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Monday, March 20, 2017

2017 SJR 24: Article IX, Section 16 - Cap on spending growth

What SJR 24 does

Senate Joint Resolution No. 24 was proposed by Senator Girod.  This resolution proposes to add to Article IX, Finance, a new section 16 to the Oregon State Constitution which tries to limit the growth of government spending to the lesser of the increase in personal income, the rate of population growth or the increase in gross domestic product.  A lot of the text is definitions and how to arrive at the calculation.  Which appropriations this proposed limit is applicable to takes 12 lines.  Finally, there is an escape clause in subsection (6).

My view

This is a kneejerk reaction to budget problems being currently experienced by the Oregon state government.  In the current text, subsection (2) seems to be missing a word in the first part.  I believe it should read "Each biennium, the increase in state government appropriations..." These kinds of hard limits are can result in undue hardships to the poor and most vulnerable.  The current budget problems are significant and there needs to be a long term solution found.  The people of Oregon need to understand that it may involve additional revenues especially if there is not a collective decision to stop some entitlements.
The proposal does not have any real merits and it is perhaps even dangerous since it is a relatively understandable and straightforward solution to a complex problem.  I am sure the Senator knows how complicated balancing the priorities to make a workable budget is.  But this kind of a proposal, if passed, would have cruel and unintended consequences nearly immediately.

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