Today, May 15th, the Oregon Office of Economic Analysis released an updated economic forecast for the state. As expected, the outlook for the state's economy was not encouraging. Following national trends, Oregon's economy continues to decline. State employment and revenue is projected to continue their decline into the near future. The current 2007-2009 budget faces a deficit of just over $600 million. This is in addition to the $800 million shortfall to the current budget, earlier this year. Additionally, the 2009-2011 budget is facing a deficit of $4.2 billion.

During the public hearing for the revenue forecast, a representative from the Office of Economic Analysis made the point that many of our budgeting decisions during a recession concern who will bear the costs of recovery. If the state chooses to raise revenue and spend more on social services, then the cost of recovery will be shifted to higher income individuals. However, if the state chooses to cut spending in response to lower revenue, then the cost of recovery will be placed upon middle and lower income individuals. I strongly believe that those who are in a better position to pay should take on a greater portion of the costs. I will continue to work this session to find new revenue and preserve funding essential services such as public schools and healthcare. 

On Monday, May 11th, the Senate voted in favor of Senate Bill 515, which strengthens the "lemon" law against sale of defective cars. Under SB 515, consumers can notify the car's manufacture of the defective car up to 24 months or 24,000 miles after purchase. This doubles the current limits of one year or 12,000 miles. I was proud to co-sponsor this bill and I hope it will soon be passed by the House and signed into law by the Governor. 
 

 
Also on Monday, the House Revenue Committee heard public testimony on House Bill 3465, which I am chief co-sponsor with Representative Michael Dembrow. This bill will create a reporting system for bottle deposit money that was never collected by the consumer. Currently, unredeemed deposits go to the beverage distributors. However, there is no reporting system to make sure that this money is being properly spent. HB 3465 will create a system for reporting unredeemed deposit money. Additionally, the unredeemed deposit money will go to the General Fund. Currently, Oregon is one of only five states that allow distributors to keep one-hundred percent of the excess funds. It is estimated that these unredeemed deposits total $40 to $60 million a biennium. Given the current budget difficulties, these funds are desperately needed for essential public services.

I am pictured with Rep. Dembrow speaking at the May 7th press conference to announce House Bill 3465 (photo by Logan Gilles, used with permission). 
 

If you support House Bill 3465, please contact Speaker of the House Dave Hunt and Representative Phil Barnhart, chair of the House Revenue Committee.
 
You can email Speaker Hunt here and email Rep. Barnhart here. 
 

On Monday, May 11th, the Joint Ways and Means Subcommittee on Education held a public hearing for Senate Bill 695, which expands the school breakfast program. As you may remember from earlier newsletters, I introduced this bill in connection with the Hunger Relief Task Force. SB 695 will make reduced price school breakfasts free for qualified children. I hope this bill soon moves to the full Ways and Means Committee.