The OSWA Legislative Update
The OSWA Legislative Update · June 8, 2009
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onkling Fiskum & McCormick's Insider Online
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Dear OSWA Member,
 
Tax Week Ahead
A series of tax increases passed out of committees last week and will head to the floor of the House this week in what is being billed as "Tax Week" in the Capitol. 
 
Since 1996, the legislature needs a two-thirds majority to pass any tax measure.  The House will need at least all 36 Democrats to vote in favor of the personal, corporate, hospital provider and health insurance premium taxes.  Revenue measures must begin in the House.
 
In anticipation of the intense debate, House leaders cancelled their floor session last Friday in order to caucus with their members before the big votes.  Meanwhile, Republican leaders oppose the tax increases, although reportedly, a couple members may support the health care taxes.
 
Anti-tax organizations are preparing to gather signatures to refer the measures to the ballot.  Other Republican bloggers advocate allowing the tax increases to take effect and using them as campaign fodder in the 2010 elections.
 
The struggling economy and the final resolution of the tax increase proposals will keep Oregon in a difficult budget situation.  The Co-Chairs budget released following the final revenue forecast before adjournment cut $2 billion from the "Essential Budget Level."  The EBL is state budget speak for continuing the current spending levels inflated for additional state and federal mandates and contractual increases.
 
This link is from a Salem Statesman Journal article on the tax votes.
Tax votes will churn state's political waters | StatesmanJournal.com | Statesman Journal
Forest Landowners Reach Out
Last week, large and small forest landowners agreed to increases in landowner and harvest assessments in response to a proposed 50% cut in the Oregon Department of Forestry's private lands program and major shifts to landowners in the fire program.
 
ODF private land foresters enforce the Forest Practices Act and provide landowner assistance advice.  FPA enforcement is essential to maintain public confidence in forest management and forest product continued sustainable certification, still necessary in today's depressed markets.  Landowners have agreed to continue to pay their current share of FPA enforcement even though the General Fund is being reduced.  Landowners described this one-time change in the historical 60% General Fund - 40% Forest Product Harvest Tax split as a 'surcharge' in recognition of the difficulties the state budget is experiencing.
 
The proposed fire budget shifts over $5 million to forest landowners, changing the cost share percentage from 50-50% and adding ODF Administration costs to forest landowners for the first time ever.  Although maintaining the 50-50% sharing with the General Fund is a top priority, forest landowners have agreed to over $7.5 million in additional fees in light of the budget crisis.
 
The next three weeks, or less, will determine if the $7.5 million in increased taxes from timber producers will be enough to convince legislative leaders to restore cuts in ODF's FPA and fire programs.
 
Board of Forestry Takes Small Step
Although portrayed by the media as a major shift, the Board of Forestry voted last week to accept an ODF staff recommendation and slightly increase timber harvests from State Forests in Northwest Oregon to 195 mmbf/year.  Timber operators have been seeking increased harvests since the plan adopted in 2001 has failed to produce the harvest levels of 270 mmbf/year expected when counties and the industry agreed to the new strategy.
 
Anti-forestry interests turned the BOF meeting into a spectacle with followers dressed up as fish and trees.  They also provided a fish barbeque in an effort to attract supporters.  Despite the theatrics the BOF voted 4-2 to support a small increase in timber harvest and to revise the rule establishing priorities for State Forest management by April 2010.
 
New BOF Chair John Blackwell came to his post with direction from Governor Kulongoski to move the long-festering NW Oregon State Forest issue.  Earlier, Blackwell broke with a decades old policy of consensus decision-making and instituted voting.  The State Forest vote was 4-2 with BOF members Jennifer Phillipi and Peter Hayes opposed  the motion for conflicting reasons. 

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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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