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New income tax rectifies budget crisis
by Ryan Knutson | News Reporter
In order to fill the $20 million hole in Lane County's general fund caused by the recent expiration of federal payments, the Lane County Board of Commissioners voted last night to enact an income tax that would generate $32.5 million per year, according to a Lane County press release.
The Secure Rural Schools and Community Self Determination Act of 2000 (SRS), which expired in September 2006, compensated counties across the nation that were restricted from developing federal forest lands that were contained within its boundaries. Oregon was the greatest beneficiary of the act; 33 of Oregon's 36 counties shared about $220 million, which is more than half of the entire federal payment to all states in the country.
Lane County, which contains 246,000 acres of federal forest lands, received roughly $47 million annually under the program. Of that money, $20 million poured into the general fund for public safety and public health, and the rest went into separate funds for schools and roads.
The $20 million that funded public safety and public health represented about one third of the county's general fund, and the loss of it would result in massive cuts to the sheriff's office, the district attorney and public health programs in the county.
"Now it's time to stop talking; it's time to act," former county commissioner Jack Roberts told the board and was quoted in a KVAL news release.
Because Congress didn't renew the federal payments, the only action Lane County could take was to enact an income tax or bring its justice system to the chopping block.
Last night, the Lane County Board of Commissioners chose the former, and created a 1.1 percent income tax on personal and business income earned in Lane County, according to the county's press release. The tax will take effect on July 1, 2007.
The board voted 3-2 to pass the tax after hearing hours of discussion from community members, according to the release.
editor@dailyemerald.com
The Secure Rural Schools and Community Self Determination Act of 2000 (SRS), which expired in September 2006, compensated counties across the nation that were restricted from developing federal forest lands that were contained within its boundaries. Oregon was the greatest beneficiary of the act; 33 of Oregon's 36 counties shared about $220 million, which is more than half of the entire federal payment to all states in the country.
Lane County, which contains 246,000 acres of federal forest lands, received roughly $47 million annually under the program. Of that money, $20 million poured into the general fund for public safety and public health, and the rest went into separate funds for schools and roads.
The $20 million that funded public safety and public health represented about one third of the county's general fund, and the loss of it would result in massive cuts to the sheriff's office, the district attorney and public health programs in the county.
"Now it's time to stop talking; it's time to act," former county commissioner Jack Roberts told the board and was quoted in a KVAL news release.
Because Congress didn't renew the federal payments, the only action Lane County could take was to enact an income tax or bring its justice system to the chopping block.
Last night, the Lane County Board of Commissioners chose the former, and created a 1.1 percent income tax on personal and business income earned in Lane County, according to the county's press release. The tax will take effect on July 1, 2007.
The board voted 3-2 to pass the tax after hearing hours of discussion from community members, according to the release.
editor@dailyemerald.com
Viewing Comments 1 - 2 of 2
Average UO student
posted 2/22/07 @ 4:20 PM PST
Thanks for the tax increase. Now my rent will go up - by more that 1.1% Once again, it will be the students that pay. How much will the county save by cutting services to illegal aliens? They forgot to check that figure. (Continued…)
Concerned
posted 2/23/07 @ 6:24 PM PST
Doesn't it concern anyone that the Board of Commissioners completely disregarded the will of the voters?
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