Brown faces $1.4 billion deficit, other challenges
Published 8:00 am Wednesday, November 9, 2016
- PAMPLIN MEDIA GROUP - Gov. Kate Brown addresses supporters Tuesday after her election victory.
After winning her first elected term as governor, Kate Brown faces a challenging two years in which she will have to address an estimated $1.4 billion revenue shortfall and face pressure to pass a transportation package.
While voters sent Brown back to the Governor’s Office, they defeated a $6 billion corporate sales tax measure that would have wiped out the projected deficit and leave plenty of cash for schools and other projects.
Brown endorsed Measure 97, which would have levied a 2.5 percent tax on certain corporations’ Oregon sales exceeding $25 million.
In her speech Tuesday night, she didn’t address how she plans to address the revenue shortfall, but other lawmakers said Tuesday they plan to propose a more “reasonable” revenue package in 2017. Brown will have a Democratic majority in the House and Senate, which could make a potential revenue package easier to attain.
On a night when Democrats struggled across the country, Brown won with a big margin, garnering 50 percent of the vote as of Wednesday morning to Republican Bud Pierce’s 43 percent. Libertarian James Foster and Independent Cliff Thomason split the rest.
“I am so honored to be serving as your governor for the next two years,” Brown told a subdued crowd of Democratic supporters at the Oregon Convention Center on Tuesday. “Thank you so very much. I will fight to make sure that our schools open the doors of opportunity for all of our students. I will fight to make sure our economy grows in every single corner of the state. And I will fight to preserve the bounty of Oregon for generations to come.”
As former secretary of state, Brown was next in line to the governor’s office when Gov. John Kitzhaber resigned in February 2015 over an influence-peddling scandal. She and Pierce, a Salem physician and political novice, sought to complete the last two years of Kitzhaber’s four-year term. Brown will be eligible to run for a full four-year term in 2018.
Her first initiative as governor — to pass a $343.5 million transportation package in 2015 — fizzled after the Department of Transportation provided faulty numbers on some of the projects. Brown pushed back consideration of the transportation package to 2017. A legislative group continues to look at potential packages for next session, which likely would involve an increase in the gas tax.