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Dear OSCC Members & Colleagues –
After three weeks and 2,700 pieces of legislation, it’s safe to say that the 2025 legislature feels aimless.
State finances now feel precarious due to signals from the Trump administration on how it intends to spend or not spend federal money. (Spoiler alert: Oregon is not positioned particularly well.) Budget writers are now asking agencies to produce budget alternatives that include significant cuts.
None of the major 2025 initiatives seem to have any shape. School funding plan? Nothing. Transportation plan to address $2 billion ODOT shortfall? Not even a hint of a plan.
With the February 25th deadline for new bills approaching, we are expecting hundreds of new bills – maybe into the thousands. OSCC is tracking hundreds of bills and directly engaging on a growing number every day based on member feedback and priorities.
Although we still don’t have a great idea yet what the Democratic leadership is going to prioritize this session, we will be seeing some very significant bills emerge this week that will give us an indication how Democrats intend to govern in 2025.
Most Significant Bill of This Week
We think that House Bill 2010 is the most significant bill moving this week. This is the major Medicaid funding bill of 2025 that would re-approve Oregon’s provider tax on hospitals and renew the 2% health insurance premium tax to fund the state Medicaid program. This bill is widely supported by your local hospitals and health care systems as well as physician groups as necessary to underpin the Oregon Health Plan, which now serves over 1 million Oregonians.
OSCC will not oppose HB 2010 in spite of the 2% commercial health insurance premium tax. OSCC did oppose the implementation of the 2% commercial health insurance tax in the 2019 legislature. And we would have considered opposition to HB 2010 if it would have increased the 2% tax rate. But HB 2010 does not increase the tax. Instead, it renews the 2% rate for another six years.
GOOD Legislation Coming up This Week
Senate Bill 380, Senate Bill 405, and Senate Bill 648 are all very positive bills that would increase Oregon’s “death tax” exemption. These three bills will all be heard in the Senate Finance and Revenue Committee this week. These bills continue to validate what we are observing in 2025 – that there is a growing consensus that Oregon’s “death tax” must be addressed. Oregon has the worst estate tax laws in the entire U.S. with a $1 million exemption and a progressive tax rate starting at 10% on estate values above $1 million. The Senate is following up this week with hearings in the wake of the House hearing last week. OSCC will SUPPORT all of these bills.
All three of these bills will get their first public hearing in the Senate Finance and Revenue Committee on Wednesday, February 12 at 8:30am. You can register to testify or submit your written comment on the bill links above.
BAD Legislation Coming up This Week
Senate Bill 916. This bill is shaping up to be the biggest business/labor fight of the 2025 session, as this bill is the major priority for AFL-CIO. SB 916 would allow unemployment benefits for striking workers. It would be a substantial departure from the underlying purpose of the unemployment insurance system - to sustain employees when they lose their wages through no fault of their own.
In addition to giving striking workers more leverage in contract negotiations, it may also have the impact of creating more demand and cost on Oregon’s already expensive unemployment insurance system. SB 916 would force thousands of small employers to subsidize labor disputes for much larger corporations. OSCC testified last week and submitted comments to OPPOSE this bill.
Senate Bill 916 will get its second public hearing in the Senate Labor and Business Committee on Tuesday, February 11, at 8:00am. You can register to testify here or submit testimony here.
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