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Dear Friends,
The House and Senate Democrat leadership passed over $1,000,000.00 (one billion dollars) of new taxes this week, although the Republicans had identified a way (Back to Basics Budget) to balance our budget and fund K-12, public safety, health services, seniors and special need programs at or above the 2007-2009 levels. HB 2649, which increases taxes on individuals and individuals who own small businesses, will make Oregon (who is “number 2” in the nation in unemployment) “number 1” in the nation for state income taxes.” The advocates for HB 3405 reported this corporate tax was needed to help get us out of the economic recession. However, the tax increases do not sunset or terminate when we improve our economy. Due to the lack of a sunset, HB 3405 and HB 2649 stalled for one day in the Senate due to a NO vote by Senator Mark Hass (D-Lake Oswego). He was then promised that a separate bill will put the additional taxes in the rainy day fund after 2014. This will not sunset the tax on individuals and small businesses which I believe adversely affects our economic recovery. HB 2116 increases the Hospital provider tax and creates 1% tax on insurance premiums. I voted NO on all three of these bills. I remain convinced that we can not tax and borrow our way out of this recession. Also, I fear these bills will add to the unemployment numbers. As a representative of a district with one of
the highest unadjusted unemployment rates in Oregon, I still believe we need to focus on bills that create jobs.
Sincerely,
Gene Whisnant
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Governor’s last minute Jobs Bill
Last week, I mentioned HB 2398, the Emergency Jobs program proposed by the Governor. I do not support taking money out of the UI Trust fund for these job’s wages. This week, the Oregon Employment Department Advisory Council issued a report of their opposition to the Governor’s Emergency Jobs program because it raids the UI Trust Fund, without a high degree of support from both labor and management, which is bad business. Legislative Counsel, who are the lawyers for the Legislature, have issued an opinion stating that this plan could force Oregon employers to fall into noncompliance with federal unemployment insurance law. Senate Republican Leader, Ted Ferrioli said, “This is a hidden tax of $90 million on Oregon businesses that are already facing
more than $1 billion in increased taxes this session. This legislature is placing a monstrous burden on the backs of Oregon businesses, the very people we need to help us survive this recession.” The proposal will provide minimum wage jobs for a limited period. Late this week, the Governor’s office stopped pushing this bill and is looking at another program in the last days of the session.
Editorial comment: Where was the Governor in January when we needed to find ways to put people to work?
DHS Budget
You may have received a mailer accusing me of supporting a budget that includes funds for abortions. Let me say unequivocally that I am pro-life; “Oregon Right to Life” has given me their endorsement for every election because of my belief that life begins at conception. The mailers are referring to the Department of Human Services budget, which includes funds for senior and disability programs, TANF (temporary assistance for needy families), and many other essential and effective programs for our most needy citizens and children. However, the mandated fund in the budget for low-income healthcare includes money for abortions. While I oppose funding abortions with public dollars, I do not believe I should vote against the entire DHS budget. Earlier in the session, I sent a letter to the budget-writers requesting that
they not include funds for abortion in their DHS budget proposal but they did not exclude the funding. When we had Republican leadership, this funding was excluded.
This past week, House and Senate Democrats squeezed $1.129 billion out of Oregon employers and families with the passage of HB 2116, HB 3405, and HB 2649. The National Federation of Independent Business in Oregon, who opposed HB 2116, stated the cost of health care premiums for small businesses have risen 100% since 2000. An Alliance of Oregon’s Business Associations “squarely” opposed the proposed tax increases on businesses and individuals. They stated “we believe the bills will seriously hurt Oregon’s prospects fo
r economic recovery. We also believe that Oregon, like Washington, can balance its budget without job-killing tax increases. The proposed $765 million in tax increases (from HB 3405 and HB 2649) will be used to cover the tab for $250 million in pay raises for state employees.” The Oregon Cattlemen’s Association opposing both HB 2649 and HB 3405 stated “a recession needs something other than new taxes to stimulate the economy. Without new taxes the agriculture and natural resources industries will have more money to invest in the economic recovery.” Dr. William Conerly, an economic consultant, estimates that raising this tax rate on
personal income will cost the Oregon economy 36,000 jobs by 2015; this doesn’t even count the job loss that will occur from the corporate tax increase. I do not understand how the Legislature can increase these taxes and believe that they will not hurt Oregon.
HB 3405 increases the corporate minimum tax, other corporate taxes, and certain Secretary of State fees. The vote count was 36-24 in the House and 17-13 and later 18-12 in the Senate. HB 2649 vote count was 37-23 in the House and 18-12 in the Senate. 75% of the 31,000 Oregonians affected by HB 2649 are owners of small and family-owned businesses.
Both bills received the proper 3/5th majority of votes for tax increases.
SB 570- Metal Theft bill passed with a unanimous vote in the House on Thursday. This bill will better monitor metal transactions and impose new fines and penalties on metal thieves. I supported a similar bill last session and was a sponsor of this bill. It will move onto the Governor.
Rep Whisnant’s bills
HB 2511- Rep. Whisnant’s bill allowing deployed military to vote by fax passed the Senate Tuesday and now moves to Governor. A priority for Rep. Whisnant is assuring that the votes of our military men and women deployed are counted. This bill provides an alternative way to vote when time is of the essence.
HB 3379- Transportation Planning Rule (TPR) passed the Senate Tuesday and now moves to Governor. This bill was a priority for the Central Oregon Cities Organization which Rep. Whisnant sponsored and advocated for in committee.
CONGRATULATIONS
In May, the Oregon Parks and Recreation Commission awarded a grant to the City of Sisters for their Whychus Creek Trail Project. The Central Oregon Trail Alliance also received a grant for their Wanoga Mountain Bike Event Area project.
WEED PULL EVENT SATURDAY JUNE 13th 9am to NOON
Join us in a Weed pull event happening in Central Oregon tomorrow. Please visit www.letspulltogether.com to find all the sites where there will be groups pulling. There are 6 different sites where from 9am to Noon you may join, and there will be a BBQ following at a Redmond and Bend site for the Weed pullers.
VISITORS
Northwest Senior and Disability Council Members on Monday
Earl Bowerman from PVTrackers in Bend
COCC President Jim Middleton came to discuss Higher Ed budgets
Brad Chalfant, Executive Director of Deschutes Land Trust discussed the Skyline Forest project
Please feel free to contact my office on any issues you would like to be brought to our attention, or to give your opinion on any legislation that is before your State House right now. We want to hear from you and make sure we are doing what we can for you here in Salem.
Our office phone number is 503-986-1453; our email is rep.genewhisnant@state.or.us; our mailing address is 900 Court St NE H-471 Salem OR 97301.
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900 Court St. NE, H-471, Salem Oregon 97301