retroactive, cutting $151 million in revenue. Measure 41 would also reduce funding for health, seniors and children services by an estimated $170,280,000 in 2007-09.

Constitutional Amendment 48, in the long term, would be much worse. Amendment 48’s flawed formula poses a special threat to health care and human services. Health care costs are rising at a far faster rate than inflation as measured by the Consumer Price Index. And over the next twenty years, the senior population will rise at three times the rate of the general population. Ballot Measure 48 would prohibit the state from adjusting to these realities, leading to drastic cuts in these services.

Supporters of Measure 41 & Constitutional Amendment 48:
Measure 41 was written by long-time anti-tax activist, Bill Sizemore, it is being managed by the ultra-conservative FreedomWorks, D.C., and is being funded by wealthy financier, Loren Parks. The local chief petitioner is Russ Walker, head of Oregon FreedomWorks.

Amendment 48 has received 85% of its funding from wealthy New York developer, Howard Rich. He is pushing measures like this is three states this cycle. The local front group for this measure is the Taxpayer Association of Oregon run by Don McIntire. McIntire brought us California-style Prop 13 property tax limitations in 1990’s Measure 5, whose legacy has been devastating cuts to education funding.

Opponents of Measure 41 & Constitutional Amendment 48:
A partial list: AARP, Advocacy Coalition of Seniors and People with Disabilities, The Gray Panthers AFSCME Council 75, American Association of University Women of Oregon, American Cancer Society, American Federation of Teachers-Oregon, Oregon Business Association, American Heart Association, American Lung Association, Associated General Contractors Oregon-Columbia Chapter, Association of Oregon Faculties, Children First for Oregon, CareOregon, Central Oregon Jobs with Justice, Clackamas Community College Board, Coalition for a Livable Future, Community Action Directors of Oregon, Community Health Partnership, Confederation of Oregon School Administrators, Rural Organizing Project, Confederated Tribes of Grand Ronde, League of Women Voters/Oregon, Democratic Party of Oregon, Ecumenical Ministries of Oregon, Elders in Action Commission, Human Services Coalition of Oregon, Mental Health Association of Oregon, National Association of Social Workers/Oregon, NW Steelheaders, Oregon AFL-CIO, Oregon Center for Public Policy, Oregon Education Association, Oregonians For Health Security, Oregon Head Start Association, Oregon Nurses Association, Oregon PTA, , SEIU Local 49 & Local 503/OPEU, Stand for Children, Upstream Public Health, Women’s Rights Coalition…

Recommendation: Vote NO
In addition to having a retroactive affect, Ballot Measure 41 will cut almost $800 million from the 2007-2009 budget.

Over 20% of the State General Fund budget goes to the State Department of Human Services (DHS). The vast majority of the DHS budget is spent on health care and human services. If Measure 41 were to pass, program cuts in the 2007-2009 DHS budget would mean, among other program cuts:

Eliminating health care services for over 25,000 Oregonians – including over 14,000 children.

Reducing health services could jeopardize programs like the State’s HIV/AIDS programs and services.

The Legislative Fiscal Office has determined that if Constitutional Amendment 48 had been in effect since 1990, the State budget for all services would be 25% smaller than it is today.

Constitutional Amendment 48: Will cut health care and human services creating a significant unintended consequence: the cuts will force Oregon to give up billions of dollars in federal funds. Overall DHS receives more federal money than state money, and over 85% of the federal money is conditioned on the state investing money of its own. It is not possible to make significant cuts in DHS without losing federal funds.

The Oregon Legislative Fiscal Office has estimated that if Constitutional Amendment 48 had been in effect since 1990, the total State “TABOR-affected” budget for all programs would now be 25% smaller. Assuming the Department of Human Services would have shared in such cuts proportionally, and that each of the Department’s programs would have taken an equal cut, a 25% cut would have meant many program reductions, including:

Eliminating health care services for over 100,000 Oregonians … including nearly 60,000 children - well over half the Oregonians who receive health care services from the State are children. And, again, this budget reduction pressure could impact HIV/AIDS programs and services.

The effects of a 25% cut in the DHS budget could be much worse than this scenario. Federal Medicaid law requires the State to cover certain populations and offer certain services as a condition of receiving Federal money. State cuts of this size could easily result in the State failing to meet Federal requirements, putting all the Federal Medicaid money at risk.

Why is BRO Concerned About these Measures?

These cuts will be bad for Oregon and vulnerable Oregon families, gay or straight;

Budget cuts to health care programs could impact HIV/AIDS programs and budget cuts to education could impact HIV/AIDS education programs;

"Spending caps” and narrow tax policy does not belong in the constitution—the Oregon State Constitution should be reserved for weightier things like the Oregon Bill of Rights providing and protecting civil rights and human rights for all Oregon’s citizens; and,

If the Oregon State Legislature has to deal with these kinds of budget cuts next session, it will be so all consuming that addressing non-discrimination and civil unions will be that much harder for lawmakers to focus on.

To Get Active or for More Information: go to www.defendoregon.org or call 503-231-3672.
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