Julie Parrish

An Unexpected Defeat and a Promising Victory

GOP State Rep. Rich Vial, who didn’t have an opponent until July, may have been surprised on election night when he was defeated by political newcomer Courtney Neron. Both have interesting back stories that show political candidates have lives beyond politics.

GOP State Rep. Rich Vial, who didn’t have an opponent until July, may have been surprised on election night when he was defeated by political newcomer Courtney Neron. Both have interesting back stories that show political candidates have lives beyond politics.

First-term State Rep. Rich Vial, R-Scholls, wasn’t on many media ‘watch’ lists in the 2018 election and didn’t have an opponent until as late as July, but he was on the short list of defeated legislative incumbents the day after the election.

First-time candidate Courtney Neron, a mother of two and former high school Spanish and French teacher, rode a blue wave of support for Democratic women candidates to defeat Vial, whose campaign outspent her seven to one. Neron won by a 51 to 48 percent margin and her election contributed to House Democrats exceeding a three-fifths supermajority in the 2019 legislative session. 

Neron was selected to run for the House District 26 seat after Ryan Spiker, who won the Democratic primary in May, withdrew for health reasons in June.

Unlike Rep. Julie Parrish, R-West Linn, who also was unseated in the election, Vial wasn’t a high-profile or partisan political figure in Salem. A lawyer, family farmer and avid ‘birder,” Vial went to Salem, in his words, “to deal with serious and complex problems that affect Oregonians.” 

In his farewell legislative newsletter, Vial wished everyone a happy Veterans Day, thanked constituents for the chance in serve in the legislature and made a plea to end “gridlock and bitterness.”

Former high school Spanish and French teacher Courtney Neron was pressed into service to run as the Democratic candidate opposing a first-term Republican House member. With strong Democratic support based on her activism as a volunteer, Neron rode Oregon’s blue wave to victory and will represent House District 26 in the 2019 Oregon legislature. [Photo Credit: Corey Buchanan/Wilsonville Spokesman]

Former high school Spanish and French teacher Courtney Neron was pressed into service to run as the Democratic candidate opposing a first-term Republican House member. With strong Democratic support based on her activism as a volunteer, Neron rode Oregon’s blue wave to victory and will represent House District 26 in the 2019 Oregon legislature. [Photo Credit: Corey Buchanan/Wilsonville Spokesman]

“Dealing with serious and complex policies that affect Oregonians, including education, health care and criminal justice, as well as land use, housing and transportation, has been both sobering and humbling,” Vial wrote. “It has also been an inspirational and gratifying journey.” 

“Moving forward, it is my hope that our elected officials strive to overcome the tribalism and partisanship that has so deeply divided our communities and our government, both here in Oregon and around the country,” he continued. “One of my personal goals as a legislator has been to rise above the partisan mentality in our government that has led to gridlock and bitterness at a time when we most need cooperation and compassion.”

Vial added, “I continue to hope that we will move beyond this polarization, reject radical ideology and return to civility, genuine dialogue and a focus on doing what is right, rather than what is politically expedient. In doing so, we must recognize that we have so much more in common than we are different.”

Often lost in political campaigns are the human lives beyond candidacies. In his initial legislative newsletter, Vial described his “uniquely large family” that includes six biological children and “dozens” of children they parented. Seven Vietnamese refugees became permanent parts of the Vial household. He has more than 42 grandchildren.

Neron has an interesting back story, too, that includes living in France, Mexico and Germany before settling into a home with her husband and two children in Wilsonville. She attended the University of Oregon, where she met her husband, and earned a graduate degree from Pacific University.  Neron has taught in Yamhill-Carlton, Tualatin and Tigard. She resigned her teaching position to run for the legislature.

One of Neron’s top issues as an Oregon lawmaker will be working for smaller class sizes, which she says are critical to greater student success in classrooms. Her other priorities are “safer communities, logical transportation solutions and necessary environmental protections.”

 

Brown, Democrats Ride Strong Wave of Voter Turnout

Oregon Governor Kate Brown overcame a trail of administrative miscues and an aggressive campaign by challenger Knute Buehler to win re-election to a full four-year term. High voter turnout also swept out three Republican House incumbents and gave Democrats supermajorities in both the House and Senate. [Photo Credit: Steve Dykes, AP]

Oregon Governor Kate Brown overcame a trail of administrative miscues and an aggressive campaign by challenger Knute Buehler to win re-election to a full four-year term. High voter turnout also swept out three Republican House incumbents and gave Democrats supermajorities in both the House and Senate. [Photo Credit: Steve Dykes, AP]

Governor Kate Brown turned back a spirited challenge from Republican Knute Buehler and Democrats earned super-majorities in both the Oregon House and Senate by unseating three sitting House GOP members.

Oregonians rejected ballot measures to end the state’s sanctuary status, ban public funding for abortions and block taxation on groceries. Voters approved a measure to allow local governments to use public money with private developers to build affordable housing. In Washington, voters defeated a carbon tax proposal.

In key local races, Kathryn Harrington won as Washington County Chair and Jo Ann Hardesty glided to victory on the Portland City Commission, becoming the first African-American woman to sit on the commission. Oregon City Mayor Dan Holladay won re-election. A majority of local ballot measures passed. A full list of election results can be found here

The Brown-Buehler contest set campaign spending records in Oregon and may be the spark for campaign finance reform in the 2019 legislative session. Despite running an effective campaign, Buehler’s loss further dented the notion that a moderate Republican could defeat a Democrat in a race for governor in Oregon.

There may not have been a blue wave throughout the nation, but strong turnout by Democratic voters contributed to the defeats of incumbent GOP Reps. Julie Parrish (West Linn), Rich Vial (Sherwood) and Jeff Helfrich (Hood River). House Democrats increased their margin of control to 38-22, up from their 35-25 margin in the previous session. It takes 36 votes to reach a House supermajority required to pass revenue-raising measures.

Democrats managed to flip one seat in the Senate where Jeff Golden prevailed in a seat held last session by GOP Senator Alan DeBoer who didn’t seek re-election. That one seat was enough to give Democrats a Senate supermajority of 18-12.

No changes are anticipated in Democratic leadership. Senate President Peter Courtney easily won re-election to a sixth term and has led the Senate since the 2003 session. Speaker Tina Kotek was elected to the Oregon House in 2006 and became Speaker in the 2013 legislative session.

Brown’s seemingly comfortable 5-point lead over Buehler didn’t necessarily reflect the bruising intensity of the gubernatorial campaign and the closeness of the contest, which drew national attention because the race was unexpectedly tight. The race also attracted gobs of out-of-state money as Brown and Buehler combined to spend a record $30 million.

In her post-election comments, Brown said her priorities in the next legislative session will be campaign finance reform, affordable housing and boosting Oregon’s low high school graduation rate, something Buehler poked at during the campaign. During her campaign, Brown announced a plan to incorporate federal clean air and clean water protections into Oregon law.

Other issues that will demand attention in the upcoming session include how to keep paying for Oregon’s Medicaid program, bolstering community mental health resources and improving child welfare programs.

There will be continuing pressure to address the unfunded liability of the Oregon Public Employees Retirement System and realign the state’s corporate tax system. It is unlikely remnants of the culture wars – immigration, abortion, transgender rights – will rear their heads in the legislature during the next two years.

A well-coordinated campaign apparatus consisting of labor, environment and progressive groups contributed to Brown’s re-election and the defeat of several ballot measures. Congresswoman Nancy Pelosi, expected to return as Speaker of the US House, credited a similar coordinated effort with the discipline and financing to regain control of the House and win governorships across the country, including in Trump country. 

Washington Initiative 1631, dubbed the Green New Deal, lost after large industrial corporations poured $31 million into a campaign to defeat it. If passed, I-1631 would have imposed a new carbon fee to fund conservation projects, renewable energy farms and struggling communities. The measure was endorsed by Governor Jay Inslee who called it “well-balanced, thoughtful policy.”

 

 

Oregon Voters Give Overwhelming Support for Measure 101

Governor Kate Brown told Measure 101 supporters at Tuesday night’s victory party that voter approval of the Medicaid funding plan shows Oregonians support a GSD (Get Stuff Done) agenda.

Governor Kate Brown told Measure 101 supporters at Tuesday night’s victory party that voter approval of the Medicaid funding plan shows Oregonians support a GSD (Get Stuff Done) agenda.

Voters in yesterday’s special election overwhelmingly approved of Measure 101, which leaves in place the Medicaid funding plan approved by the 2017 Oregon legislature. It also lifts a huge fiscal burden off the shoulders of lawmakers in the short 2018 session that begins February 5.

The die was cast when, early in the evening, results indicated nearly 80 percent of Multnomah County voters approved Measure 101. Even though half of Oregon’s 36 counties, many of them rural, voted against Measure 101, they were heavily outvoted with strong support among higher population centers across the state.

In a low-turnout election, the side that wins is usually the side that can motivate voters to cast ballots. The pro-Measure 101 campaign had the broad coalition support, cash to advertise and the foot-power to get out the vote. Measure 101 opponents had none of those things. More than 180 organizations, both large and small, came together in dozens of advocacy events to show support in protecting healthcare coverage funding approved during the 2017 legislative session.

Referenda usually start as political quarrels in legislative sessions, which was the case for Measure 101. Whereas in recent sessions, funding mechanisms paying for Oregon’s Medicaid program had enjoyed bipartisan support, the enhanced tax proposal in 2017 met with partisan objections from some Republican lawmakers.

Led by Rep. Julie Parrish (R-West Linn/Tualatin) and Rep. Cedric Hayden (R-Roseburg), opponents called it unfair and declared it a “sales tax on health care.” Similar messaging was used successfully during last year’s M97 debate and opponents were trying to drum up support from Oregon voters who reacted to that rhetoric.

Supporters of the admittedly complicated Medicaid funding mechanism fought back, saying it was the best bipartisan plan to raise the money necessary to attract federal Medicaid matching dollars. They said opponents raised objections, but offered no politically viable alternative funding plan.

In the end, the $3.6 million campaign drowned out the opposition campaign, which reportedly spent less than $150,000 (a significant chunk of that raised in personal loans from Rep. Hayden). While TV ads provided air cover, the real difference was in the get-out-the-vote drive, aided by union and hospital supporters of Measure 101.

A key takeaway from this election may be the impact on future efforts by minority legislators or interests who seek to alter agreements they oppose. With M101 receiving more than a 6o percent majority, those parties may think twice before attempting similar fights on other legislative packages. Oregon’s referendum process is there for a reason, but legislators already have a mechanism for debating the validity and appropriateness of these type of budget and policy issues. Through the election process, voters can hold their elected leaders accountable for their work.

More than 1 million Oregonians are covered by Medicaid, which represented a fertile target audience to turn out to vote. In a relatively low-turnout election, a motivated group of voters can make the difference.

This was an election decided by urban Oregon voters. Majorities in big counties for Measure 101 ranged from 79 percent in Multnomah County to more than 65 percent in Benton and Lane counties. Jackson County in Southern Oregon went 58 percent for Measure 101. Suburban Washington County favored Measure 101 by more than 60 percent and Clackamas County, which Parrish represents, gave the measure a 58 percent plurality. Marion County went for Measure 101 by a 55 to 45 percent margin.

Oregon’s last special election was in 2010 when the state debated M66/67, which raised personal income tax revenue on the state’s highest-earning individuals and corporations. In that election, 1.28 million Oregonians cast ballots, representing 62.7 percent of eligible voters. Final numbers for M101 are yet to be released, but estimates are significantly lower.

The victory for Measure 101 was declared at 8 pm when the first batch of ballot totals were released.

It’s Taxing Time in Oregon

As Congress works on a federal tax cut measure that could significantly impact Oregon income taxpayers, Oregon voters face a decision in January on how to pay for the state’s Medicaid program. And along the way, Oregonians owe their property taxes, too.

As Congress works on a federal tax cut measure that could significantly impact Oregon income taxpayers, Oregon voters face a decision in January on how to pay for the state’s Medicaid program. And along the way, Oregonians owe their property taxes, too.

It’s official. Oregonians will vote in a special election January 23 to ratify or reject tax proposals approved by the 2017 Oregon legislature to sustain the state’s basic and expanded Medicaid program. From all early appearances, this will be a bare-knuckles fight.

Major parties have already lined up for and against Referendum 101. Health care providers, doctors, organized labor, minority groups and social equity organizations are urging a “yes” vote. Taxpayer groups, the Oregon Family Council, small business representatives and the Oregon Firearms Association oppose the taxes.

The stakes are high. As reported by the Portland Business Journal, if the taxes are rejected by voters, the State of Oregon stands to lose between $840 million and $1.3 billion in state and federal funds, depending how courts interpret the wording of the referendum. That would plunge Oregon lawmakers back into a deep budget hole with few escape ladders in the short 2018 legislative session that begins in February.

Defenders of the taxes on health insurance and hospitals say that is the only viable economic way to maintain Medicaid spending levels and avoid forcing more people out of coverage and into emergency rooms for care. Supporters of the referendum say there are other ways to maintain Medicaid without resorting to what Rep. Julie Parrish, R-West Linn, calls a “sales tax on health care.”

The challenge of voting on tax measures is that subtleties are usually lost in the shuffle. Calling anything in Oregon a “sales tax” is usually a kiss of death. [The City of Ontario, perched on Oregon’s far eastern border, enacted a 1 percent sales tax, which is also being referred to voters next May.] Trying to explain the exigencies of a pair of taxes to attract federal matching funds is a hard message to squeeze onto a bumpersticker.

The decision by legislative Democrats to force a special election in January before the short legislative session has created its own political reverberations. Referendum backers have called it a rigged political scheme. Democrats counter that it makes sense to know the outcome before the February session so lawmakers can pursue other options. That argument could come back to haunt Democrats who privately say they really aren’t any viable options to sustain Medicaid at its current spending levels.

Little wonder Senator Richard Devlin, co-chair of the Joint Ways and Means Committee, accepted a paying job as a gubernatorial appointee to the Northwest Power Council. Senate Republican Leader Ted Ferrioli is probably glad he is the other appointee and can skip the 2018 legislative session. Senate President Peter Courtney may appoint himself to replace Devlin, at least temporarily, in the 2018 session – and any special sessions that are needed to deal with the financial shortfall if the health care taxes are rejected.

The aftermath of Referendum 101 may be the headliner issue in the 2018 session, but the issue sucking all the oxygen out the room remains how to strike a grand bargain that involves spending restraint and additional state general fund tax revenue. Political leaders have by and large punted this bigger-scale issue until the 2019 legislative session, after the 2018 elections. Governor Brown is seeking re-election to a full four-year term and legislative Democrats want to cement super-majorities in both the House and Senate so they can pass tax measures with or without GOP votes.

This stalemate is a political hangover from the 2016 election when pro-business interests overwhelmed union-backed forces and defeated an initiative to raise corporate taxes. While the opportunity seemed to exist to bring the parties to a table to start negotiating some kind of compromise, the opportunity was never seized. Brown shied away from any discussion of cuts to the Public Employees Retirement System, which gave little incentive to business groups to sit down to discuss raising their taxes.

The upshot is that Oregonians can expect to hear a lot about taxes between now and Christmas. The GOP-led federal tax cut appears on a path to be considered by then, at the behest of Trump who refers to the tax cuts as a Christmas present to Americans. The uncertainty of whether the tax cuts will be real and durable for middle-class taxpayers could overlap into their voting views on Referendum 101. Confusion and taxes is never a good mixture.

And for good measure, Oregon property owners must pony up their 2017 property taxes next week and make end-of-year decisions that can impact their state and federal income taxes.

State, Federal Health Care Debates Remain in Flux

Oregon legislative leaders Tina Kotek and Peter Courtney want voters to know the fiscal risks of rejecting a tax package to sustain funding for the Oregon Health Plan, as federal lawmakers begin hearings on ways to stabilize coverage and premiums for the individual health insurance market under the Affordable Care Act.

Oregon legislative leaders Tina Kotek and Peter Courtney want voters to know the fiscal risks of rejecting a tax package to sustain funding for the Oregon Health Plan, as federal lawmakers begin hearings on ways to stabilize coverage and premiums for the individual health insurance market under the Affordable Care Act.

On the same day Oregon lawmakers prepared for a January vote on funding to maintain the Oregon Health Plan, a US Senate committee held the first hearing on how to stabilize the individual insurance markets under the Affordable Care Act. Both reflect the unsettled and unsettling condition of key parts of America’s health care system.

Legislators worked Tuesday on a ballot title for a referral sought by GOP Rep. Julie Parrish that could result in voter rejection of a tax package to sustain current spending levels for the Oregon Health Plan, the state’s Medicaid program.  If the tax package is voted down, state officials could face a budget hole of between $300-$500 million to plug during the short 2018 legislative session that starts next February.

An opinion from Legislative Counsel added more potential confusion to the issue that voters could be asked to decide in a January special election. The opinion says the way the referral is written would only eliminate the additional 0.7 percent assessment on hospitals from October 6, 2017 until January 1, 2018. The referral wouldn’t have any effect on the previously approved hospital assessment.

The draft ballot title clearly attempts to raise the specter of the impact of rejecting the tax package on low-income families, children and insurance premiums.

PROVIDES FUNDS CURRENTLY BUDGETED TO PAY FOR HEALTH CARE FOR LOW-INCOME INDIVIDUALS AND FAMILIES AND TO STABILIZE HEALTH INSURANCE PREMIUMS, USING TEMPORARY ASSESSMENTS ON INSURANCE COMPANIES, SOME HOSPITALS, AND OTHER PROVIDERS OF HEALTH CARE COVERAGE.

On Capitol Hill, GOP Senator Lamar Alexander kicked off the first hearing of any kind this year on the Affordable Care Act by declaring, "To get a result, Democrats will have to agree to something – more flexibility for states – that some are reluctant to support. And Republicans will have to agree to something – additional funding through the Affordable Care Act – that some are reluctant to support." Alexander said his priority is on lowering health insurance premiums.

On the day of the hearing, Washington Senator Patty Murray said in an op-ed in The Washington Post that Democrats are willing to work on a bipartisan approach to stabilizing insurance markets. In the op-ed, Murray raised the issue of creating a “public option” to ensure competition to hold down premiums in the individual health insurance market. Capitol Hill observers said that is an unlikely outcome in what already is viewed as a chancy legislative venture in the wake of the Senate’s failed attempts to repeal and replace Obamacare. Conservative groups have already launched a digital ad campaign slamming Alexander’s effort.

A more likely provision may be some kind of reinsurance program to broaden the base to pay for high-cost individuals, which tend to spike overall premium rates.

Alexander expressed hope his committee can produce compromise legislation by the end of September, which is a critical deadline for insurance companies that have to submit plans and prices for individual health insurance markets around the country. Skeptics doubt whether Alexander’s target date is realistic, especially in light of other looming congressional debates to raise the debt limit, approve a disaster relief funding package and approve some kind of FY 2018 appropriation.

For now, the Trump administration is continuing, with reluctance, to make subsidy payments to medical providers as called for by the Affordable Care Act. Insurers have warned that cutting off those subsidies, which essentially compensate for high-cost care for a few individuals, could lead to as much as a 20 percent increase in premiums, effectively forcing some people to drop their policies.

There also isn’t any clear indication how much or perhaps in what form Congress will authorize for Medicaid reimbursement to states in FY 2018. The Obamacare repeal and replacement bill that narrowly cleared the House earlier this year would have slashed $800 billion from federal Medicaid reimbursements over the next 10 years.

More Fuel for Oregon Revenue Debate

Oregon public schools received a substantial boost in revenue this year, but not enough to avoid teacher cutbacks and larger class sizes in the shadow of rising pension payments, which will add more fuel to the already raging debate over raising corporate taxes and changing the Public Employees Retirement System.

Oregon public schools received a substantial boost in revenue this year, but not enough to avoid teacher cutbacks and larger class sizes in the shadow of rising pension payments, which will add more fuel to the already raging debate over raising corporate taxes and changing the Public Employees Retirement System.

Oregon public schools are receiving more state funding, but a significant chunk of the increase is going to pay for teacher pensions, not teachers in classrooms. The situation will add fuel to both sides of the debate over the need for additional tax revenue.

School advocates will say it is proof more revenue is needed to cover the costs of public education. Business leaders will say it underscores the need to make changes in the Public Employees Retirement System.

The Oregonians’ Gordon Friedman filed a story indicating Oregon’s public schools will receive $400 million more than in previous years. But the bump is not enough, school officials contend, to avoid teacher layoffs, larger class sizes and program cutbacks.

Friedman provides specific examples:

  • Portland Public Schools will receive a $29 million funding boost, but $18 million of that increase will go for pensions and higher salaries. The district will employ 55 fewer teachers in its 77 schools this fall.
  • Salem-Keizer School District will get $31 million more, but its pension costs will rise by $10 million, resulting in 67 teaching positions being axed.
  • Beaverton School District will see a $21 million increase, but its pension cost will balloon by $14 million. Its budget-balancing challenge is aggravated by the opening of a new high schools. The District has elected to trim library staff, professional development and classroom supplies.

School officials expect more of the same in the next school year, even though the legislatively approved $8.2 billion K-12 budget a represents an 11 percent increase over the previous biennium. Legislative fiscal analysts predicted the $8.2 billion budget, which included an estimate of pension costs rising by 45 percent, should have been adequate. School officials disagreed and said $8.4 billion was needed to maintain the status quo in their local district budgets.

Specific numbers aside, the specter of a larger budget for K-12 schools and continuing teacher and programmatic cutbacks is the stuff that will further animate the debate over corporate taxation and PERS spending reductions. You get the flavor of the debate by how school advocates refer to corporate tax reform and business groups demand PERS reform.

There isn’t going to be any respite from having that debate continue before the Oregon legislature convenes for a short session early next year. There are two huge drivers of the conversation:

  • The Oregon Education Association is pushing an initiative to raise corporate taxation – a so-called Measure 97 light. The teacher union was forced to withdraw its initial ballot measure because of a constitutional question, but it has pledged to refile a corrected version. If it qualifies for the ballot, Oregon voters would decide its fate in the November 2018 general election.
  • Rep. Julie Parrish, R-West Linn, is pursuing a referral of the legislatively approved Medicaid funding package, which she calls a sales tax on health care. Because of controversial legislation approved in the 2017 session, voters would decide on whether to toss the tax package in a special election next January, just before lawmakers return to Salem.

The OEA-backed initiative will cause combatants to return to their political trenches and prepare for another expensive campaign. The prospect of a Medicaid tax referral has already splintered the business community, especially in the health care sector.

There have been calls for a legislative special session this fall to work out a compromise. Some school officials say the school funding issue is serious enough to act now, not wait until 2019. Newly declared GOP gubernatorial candidate Knute Buehler urged a special session to ”improve” the state’s Medicaid program, most likely in the form of ensuring that ineligible enrollees are removed.

The stakes are obviously high. If voters strike down the Medicaid tax package, lawmakers will once again face a massive budget hole. The net effect would be to turn the K-12 school budget-corporate tax debate into a three-way slugfest.

Hope isn’t high for a grand bargain to resolve this festering issue. The operating assumption of the moment is that a work group needs to be formed, statewide listening sessions held and compromises considered on corporate tax changes – a model that worked to produce a major transportation funding package that won legislative approval and won’t face a referral, as previous measures have. This process wouldn’t fully unfold until the 2019 legislative session – and after the 2018 general election and potentially a vote on the OEA tax initiative.

Without leaderships and a clear focus on an alternative, Oregonians can expect a lot of shoving and pushing – and apparently more teacher layoffs.

Threatened Medicaid Referral Creates Capitol Shivers

 A serious threat by Rep. Julie Parrish, R-West Linn, to refer legislation to raise funds to sustain Oregon’s Medicaid program from an increase a hospital tax and a new tax on health insurers has sent shivers down the spines of legislative leaders and created shudders for other interest groups that could be targets to patch Oregon’s budget hole.

 A serious threat by Rep. Julie Parrish, R-West Linn, to refer legislation to raise funds to sustain Oregon’s Medicaid program from an increase a hospital tax and a new tax on health insurers has sent shivers down the spines of legislative leaders and created shudders for other interest groups that could be targets to patch Oregon’s budget hole.

A big part of Oregon’s budget fix approved this session could spring a leak if Rep. Julie Parrish, R-West Linn, successfully refers the legislation that increases a hospital provider tax and adds a tax on insurers to sustain funding for Oregon’s Medicaid program.

Parrish followed through on her threat by filing a referendum petition with the Oregon secretary of state this week. She will have 90 days to gather less than 59,000 signatures of registered Oregon voters to refer the Medicaid funding package to the ballot. Parrish reportedly has monied backing to support the referral drive.

The threat by Parrish of a referral of Medicaid legislation has created what could fairly be called a panic in the state Capitol because it could undo the only major step lawmakers took this session to address a projected $1.4 billion budget deficit. The uncertainty caused by a referral would add to anxiety caused by congressional consideration of an Obamacare replacement that would reduce Medicaid funding sharply over the next decade.

Parrish says her goal is not to gut Medicaid, but “hold it accountable.” She wants to apply voter pressure to ensure Oregonians receiving Medicaid benefits are actually eligible and to address state mismanagement such as expensive IT failures. Parrish calls the hospital provider and insurer taxes amount to a sales tax on health care services and private health insurance, which are simply passed along to consumers. Coordinated Care Organizations also would face a tax in this legislation. A broad coalition of health care providers, insurers and CCOs supported the revenue-raising to maintain Oregon’s expanded Medicaid coverage. Parrish claims there were three other bills introduced this session that would have reduced the Medicaid funding gap without taxing hospitals and health insurers.

If a possible referral isn’t contentious enough, Democratic legislative leaders may have sparked an even wider partisan wildfire over a bill that would schedule a referral vote next January 23 and allow lawmakers to write the referral ballot title, which is sometimes all voters ever read about a measure.

Democrats defended the earlier vote as a way to prevent a deeper budget hole. If Oregonians rejected the Medicaid tax measure in a January special election, then lawmakers would have time to find an alternative during the 2018 short legislative session. Republicans charged Democrats with ambushing Oregon’s referral process and trying to suppress voting by scheduling a special election on a date with an anticipated lower voter turnout.

Parrish isn’t alone in threatening a referral. In fact, she finds herself a strange bedfellow with an entity she rarely agrees with – SEIU 503.  The largest union in the state made headlines earlier in session when it held a rally on the steps of the Capitol and threatened to refer any transportation package bill unless lawmakers secured new revenue for schools and other vital services. 

She and some Democrats also have threatened to refer the $5.2 billion transportation funding package. The threat from Democrats differs from Parrish. They want to hold the transportation bill, which has fairly broad bipartisan support, hostage to try to force legislative action this session on a corporate tax measure. After the transportation package passed out of committee Saturday evening, 16 House Democrats sent a letter to Speaker Tina Kotek urging her to “re-focus on the all-important task of identifying addition revenue.”  The implied threat hanging over the letter doesn’t go as far as SEIU’s saber-rattling, but it does raise concerns among stakeholders as we enter the final days of session.

Democratic leaders, including Governor Brown, threw in the towel on a corporate tax bill a week or so ago after it became clear there wasn’t consensus on a replacement for the current corporate income tax – and not enough votes to pass anything in the Senate. Nothing would be done to change the corporate tax, they said, until the 2019 legislative session.

The Oregon legislature is expected to wrap up remaining budgets and head home before its constitutionally mandated July 10 adjournment deadline, unlike at least four other states – Washington, Illinois, Maine New Jersey. It took three special sessions before Washington lawmakers reached a budget deal. New Jersey’s budget stalemate resulted in a partial government shutdown, but a solution was suddenly found after social media exploded with pictures of Governor Chris Christie lounging on an empty beach that was closed to the public because of the shutdown. Illinois has been in budget gridlock for three consecutive years.

Referral of the Medicaid funding package could bring Oregon back to the brink of a deep budget hole and put more pressure on legislative leaders to look at other tax hikes. Some education advocates are already urging lawmakers to resume work on a corporate tax measure earlier than the 2019 session, and perhaps as early as a special session later this year. If the Medicaid referral is successful, pressure would grow to look at cuts, not just in Medicaid, but also in the Public Employees Retirement Fund.

As noted in a previous Oregon Insider, adjournment can’t come soon enough, but even when it does it will seem more like an intermission than the end of the play. The animating issues of the 2017 session – the budget hole, Medicaid spending, corporate taxation and transportation funding – may still be anything but resolved.