While the tentative deal reached yesterday between the White House and House leaders on an economic stimulus package contains laudable elements, Oregonians should worry because it fails to provide for direct federal aid to states and threatens to reduce Oregon’s revenue stream, according to the Oregon Center for Public Policy.

Whenever the subject of tax reform comes up in Oregon, the idea of reducing or eliminating the income tax on capital gains invariably surfaces, like a sea monster in a B-movie. This hard-to-kill idea, however, is a terrible one.

With the state having begun a top-to-bottom review of its tax system, a report released today makes the case that cutting the existing income tax on capital gains — an idea often bandied about — would harm all but the wealthiest Oregonians.

It is going to rain, and when it does Oregon will wish it had a bigger umbrella. At present, Oregon’s reserve fund system is not up to the task of protecting public structures from the wrath of a fiscal storm similar in impact to those that struck in the early 1980s and the early part of the current decade.

Late yesterday, the U.S. House of Representatives approved a 15-month extension of the State Children’s Health Insurance Program that will allow states to maintain coverage at current levels. The extension is contained in a larger health bill now being sent to the President.

Like many others right about now, I’m drawing up my list of New Year’s resolutions. As usual, it is a long list of ways that I can be a better person.

While nearly half the states in the country will face budget shortfalls next year or the year after, Oregon is projected to collect just enough revenue to stay above water, according to analysts at the Oregon Center for Public Policy.