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Dear OSCC Members & Colleagues –
With the final revenue forecast of the 2025 legislative session set for release this coming Wednesday, May 14th, the state’s budget-writing process will now shift into high gear. This forecast will shape the remaining weeks of the session - giving legislative leaders the green light to begin finalizing budgets, funding packages, and making key policy decisions as they drive towards the end of session.
Lawmakers have held extended floor sessions to clear the logjam and move bills to the opposite chamber in the past weeks. Now, policy committees are finishing their work on those bills—but with far fewer on the agenda. Many policies have either died or been rerouted to Ways and Means to determine if they will get funded.
Committee agendas are dwindling down as policy committee will all conclude their work by next week. All committees except for House and Senate Rules, Revenue and Ways &Means will officially close by May 23rd.
We continue to believe that the two remaining policy pillars that will define the 2025 legislative session will be (1) whatever transportation package emerges, and (2) a potential permanent wildfire funding plan.
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Transportation Package: Legislators are meeting quietly behind closed doors to see if they can put together a transportation package to address badly needed funding for Oregon’s roads. With existing resources, legislators don’t have the money needed to do everything. In fact, there is a nearly $2 billion biennial shortfall. Republicans unveiled a counter-proposal last week that did not include new taxes – rather it relied on cuts to free up more money to be spent on highway maintenance. However, the Republicans involved in negotiating the transportation package were not part of the Republican proposal. We will continue to watch this closely as new developments emerge.
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Wildfire Funding: This is the second key issue legislators are attempting to address in order to find a long-term funding solution to respond to the ever-increasing costs associated with the state fighting wildfires. The bill to watch is HB 3940. Increases to the bottle bill surcharge and a new payroll tax are unpopular ideas that have been floated so far. OSCC testified in opposition to the payroll tax amendment to HB 3940. The other funding mechanism is an increase in the forest products harvest tax. It is unclear at this stage what provisions will stay in the bill or if legislators are able to reach an agreement at all on a wildfire funding package.
In terms of what’s on the calendar for this week, by far the most consequential bill of note is:
GENERAL CONTRACTOR / PROPERTY OWNER LIABILITY (SB 426): OSCC has written about this bill several times and OPPOSES SB 426. OSCC continues to be deeply concerned about the idea that holding property owners and general contractors liable for any unpaid wages at the subcontractor level would further dampen investment in Oregon communities. The bill directly punishes the wrong parties for wage theft at the subcontractor level and will have a chilling effect on commercial construction and improvements.
SB 426 received a public hearing in the House Labor & Workplace Standards Committee on Wednesday, May 7th.
Now the bill is scheduled for a committee vote on Wednesday, May 14th.
This is one of the bills this session that will require grassroots support from OSCC members. The comment period is now closed on the bill, so all communication will need to be directed to individual legislators – specifically all House Democrats and Republican Greg Smith (R-Heppner).
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