Education

Revenue discussions are continuing to evolve in the Legislature. Committees are taking up several revenue related topics simultaneously. Generally, the largest discussion surrounding revenue is taking place in the Joint Committee on Student Success. The goal of this committee will be to raise near $2 billion in new revenue (per biennium) to be dedicated to pre-K-12 education. Last week, the full committee reviewed policy work subcommittees developed over the last month. Three tax options were presented from the Subcommittee on Revenue, including a: Business Activities Tax (BAT)/ Value Added Tax (VAT); Commercial Activities Tax (CAT); and changes to the current corporate tax. Subcommittee on Revenue Co-chairs are aiming to get a bill to the full committee by early April.

Following the presentation to the full Joint Committee on Student Success, Senate Revenue Chair Mark Hass and Nancy Nathanson, his counterpart in the House, and Oregon Business & Industry (OBI) have engaged in discussion over the shape of a tax that will give legislators the $2 billion (per biennium) in new revenue they want to increase funding to education.

Medicaid

Medicaid revenue discussions are continuing. A plan to fund  $463 million of the approximately $800 million budget gap was passed and signed into law through HB 2010. This bill includes an insurance premium tax at two percent, a stop loss assessment, and an increase in the hospital assessment from 5.3 percent to six percent. An increase in tobacco tax (HB 2270) is another proposal to help fill the rest of the gap.

Transient Lodging Tax

In early April, the Joint Committee on Ways and Means Subcommittee on General Government will be holding a hearing on the Transient Lodging Tax. The informational meeting will have presentations from Association of Oregon Counties (AOC), League of Oregon Cities, and Oregon Department of Revenue. Susan Morgan will present on behalf of AOC.

Contributed by: Megan Chuinard | Public Affairs Associate