Human Services Program Held Hostage for Tax Increases

April 03, 2009

OREGON HOUSE REPUBLICANS

FOR IMMEDIATE RELEASE: April 3, 2009

CONTACT: Nick Smith, 503-986-1351


HUMAN SERVICES PROGRAMS HELD HOSTAGE FOR TAX INCREASES

SALEM'oHouse Republicans today said state leaders are threatening to slash programs for low-income Oregonians if massive tax increases are not passed this session. The proposals include:

Eliminating OHP Standard coverage for 28,000 Oregonians if the Legislature doesn'it pass an
increased provider tax on Oregon hospitals.

Eliminating OHP prescription drug coverage for adult clients if the Legislature doesn'it approve
$110 million in tax increases on smokers and health care providers.

Implementing an 83 percent cut to community alcohol and drug treatment if the Legislature
doesn'it approve a beer tax increase.

`iThis budget approach demonstrates Salem politics at its worst,^i said Rep. Dennis Richardson (R-Central Point). `iHolding human services programs as ransom for tax increases- while holding other programs and agencies harmless- is a violation of public trust. It'is wrong to make pawns of Oregon'is most vulnerable citizens.^i

Rep. Richardson, a Ways and Means Human Services Subcommittee member, said prescription drug coverage is one of OHP'is most important benefits because it helps chronically-ill patients obtain life-sustaining medications. Rather than making vital OHP services a top priority, the budget plan makes the services dependent on unsustainable revenue sources.

"The estimates from the proposed tax increases assume that smokers will consume tobacco at current rates, and that hospitals will be able to generate sufficient tax revenue to sustain OHP services,^i Rep. Richardson said. `iThe new federal cigarette tax hike is likely to prompt thousands of smokers to quit. When actual revenue fails to reach these estimates, Oregon'is chronically ill and poverty-stricken citizens are the ones who will suffer.^i

Rep. Ron Maurer, vice-chair of the House Health Care Committee, said the Legislature has the responsibility to prioritize state spending, protect vital government programs, and send the proposed health care tax increases to the voters for their approval.

`iThe Legislature is cutting human services programs, yet it is protecting taxpayer-subsidized health care insurance premiums for state employees,^i Rep. Maurer said. `iOregonians expect the Legislature to fund core functions of government, and they deserve to have a voice on the billions of dollars in tax increases that are expected to pass this session. Holding human services hostage for tax increases shows that politics overrides good governance.^i
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