Governor says 'kicker' tax rebate reform is out
Friday, February 12, 2010

SALEM (AP) -- Gov. Ted Kulongoski hoped to make changing the state's unique 'kicker' tax rebates one of his last hurrahs, but it turned out few others were cheering along.

The Democratic governor issued a terse statement Thursday saying the Legislature's leadership, from his own party, had told him that kicker reform was out, at least for the four-week session now under way.

"The people of Oregon deserve better," said Kulongoski, serving the last year in his two terms as governor. State law forbids him to run for a third, consecutive term.

The kicker rebate sends money back to taxpayers when revenue collections are more than 2 percent above projections. The rebates often go to taxpayers before Christmas and have proved popular enough for voters to put the kicker in the state constitution.

Kulongoski wanted to send voters a proposal to put some of the surplus collections into reserve funds. That would smooth out Oregon's volatile tax collections, which depend on income taxes and lead to what Kulongoski calls "roller coaster budgeting."

He made his call the day after the votes were tallied in a hard-fought campaign over Measures 66 and 67. Voters affirmed the measures, increasing taxes on the wealthy and on business.

Democratic legislative leaders were cool to the point of icy, saying they support kicker reform, but the campaign made it impossible to assemble a coalition to back changes this year.

Putting it on the ballot without assurance it could pass would end kicker reforms for years, said Senate President Peter Courtney.

"The people who were natural allies on this were just disunited," said Democratic Sen. Ginny Burdick of Portland, chair of the revenue committee and sponsor of a kicker reform measure. She said the two tax measures have left hurt feelings, anger and depleted campaign treasuries.

"I just couldn't find a way around all that," she said.