The OSWA Legislative Update
The OSWA Legislative Update · May 25, 2009
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onkling Fiskum & McCormick's Insider Online
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Dear OSWA Member,
 
Legislative Leaders Release Budget Template
Following the final revenue forecast prior to adjournment of the 2009 legislative session, the Co-Chairs of the budget-writing Ways & Means Committee released their budget proposal last week.  The Democratic leaders' budget template includes $2 billion in spending reduction and $800 million in new Corporate and Personal taxes.  Previously, Republicans released their budget plan based on the current biennium spending level that did not require new tax revenue.
 
Democrats control enough votes in the House and Senate to approve new taxes with a super-majority without needing any Republican legislators' votes.  Oregon households with more than $250,000 ($125,000/individual) in income would have their personal income tax rate increased from 9% to 11%, a 22% increase.  Included in the new taxes is an update to Oregon's $10 Corporate Minimum Tax.  Unprofitable companies pay the 1930's era minimum tax.  Democrats have crafted a new gross receipts tax to replace the outdated $10 fee.  Below is a link to an Oregonian article describing the new Corporate Tax.
 
Oregon lawmakers propose raising corporate taxes - OregonLive.com
Department of Forestry Headed for Cuts
Last week it was the State Forest program that felt the shock of 40 layoff notices from State Forester Marvin Brown.  The Co-Chair's budget sends shock waves through the Private Lands program with a 50% budget cut when timber harvest tax reductions are added to the 15% cut the budget-writers propose. 
 
OSWA members' testimony to the Ways & Means Committee was instrumental in helping the ODF's budget maintain the even drastically reduced level proposed.  As the legislature further revises budget proposals family forest landowners will be asked to come to the Capitol in support of fire and forest protection funds.
 
The Department of Forestry's Fire Program avoided massive cuts through fund shifts and increasing the share of firefighting costs that forest landowners pay.  Oregon is the only state to require private forest landowners to contribute to fire costs.  In addition to increasing landowners share from 50-50% to 55-45%, the new budget allocates all of the program's administrative costs to the pool of expenses to be split. 
 
The administrative costs were proposed to be added in 2007, but budget writers settled on direction to the ODF to analyze the "in-kind" services forest landowners provide.  These in-kind services were previously considered to be in exchange for sharing the fire program's administrative costs.  The ODF analysis should that although private landowners provided less support during the low fire years of 2007 and 2008, private landowners have millions of dollars of firefighting resources available should the need arise.
 
Expect more work on the ODF's budget in the next five weeks as the legislature has to pass a bill to increase landowners' share of fire costs from $10 million to the current biennium level of $15 million.  Landowners will use the $5 million increase to negotiate for a 50-50% split of fire costs and recognition of landowner provided in-kind services as a tradeoff for fire program administrative costs.
 
Climate Change Negotiations Continue
A coalition of business, industry, labor, homebuilders and utilities put the finishing touches on a legislative alternative to the current version of SB 80.  Governor Kulongoski asked PaciCorp and Portland General Electric to try to craft compromise carbon emission reduction proposal. 
 
Meanwhile, HB 2186 was heard for the first time in the Senate after passing the House in a close vote.  A parade of witnesses either praised or blasted the bill that gives new authority to the Department of Environmental Quality to regulate the transportation sector.  Truck idling limits, low carbon fuel, low resistance tires and aerodynamic retrofitted trucks are some of the restrictions that passage of HB 2186 may bring.
 
Below is a link to an article in the Salem Statesman Journal concerning the impact the economy is having on environmental legislation.
 
Environmental legislation takes back seat | StatesmanJournal.com | Statesman Journal 

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Thank you for reading OSWA's Legislative Update.  Please pass this email on to others that may be interested in legislative news and information.  Your comments and suggestions are always welcome.
Sincerely,
 
David Ford
Executive Director
Oregon Small Woodlands Association
 
Ralph Saperstein
OSWA Lobbyist
Conkling Fiskum & McCormick

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