Chamber Represents Medford Business Issues
at the State Capitol in Salem

Pacific Power Presents:  Chamber Day at the Capitol

     Neither snow nor sleet nor slippery roads could derail a determined group of Rogue Valley business leaders who trekked to Salem on February 22, 2007 for Chamber Day at the Capitol.
     The blanket of surprise snowfall made for some added transportation challenges but didn’t stop Chamber members from getting an up-close look at this Legislative session and opportunities to make their voices heard on key business issues.
     The day included a series of meetings with legislators, including members of the Southern Oregon delegation as well as key leaders such as Senate President Peter Courtney (D-Salem), Speaker of the House Jeff Merkley (D-Portland) and Senate Republican Leader Ted Ferrioli (R-John Day). Governor Ted Kulongoski declined the Chamber’s invitation to meet with the group, sighting a scheduling conflict.  
     The establishment of a “rainy day” fund—and the various tax changes being discussed to fund it—loomed large throughout the day.  
     The Chamber voiced its concerns about the proposed methods for creating the rainy day fund, which place the funding burden on businesses through the suspension of the corporate kicker and the increases in the corporate minimum taxes. There were also questions about how the rainy day fund would be accessed. Some members expressed concern that the Legislature may simply use the fund to fuel additional spending rather than only using it when economic times were tough.  
     Senator Alan Bates (D-Ashland) assured the group that rainy day fund would be accessed only when objective economic triggers were reached. At the same time, he acknowledged that creating the fund via changes to the business tax structure was chosen “because it polls well.”
     Most of the speakers emphasized the importance of the rainy day fund and other efforts to curb what House Speaker Merkley dubbed “the most volatile revenue stream in the nation.” That sentiment was echoed by Rep. Sal Equivel (R-Medford), who is pushing for broader tax reform to shift away from income and property tax toward more reliable revenue streams.  
     “We need to discuss revenue stabilization in this state.” he said. “It begs to be talked about and discussed.”  
     Transportation funding—an area of focus for the Chamber—seemed to be drawing little discussion. Efforts were being made to advance the Connect Oregon II project, which provides for important upgrades to rail and port service in hopes of attracting more freight business to Oregon. However, lawmakers said there was little discussion about funding highway projects that most agreed were also critical to economic development. Several said the governor’s expansive budget proposal and the rainy day fund debate were dominating the agenda.  
     Even within his own party, the governor’s budget—and the array of tax changes to increase revenues that would fund it—appeared to be drawing skepticism. Senate President Courtney referred to the governor’s budget as his “$800 million headache”—referring to the gap between what the budget would cost and the state’s current projected revenues.
     “He’s making some leaps with his budgeting,” Rep. Peter Buckley (D-Ashland) said of the governor. Buckley said that early on there were “some very positive signs” for improved communication between two parties.  
     A key question seemed to be how many of the proposed tax increases and changes would prove politically palatable enough to become reality and whether there would be enough energy and time to deal with the key issues the state faces.  
     House Majority Leader Dave Hunt (D-Clackamas County) said that while he supports transportation funding for roads, he was unsure that there was enough “revenue appetite” for a gas tax to fund it given the array of other tax increases being proposed.  
     Improving higher education funding—an area the Chamber sees as critical for workforce development—may face similar challenges as the Democratic leadership focused on supporting the governor’s Healthy Ki ds Initiative rather than increasing funds for universities and community colleges.  
     Bates spent much of his time with the Chamber group discussing his efforts to promote healthcare reform. The Chamber in the past has voiced its opposition to a “single payer” healthcare proposal out of concern that it will further drive up the cost of health benefits to business.  However, the proposals being heard in front of the 2007 Legislative Session proposes the adoption of universal healthcare for Oregonians.  
     Bates proposes the creation of a panel of business representatives, consumers and healthcare providers to oversee benefits. He said that business would have a key place at the table.  
     “We have no chance to get this through without buy-in from the business community,” Bates said.  
     Chamber representatives asked that such representation include small business, which faces different challenges than the larger companies represented by groups like the Oregon Association of Industries.  
     As the largest Chamber organization in the state, the Chamber of Medford/Jackson County is committed to making the voice of small business heard. That goal was advanced once again at Chamber Day at the Capitol as Chamber members got the opportunity to contribute to the conversation and expressed their views on the issues at hand both during the meetings and at an evening reception.  
     The group also benefited from the experience and expertise of three former legislators who attended: Leigh Johnson, Rob Patridge and John Watt , who now serves as a lobbyist for the Chamber. The trio provided valuable insights into the culture of the Capitol and how those traditions impact the way decisions are made.

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