Legislative Update
By Oregonians for Food and Shelter,
Legislative Session started Monday, with plenty developments over the first week. The House and Senate introduced nearly 300 bills on Monday and officially kicked off the session, leading to a packed week of committee hearings. Most bills will need a favorable vote out of committee by Monday February 16th to survive.
Leaders of the respective revenue committees also kicked off the week by unveiling a plan to disallow new tax breaks for Oregonians in order to partially close the budget gap. This plan disconnects federal tax breaks from Oregon’s tax laws. SB 1507 and its -4 amendment would require Oregonians to add back federal deductions for some auto loans and – more critically for businesses – accelerated depreciation, a valuable tool for businesses in buying equipment and managing cash flow. However, on Wednesday, the state’s Office of Economic Analysis delivered its highly anticipated quarterly revenue forecast, revealing slightly positive news for the budget deficit, followed by a truncated hearing on SB 1507. The revenue forecast and reduced urgency to raise more money could damper some Democrats enthusiasm for raising more money through tax increases.
Thursday brought more news, as the Senate introduced SB 1599, the widely expected proposal to move the referendum on transportation taxes from the November general election ballot to May’s primary. However, the bill contains some surprising components, stripping the public of its typical referendum processes and handing it over to the legislature instead. This political maneuver gives Democrats additional time to pass the bill beyond the Secretary of State’s timeline published last week. The proposal is sure to meet Republican opposition and cause more drama as the session unfolds.
OFS is tracking activity on several bills this week. First, we joined a strong coalition to oppose SB 1541, which would impose broad, retroactive liability to energy companies despite compliance with Oregon law. It would also create a massive new agency program loosely tied to climate change. In our long-standing efforts to support members in the Columbia basin in finding innovative solutions to water, we’re supporting HB 4006, “the Color of Water” bill that modernizes management in the mid-Columbia region. The bill will be heard Monday at 1 PM. We’re monitoring other bills impacting ag and forestry, but are looking forward to a relatively reasonable session for our natural resources sector.
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