Urge Gov. Kotek to Veto SB 1507, Tax-Disconnect Bill
Bill awaits signature: SB 1507, which will disconnect Oregon partially from the federal tax code and increase the tax burden for Oregon residents and businesses, currently sits on Gov. Kotek’s desk. She has until April 17 to sign it.
Veto notice possible: If Gov. Kotek is contemplating a veto, she is required to notify the Legislature of that possibility at least five days prior to the signing deadline – in other words, by April 12. The filing of a veto notice does not mean the governor intends to veto a bill. It is, rather, a procedural step that allows her to keep her options open. In the event of a veto notice, please continue to express your concerns directly to the governor’s office.
OBI veto letter: On Feb. 25, OBI sent a letter co-signed by nearly two dozen organizations to the governor urging her to veto the bill. OBI President and CEO Angela Wilhelms told the governor in person that the letter would be coming and asked her to veto it. You can read the letter here.
What you can do: There is still time to urge the governor to veto the bill. Please do so by emailing the governor’s office (governor.kotek@oregon.gov) and referencing or linking to the veto letter.
OBI Sends Recommendations to Governor’s Prosperity Council
OBI sends recommendations: On April 2, OBI shared dozens of recommendations with Gov. Kotek’s Prosperity Council and encouraged the governor to act urgently to address “deep, systemic and multifaceted problems with Oregon’s business climate and economy.”
Five categories: The recommendations, which echo OBI’s Oregon Competitiveness Agenda, are organized by core principles:
- Avoid laws and regulations that make Oregon a policy outlier and harm the state’s competitiveness, whether in establishing new policies or evaluating and modernizing existing ones.
- Make Oregon a more affordable place to live, work and run a business.
- Establish a culture of “yes” rather than “no” and reduce Oregon’s overall regulatory burden while modernizing rulemaking processes and outcomes.
- Prioritize business and economic development through competitive retention, recruitment and long-term planning efforts in critical areas.
- Ensure a sustainable state budget focused on providing Oregonians with outcomes commensurate with the investments made by state government.
Time for action: “Every month, session, year or biennium wasted without taking steps toward economic recovery sets us back further,” the memo notes. OBI has been proposing specific and actionable steps – informed by its diverse membership – for years and hopes that state leaders are finally ready to take action.
Prosperity Council work: The Prosperity Council will consider suggestions submitted by OBI and others in developing a set of recommendations to the governor by June 30. The governor asked the council to focus on three areas: Oregon’s business climate, its workforce and tools for growth. Read more about the council here.
Go here to read OBI’s full list of recommendations.
Register Now: Oregon Economic Summit on May 28
Join OBI for its first annual Oregon Economic Summit on May 28 at the Salem Convention Center. The event is a rebrand of our historical Annual Meeting event. Visit the event web page here to learn more and to register.
The theme of the inaugural summit is Changing Our Trajectory: Prioritizing Economic Growth and Private Sector Job Creation.
The program will begin at 3:30 p.m. A reception with political leaders will follow at 5 p.m.
OBI Announces Two New Staff Members
OBI is excited to announce the addition of two team members this spring. Meanwhile, we still have one position to fill, that of administrative assistant and board liaison (learn more here):
Kelsie Greenacre will join OBI as project manager, a new position on our team. Kelsie worked for several years at the University of Oregon, supporting executive level teams in communications, academic affairs, government affairs and the Portland campus. She brings excellent communications, organizational and planning skills to Team OBI. Kelsie starts today.
Scott Winkels will join OBI as a policy director focusing on employment, labor and benefits related issues (among others that will be settled over time). Scott has served communities across Oregon for nearly 20 years as an intergovernmental affairs associate for the League of Oregon Cities. He also served on the staff of Sen. Ron Wyden and is a graduate of Western Oregon State College. Scott will bring a wealth of knowledge about and experience with key issues facing employers. He starts May 1.
Q&A with OBI Board Chair Justin Delaney
Following two years as vice chair of OBI’s board of directors, Justin Delaney on March 19 took over as board chair from Lori Olund (see Lori’s exit interview here). We asked Justin to talk about his new role, the challenges facing Oregon’s businesses and the value of OBI in addressing those challenges.
Justin is senior vice president and associate counsel with The Standard, where he oversees external affairs, marketing and communications. He joined the company in 1997 following his graduation from Lewis & Clark Law School. He started out in the company’s largest business, employee benefits, joining a team with a varied portfolio that included fraud investigations and complex claims scenarios.
Within a few years, Justin moved to the corporate side of the business as director of government and regulatory affairs. His portfolio has expanded steadily since then.
Read the Q&A here.
A Conversation with Looptworks Founder Scott Hamlin
In 2009, apparel industry veteran Scott Hamlin (a 2022 Visionary Award winner) founded Looptworks to address the problem of textile waste. Looptworks, which recently moved into its new facility in Gresham, transforms excess clothing and other textiles into thread or yarn that can be reused and nonwoven fibers that can be used to produce insulation and other non-clothing products. Scott talks with Oregon Business Matters about the company’s evolution, its newly acquired Global Recycling Standard certification and the challenges of operating a business in Oregon. Listen to Scott’s interview here.
In case you missed it, check out our recent interviews with ATI Specialty Alloys and Components Division President Trevor Giroux (here) and Oregon Business Council President John Tapogna (here). Links to all interviews can be found on the Oregon Business Matters website here.
The Oregon Business Matters podcast can be found on major podcast platforms, including Apple, Spotify and YouTube.
Oregon Scorecard Updates Include Population, Spending
The Oregon Scorecard, OBI’s online data dashboard, received several updates in March:
Population: At 4.27 million, Oregon’s 2025 population exceeded its 2024 population by 8,244, or 0.2%, according to the U.S. Census Bureau.
Home ownership: Oregon’s home ownership rate in 2025 was 64.1%, up from 63% in 2024. Oregon’s rate trailed the national rate of 65.2%. However, Oregon’s rate increased between 2024 and 2025 while the national rate fell from 65.6% in 2024. Oregon’s rate of home ownership has trailed the national average for every year but two since 2012.
People in poverty: The percentage of Oregonians in poverty declined in 2024 to 11.7% from 12.1% in 2023. The national average fell as well, from 12.5% in 2023 to 12.1% in 2024. Oregon’s rate has trailed the national rate for every year since 2015.
Property crime rate: Oregon’s property crime rate fell dramatically in 2025 to 2,110 crimes per 100,000 people from 2,414 in 2024. The U.S. average fell dramatically as well, from 1,716 crimes per 100,000 people to 1,393. Oregon’s rate of property crimes typically exceeds the U.S. rate, though both have declined substantially over the past 20 years.
Violent crime rate: Oregon’s violent crime rate fell in 2025 as well, dropping from 336 crimes per 100,000 people to 308. Over the same period, the U.S. violent crime rate dropped from 353 crimes per 100,000 people to 293. Last year was the first in at least 20 years in which Oregon’s violent crime rate exceeded the national average.
Budget per capita: The release of 2025 population numbers allowed OBI to estimate Oregon’s all-funds budget per capita for the year. At roughly $15,200, the state’s per-capita spending was 7% higher than in 2024. In 2006, Oregon’s a ll-funds budget was $5,775 per capita. If spending had increased at the rate of inflation, it would have been roughly $9,200 in 2025, 60% of the actual number.
Help Inform Legislative Efforts to Improve Regulations
Business survey: The Legislative Policy Revenue Office (LPRO) has produced a survey of Oregon business owners and operators at the request of Rep. Nathan Sosa, D-Hillsboro, who chairs the House Committee on Commerce and Consumer Protection. The results will inform research LPRO is conducting for Sosa, which may inform legislation considered during the 2027 session.
Survey focus: The survey asks participants to identify the state laws or regulations that most affect their businesses and suggest potential changes. The survey is anonymous, and participants will not be asked to share their names or those of their businesses.
Consider responding: We understand that business owners are reluctant to fill out such surveys, but we encourage you to participate in this one. It is anonymous, and we are glad to see a new interest from legislators in regulatory relief. You can find the survey here. The participation deadline is April 17.
Policy and Rulemaking Updates
Oregon Leadership Academy: OBI is accepting applications for the Oregon Leadership Academy, a training, education and community-building program designed to prepare emerging leaders for state-level public service. The inaugural cohort will run from September 2026 through March 2027. The program is aimed at people interested in public policy and civic engagement. Applications are open through May 31, 2026.
EPR lawsuit update: On April 1, OBI and its coalition partners received notice that a federal district judge had denied our motion to intervene in the National Association of Wholesalers and Distributors’ case challenging Oregon’s flawed extended producer responsibility (EPR) recycling program, the Plastic Pollution and Recycling Modernization Act (RMA). The judge agreed with the Department of Environmental Quality’s assertion that the timing of these motions to intervene would delay the July 13 trial or prejudice the defendant’s ability to litigate the case effectively. OBI and our litigation partners are discussing next steps.
Extreme climate proposals: In mid-March, the Oregon Department of Energy released its Transformational Integrated Greenhouse Gas Emissions (TIGHGER) document, which lists measures that could help Oregon achieve its greenhouse gas reduction goals. Some of the listed measures are extreme, including one that recommends a 50% reduction in beef and pork consumption and a 30% reduction in poultry, egg and dairy consumption by 2050. Comments on the document, released March 16, initially were due March 27. The comment period was extended to April 10, however, in response to a letter from stakeholders, including OBI. In addition, OBI joined nearly a dozen business organizations in expressing concern to Gov. Kotek’s natural resource staff last week. They indicated that there may be process or substance changes. OBI will submit additional comments.
Universal health care: OBI recently participated in a focus group for large businesses and associations hosted by the Universal Health Plan Governance Board. The board shared an updated draft report and solicited feedback. The proposal as it stands would make all Oregon residents eligible for coverage, with benefits modeled after state employee plans and expanded behavioral health services. Preliminary cost estimates range from $70 billion to $77 billion annually, to be funded through new or expanded corporate income, personal income, payroll, corporate activity, and transient lodging taxes. Eligibility requirements and financing options remain under development. The board is expected to present its final report to the Legislature this fall. OBI remains strongly opposed to this path forward and stated so in its recommendations to the Prosperity Council. A single-state, single-payer system is exceedingly complex, and the state does not have a great track record of implementing complex administrative programs. Health care is not a place to experiment with a state run system.
EPR program alignment: Thanks to work by OBI and allied groups and businesses, the Department of Environmental Quality is making incremental steps to align the Plastic Pollution and Recycling Modernization Act with similar programs in other states. For example, the program had treated plastic garbage bags as packaging material rather than as a consumer product, as other states do. In recognition of this discrepancy, DEQ had planned to provide a discount to businesses that sell garbage bags. In response to input from OBI and affected businesses, however, the agency indicated during a March 30 rules advisory committee meeting that it would treat bags as a consumer product. The agency also is considering an exemption for protein packaging like those in other states. Unfortunately, DEQ currently is not considering an exemption for business-to-business packaging similar to those in other states. Unless it does, costs will rise for Oregon businesses and consumers. (Note: The ongoing work to improve the existing program is important notwithstanding OBI’s agreement that there are serious legal flaws with the underlying program. The agency is continuing with rulemaking despite the pending lawsuit, and we will continue to engage in that work thoughtfully.)
Youth apprenticeship: OBI has been invited to participate in a work group convened by Rep. Nathan Sosa, D-Hillsboro, to discuss youth workforce development, with a focus on expanding youth apprenticeship programs and workforce opportunities for high school students. Sosa is particularly interested in growing registered youth apprenticeship programs in the health care, information technology and manufacturing sectors. OBI attended the group’s introductory meeting April 2. The work group plans to meet monthly as it considers potential legislative action in 2027.
Workforce needs input: Rep. Dacia Grayber, D-Portland, is seeking input from workforce development stakeholders through a survey aimed at identifying gaps in Oregon’s workforce system. As chair of the House Labor and Workplace Standards Committee, Grayber has indicated that workforce policy will be a priority in the 2027 legislative session. Her office is requesting feedback on challenges employers have experienced with the state’s workforce system and potential improvements. Those interested in sharing their experience can contact Ryan Tuthill at ryantuthill@oregonbusinessindustry.com.
Check Out and Share OBI’s New Subscription Newsletter
On April 1, OBI launched Oregon Business Insider, a monthly subscription newsletter intended for anyone who’s interested in Oregon’s business environment. Membership in OBI is not required to subscribe, so please feel free to share widely.
Each edition will include information about noteworthy events, legal and regulatory updates, timely data and rankings, links to recent Oregon Business Matters podcast episodes, policy explainers and more.
Go to OBI’s newsletters web page to subscribe and check out the inaugural edition. You can download a pdf of the first edition here.
Notable News
CPP flaws: In Oregon, using natural gas costs more per ton of emissions than anywhere else in the country because of the state’s new Climate Protection Program. The impact of the program started hitting natural gas bills late last year and will hike costs for customers across the state (Oregon Journalism Project).
School district budgets: Portland Public Schools’ push to chop at least $50 million from its budget for the upcoming school year has grabbed headlines, but the school district is far from alone in its fiscal woes. The reductions come despite an 11.4% boost in state support for education during the current biennium. The shortfalls are driven by common denominators, including falling enrollment, spiraling labor and retirement benefits costs, rising utility costs and a drop-off in local tax collections (The Oregonian).
U.S. jobs: U.S. job growth blew past expectations last month, a resilient rebound that defied concerns about a pending downturn. The U.S. added 178,000 jobs in March, the Labor Department said April 3, far exceeding expectations. That compared with February’s net loss of a revised 133,000 jobs (The Wall Street Journal).
Store closure: An east Portland supermarket that has struggled with shoplifting, vandalism and other crime will close later this year, potentially furthering the area’s longstanding lack of ample food access (The Oregonian).
Unions and challengers: Some of the state’s largest public employee unions are supporting challengers to incumbent Democratic legislators (Oregon Public Broadcasting).
Data center ban: Maine is poised to freeze large data-center construction, which would make it the first state to enact such a measure as communities across the U.S. grapple with fallout from the boom in artificial intelligence (The Wall Street Journal).
Health program audit: Oregon officials approved health coverage for thousands of people who did not qualify and paid out millions of dollars in benefits they should not have, a new state audit found (The Oregonian).
Intel stock climbs: Intel shares climbed nearly 9% April 1 after the chipmaker said it will spend $14.2 billion to buy back a 49% interest in a factory in Ireland (The Oregonian).
Portland vacancy fee: The Portland City Council is exploring a controversial approach to decrease vacancies in retail spaces and residential units. The idea, introduced by councilors Jamie Dunphy and Sameer Kanal, is to impose a fee on landlords of buildings with available space (Portland Business Journal).
Portland homeless numbers: Portland Mayor Keith Wilson entered office last year promising to end unsheltered homelessness in the city. He swiftly opened a series of overnight shelters, where the majority of beds are filled each night. Wilson is certain this means homelessness is decreasing. But the numbers say otherwise (Oregon Public Broadcasting).
Amazon settlement: Amazon agreed March 31 to pay $20.5 million to settle allegations that its data centers in Morrow County contributed to nitrate pollution that has contaminated groundwater in the agricultural community (The Oregonian).
Oregon population: Oregonians in their peak earning years–when they can contribute most to the state’s economy—are moving out of the state faster than their 30-to-50-year-old peers are moving in (Oregon Journalism Project).
Millersburg development: Ball Corporation, Timberlab, ATI and Gordon Truck Centers are pouring a combined $500 million, at least, to build manufacturing plants and other businesses in Millersburg. That’s the kind of economic development any city would love (Salem Statesman Journal).
Deschutes County income: Residents of Deschutes County have the highest incomes in Oregon, earning more than $87,000 a year per capita. That’s $16,000 more than the state average, according to federal figures (The Oregonian).
Horizon base move: Horizon Air plans to close its Medford flight base this spring and transfer 78 pilots and flight attendants to other cities (The Oregonian).
Oregon logging: Oregon’s congressional Democrats are asking federal officials to give the public more time to learn about and comment on new plans that would open up millions of acres of federal forests in Oregon to logging activity not seen since the 1960s (Oregon Capital Chronicle).
Providence plan sale: Providence on March 19 announced it is considering a sale of its health plan, which reported a net loss of more than $100 million last year. Portland-based Providence Health Plan serves more than 167,000 members and has 1,150 employees. It is the third-largest health plan in the state, following Kaiser Foundation Health Plan of the Northwest and Regence BlueCross BlueShield of Oregon (Portland Business Journal).
Check Out OBI’s Member Benefits
OBI offers members a range of programs that can save money or help small businesses offer benefits normally available only to much larger companies. Benefit programs include:
- HealthChoice: Helps businesses with fewer than 100 employees offer comprehensive health-care benefits through our partnership with Regence BlueCross BlueShield of Oregon.
- Partners Retirement Plan: Allows multiple employers to offer a 401(k) benefit to employees through a group structure while maintaining individual company design and control over the benefit – such as eligibility, employer match, and vesting.
- CompSAFE: Helps eligible companies enjoy workers’ compensation discounts through SAIF Corporation.
- Fuel Program: Helps members save fuel costs through our partnership with Ed Staub & Sons.
- LegalPLUS: OBI members receive 15 minutes of free legal consulting per month from Innova Legal Advisors.
Go here to learn about all of OBI’s member benefits.