Oregon Business Plan Blog

Analysis by PERS Shows that SB 822 Leaves Oregon Schools Struggling with High PERS Costs Through 2029

Administrator Account — Tue, 23 Apr 2013 00:00:00 GMT

PERS actuaries predict that school district payroll rates will double between 2009 and 2017 even with SB 822 and its companion provision to skip payments into the system. By 2017-2019 rates above and beyond 2009-2011 levels will cost school districts statewide $1 billion more each biennium, or the equivalent of 4,500 teachers, and will remain at these high levels through 2029. Read more.

Oregon Health Insurance Exchange Will Be Huge Benefit for Employees, Employers

Administrator Account — Thu, 08 Mar 2012 00:00:00 GMT

Today, Governor Kitzhaber signed HB 4164, authorizing the Oregon Health Insurance Exchange. The exchange is a marketplace where individual Oregonians and small businesses can shop for health insurance, comparing plans on cost and quality. The exchange will make it easier to purchase insurance and improve value for consumers.

At today's press conference, small business owner Steve Ferree of Mr. Rooter Plumbing spoke about how he and his wife usually spend 2-3 weeks trying to understand health plans and pick the best one for all of their employees. With the exchange, small employers like Steve will be able to offer a defined contribution to their employees and let them use the ecchange to pick the plan that works best for them.

Individuals who purchase healthcare on their own experience the same frustration as Steve. The exchange will help them too. Customers in the exchange will have an account they will log into that will include any subsidies that they are receiving to purchase healthcare (including tax credits). Then they'll be able to easily compare plans based on objective measures of quality and cost, selecting the plan that works best for them.

The exchange is a critical innovation in the health insurance market. Combined with the new healtchare delivery reforms included in SB 1581, Oregon is on its way to better health, better health care and more stable costs. However, significant work remains in executing these new reforms, and there are many more steps Oregon needs to take in the coming years. Health reform is a marathon not a sprint. Even so, Oregon is way ahead of the pack because of the two bills that passed this year.

Watch the video of the bill signing ceremony, including remarks from Governor Kitzhaber, Steve Ferree, Representative Mitch Greenlick, and Senator Laurie Monnes Anderson.

House Sends Healthcare Transformation Legislation to Governor's Desk

Administrator Account — Thu, 23 Feb 2012 00:00:00 GMT

On a 53-7 vote today, the Oregon House of Representatives passed SB 1580, the healthcare transformation bill. The bill authorizes the establishment of Coordinated Care Organizations (CCOs). CCOs are local healthcare delivery collaboratives that will improve coordination of physical, mental, dental and other health services for Medicaid patients. The idea is that improved coordination of care will bring costs down by reducing catastrophic events, hospital visits, duplication and other inefficiencies in the delivery of care to this high risk population. CCOs will look different in every community based on the structure of their healthcare delivery system and the players involved. Business groups distributed this letter on the House floor during the debate over the bill. Bringing down costs in the Oregon Health Plan-the fastest growing cost inside state government--is key for Oregon to get a handle on its budget and to ensure that we can invest in education in the future.

Its Time to Pass Early Learning Reform

Administrator Account — Thu, 23 Feb 2012 00:00:00 GMT

Original Source | Oregonian
By Vic Atiyeh, February 21, 2012

As former governor, I have seen the exceptional things that happen when lawmakers come together from both sides of the aisle to take action. I believe Oregon legislators have one such opportunity in front of them today: House Bill 4165 gives our state an unprecedented opportunity to change the rules of the game for Oregon's most vulnerable children.

The state recently reported that just 66 percent of Oregon's high school students are graduating in four years. Research has shown us over and over again that to truly affect this number, we need to reach kids long before they set foot in high school or even in kindergarten. Early literacy, for example, is one of our most reliable indicators of high school graduation -- and we know that in Oregon, 69 percent of children are not proficient in reading by fourth grade. In short, the achievement gap begins early and is hard to reverse. We need to reach children before it starts.

HB4165 would require that the state put into place a kindergarten readiness assessment and establish a quality rating system for early education providers. Both of these achievements will help improve the quality of available early learning programs and provide critical information for parents, providers, educators and policymakers.

Moreover, Oregon's early childhood programs are currently scattered across six state agencies and subject to a chaotic governance of different rules, regulations and standards. HB4165 would build a more coherent and coordinated early childhood system by creating an oversight Early Learning Council and replacing the state commission system.

This bill has already generated momentum. The Legislature has taken important steps by passing a Senate bill that paved the way for HB4165. Recent amendments will ensure that lawmakers as well as the public will continue to have input into the planning process and help to shape the new education system for our state.

Enacting HB4165 will put our children on a path not only toward a robust education, but toward responsible citizenship and becoming productive members of society. We cannot afford to lose this opportunity, both for ourselves and for our state's future.

Vic Atiyeh served as governor of Oregon from 1979-1987.

Medicaid Transformation Bill, Key to Oregon's Fiscal Health, Passes Oregon Senate

Administrator Account — Wed, 15 Feb 2012 00:00:00 GMT

On Tuesday the Oregon Senate passed SB 1580, a bill to transform the way Health Care is delivered to Medicaid patients. The bill is Oregon's best hope to bring down skyrocketing costs while improving quality of care.

Oregon's four largest business associations-Associated Oregon Industries (AOI), Oregon Business Association (OBA), the Oregon Business Council (OBC) and the Portland Business Alliance (PBA) all support the bill, a long with a host of advocates from the healthcare community and groups that look out for Medicaid beneficiaries.

The bill now moves onto the Oregon House, which is split 30/30 between Democrats and Republicans.

Business groups signed on to a floor letter in support of the bill in the Senate.

The Oregonian has been reporting extensively on the bill this session. Find their coverage here:

SB 909, Other Education Bills Clear House

Administrator Account — Wed, 22 Jun 2011 00:00:00 GMT

On June 21 the Oregon House of Representatives voted 54-5 to establish the Oregon Education Investment Board, SB 909. The bill will now go to the Governor's desk for his signature.

Currently, Oregon’s disconnected system of education funding and policy-making treats early learning, K-12, and post-secondary education as separate silos rather than a continuous pathway that leads all Oregon students to a successful future. The result is a competition for resources, and a lack of coordinated policy making. SB 909 aims to change that. You can read more at www.pathtosuccessoregon.org.

SB 909 passed along with a dozen or so other education bills, many of which will make significant improvements to Oregon’s s system of public education. As many legislators noted today, these bills will not solve all of Oregon’s education problems. Lack of stable funding and rising costs for health care, prisons and other public expenditures that divert resources from schools and the classroom must be addressed. However, these bills are a critical first step and have the potential to significantly improve the investments we are currently making in schools. Here are just some of the bills:

SB 252 gives educators the opportunity to design local systems that support and continually strengthen their skills in the classroom.
SB 909 creates a unified "zero-to-20" approach to education that will create better results for students, more resources for teachers, and better value for the future of our state.
SB 552 allows the Governor to appoint the State Superintendent of Public Instruction.
SB 250 allows school districts in some Education Service Districts (ESDs) to pilot opting out of their current ESD in order to find cost efficiencies.
SB 5055 includes $25 million in additional funding for K-12 schools.
HB 3362 boosts career and technical education

For the past week, it wasn’t clear if these bills would reach the floor for a vote. They were part of a negotiation between legislative leadership to advance a package of bills that would move to the floor together. Some elements of the package were particularly controversial for many legislators, with some concerns based on policy and others based on process (some of these bills had not passed through policy committees).

While it was a difficult and at times messy process, in the end legislators stepped up to compromise and ensure that good bills were able to pass. Co-Speakers Roblan and Hanna spent countless hours working toward a deal, and key legislators stepped up to the plate today to cast critical (and difficult) votes.

We urge you to contact your legislator and thank them for working across the aisle and stepping up to support students in spite of a difficult and at times frustrating process. While there is much work to be done, we believe that Oregon's kids, and economy, will be better off because of the actions taken today.

Passing education bills is critical for Oregon’s economy

Administrator Account — Thu, 16 Jun 2011 00:00:00 GMT

As this chart indicates, no factor impacts employment and income more than educational attainment. When it comes to meeting the goals set out in the Oregon Business Plan-creating 25, 000 new jobs per year through 2020 and bringing Oregon’s per capita income above the national average, doing everything we can to improve student learning is of the utmost importance.

The Oregon legislature is considering several key reforms that can improve student learning. The one that we have spent the most time discussing is Senate Bill 909, the Oregon Education Investment Board. Currently decisions on education policy and funding are divided into silos pitting K-12 against post-secondary education and early learning. Instead of creating arbitrary boundaries and governing boards, Oregon should be focused on student achievement from birth through grade 20. By establishing a 0-20 education investment board, SB 909 will help us get there.

There are many other great bills being discussed as well, including SB 252 – expanding one of the most effective programs for improving student outcomes that we have seen in recent years--the Chalkboard CLASS Project. Results in Tillamook and Sherwood have shown dramatically improved student achievement and teacher satisfaction. This bill would add state investment to supplement federal and foundation grants that fund this innovative, collaborative work in school districts.

SB 250 is a great reform to help us get greater bang for our education buck. This bill allows a few pilot districts to opt-out of their ESD. ESD reform is long overdue, and SB 250 encourages school districts to make the most cost effective and efficient decisions, and to take advantage of economies of scale while still encouraging marketplace competition.

In all, there are 11 bills being discussed by legislators, as well as additional funding. You can learn about these bills in the Oregonian, who has covered this topic extensively.

So far this year, legislators of both parties and Governor Kitzhaber have worked collaboratively to address issues of critical importance to Oregon’s economy-from dealing with basic issues like permitting linear facilities and highway access management for trucks, to improving the health care system by authorizing the development of a health insurance exchange. Oregon’s economy will be better off because of these efforts.

But no improvements matter more than those that help our students achieve. Please contact your legislator, thank them for their hard work, and ask them to keep working on a compromise to pass critical education bills. While every legislator may not like every part of every bill, doing nothing is the worst thing that we can do for the future of Oregon’s economy.

In addition to your legislator, contact legislative leaders to thank them for keeping these critical negotiations going.

• Co-Speaker Bruce Hanna, 503-986-1200, rep.brucehanna@state.or.us
• Co-Speaker Arnie Roblan, 503-986-1300, rep.arnieroblan@state.or.us
• House Democratic Leader Dave Hunt, 503-986-1900, rep.davehunt@state.or.us
• House Republican Leader Kevin Cameron, 503-986-1419, rep.kevincameron@state.or.us
• Senate President Peter Courtney, 503-986-1600, sen.petercourtney@state.or.us
• Senate Majority Leader Diane Rosenbaum, 503-986-1700, sen.dianerosenbaum@state.or.us
• Senate Minority Leader Ted Ferrioli, 503-986-1950, sen.tedferrioli@state.or.us

Gaining Access: Bill Unjambs Highway Access Permitting

Administrator Account — Thu, 16 Jun 2011 00:00:00 GMT

From Associated Oregon Industries Leading Issues June 16, 2010

One of the better successful bills this session is the unheralded SB 264A – highway access permitting streamlining.

SB 264A addresses a big problem – the frustration encountered by businesses, such as a grocery store or bank, when they want to build or expand and need a highway access permit from ODOT. In some cases, the mere trepidation of venturing into this permitting thicket has, reportedly, caused some projects to be delayed or dismissed out of hand. Horror stories abound. Needless to say, this has had an impact on job creation and business expansion.

SB 264A is a big step forward. The measure, which passed both houses easily and has been signed by the Governor, will result in set standards for obtaining such a permit. It is estimated that about 80% of the access permits will fall into a clear, predicable, and relatively rapid regulatory scheme, with the remaining 20%, those that are more complex or involve thornier issues, going to what is intended to be an objective and collaborative resolution process. The bill also establishes a workgroup to work on improvements to access management issues and monitor the results of the bill.

Much of the credit for the bill goes to Senators Betsy Johnson (D-Scappoose), Joanne Verger (D-Coos Bay), Doug Whitsett (R-Klamath Falls), Representatives Terry Beyer (D-Springfield) and Margaret Doherty (D-Tigard), along with ODOT which not only recognized a problem, but helped fix it.

Legislators Recommend Smart Investments in Economic Development

Administrator Account — Fri, 03 Jun 2011 00:00:00 GMT

Yesterday the Joint Ways and Means Subcommittee on Transportation and Economic Development passed SB 5528, the biennial budget for “Business Oregon,” the Oregon Business Development Department. The Budget now heads to the full Ways and Means Committee for consideration.
The budget includes some key provisions endorsed by the Oregon Business Plan as major opportunities to lower Oregon’s stubbornly high unemployment and lagging personal income levels. These include:

The Oregon Innovation Plan

The Oregon Innovation Plan is now in its third round of funding and has delivered impressive results for the state. The Subcommittee allocated sixteen million dollars this biennium for the Innovation Plan, a suite of initiatives to enhance industry innovation and the commercialization of research. The funding will go toward three industry initiatives and three signature research centers. The industry initiatives include improving innovation and productivity in the food processing industry ($500k), catalyzing Oregon’s emerging electric vehicle industry ($1.2 million), and putting Oregon on the map for wave energy development and manufacturing ($2.5 million). The Signature Research Centers include the Oregon Nanoscience and Microtechnology Institute (ONAMI) ($5.3 million), Oregon Built Environment and Sustainable Technologies Center (BEST) ($3.8 million) and the Oregon Translational Drug Institute (OTRADI) ($2.8 million).

In the midst of a historic recession, the Oregon Innovation Plan has been successful at incubating new ideas into growing businesses, helping established industries become more competitive and creating a new economic future for all Oregonians. In less than four years of state funding, the six initiatives of the Oregon Innovation Plan have brought $195 million in federal and private grants back to Oregon and are on track to generate more than $7 for every dollar the legislature has invested, not to mention the creation of 1117 jobs and the incubation of 15 new companies.

For more details on how the funding will be used, visit http://www.oregon4biz.com/Innovation-in-Oregon/.

Strategic Reserve Fund

The budget that passed out of the subcommittee today includes $8,954,839 for the Strategic Reserve Fund. This brings the total funding for the SRF to $15 million, up from $6.3 million last biennium. This includes $4 million that can be used by Business Oregon for the new Business Expansion Program, SB 219 (see below). The Strategic Reserve Fund was established by the Oregon Legislative Assembly to support economic and community development in Oregon. Particular emphasis is placed on investments that assist communities, businesses or industries with cost effective projects that assist the creation, expansion, and preservation of traded sector industries of Oregon, and that encourage diversification and preservation of regional economies.

Business Expansion Program (SB 219)

Oregon lacks an incentive tool that can be used for companies with lots of jobs and high wages but small capital investments, who are looking to expand. Many of Oregon’s key programs like the Strategic Investment Program, Enterprise Zones and the Business Energy Tax Credit are targeted at companies with significant capital expenditures. This can leave out key drivers of employment and income such as software companies. Other states, for example Oklahoma, have had significant success creating jobs with incentive programs targeted at these types of companies. SB 219 creates the Oregon Business Expansion fund which can be applied to these labor intensive, high wage companies. We commend the legislature’s foresight in creating this tool in the middle of a recession. While it is tempting to retreat from investments in economic development in order to plug immediate holes, it is these types of investments in future job growth that will ensure we weather the next recession better and achieve our goals of lower unemployment and higher incomes.

Federal Forest Health, Rural Jobs Fall Victim to State Budget Shortfall

Administrator Account — Fri, 03 Jun 2011 00:00:00 GMT

A little discussed provision in the Department of Forestry’s budget would have allotted $700, 000 to implement key recommendations of the Federal Forest Advisory Committee, a group of private and public stakeholders who met for over a year to figure out how to make our federal forests healthier for people, wildlife and jobs. The provision did not make it through a key legislative Subcommittee.

Key to the Federal Forest Advisory Committee’s recommendations was the treatment of thousands of acres of overgrown federal forests that put the forests at risk of wildfires and that could result in dozens of rural jobs. For every million dollar investment in treating overgrown federal forests, 17-23 jobs are created, according to a report by the University of Oregon. This is in addition to the public and environmental health and safety benefits of treatment.

The Natural Resources Subcommittee of the Ways and Means Committee considered the $700, 000 request, which was included in the Governor’s budget, and decided against it. Legislators argued that given vary limited resources and the statutory priority in the ODF budget on managing our state forest lands and supporting the implementation of the Forest Practices Act on private lands, that $700, 000 for federal forest lands, while critical, could not be funded this year.

Still Awaiting Action on Key Education Reform Bill

Administrator Account — Fri, 03 Jun 2011 00:00:00 GMT

Oregon’s disconnected system of education funding and policy-making treats early learning, K-12, and post-secondary education as separate silos rather than a continuous pathway that leads all Oregon students to a successful future. The result is a competition for resources, and a lack of coordinated policy making. Decisions are often made based on who controls the dollars—and not necessarily what’s right for students. Oregon must do away with these arbitrary boundaries in order to improve our focus on student achievement, from birth up through successful entry into the workforce.

Senate Bill 909 creates the Oregon Education Investment Board, and charges this Board with ensuring that early childhood services, grade K through 12 public education, and post-secondary education are streamlined and connected. The Oregon Investment Board will recommend strategies to ensure our state’s investments are focused on helping students reach important outcomes, like coming to school ready to learn, and graduating from high school career and college-ready. In addition, SB 909 creates an Early Learning Council to coordinate Oregon’s numerous and disparate early learning programs and ensure they achieve the desired outcomes.

This common sense proposal by Governor John Kitzhaber is a significant step to remove bureaucracy and focus resources on student achievement, which will help put all Oregon students on a pathway to success.

The bill is sitting in the Education Subcommittee of Ways and Means. No work session has been scheduled on the bill.

Contact House and Senate Leadership, and members of the Education Subcommittee of Ways and Means, in support of SB 909. Visit http://pathtosuccessoregon.org/ for more info.

Learn more ›

Linear Permitting, Enterprize Zone Bills Head to Governor

Administrator Account — Fri, 03 Jun 2011 00:00:00 GMT

Two bills that will help promote job creation in Oregon went to the Governor’s desk for signature this week.

HB 2700, Linear Permitting: HB 2700 fixes a procedural nightmare for obtaining permits for linear facilities like transportation corridors and transmission lines. Improving unnecessarily slow and cumbersome permitting processes is a key way to accelerate job creation and improve Oregon’s reputation as a business unfriendly state. HB 2700 is an important step forward. The Coos Bay World did a nice piece on the passage of HB 2700.

HB 3017, Enterprise Zones: HB 3017 extends the sunset on Oregon’s Enterprise Zone program through 2025. Oregon’s Enterprise Zone program has been critical for job creation and new investment. Businesses located in Enterprise Zones can qualify for property tax abatements on new investments. Most recently, Enterprise Zones have been critical in attracting new investments in Oregon’s growing solar manufacturing industry, as discussed in this recent article in Sustainable Business Oregon.

Higher Ed Reform Bill Heads to Full Ways and Means Committee

Administrator Account — Fri, 03 Jun 2011 00:00:00 GMT

Yesterday the Education Subcommittee of Ways and Means sent SB 242 to the full Ways and Means Committee with a do-pass recommendation. SB 242, a huge priority for the business community, establishes a Higher Education Coordinating Council, giving OUS significantly more autonomy from the state legislature. Currently, the legislature votes on over two thousand line items in the higher education budget despite the fact that state funding for higher education has declined precipitously and now represents just a small portion of the Oregon University System Budget. SB 242 redefines the Oregon University System as a public university system with greater authority to manage affairs, operations and obligations.

Industrial Lands Bill Heads to Floor

Administrator Account — Fri, 03 Jun 2011 00:00:00 GMT

SB 766 will accomplish two important goals on lands that are already planned and zoned for industrial use. First, the bill will speed up permitting processes for significant industrial projects (project developers will pay for the expedited process). Second, the bill will protect prime industrial lands from conversion to other uses and unnecessary overlays and restrictions, by designating at least 5 and up to 15 “Regionally Significant Industrial Areas.”

The mechanism to accomplish both of these objectives will be an Economic Recovery Review Council that will consider projects for expedited permitting and designate Regionally Significant Industrial Area. The Review Council will include the heads of Business Oregon, ODOT, DLCD, DEQ and DSL.

This bill is supported by business groups, labor groups and the Governor’s office. It’s not a panacea for Oregon’s industrial land problems, as it does not address the need for increased industrial land supply, infrastructure financing, land aggregation, brownfields and other key issues, but it does help Oregon do a much better job putting the industrial lands that it does have to use creating jobs.

We applaud the Governor’s Office, Senator Beyer, the Senate Economic Development Committee, The Transportation and Economic Development Subcommittee of Ways and Means, and the Ways and Means Committee for their leadership in seeing this bill through so far, and strongly encourage members of the House and the Senate to vote in favor of this bill when it reaches the floor of each Chamber.

Achieving Greater Revenue Stability

Administrator Account — Wed, 11 May 2011 00:00:00 GMT

The following statement was released by the state's four largest business associations on Tuesday, May 10.

Associated Oregon Industries, Oregon Business Association, Oregon Business Council and Portland Business Alliance applaud the incredibly hard work by Senators Burdick and Morse to craft a plan for enhanced revenue stability and economic growth in Oregon. Through their efforts, the Senate Revenue Committee has set the framework for a revenue stability package that should be carried forward by the legislative leadership and the governor in the weeks ahead.

As we have long advocated, the state desperately needs a plan to save money in the best of times to temper the loss of revenue during downturns. The wild fluctuation in revenue from capital gains is a major contributing factor to the instability of our income-tax-based system. Reducing capital gains taxes will help stabilize revenues over the long-term. So too will dedicating a portion of the personal and corporate income tax kickers into reserves.

We also believe that cutting capital gains taxes in Oregon, which are the highest in the nation, will encourage economic growth by freeing up capital and sending a positive signal to investors.

As the state’s largest business organizations, we supported Senate Joint Resolution 26 (SJR 26), authored by Senators Burdick and Morse, which called for capital gains reductions, kicker reform, stronger state reserve policies and a disciplined state savings plan. The package approved by the Senate Revenue Committee last week includes some of the primary provisions of SJR 26, and can now serve as the basis for discussions around how to move a revenue stability package forward this session.

Senate Committee Passes Package to Stabilize State Revenues

Administrator Account — Mon, 09 May 2011 00:00:00 GMT

Senate Committee Passes Stability Package

The Senate Committee on Revenue passed a package of bills to stabilize the state’s volatile revenue system and spark investment by lowering Oregon’s nation-leading capital gain taxes. Read more here or check out the Oregonian Editorial on the package here.

Senators Frank Morse and Ginny Burdick led the charge to develop the package. Senator Chris Telfer, who was a co-sponsor of the bills, voted to move the package to the Senate floor. Over the weekend, Senator Telfer expressed serious doubts in the Bend Bulletin about its ability to actually get enough votes in the full legislature.

Governors move Columbia River Crossing project forward

Administrator Account — Mon, 25 Apr 2011 00:00:00 GMT

Governors John Kitzhaber and Christine Gregoire said that the Columbia River Crossing is vital to the success of both Oregon and Washington. We agree.

At a press conference April 25 on Hayden Island, the two Governors announced that the chosen design for a new bridge is the composite deck truss. Gregoire said the composite deck truss is the most affordable option for taxpayers, keeps the project on track - which is important for securing federal funding - and minimizes the project’s environmental impact.

By proceeding with a deck truss bridge plan for the Columbia River Crossing the Governors are ensuring our region has the infrastructure it needs to compete in a global economy.

Kitzhaber outlined some next steps including:

Both Governors will work with federal partners to complete the record of decision by the end of the year.
Both state treasurers will work with bond experts and legislators to conduct an independent financial review of the project. The review will take place later this year.
The project team will immediately engage bridge architects and designers.

We applaud the leadership of the two Governors to move this critical project forward, and for responding to concerns about cost and environmental impact by recommending the deck truss bridge and engaging the state treasurers and legislators in a financial review of the project.

Both Oregon and Washington must continue advancing the project in order to get federal funding. Missing out on federal funding would be ad bad deal for Oregon and Washington taxpayers, sticking them with a greater portion of the expense for this project that is important not only at a local, but also a regional and national level.

Oregon Senate passes health insurance exchange bill

Administrator Account — Mon, 25 Apr 2011 00:00:00 GMT

On April 25 the Oregon Senate passed SB 99-A establishing a health insurance exchange with a 24-5 vote.

An exchange is essentially a new marketplace where individuals or small employers can shop for health insurance using simple, standardized cost and benefit comparisons between plans so that consumers can easily compare health insurance plans. A large coalition of business groups support the approach that SB 99-A takes to develop of a health insurance exchange. The bill has the potential to move Oregon toward our stated goals for the health care system, which address issues of cost, quality and access.

Federal law mandates that each state must design its own insurance exchange to be open for business by 2014. At least initially, these insurance exchanges will be open only to those who work for businesses with 50 or fewer employees as well as individuals looking to buy insurance for themselves. The exchanges are meant to be cooperatives that allow individuals and small businesses to band together for purposes of buying health insurance in order to enjoy the economies of scale and lower unit prices enjoyed by Oregon’s state’s largest companies. Companies with 50-100 employees will be able to participate in the exchange beginning in 2016.

Click here for a copy of the floor letter that several business groups presented Senators in support of the exchange before the crucial vote.

The bill now goes to the House of Representatives for consideration.

“The exchange will empower Oregonians, through better information, to make better decisions.” Said Senator Frank Morse (R-Albany), who carried the bill on the floor of the Senate.

Senator Laurie Monnes Anderson, a nurse and Democrat from East Multnomah County, noted that if Oregon doesn’t develop its own exchange, the federal government will create one for us that won’t take our state’s specific needs into account.

“The exchange is about choice, transparency and accountability,” said Monnes Anderson. "It will help consumers make direct apples to apples comparisons between different health plans.”

Senator Alan Bates (D-Ashland) noted that the transparency of benefits and costs that the exchange provides to consumers is a critical part of bringing down health care costs. Bates warned, however, that the exchange is not a panacea for improving quality and reducing costs. “The Exchange will eliminate most of the cost shift,” said Bates who, estimates that 10-15% of healthcare costs are due to the cost shift that occurs when uninsured people go to the Emergency room to access care.

“But it won’t change the way we deliver care. The high rates from insurance companies are a reflection of what is going on in health care-a lack of preventative care and primary care and overuse of specialized, high tech care.”

Senate Committee Advances Key Industrial Lands Legislation

Administrator Account — Wed, 20 Apr 2011 00:00:00 GMT

It’s a watershed moment in Oregon when 1000 Friends of Oregon, Labor Unions and Business groups all support a piece of legislation. This is the case with SB 766, which speeds up the permitting process for industrial projects that will have a major impact on jobs and incomes in a community, and it protects large tracts of significant industrial land from conversion to other uses or expensive overlays that are not required by state and federal law. The bill sets up an “Economic Recovery Review Council,” administered by the Oregon Business Development Department (“Business Oregon”) that includes the Director of OBDD, DLCD, ODOT, DSL and DEQ. These Directors would work with local jurisdictions and economic developers to select “Projects of Statewide Significance” that would qualify for expedited permitting. The Council would also identify large tracts of zoned industrial land (“Regionally Significant Industrial Areas”) that have characteristics (transportation access, size, etc.) that make them particularly suited for high-wage, export oriented industries and protect them from conversion or expensive and unnecessary overlays. OBP did an excellent story on the bill in their April 19, 2011 news coverage. Check it out here.

Oregon Legislature's swift action commendable

Administrator Account — Thu, 14 Apr 2011 00:00:00 GMT

From the Statesman Journal Editorial Board

The Oregon Legislature did its job. Despite the uncertain economy, lawmakers acted with unusual speed — at least by legislative standards — to approve a state school budget for the next two years.

The Senate had passed the two budget bills Tuesday on 30-0 votes, and the House acted Wednesday. The main, controversial budget passed the House 32-28, and a second bill to use $100 million from an education reserve passed 58-2. Read more at the Statesman Journal

Will this state ever save?

Administrator Account — Mon, 11 Apr 2011 00:00:00 GMT

The Oregon Business Plan calls for a strong state reserve fund. Policymakers have the opportunity to make that happen this year with a series of bills proposed by Senators Frank Morse (R) Albany and Ginny Burdick (D) Portland. The Oregonian Editorial Board made the case this weekend:
http://www.oregonlive.com/opinion/index.ssf/2011/04/will_this_state_ever_save.html

Education Investment Board Will Help Improve Student Outcomes

Administrator Account — Mon, 04 Apr 2011 00:00:00 GMT

On Tuesday, April 5, Governor Kitzhaber introduces SB 909, his proposal to create the Oregon Education Investment Board, at a presentation before the Senate Education and Workforce Development Committee. This is a very important step to strengthen the quality of education in Oregon at all levels.

The Oregon Education Investment Board will be appointed by the Governor, subject to Senate confirmation, and chaired by the Governor to streamline administration and create a seamless and strategic education budget from zero to 20 to meet Oregon’s education responsibilities. The OEIB will:

Develop an outcome-based budget proposing strategic investments across the public education system to ensure integration and coordination, and maximize returns on state investments.
Oversee streamlining and connecting early childhood services to the K-12 system and streamlining and connecting the K-12 system to post-secondary education programs.
Direct three subcommittees to advise the OEIB: the Early Learning Council, the K-12 Coordinating Commission, and the Higher Education Coordinating Commission.
Develop a strategic education plan for Oregon, including a plan to consolidate and assume the functions of the Oregon State Board of Education and the Oregon Board of Higher Education.

Unified Public Education System: The OEIB will report to the Legislature no later than December 15, 2011 with a plan to create a unified public education system from zero to 20, for consideration in the 2012 legislative session. The plan will include:

Aligning Education Governance: The OEIB will develop the plan for consolidating functions of the State Board of Education and the Board of Higher Education into the OEIB by July 1, 2012. In addition, the OEIB will appoint a Chief Education Investment Officer to oversee the Early Childhood Director, a Director of the Department of Education, the Commissioner of Community Colleges and Workforce Development, the Chancellor of the Oregon University System, and the Director of the Oregon Student Assistance Commission by July 1, 2012.
Consolidating Early Childhood Programs: The Early Learning Council will develop the plan for reconfiguring Oregon’s disparate early learning-related programs. The position of Early Childhood Director will be created in the Office of the Governor as lead staff to consolidate existing efforts, funding streams, and administrative structures.
Improving K-12 Education Outcomes: The K-12 Education Coordinating Commission will convene design teams to develop recommendations for: transforming primary and secondary education by building better professional pathways for teachers; eliminating redundant testing; creating teacher/administrator performance assessment tools; moving to proficiency-based learning; aligning standards and assessments; shifting state investments from enrollment-based to performance-based models; expanding opportunities for high school students to earn community college and university credits; supporting effective teaching and administrative leadership; supporting new models of Special Education; increasing use of technology including greater access to virtual schools, online learning, and integration of technology in the classroom; and improving access to proven innovative models and open enrollment.
Coordinating Higher Education Institutions: The Higher Education Coordinating Commission will develop state goals and associated accountability measures in a strategic plan for Oregon’s post-secondary education system, including community colleges and public universities. In addition, the Higher Education Coordinating Commission will develop a consolidated finance model and budget recommendations across the post-secondary education spectrum.

Measuring Results: The OEIB will oversee the creation of an integrated, statewide, child-based data system to track expenditures and return on investment for education-related programs from zero to 20.

Contact members of the Senate Education and Workforce Committee in support of the Oregon Education Investment Board.

Contact your own legislators in support of the Oregon Education Investment Board.

Industrial Lands Bills Support High Wage Jobs

Administrator Account — Mon, 04 Apr 2011 00:00:00 GMT

The 2011 Oregon Business Plan presents ten ideas to help create 25, 000 new jobs per year and lift Oregon’s per capita personal income levels above the national average by 2020. Two of these initiatives are streamlining permitting processes and improving the availability of prime industrial lands. SB 766 and SB 792 both help advance these objectives, and we strongly urge the Senate Business, Transportation and Economic Development Committee to support these bills.

Contact members of the Senate Business, Transportation and Economic Development Committee in support of SB 766 and SB 792.

SB 766 would establish an "Economic Recovery Review Council" that would address two key issues we have identified as critical to making prime industrial land quickly available for high-paying, revenue-generating traded sector jobs:

Speeding up the permitting process for industrial projects of statewide significance
Designating "Regionally Significant Industrial Areas" and protecting them from conversion to other uses or reductions in productive capacity due to local land use actions that are not required by state or federal law

The bill was introduced by the Governor, Senator Lee Beyer, and House Democratic Leader Dave Hunt during a roundtable meeting with manufacturers in February.

The concept was developed through a working group process that began in Representative Brian Clem's House Agriculture and Natural Resources Committee during the interim. The goal was to figure out how we can maximize industrial development inside the UGB. When session began, Senator Lee Beyer took over as leader of the working group.

The working group included DLCD, 1000 Friends of Oregon, business groups, the Governor's office, Business Oregon, the AFL-CIO, the Oregon Building Trades Council, local government representatives and others.

When we set the urban growth boundary, huge efforts are made to calculate the precise number of acres of industrial land that will be necessary to accommodate economic development over the next two decades. Once the boundary has been set, many local governments work hard to zone industrial land and protect it from conversion to other uses or regulations and overlays that effectively limit its capacity. However, other local jurisdictions can and do make individual decisions that effectively reduce the actual number of acres of industrial land within the UGB. There is no feedback loop, no opportunity to reopen the UGB discussion and “make up” for the industrial lands lost to local decisions.

The results are we lose jobs and economic activity because we have too little industrial land to meet demand. These solid, middle-income jobs simply move elsewhere. This leaves us with struggling families here at home and fewer tax dollars for schools, human services, and public safety. These types of decisions contribute to Oregon’s lackluster job and employment performance and hold us back from reaching the goal of more high wage jobs.

We believe that SB 766 would help address this critical issue and ensure that the lands we count on for economic development inside the UGB are really and truly available for job creation.

The other part of the bill-speeding up permitting processes for projects that have a big impact on employment and wages in a community, is also a great idea. Local governments and economic developers can market this expedited process to companies looking to grow or move here. And companies will have the certainty that their investment won't be tied up in years of process and litigation. This new process would only apply to projects that the council deems as "projects of statewide significance." These would be a very limited number of projects that deal with traded sector industries where the project would have a major impact on employment and income in the community. Local governments would work with the new Council to determine which projects should qualify.

Contact members of the Senate Business, Transportation and Economic Development Committee in support of SB 766 and SB 792.

Another bill, SB 792, creates mechanisms for a more coordinated regional approach to industrial lands. In the Portland area, Metro serves the function of coordinating multiple jurisdictions around land use planning (though the process could be better coordinated with economic development, something we hope happens with the creation of the new Regional Partners/Greenlight Greater Portland merger). SB 792 sets up the opportunity for jurisdictions in other parts of the state to partner with their neighbors to develop regional economic development plans and then use those plans to shape region wide decisions about industrial lands, infrastructure investments, and targeted regulatory relief from the state. SB 792 provides a more rational approach to planning for industrial lands-economic development happens in a regional, not a city, context.

Neither of these bills fully addresses the issue of total industrial land supply (and the need for a short term rolling supply of land), infrastructure finance, or Brownfield redevelopment. We hope that either in this session or next session we can work with the committee to address these issues and improve the ability of our state and local jurisdictions to help traded sector companies to locate and expand in Oregon, driving up our average wage and reducing our persistently high unemployment levels.

Contact members of the Senate Business, Transportation and Economic Development Committee in support of SB 766 and SB 792.

Click here to contact your own legislator in support of these bills.

Transforming Oregon's Education Enterprise

Administrator Account — Sat, 26 Mar 2011 00:00:00 GMT

On March 17 and 21 the Education Subcommittee of the Ways and Means Committee discussed the Governor’s proposals for moving Oregon to an education system that cares more about outcomes that seat time and that abandons Oregon’s siloed approach of setting budgets for PreK, K-12, higher education and community colleges for a 0-20 education budget system. It’s a major transformation, but it is necessary for the health of our communities and economy.

Check out the presentation to the Education Subcommittee of Ways and Means by Nancy Golden, Education Policy Advisor to the Governor, Duncan Wyse, Chair of the Governor’s work group on education budgeting, and John Tapogna, Managing Partner of ECONorthwest.

Listen to the hearings

March 17: Investing in learning: Rethinking the way we budget for education. The Education and Workforce Subcommittee of Ways and Means with Nancy Golden, Duncan Wyse and John Tapogna

March 21: Using design teams to improve the value of our 0-20 education investments. The Education and Workforce Subcommittee of Ways and Means with Nancy Golden, Duncan Wyse and Bev Stein.

Also March 15: Moving toward a proficiency-based education system

Enterprise Zone Extension Passes House Unanimously

Administrator Account — Thu, 24 Mar 2011 00:00:00 GMT

Extending the sunset on Oregon's Enterprise Zone Program was a key priority for economic developers and local governments across Oregon. The program allows local governments to provide property tax exemptions for qualifying companies and is seen as a key part of the local economic development toolbox.

The vote was 57-0, with 3 members excused.

Representatives Conger and Komp carried the bill. Representative Matt Wand responded that the program was crucial to landing the Troutdale FedEx facility. Rep. McLane spoke in support of the bill and highlighted the importance of it to the Facebook recruitment in Prineville.

The Oregon Economic Development Association (OEDA), the trade group for economic developers, and the Association of Oregon Counties and business groups have been leading the charge for the extension. The bill now moves on to the Senate.

Senate Considers Capital Gains Reduction

Administrator Account — Thu, 24 Mar 2011 00:00:00 GMT

The Oregon Senate Committee on Finance and Revenue held a hearing on March 23, 2011 on several bills related to capital gains reductions. There are many proposals floating around, from a straight cut in the capital gains tax rate to cuts for individuals who reinvest the gain in Oregon companies, to cuts for qualified Oregon investments.

Oregon’s capital gains tax rate is tied for highest-in-the-nation status with Hawaii. Because of Oregon’s proximity to Washington State, where residents can enjoy the same quality of life amenities but pay no income and capital gains tax, Oregon’s tax policy is sort of a “wealth repellant.” Bills aimed at reducing capital gains taxes are sponsored by legislators in both parties, several of whom testified on behalf of their bills at the Senate hearing. Most legislators on the committee agreed that Oregon should do something to change its status as a place that penalizes wealth, but the key question was asked by Senator Mark Hass: How do we offset the revenue loss that would come from reducing the capital gains tax rate? Reducing capital gains taxes will help to attract and keep more wealthy individuals in Oregon which will contribute greatly to the flow of private capital as well as tax revenue. However, there would be an immediate hit to expected revenues from capital gains, and the state is in a fierce budget crunch.

One option would be to phase in a capital gains reduction to minimize an immediate impact on the General Fund and to reform the state’s kicker law so that some of those unanticipated revenues are placed in a rainy day/reserve fund for use during tough economic times. Overall, the state could break even on the deal and our tax system would be more stable and more supportive of job and income growth.

AOI Leading Issues: High Ed Bill Moves to Ways & Means

Administrator Account — Thu, 17 Mar 2011 00:00:00 GMT

After a year of work by legislative task forces and interested stakeholders, SB 242 cleared its first policy committee last week, and is now in Ways and Means. SB 242 is a combination of the State Board of Higher Education's bill and the work of the Legislative Task Force on Higher Ed. The bill imposes several major changes on the system, which will lead to more autonomy and clearer direction for the universities.

SB 242 creates a Higher Education Coordinating Commission, which redefines the higher education system's structure, absorbs the Oregon Student Assistance Commission, and creates clear lines of management and accountability. The strategy and goal setting functions of the Coordinating Commission are to take into account contributions of each university in the system. The mission of the system is revised to meet Oregon's 40-40-20 goals, and students are expressly included in the tuition setting process. The 40-40-20 goals are an effort to raise the bar for educational attainment by the year 2025 year. The goals are:

40% of Oregonians earning a four-year degree or more (currently 29.2%);
Another 40% earning an associate's degree or post high school certificate (currently 26.9%);
The remaining 20% earning a high school diploma or equivalent (10.9% of Oregonians do not have a high school diploma today), and ready to enter the workforce.

At the heart of SB 242 is the performance compact which the University System must make with the Legislature. In return for increased autonomy and block grant-style funding, the System will agree to meet certain benchmarks, including goals related to how many students enroll each year, how many re-enroll after the first year and how many graduate with four year degrees.

Oregon's business community has struggled to find skilled workers to meet its workforce needs. The increased autonomy and commensurate accountability of the University System to meet certain goals will increase opportunities for businesses to recruit and hire workers from within the state.

AOI Leading Issues

Legislature Takes Up Industrial Land Availability Today

Administrator Account — Wed, 09 Mar 2011 00:00:00 GMT

Today, the Senate Committee on Business, Transportation and Economic Development will hear four bills related to making industrial land quickly available for traded sector companies and the high wage jobs they provide. The bills are SB 766, SB 792, SB 771 and SB 476.

In February, Governor Kitzhaber announced SB 766 at a meeting with manufacturers. SB 766 would protect critical "regionally significant" industrial land and speed up the permitting process for sites of "statewide significance."

Two weeks ago, the House Transportation and Economic Development Committee heard HB 2352, which would require cities to mitigate for the loss of prime industrial lands, similar to how Oregon requires mitigation for the loss of wetlands.

Making more industrial land available for high wage jobs, and speeding up the permitting process for those lands, were two of the ten job creation initiatives included in the 2011 Oregon Business Plan.

Oregon House Committee Advances Connect Oregon IV Legislation

Administrator Account — Wed, 09 Mar 2011 00:00:00 GMT

The Oregon House Committee on Transportation and Economic Development moved HB 2166 (Connect Oregon IV) out of committee today. The bill would provide $40 million in lottery bonds to fund multi-modal transportation projects across Oregon.

The previous Connect Oregon programs have delivered significant benefit to the state’s multi-modal transportation system. Additional investments are both necessary and provide immediate employment benefits and long term economic advantage.

Support for continued investment in the Connect Oregon program was strong in nearly all of the regional meetings conducted by the Business Plan Steering Committee in 2010.

Based on this input, the Business Plan this year recommended moving forward with a significant investment through Connect Oregon recognizing that reaching the level of investment of past biennia may not be possible.

The Governor included $40 million investment in his budget. HB 2166 began as a $100 million allocation but was scaled back to match the Governor's budget during the committee process.

The bill now moves on the Ways and Means Committee, where Co-Chairs Peter Buckley (D-Ashland) and Dennis Richardson (R-Central Point) are in the process of preparing a budget.

Opportunity to Comment on Columbia River Crossing Thursday

Administrator Account — Tue, 08 Mar 2011 00:00:00 GMT

The Oregon Department of Transportation and Washington State Department of Transportation will hold a listening session on their draft bridge type recommendation, a deck truss bridge, before making a final recommendation to the Oregon and Washington governors in mid-March.

The recommendation follows a Bridge Review Panel’s offering of three bridge types for further review. Click here for additional information on their work.

Thursday, March 10, 2011
Noon-2:00 p.m.
Portland Expo Center, Hall D
2060 N Marine Drive, Portland
For transit directions visit www.trimet.org

The public sessions will be hosted by Henry Hewitt of Oregon and Steve Horenstein of Washington, co-chairs of the Project Sponsors Council, Jason Tell, Region 1 manager of the Oregon Department of Transportation and Don Wagner, Columbia River Crossing
project director.

Comments also may be submitted in writing.

Oregon Reconnects to Key Federal Tax Provisions

Administrator Account — Tue, 08 Mar 2011 00:00:00 GMT

This was a bit of a complicated saga, but the Oregonian did a good job describing it. Here is there article:

The Oregonian. Michelle Cole. Tuesday, March 8, 2011

Businesses scored a victory in the Oregon House Monday after an overwhelming majority voted to allow companies to take accelerated tax breaks on new equipment.

The 41-19 vote and nearly two hours of parliamentary maneuvers marked a defining point for the House, which for the first time in history is evenly split between 30 Republicans and 30 Democrats.

The tax breaks will mean that businesses will save about $93 million and state government will have that much less to spend on schools, prisons and social services in the next two years. But supporters argued the breaks are necessary to get Oregon's economy back on track.

Eleven Democrats, including co-Speaker Arnie Roblan, sided with all 30 Republicans on the vote. Afterward, Oregon Gov. John Kitzhaber said it was a "pretty healthy" margin and urged the Senate to take quick action on the bill, which also includes 2010 deductions for parents and college students. Read more.

Oregon House Votes in Favor of Simplifying Permitting for Critical Infrastructure Projects

Administrator Account — Wed, 02 Mar 2011 00:00:00 GMT

The Oregon House today passed HB 2700. This bill expands the definition of “applicant” for removal-fill permits relating to linear facilities like energy transmission, transportation and other critical infrastructure projects. Simplifying the process for permitting linear facilities was a theme heard in Oregon Business Plan meetings with regional business, economic development and elected leaders across the state in 2010. The bill now goes to the Senate for consideration. Click here for a staff measure summary of HB 2700.

Business Leaders Testify on Rainy Day Fund

Administrator Account — Thu, 24 Feb 2011 00:00:00 GMT

Senator Ginny Burdick and Senator Frank Morse have introduced a proposal to dramatically increase the size of Oregon's rainy day fund by requiring a contribution from the General Fund and from tax kickers during boom times.

Business leaders weighed in on the proposals in a hearing before the Senate Finance and Revenue Committee on Monday, February 21st. (To listen to the hearing visit http://www.leg.state.or.us/listn/ and click on the Senate Finance and Revenue Committee hearing for February 21.)

Jay Clemens, President of AOI, Sandi McDonough, President of PBA, Ryan Deckert, President of OBA, and Duncan Wyse, President of OBC all testified on the need for more robust reserves.

Patrick Reiten, President of Pacific Power and Chair of the Oregon Business Plan Steering Committee
also testified. Read the testimony below.

Testimony of Patrick Reiten
February 21, 2011

Chair Burdick, Senator Morse and members of the committee, thank you for the opportunity to testify before you today on what truly is a critical issue for Oregon: the establishment of a more robust state reserve fund.

My name is Pat Reiten, and I serve both as President of Pacific Power and as Chair of the Oregon Business Plan Steering Committee. This topic is important to me in both capacities.

Pacific Power serves or has facilities in 31 of Oregon’s 36 counties. We’ve seen first hand the underlying fundamentals driving reduced state revenues. They are characterized by curtailed plant shifts and businesses gone under. And funding instability of state programs that communities and schools rely on during this difficult period has not helped the situation.

As a company, the downturn has affected us in many ways and required that we take extensive measures to assure we’re operating in a fiscally prudent manner so that we can continue meeting the needs of our customers. We expect no less of our state. Whether government or business our customers and constituents expect us to operate on a sustainable basis so that they can count on us day in and day out.

That theme was repeated in countless meetings across the state as we sought input from business and civic leaders during the creation of this year’s Oregon Business Plan. We held 17 meetings from Klamath Falls to Baker City, and heard in each of them that we need to deal with the volatility of tax revenues, as well as addressing fiscal policies that inhibit investment and job creation.

The Oregon Business Plan has a number of goals for Oregon – they include creating 25,000 new jobs per year and bringing Oregon per capita income above the national average by 2020.

A robust rainy day fund is critical for meeting those goals. Our ability to train a qualified workforce depends upon stable revenues for education.

That’s why later in this hearing you will hear from the Presidents of Oregon’s four largest business associations – all of whom participated in shaping the plan’s emphasis on creating a more sustainable state fiscal environment.

Business advocacy for robust reserves is nothing new. It's been a key initiative of the Oregon Business Plan since its inception in 2002. Business leaders were instrumental in establishing the Education Stability fund in 2003, and successfully advocated for creation of the General Rainy Day Fund in 2007, with the dedication of the Corporate Kicker.

We believe in this, we’ve supported it, and we support making it more robust and available when it is needed the most.

For a reserve fund to be effective, it must be large enough to protect critical services during downturns. It should also be placed in the constitution, with strict requirements about when it can be tapped, in order to provide Oregonians the confidence that it will be there when they need it.

As a matter of fairness and to build the reserve to an adequate size, I believe the approach you have taken – which includes both a general fund contribution and dedication of some portion of corporate and personal income tax kickers --- is a good one.

This is a key piece of the solution -- but not the only piece.

Oregon's per capita income has been declining compared to the rest of the nation for more than a decade, leaving us fewer dollars to pay for critical public services. At the same time, the cost of health related services has skyrocketed, along with our spending on prisons and other programs, partly due to voter approved initiatives.

In addition to building reserves, Oregon must also provide laser focus on improving the conditions for private sector job growth, the best source of revenue for the public sector, and on tackling the major cost drivers in the state budget.

We have outlined 10 job creation ideas in the Oregon Business Plan ranging from making more industrial land available to tax changes that will spark investment.

On reinventing service provision, Governor Kulongoski’s re-set report and Governor Kitzhaber’s budget both offer us a roadmap.

If we follow through with these efforts together, Oregon will be on a path toward fiscal stability and the rainy day fund will have a lasting and meaningful impact for all Oregonians.

None of this is easy – it takes real leadership. I want to thank you --- Senator’s Burdick and Morse -- for laying out a bipartisan plan to solve a key part of the puzzle, and to the committee for taking it up today. On behalf of both the Oregon Business Plan steering committee and Pacific Power, I applaud your efforts.

Oregon Senate Passes Federal Reconnect Legislation

Administrator Account — Thu, 17 Feb 2011 00:00:00 GMT

The Oregon Senate today passed legislation to reconnect Oregon to the federal tax code. This legislation is critical because it provides certainty and predictability to Oregonians and Oregon businesses, and it allows citizens and companies to take full advantage of federal tax incentives aimed at sparking job and income growth. The legislation now moves to the House.

A Tax Deal on The Horizon? From AOI Leading Issues

Administrator Account — Thu, 17 Feb 2011 00:00:00 GMT

A Tax Deal on the Horizon?

A new tax deal being discussed might give Oregon businesses hope for a stable reserve fund, state spending limits, and a cut in the capital gains tax rate. Senators Frank Morse (R-Albany) and Ginny Burdick (D-Portland) have introduced SJR 26, which mandates that the Legislature fund a Rainy Day Fund from two different sources - up to 3% of General Fund revenues and half of the personal kicker.

The measure would also re-direct the corporate kicker into a permanent savings account dedicated to Oregon's higher education system.

There is also consideration of including permanent capital gains tax relief as part of the package.

Most business groups, including AOI, are willing to discuss such a proposal, but not in isolation. AOI and other groups are interested in a comprehensive package that includes long term state budget reform, permanent capital gains tax relief, extension of key tax credits and other items critical to investment and job creation.

AOI will keep you apprised as the issue develops.

Linear Permitting-Can You Dig It? From AOI Leading Issues

Administrator Account — Thu, 17 Feb 2011 00:00:00 GMT

From the AOI Leading Issues:

Linear Permitting - Can You Dig it?

In a sign of the new political environment in Salem, the House Business Committee passed a new linear pipeline project bill out of committee on a stunning 8-0 vote. The legislation – HB 2700 – has been historically contentious, being blocked in each of the past two legislative sessions after bruising battles. The fact that the bill passed unanimously out of a House committee signifies that legislators appear to have a sense of urgency about economic development, investment and job creation.

HB 2700 addresses the issue of linear pipeline projects. The existing definition of "applicant" for purposes of applying for a removal-fill permit currently holds up linear infrastructure projects our economy badly needs. HB 2700 fixes the statute to allow linear projects to move through a rational, defined process. It aligns the Division of State Land's application process for a removal-fill permit with the application standard for other state permits. HB 2700 could put thousands of people back to work by allowing affected infrastructure projects to move forward.

Current law leads to unneeded delays for any project that requires removal-fill permits. These are projects our state needs to move out of this recession and includes:

Roads and highways
Underground utilities
Renewable energy projects
Water and sewer projects
Maintenance of existing roads and utilities

Without HB 2700, developers of these projects could be forced to condemn property simply to apply for a removal-fill permit. In contrast to the application process for other permits, this puts condemnation at the beginning of the process instead of at the end as a last resort.

HB 2700 is a simple fix to remove this barrier and ensure the law works and doesn't unnecessarily prevent Oregonians from going back to work on these types of projects.

AOI testified in favor of the bill as amended.

Here is a short audio that provides a good overview. Mp3 (audio will only be available until February 21, 2011).

If you have any doubts about how this bill affects property rights, listen to this Q&A between Representative Mike Schaufler (D-Happy Valley), Co-Chair of the House Business Committee and others, quizzing the Assistant Director of State Lands. Mp3 (audio will only be available until February 21, 2011).

The bill is expected to pass the House floor and move to the Senate.

Governor Takes Action, Makes Progress on Key Business Plan Issues

Administrator Account — Wed, 16 Feb 2011 00:00:00 GMT

At a meeting with members of the Oregon manufacturing industry Governor Kitzhaber introduced SB 766, which creates new legislation to designate regionally significant industrial areas. Click here to read the draft bill. The Governor also discussed his progress report on several Job Creation Action Items. The Governor’s industrial lands bill and these Action Items also fulfill many of the job creation initiatives of the Oregon Business Plan. They include:

Conducting energy audits on 500 Oregon schools
Ensuring that EPA regulation of biomass reflects the beneficial carbon profile of woody biomass in the Northwest
Including preference for biomass boilers in school retrofit programs
Setting regular meetings with key members of the manufacturing community and focusing on regular communication with the Oregon business clusters
Taking administrative action to integrate Oregon’s On-the-Job Training & Career Readiness Certificate programs to prepare them for scale-up
Funding the Oregon Innovation Council
Revamping the Oregon Growth Account.

Read the Governor's report here.

Senate Continues to Advance Meaningful Education Reforms

Administrator Account — Wed, 16 Feb 2011 00:00:00 GMT

On February 15, the Oregon Senate Education and Workforce Development Committee unanimoulsy passed a reform (SB 254) that allows high school students to get a jump start on college credits and expenses by requiring school districts to provide or ensure access to accelerated college credit. The bill now moves to the Ways and Means Committee for consideration.

Senate Bill 254 is the product of a higher education workgroup that was appointed last summer and led by Hass and Representative Tobias Read (D-Beaverton). In order to allow dollars to be spent where they are needed most in our education system, kids who can move at a faster pace should be allowed to do so, saving both time and money.

The passage of SB 254 out of committee comes on the heels of positive hearings in the Senate around bills to give the Oregon University System more autonomy, and to make the State Superintendant an appointed position within the Governor's office (sponsored by Senator Chris Edwards)-a critical component of Governor Kitzhaber's education reform package.

Last week, the Senate also adopted the 40-40-20 education goals laid out in the Oregon Business Plan and embraced by Governor's Kulongoski and Kitzhaber. Combined with the Governor's recent announcement of an education investment team to better align resources across the pk-20 system, Oregon kids can be happy that policymakers this session are serious about improving the delivery of education in Oregon.

Senator Mark Hass, Chair of the Senate Education and Workforce Development Committee, and Senator Frank Morse, Vice Chair, have provided critical leadership on all of these efforts.

Read the Oregon Business Plan Education Initiative here.

Senate Adopts Strong Education Goals

Administrator Account — Fri, 11 Feb 2011 00:00:00 GMT

From the Senate Majority Office:

February 10, 2011

Higher Education goals earn Senate approval

SB 253 sets achievement benchmarks for Oregon by 2025

SALEM – Legislation that puts in statute Oregon’s goal to raise education levels of adults to meet a “40-40-20” standard by the year 2025 passed with broad bipartisan support this morning in the Senate. Senate Bill 253 revises the mission of higher education in the state to meet the goals of at least 40 percent of Oregonians having a bachelor’s degree or higher, 40 percent with an associate’s degree or post-secondary credential, and 20 percent with a high school diploma or equivalent as their highest level of education.

“This bill sets the stage for higher education reform by codifying the 40-40-20 standard that has long been discussed in Oregon,” said Senator Mark Hass (D-Beaverton), chair of the Senate Committee on Education and Workforce Development. “This is a policy compass that will help direct the Legislature and other policy makers to reinvest and commit to higher education in Oregon.”

SB 253 is the product of a higher education workgroup that was appointed last summer and led by Hass and Representative Tobias Read (D-Beaverton). The “40-40-20” language replaces the current vision for higher education and brings it in line with the state’s current policy priorities.

“This bill replaces 50-year-old language, updating Oregon’s vision for higher education with hard targets,” said Senate Majority Leader Diane Rosenbaum (D-Portland). “By setting these goals for 2025, we lay the groundwork for meeting our growing workforce demands while making sure more Oregonians are prepared for the jobs of the future.”

Research shows that well-educated people find it easier to obtain and keep jobs. American unemployment figures consistently show that the part of the population with high levels of education have lower unemployment.

SB 253 now goes to the House for consideration.

###

Education Investment Board Critical For Meeting Oregon's Education and Workforce Goals

Administrator Account — Fri, 11 Feb 2011 00:00:00 GMT

Oregon students were winners on Friday when Governor Kitzhaber announced plans for a new education investment board that would end Oregon's fragmented approach to education budgeting and delivery. Read more in The Oregonian.

Business Plan Recommendations Make Kitzhaber's Short List

Administrator Account — Tue, 18 Jan 2011 00:00:00 GMT

After meeting with his volunteer transition teams and the Oregon Business Plan Steering Committee, Governor John Kitzhaber announced seven job creation opportunities to begin working on immediately. Watch the video of the press conference, courtesy of the Salem Statesman Journal.

In his speech at the December 13, 2010 Oregon Leadership Summit, then Governor-elect Kitzhaber announced that he would like to meet with the Oregon Business Plan Steering Committee along with key legislative and labor leaders prior to January 15th to discuss implementing elements of the Plan.

The meeting took place January 11, 2011 in the state capitol, immediately after the Governor's volunteer transition team leaders reported to the Governor on their recommendations. The jobs/economy transition teams included manufacturing, energy efficiency, workforce training, biomass, and economic development/business finance tools. The reports from the transition teams can be found here.

The Business Plan Steering Committee emphasized the 2011-2013 Oregon Innovation Plan, transportation/infrastructure priorities, a suite of recommendations to make industrial land available, and a proposal to withdraw water from the Columbia River for agriculture during high flow periods. Review the Business Plan Steering Committee memos to Governor Kitzhaber here.

At a press conference following the two meetings, Governor Kitzhaber outlined four initiatives to act on immediately:

1. Directing the Oregon Department of Energy to begin conducting energy audits on 500 public school buildings, using $200 million in unallocated stimulus dollars. The audits will prepare for a larger effort to retrofit public school buildings next summer.

2. Support Oregon's biomass industry by promoting the use of biomass boilers in school retrofits. Also, lead an effort to ensure that EPA "Tailoring Rule" reflects a beneficial carbon profile for woody biomass.   update: On January 12, the U.S. Environmental Protection Agency said it will defer greenhouse gas permit requirements for biomass energy production for at least three years for reconsideration of the science and rulemaking.

3. Take administrative action to combine on-the-job training program with the National Career Readiness Certificate and ramp them up. According to Governor Kitzhaber, this action could connect 1200 out of work Oregonians with high demand jobs this year. update:  A launch for the National Career Readiness Certificate has been scheduled for January 25, 2010 at 9am @ NW Natural in Portland. Governor Kitzhaber will participate.

4. Implement the 2011-2013 Oregon Innovation Plan

Governor Kitzhaber also announced three additional initiatives to begin examining immediately:

5.  Making industrial land quickly available to support jobs update: Business Oregon, working with its state and local partners, recently certified three large industrial sites as ready for business development and job creation in as few as 180 days. The new sites include 81 acres in the same Prineville industrial park that houses a new Facebook data center; 101 acres on a former superfund site in The Dalles, Oregon; and 40 acres of recently zoned industrial land in Ontario, Oregon.

6. Making expediting energy transmission siting a goal of his energy policy team.

7. Examining the possibility of allowing increased water withdrawals from the Columbia River to support agriculture in eastern Oregon, during high flow summer periods.