DRO Legislative Update: June 12, 2009

Legislature Passes Two Revenue Packages

This week, the Oregon Legislature passed two major revenue packages aimed at addressing the budget shortfall. The Legislative Revenue Office  estimates the two measures will generate a net $733 million. Tax  measures require 60 percent majorities for approval.

House Bill 2649 increases the income tax that higher-income individuals will pay for the next four years. It affects those with a household adjusted income over $250,000 or with a single-filer adjusted income over $125,000. The current top tax rate on personal income is nine percent.  HB 2649 increases that rate to 10.8 percent, thereby generating a net of  $472 million for the General Fund.

The second bill, HB 3405, increases the corporate minimum tax (now $10) to a sliding scale between $150 and $100,000, based on Oregon sales. It also contains a permanent increase in the rate of taxation for corporate net income greater than $10 million. The current rate of 6.6 percent is raised to 7.6 percent. HB 3405 will generate about $261 million for the General Fund.

Both bills were passed by the House Chamber on Tuesday, but stalled in the Senate after HB 3405 failed to receive the constitutional  majority (18 of 30) of votes. A deal was reached Thursday morning to  divert the corporate tax into the Rainy Day Fund after 2013. With this change, the needed votes were gained. Both bills now go to Gov. Kulongoski's  desk. He promised to sign them upon delivery.

Senator Richard Devlin stated, “These bills don’t solve all of our  problems, but they are part of a balanced approach to getting us through  this recession and on the road to recovery. Along the way, we’re fighting for a tax system that more equitably distributes the responsibility of caring for this great state and future generations of Oregonians.”

ADA Amendments Act Conforming Bill Clears House

On Wednesday, Disability Rights Oregon’s priority legislation passed the House floor with a solid majority. Rep. Judy Steigler championed the  bill on the floor, stating: “it’s a good bill, it codifies existing law and it strengthens protections for people with disabilities.” There was
no dissenting discussion.

SB 874 now returns to the Senate, where it originated, for a concurrence vote. It was changed in the House Judiciary Committee to conform with SB  58, a bill that amended a statute that is also amended by SB 874, but used different terminology.

Health Care Bills with Bipartisan Support Sent to Governor

Last week’s DRO Legislative Update described the major provisions in House Bills 2009 and 2116. This week, the Oregon House and Oregon Senate  successfully passed both bills. They now sit on the governor’s desk  awaiting his signature. Both Republican and Democratic legislators spoke in favor of the measures, signaling a bipartisan effort to reform  health care in Oregon.

Democratic Senator Alan Bates said that these bills “may be the most important piece of legislation that we pass out of this building this session. This is a good deal for Oregon.” Republican Senator Jackie Winters commented: “this bill makes another dramatic step forward, again at a time when our state's fiscal health is in distress.”

Special Event on June 18 for Disability Rights Oregon

On Thursday, June 18th, Disability Right Oregon will be hosting an open house at their office downtown Portland (620 SW 5th Ave, Suite 500) between 5-7pm. The event will include a showcase of artists with disabilities, as well as a special guest appearance by Oregon Secretary of State Kate Brown. For more information, please contact Elizabeth Arledge at 503-243-2081 or go to www.disabilityrightsoregon.org.  Refreshments will also be provided.