Chamber Represents Medford Business Issues
at the State Capitol in Salem


Photo Courtesy of Rob Werfel Photography

Chamber Day at Capitol Reveals Deep Challenges to Oregon’s Budget and Economy

   On a gray day in March, the challenges in the global economy—and the impact they are having in Oregon—were front and center as 30 members of The Chamber of Medford/Jackson County arrived in Salem for the biennial Chamber Day at the Capitol.
   Throughout the day, Oregon lawmakers at times delivered an outlook for the state’s budget that was as gloomy as the weather—with little indication as to when a break in the clouds might arrive.
   The group of southern Oregon business leaders met with more than a dozen lawmakers, including Senate President Peter Courtney (D-Keizer) and House Speaker Dave Hunt (D-Milwaukie) as well as the entire delegation of southern Oregon lawmakers.
   Each of the lawmakers expressed their concern about how to fill increasingly large gaps in the state budget. The first priority was balancing the 2007-2009 budget, which was achieved by the Senate on the very day the Chamber group arrived and passed in the House two days later.
   The bigger challenge—how to fill a budget gap estimated at $1.5 to $3 billion dollars for the 2009-2011 budget—weighed heavy on the lawmakers. Each expressed significant concern at the difficulties the state faces, with the primary differences about how to address them differing among party lines. Members of the Democratic majority generally advocated a combination of substantial increases in revenue and cuts to state services, while members of the Republican minority expressed their concern over the level of state spending and the impact of raising taxes and fees on Oregon’s economy.
   One disappointment for a number of Chamber members was the lack of detail and discussion on how the Legislature plans to create jobs by improving the atmosphere for business and workforce development. While there was some discussion of job creation through spending on transportation and infrastructure, much of the focus seemed to be on stabilizing the state budget and preserving state services rather than specifically spurring economic recovery.
   Transportation funding—a key priority of the Chamber’s for this session and for a number of years—was discussed, primarily by Senators Rick Metsger (D-Welches) and Bruce Starr (R-Hillsboro) as well as Rep. George Gilman (R-Medford). It remained too early in the session to see how likely it was to see a significant transportation package emerge—or how it would be funded and implemented—but efforts are clearly being made to address the issue and there seemed to be significant support for it.
   Chamber members expressed their concerns as well, probing lawmakers on their plans to simulate the economy and asking some pointed questions about some of the state’s actions to date.
   For instance, several members expressed their concern about the Legislature’s last-minute vote to disconnect Oregon’s tax code from the federal tax code. That move, passed by the Democratic majority on a party-line vote just before the federal stimulus package passed the U.S. Congress, deprived Oregon businesses of some elements of the federal package, such as accelerated depreciation. According to members of the Republican minority that opposed the move, Oregon was the only state in the union to take such action. Senate President Courtney and other Democratic leaders defended the move, saying that it kept the state from having to make deeper budget cuts while Chamber members expressed concern that it will mute efforts to stimulate the economy.
   Another topic that came up several times during the day was the January increase in the minimum wage, which came at a difficult economic time for many Chamber-member businesses. Chamber members expressed their concern that the increase is forcing businesses to lay off workers—eliminating jobs that might have been saved without the increase. The idea of freezing the minimum wage or rolling it back to the 2008 levels was met with resistance by Rep. Peter Buckley (D-Ashland), the co-chair of the Ways and Means committee, and other members of the Democratic majority. Rep. Bruce Hanna (R-Roseburg) supports the idea and had attempted to introduce a bill that would only increase the minimum wage if Oregon’s unemployment rate was lower than the national rate; that bill had gained little support among the Democratic majority.
   Although the storm of a global recession clearly hung over the day’s proceedings, it is worthwhile to note that our Chamber had significant success in arranging meetings with so many busy lawmakers—which is a testament to how well-organized the event has become and the growing respect for the organization.
   Times are difficult and the group that went to Salem didn’t return to the Rogue Valley with all the answered it had hoped for—but there was value in the journey and your Chamber will continue to work to make sure the voice of our business community is heard in Salem.

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Knife River