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Public Policy

Government budgets and tax issues

The Alliance consistently advocates for fair and appropriate business taxes and fees for Portland-region businesses to encourage an environment in which businesses can grow and add jobs. Additionally, the Alliance regularly weighs in on various government budgets to ensure that the business voice is heard during budgetary discussions.

Government budgets and tax news:

Alliance advocates for specific budget priorities to the city of Portland
Alliance submits letter to mayor regarding responsible banking
Alliance and partners express concerns over downtown marketing budget cuts
Business Energy Tax Credits
Oregon's Office of Economic Analysis releases revenue forecast
Legislative Revenue Office releases report on revenue from Measures 66 and 67
Alliance urges congressional delegation to reject airline tax
Oregon Joint Revenue Committee to hear report from state economists
Study shows Oregon overpaid unemployment benefits
Study shows states won't be able to pay public employee pensions
Number of Oregonians receiving government assistance up significantly

April 2012: Alliance advocates for specific budget priorities to the city of Portland

The Alliance recently urged the city of Portland to focus general fund resources and other bureau budgets on job creation and economic development; public safety; housing; and reasonable fees. Read the letter >>

March 2012: Alliance submits letter to mayor regarding responsible banking

The Alliance sent a letter to Portland City Council on February 27 regarding a proposed resolution that Mayor Adams proposed bringing forward regarding banking issues such as foreclosures and using credit unions for some city services. The Alliance urged the Mayor to note the positive contributions that banks make to the community. Read the letter >>

March 2012: Alliance and partners express concerns over downtown marketing budget cuts

On February 14, the Alliance and its partners - Portland Mall Management Inc., Travel Portland and the Downtown Retail Council - sent a letter to Mayor Adams and Portland City Council expressing concern regarding the Portland Bureau of Transportation's proposed cut to the Downtown Marketing Initiative, an important marketing program for downtown.
Read the letter >>

January 2012: Business Energy Tax Credits

The Oregon Tax Court decided against the Department of Revenue in a recent case, ruling that corporate taxpayers may apply Business Energy Tax Credits (BETC) to Measure 67 (corporate minimum) obligations. This ruling may be challenged in the 2012 or 2013 legislative sessions.

December 2011: Oregon's Office of Economic Analysis releases revenue forecast

Oregon's November revenue forecast was released by the Office of Economic Analysis on November 17. For the 2011-13 budget years, the general fund and lottery revenues are down $107 million. This is in addition to the $198 million decrease in revenue from the August forecast for a total of $305 million down since the end of the 2011 legislation session. The $460 million ending balance held by the legislature can cover the lower-than-expected revenues, preventing cuts to other agencies for the time being. The decrease in the November forecast is less then expected, but Oregon is still only a quarter of the way through the biennium. The next forecast will be released in February 2012. Last week, Gov. John Kitzhaber ordered a state hiring freeze and curtailed all non-critical spending in an effort to offset the revenue shortfall. More information >>

December 2011: Legislative Revenue Office releases report on revenue from Measures 66 and 67

A new report shows that the state is collecting most of the revenues projected with passage of 2010's Measure 67, which increased taxes on business. The Legislative Revenue Office released a report showing the corporate tax increases generated 96 percent of the $261 million projected from Measure 67 for the 2009-11 budget cycle that ended June 30, 2011. Last week's report, based on tax returns through October 31 of this year, indicated the increases added $349 million to state reserves for the budget cycle, which is just above the predicted amount. However, the report also shows that personal income tax collections (Measure 66) from high-earning Oregon households fell far short of 2009 projections.
View the report >>

November 2011: Alliance urges congressional delegation to reject airline tax

The Alliance sent a letter U.S. Senator Wyden on November 8 to express concern about a proposed new tax on airlines. Instead of funding needed transportation infrastructure investments, the revenue from the tax would be partly directed at deficit reduction.
Read letter >>

November 2011: Oregon Joint Revenue Committee to hear report from state economists

The Joint Revenue Committee will meet on November 17 to hear a report from the state economists regarding the state of the Oregon General Fund. The revenue report is expected to remain flat or decline, which may require a special session in December 2011.

November 2011: Study shows Oregon overpaid unemployment benefits

A U.S. Department of Labor study has shown that Oregon overpaid $392 million in unemployment benefits over a three-year period (2008-2011). This money is paid out on earnings by Oregon employers, not taxpayer dollars. The Oregon Employment Department investigates for fraudulent cases, but according to the Oregonian their 20 investigators have carried "up to 400 caseloads apiece, up from 150 before the recession," and are too understaffed to properly monitor the system.

November 2011: Study shows states won't be able to pay public employee pensions

According to the Associated Oregon Industries (AOI), a new study of unfunded pension liabilities shows that none of the 50 states examined have set aside enough money to cover the pension promises made to public employees, and Oregon is among the worst in the study. According to the research, conducted by economists at Northwestern University, Oregon would have to re-direct an additional 24.7 percent of its tax revenues for 30 years, or re-direct 1.9 percent of its economic output for the next 30 years, to completely fund current pension obligations. Indiana was the only state in the study that proved to be in a good position with unfunded pensions.

November 2011: Number of Oregonians receiving government assistance up significantly

Recent reports from the Oregon Department of Human Services show the number of Oregonians receiving government cash assistance is up 14 percent since September 2010. The number of Oregonians receiving food stamps has also gone up 9.5 percent in the last year. With continuing cuts to state programs, some are worried about the state's ability to continue to provide for needy Oregon families as the state's economic problems continue.