Starr and Edwards Introduce State Savings Account

From Sen. Starr Press Release 2-5-07:

“Discipline for the State Legislature”

Salem, OR — Monday morning Senator Bruce Starr (R-Hillsboro) and Representative David Edwards (D-Hillsboro) introduced one of the simpler proposals for a state savings account to be discussed this session. In a hearing before the Senate Finance and Revenue Committee, Starr outlined a plan that would put 3% of state revenue into a savings account every year.

“Three percent of revenue collections will go into a state savings account, it is that simple,” said Starr. ” Salem is going to spend a lot of the next few months talking about a spending plan; I think we should be talking about a savings plan.”
Starr’s proposal, Senate Joint Resolution 13, in addition to putting 3% of the state revenues into a savings account for tough times, also limits the amount of money the legislature can take from the savings account at one time. Starr noted that a savings account is necessary given the legislature’s historical lack of fiscal discipline.

“We hear a lot of talking about “˜tax restructuring’ and a sales tax, but a change in tax structure won’t solve our problems,” said Starr. “This is a savings account that fits our revenue system. Ultimately, what Salem needs more than anything is discipline.”

Starr said that calls to take the personal kicker are a poor solution to a problem that really needs more prioritized spending and careful savings.