Adjournment May Seem Like Only an Intermission

The Oregon legislature is on track to adjourn by July 10, but adjournment this time around may seem more like an intermission as corporation taxation, PERS, Medicaid, education funding and political leadership remain as hot griddle issues that won’t wait until the next election or next legislative session.

The Oregon legislature is on track to adjourn by July 10, but adjournment this time around may seem more like an intermission as corporation taxation, PERS, Medicaid, education funding and political leadership remain as hot griddle issues that won’t wait until the next election or next legislative session.

Oregon lawmakers appear on the road to adjournment by July 10, but with an air that the journey is just beginning, not ending on big issues such as taxes, transportation and long-term cost containment.
 
Last week, Governor Brown, Senate President Peter Courtney and House Speaker Tina Kotek hoisted the white flag on an attempt this session to revise Oregon’s corporation taxation and raise additional revenue. They said corporate tax changes would have to wait until the 2019 session. However, public employee unions want to move up the schedule. They are already airing TV ads saying “big corporations” should pay their fair share of the tax burden in Oregon, which appears to be a bombing run to soften the ground for another revenue-raising ballot measure.
 
The Senate and House approved an $8.2 billion K-12 funding bill, which Republicans and Democrats said was not enough, even though it represents 11 percent increase over the current biennium. Republicans blamed Democrats for trying to ram through a tax hike without cost containment. Democrats blamed Republicans for refusing to budge on revenue, even though it meant serious budget cuts. Education advocates are furious and may push state leaders to do something before the 2018 general election or the 2019 legislative session.
 
The Oregonian published an editorial lambasting the lack of leadership in Salem, pointing a particular finger at Brown, who faces another re-election battle next year, with GOP candidates already salivating at the chance to unseat her. More than one Capitol wag suggested that Beaverton Democratic Senator Mark Hass showed more leadership on a corporate tax compromise and a more substantial cost containment proposal that included the Public Employees Retirement System. Hass and others have pointed to a growing fiscal crisis in Illinois that is faltering under the weight of huge underfunding of its public employee retirement fund.
 
There is still time for lawmakers to act on a transportation funding package, which was a bipartisan priority before the session started. However, its fate continued to hang in the balance, despite an announcement by Brown that a deal has been struck. Key players are still working hard to tie down final details, which could surface today.
 
But the major hiccup is an 11th-hour threat by Rep. Julie Parrish, R-West Linn, to refer the transportation package and Medicaid tax measure to voters. Democratic leaders scrambled to write legislative language in Senate Bill 229 that would allow legislators to write ballot titles for the referrals and schedule them for a vote at a special election January 23.
 
While the legislature cleared a tax increase on hospitals and a new tax on health insurers to patch the state’s Medicaid budget hole for the next two years, stomachs are still churning while Congress considers health insurance legislation that, in versions so far, make drastic cuts in federal support for the program vital to low-income Oregonians, children and the elderly housed in nursing homes. Whatever Congress does, it probably won’t have much of an effect on the 2017-2019 biennium, but its shadow will cast a pall over the program moving forward into subsequent biennia. Voter approval of a referral of the tax increases would turn the shadow into a serious rain cloud.
 
In fact, the issue of health care could be at the center of policy and political debates for the foreseeable future. Congressional Republicans seem hell-bent on reining in a fast-growing entitlement program and lowering insurance premiums, even at the expense of reducing what’s covered in health insurance policies. Democrats are defending the Affordable Care Act, while conceding it could use some repairs to remain viable. Meanwhile. Voices such as Providence St. Joseph Health CEO Rod Hochman deplore GOP legislation that slashes federal support for Medicaid when states have little financial ability to pick up the slack. Hochman said he and others in the health care industry hoped federal legislation would address some of the issues making health care delivery unaffordable for many Americans, including households with health insurance.
 
The interim – the time between legislative adjournment and the next session – is usually fairly quiet, with a few hearings, some work groups and early stirring for ballot measures. The looming interim may be anything but quiet and may make it seem like adjournment was just an intermission before the final acts.