Fiscal Policy Roberts' Fiscal Dilemma

Fiscal Policy Roberts' Fiscal Dilemma Identifying the Issue The primary issue at stake in this case is the discrepancy between the amount of spending the state needs to engage in (and which the state populous seems to want given their election of Roberts on a platform that included increased spending on social programs) and the amount of revenue the state is able to generate via taxes (which voters also impacted by passing Measure 5, which placed a significant cap on property taxes, one of the state's major revenue sources).

The state does not have a sales tax currently, and has long been opposed to this tax, and the new cap op property taxes leaves very few options for the state to generate the revenue it needs. Part of this issue is also political in nature, with a Democratic governor elected at the same time the voters created a shift from the Democrats to the Republicans in the state legislature.

The problem Roberts faces is creating a fiscal plan that meets goals without angering taxpayers, and packing the deal in such a way that it is palatable to voters and legislators on both sides of the political spectrum. Analyzing the Issue Separating the practical and the political factors of this issue is a useful way to begin analysis and develop potential solutions.

As far as the practicalities are concerned, Oregon voters are simply going to have to be confronted with the fact that programs cost money, and that money is going to have to come from some sort of tax imposition. The reluctance on the part of Oregonians to pay higher property taxes, incomes taxes, or any sales tax whatsoever is simply incompatible with their desire to see state programs fully funded. Roberts' tax plan appeared to adequately address and balance these two conflicting concerns, and was defeated for primarily political reasons.

Turning to this side of the issue, then, it can be seen that Roberts needs to build better compromises and coalitions, and perhaps find areas of the budget and/or other public policy that can be used to bring certain Republican legislators over to her cause. Political wins often have little to do with practical needs and more to do with appearances, and Roberts might have to "play the game" a little more than she has.

Recommendations It does not appear likely that Oregon has anything like the clarity and consistency needed to create market-like equilibrium when it comes to the funding and spending of state programs, such as are proposed in the Tiebout Model. Rather than attempting to achieve this type of equilibrium or political consistency, then, it is recommended that a series of fiscal and political compromises be made and heavily publicized as a way of.