Measure 101

Short 2018 Session May Have Less Drama

No single issue is likely to dominate the Oregon 2018 legislative session that begins Monday, but lawmakers will still be busy with issues ranging from reconnecting to the federal tax code to gun restrictions. And there will be some political jockeying in advance of the Oregon primary in May and general election this fall.

No single issue is likely to dominate the Oregon 2018 legislative session that begins Monday, but lawmakers will still be busy with issues ranging from reconnecting to the federal tax code to gun restrictions. And there will be some political jockeying in advance of the Oregon primary in May and general election this fall.

Voter approval of Measure 101 and Senate Democratic cold water on cap-and-invest legislation may remove much of the anticipated drama at the 2018 Oregon legislative session, which convenes Monday. Of course, any legislative session during an election year can have outsized political tensions.

Without a focus on patching a big budget hole or trying to thread the needle for a compromise on cap-and-invest provisions, there isn’t an apparent single issue that will dominate the session with an adjournment deadline of March 11.

One of the sleeper bills likely to draw attention is legislation to connect Oregon’s personal and corporate income tax system with federal tax changes enacted by Congress late last year. Oregon lawmakers have tended to favor connecting Oregon’s tax provisions with their federal counterparts for the ease of taxpayer filing. But there may be other considerations this time around, including how the new federal limitation on state and local tax deductions will affect Oregon taxpayers.

The Oregon business community wants to see substantial progress on reducing the unfunded liability of the Public Employees Retirement System, but that appears unlikely in the short 2018 session and during an election year. Governor Brown will ask lawmakers to create an Employer Incentive Fund to provide matching money for public employers that accelerate their contributions to PERS. The pressure to act also was relieved by the Oregon State Treasury’s announcement that the PERS fund posted a 15.3 percent gain in 2017, which is good news, but not enough to stem rising costs.

Other priorities for Brown in the short session include a measure to encourage construction industry startups in rural areas that can access low-rate loans from Business Oregon to build affordable housing. Licensing requirements also would be relaxed and grants would be available to defray the costs of apprentices.

Brown wants all licensed opioid prescribers in Oregon to register with a Prescription Drug Monitoring Program to generate information about opioid use and identify illegal prescribers. Her proposal also would provide for mentors in emergency departments to counsel people who have overdosed.

Another Brown priority is to create a reverse auction for state procurement as a way to squeeze more value and less cost for state expenditures. Her concept is to generate more competition among state vendors who benefit from the $8 billion Brown says state agencies spend every biennium. 

The governor is seeking a bill to prohibit people convicted of domestic violence or stalking from purchasing firearms. Oregon lawmakers approved legislation last year to empower courts to order the confiscation of guns owned by people deemed at risk of suicide or hurting others.

Passage of Measure 101, which secures funding for Oregon’s Medicaid program through this biennium, prompted Rep. Mitch Greenlick, D-Portland, to propose a constitutional amendment that declares health care is a right of every Oregonian. He has attracted 40 cosponsors for his referral that would appear on November 2018 general election ballot.

Likely GOP gubernatorial frontrunner Knute Buehler, R-Bend, is pushing legislation to force coordinated care organizations to repay up to $74 million in Medicaid overpayments and address transparency and management issues by the Oregon Health Authority. Buehler has called for bipartisan action, but his measure will invariably have a vapor trail of politics following it.

Some familiar legislative faces will be missing. Long-time Senate Minority Leader Ted Ferrioli and Senator Richard Devlin, the Democrat’s budget guru, have moved on to appointed posts on the Northwest Power Council. Cliff Bentz, who has served in the Oregon House since the 2009 session, assumed Ferrioli’s seat and Senator Jackie Winters was chosen to succeed Ferrioli as minority leader. Rob Wagner, a Lake Oswego School Board member, was appointed to fill Devlin’s seat.

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.

Carbon Emission Bill on Center Stage in February Session

Oregon lawmakers will debate a cap-and-invest program at the short legislative session beginning in February that could generate as much as $700 million in new annual revenue to invest in projects statewide to reduce carbon emissions, but opponents warn also could drive up fuel prices, hurt family farmers and disproportionately harm rural residents.

Oregon lawmakers will debate a cap-and-invest program at the short legislative session beginning in February that could generate as much as $700 million in new annual revenue to invest in projects statewide to reduce carbon emissions, but opponents warn also could drive up fuel prices, hurt family farmers and disproportionately harm rural residents.

As Oregonians ponder how to vote on Measure 101 by January 23, Oregon lawmakers are sharpening their arguments for and against legislation in the 2018 session to cap industrial carbon emissions.

Defeat of Measure 101, which contains $320 million in fees on hospitals and health insurers to sustain Oregon’s Medicaid program, could throw a wrench into the short, six-week legislative session that starts in February. However, regardless of the Measure 101 vote, what supporters call the Clean Energy Jobs Act is likely to be a center-stage issue.

The Oregon proposal, developed through a work group and championed by Senator Michael Dembrow of Portland and Ken Helm of Beaverton, both Democrats, is modeled after an existing cap-and-invest program in California.

If enacted into law here, Oregon businesses would be given a limit for their carbon emissions. The estimated 100 Oregon businesses that are likely to exceed the proposed limit would be required to buy market-priced allowances. The allowances would be sold at a North American auction and the revenue generated would be invested in Oregon projects intended to slow climate change.

Backers of the idea say it could generate as much as $700 million annually, providing funding for electric vehicles, residential solar panels, improved bike lanes and utility bill assistance for low-income and elderly Oregonians.

Leading Oregon business and farm groups aren’t so enthusiastic. They warn cap-and-invest will result in higher energy bills, discourage business growth in Oregon, hurt family farm owners and disproportionately harm rural residents. Mark Johnson, a former GOP legislator who now heads Oregon Business & Industry, worries there isn’t enough time in a short session to negotiate an acceptable compromise on such a complex issue.

Similar legislation has been debated in Oregon in previous sessions. This time there seems to be stronger, more unified political support, including from Governor Brown, that might push it through in the 2018 short session in which Democrats control both the House and Senate.

The final version of the legislation is still in flux and isn’t scheduled for public release until next week. Dembrow and Helm are working on ways to mitigate concerns, such as earmarking 20 percent of cap-and-invest proceeds for projects in rural Oregon.

There are strong coalitions working both for and against the proposed legislation. Renew Oregon touts the legislation’s ability to drive clean energy job growth in Oregon. The legislation is also supported by the Oregon Business Alliance for Climate. The campaign against the legislation is organized under the banner of Oregonians for Balanced Climate Policy, which has been around since at least the 2009 session opposing what was then called the Green Jobs Act.