Legislative Update
The OSWA Legislative Update · May 18, 2009
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Dear OSWA Member,
 
Revenue Forecast Signals March to Legislative End
Last week's final revenue forecast prior to adjournment starts a six-week process to develop a budget for 2009-2011.  The Co-Chairs of the budget-writing Ways & Means Committee will release their budget template on May 18.  The legislature's final budget must balance expenditures with expected revenue.  The radioactive tax increase phrase buzzed the halls of the Capitol prior to and following the shortfall in revenue the forecast described.
 
Republicans released their budget for 2009-2011 that is based on the current 2007-2009 biennium.  Their budget does not include any tax increases.  Three days later, House Democratic Leaders released a proposal to raise taxes on businesses and wealthy Oregonians while cutting spending by $1.5 billion.  Senate Democratic Leaders have not yet released their budget plan.
 
Democrats control enough votes in both Houses to adopt tax increases without any Republican legislators' votes.  Republican blogs have already been discussing whether or not to seek a citizen referral of a legislatively approved tax increase.  Some commenters think Republicans would have more campaign fodder if Democrats succeed in raising some taxes prior to the 2010 elections.
 
The Oregonian newspaper has a good summary of the state revenue forecast at the following link.
Revised economic forecast shows Oregon still $351 million short for 2007-09 budget year - Oregon, Northwest and National Politics & Elections News - Oregonlive.com
Timber Recession Impacts Forestry
While the timber industry suffers from the worst recession in a generation, public agencies are not immune from financial difficulties.  The Department of Forestry is suffering the effects of reduced timber sale revenue.  State Forester Marvin Brown sent an email last week announcing 40 layoffs in the state forests program.  The budget the legislature approves will most likely result in layoffs to the private forests and fire programs.
 
Timber industry and forest landowner advocates have been communicating the importance of the ODF's fire protection and forest practices enforcement programs.  Both programs are jointly funded by forest landowners, timber purchasers and Oregon's General Fund.  The legislature's budget for the ODF will also determine forestland fire assessments and the Forest Products Harvest Tax.
 
Climate Change Legislation Still Alive
Oregon's two investor-owned utilities, Portland General Electric and PacifiCorp drafted legislation in response following discussions with Governor Kulongoski.  Last week business, industry, labor, homebuilders and utility representatives held several hours of meetings to hammer out an acceptable legislative proposal to reduce carbon dioxide emissions and encourage energy efficiency.
 
Meanwhile, the Governor has played a wildcard in the climate change arena by abruptly replacing Department of Energy Director Michael Grainey with Mark Long, another agency leader.  Grainey had good working relationships with industry and legislators.  He was pragmatic when it came to renewable energy investments and carbon emission reduction strategies.  

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Thank you for reading OSWA's Legislative Update.  Please pass this email on to others that may be interested in legislative news and information.  Your comments and suggestions are always welcome.
Sincerely,
 
David Ford
Executive Director
Oregon Small Woodlands Association
 
Ralph Saperstein
OSWA Lobbyist
Conkling Fiskum & McCormick

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