Governor’s Prosperity Council Report Calls for Urgency
What happened: On Thursday, the Governor’s Prosperity Council released its highly anticipated list of recommendations. Gov. Kotek created the council in January to help create strategies to achieve the goals listed in her Oregon Prosperity Roadmap.
Recommendation summary: Many of the Prosperity Council’s recommendations – as well as the report’s characterization of Oregon’s economic and competitive challenges – echo those in OBI’s Oregon Competitiveness Agenda. The council’s 10 priority recommendations include calls for more competitive tax policies, enforceable statewide permitting timelines, a reduction in regulatory “burdens,” modernization of state policies governing industrial and employment land, and the replacement of the Climate Protection Program with a cap and invest program aligned with those in neighboring states. The report also emphasizes the need for urgent and bold action, pointing out that “incremental change will not be enough.” Read the report here.
OBI’s response: OBI appreciates the work done by members of the Prosperity Council and urges the governor and Legislature to act quickly to adopt them. Identifying the policies and conditions responsible for Oregon’s slipping competitiveness and struggling economy is not difficult. The state’s businesses have been talking about them for years. Making the necessary changes will be difficult and will require leadership from the governor and key legislators. It is necessary, however. Failing to follow through on the council’s work will ensure that Oregon continues to lose business investment and jobs. Read OBI’s full statement here.
Join Us for the 2026 Manufacturing and Innovation Roadshow
OBI’s Manufacturing and Innovation Roadshow will return for a fifth year this fall with a one-day tour of four Portland metro area businesses. The Roadshow will take place on Friday, Oct. 2 – recognized nationally as Manufacturing Day – and visit (in this order):
Looptworks (Gresham)
Leatherman (Portland)
QB Fabrication & Welding (Clackamas)
Miles Fiberglass & Composites (Clackamas)
The Manufacturing and Innovation Roadshow gives participants, including policymakers and business leaders, a chance to tour some of Oregon’s most innovative companies and talk to the people who run them. To learn more about this year’s participating manufacturers and to register, go to the Manufacturing and Innovation Roadshow web page here.
Portland Student Wins Third Annual Oregon Civics Bee
Romi Oji of Portland won the 2026 Oregon Civics Bee on June 16 and has earned the right to represent Oregon at the U.S. Chamber of Commerce Foundation’s National Civics Bee® in Washington, D.C. Romi was one of nine students who qualified to participate in the competition, which was moderated by Oregon Secretary of State Tobias Read.
Presented by Kinder Morgan with support from the Oregon State Capitol Foundation, the competition began in fall 2025. Sixth, 7th and 8th graders throughout Oregon were invited to submit essays explaining how they’d use civics principles to address problems they identified in their communities. A panel of judges chose the best essays, and their writers were invited to participate in the contest’s three regional civics bees, which took place in April in Beaverton, Eugene and Tigard. The top finishers in those bees qualified for the Oregon Civics Bee, which took place in the House Chamber of the Oregon Capitol in Salem.
The Oregon Civics Bee began with a quiz-style competition moderated by Secretary of State Read. The top five scorers in the quiz round then made the case for their essays in front of a panel of judges. In her essay, Romi proposed a method of addressing food insecurity that consisted of a tax credit system for food donations and a tax on food waste.
The top three finishers in the Oregon Civics Bee received cash prizes. Romi received $1,000, runner-up Lydia Radecki of Tualatin received $500, and third-place finisher Ishwantia Ravi of Portland received $250.
The Oregon Civics Bee was organized by OBI in partnership with the U.S. Chamber of Commerce Foundation.
The National Civics Bee® will take place in Washington, D.C. in fall 2026.
Pooled 401(k) Plan Offers Administrative Savings, OBI Discount
OBI has joined with The Partners Group to offer OBI members discounted participation in TPG’s innovative 401(k) retirement option: The Partners Retirement Plan.
The Partners Retirement Plan is a pooled employer plan (PEP), which allows employers to offer a 401(k) benefit to employees while maintaining individual company design and control over the benefit. The PEP allows employers to outsource many administrative and fiduciary responsibilities that come with sponsoring retirement plans, including managing the actual plan audit and Form 5500 filing process. This results in real savings for many employers.
Members of OBI can realize even greater savings because TPG offers special pricing to OBI members.
Visit OBI’s PEP page here to learn more about the plan.
Nominate a Product for Coolest Thing Made in Oregon
Nominate a product: Time is running out to nominate products for OBI’s fourth annual Coolest Thing Made in Oregon contest. Nominations must be received by July 10. To nominate a product, head to OBI’s Coolest Thing Made in Oregon page here or directly to the survey form here. Enter just a few simple pieces of information, including the product, manufacturer and product website address. You can nominate as many products as you’d like, and manufacturers are encouraged to nominate their own products.
The voting phase: From the pool of nominated products, 16 finalists will be announced in September. The finalists will be arranged in a tournament-style bracket, and Oregonians will engage in four rounds of voting to identify a winner. The winner will be announced at OBI’s Vision Oregon Event on Oct. 28.
Listen to past winners: Learn the stories behind some great Oregon products by listening to Oregon Business Matters’ interviews with past Coolest Thing Made in Oregon winners:
Tyler Freres, vice president of sales at Freres Engineered Wood, whose Mass Ply panels won the inaugural contest in 2023. Listen here.
Doug King, president and CEO of Epic Aircraft, whose E1000 GX turboprop won the 2024 contest. Listen here.
Dan Schwoerer, founder of Bullseye Glass, whose art glass won the 2025 contest. Listen here.
Oregon Business Matters Interviews Hayden Homes VP Deborah Flagan
Redmond-based Hayden Homes is the largest private homebuilder in the Pacific Northwest, operating in Oregon, Washington, Idaho and Montana. In this episode of the Oregon Business Matters podcast, Vice President of Community Engagement and Giving Deborah Flagan discusses the company’s focus on building affordable market-rate housing, its philanthropic work, the difficulty of building homes in Oregon, and Hayden Homes’ evolution over nearly 40 years in business. Listen to our conversation with Deborah here.
In case you missed them, check out our recent interviews with TrackTown USA CEO Michael Reilly, Oregon Symphony President and CEO Paul Snyder, Con-Vey Chairman and CEO Dave Larecy, Sport Oregon CEO Jim Etzel and Hillsboro Hops President and General Manager K.L. Wombacher, Visit the Oregon Business Matters website to listen.
The Oregon Business Matters podcast can be found on major podcast platforms, including Apple, Spotify and YouTube. Please subscribe and share.
Register for Ballard Spahr Employer Best Practices Seminar
Go here to register for Ballard Spahr‘s annual Best Practices for Best Employers labor and employment seminar in Portland on Sept. 23 from 9:30 a.m. to 4:30 p.m. at the Marriott Downtown Waterfront. The price is $265, but OBI members can receive a discount using code OBI50.
The annual seminar, now in its 44th year, will help bring employers up to speed on developments that affect their businesses. Interactive sessions include topics such as legal updates, AI, employment class action trends, executive coaching, complex leave and accommodation scenarios, immigration and more.
Policy and Rulemaking Updates
‘Bespoke’ manufacturing rules: The Bureau of Labor and Industries is working to implement HB 2688, which applies prevailing wage requirements to off-site “bespoke” fabrication for public improvements. Rulemaking has concluded, and the adopted rules will go into effect July 1. OBI and industry partners have flagged a variety of problems with the current rules, including:
- They are silent on the applicability of the law to out-of-state manufacturers
- They require wage postings in worksites that will create confusion among employees
- They do not direct public agencies to include the new requirements in their public works contracts.
Moreover, applying longstanding regulatory practices and definitions crafted by construction unions in building and road projects to factories and metal fabrication is complex and problematic. OBI is connecting legislators to businesses in their districts that will be affected by this law to help them understand that its reach is far greater than many of them seem to have understood.
Climate program rulemaking: OBI submitted comments following the first of four rules advisory committee (RAC) meetings on the Department of Environmental Quality’s (DEQ) Climate Protection Program (CPP) Emissions Intensive Trade Exposed rulemaking. The rulemaking proposes to amend the CPP by establishing a carbon benchmark or carbon intensity value (i.e. emissions per widget produced) for an established list of manufacturers rather than placing those companies under a traditional declining cap of greenhouse gas emissions. The rule is intended to protect the competitiveness of trade-exposed manufacturers by evaluating emissions in a way that would allow businesses to grow and increase production. This is a highly technical rulemaking, since facilities and the products manufactured in them are highly individualized whether the product is semiconductors or French fries. Every product has a unique emissions intensity. OBI has convened an industry stakeholder group to develop a coordinated approach to the rulemaking. While the rulemaking is critical in protecting trade-exposed manufacturers, OBI continues to advocate to repeal and replace the CPP with an economywide cap and invest program eligible for linkage with other market-based state programs like Washington’s and California’s. The next RAC meeting is scheduled for July 29.
Air program rulemaking: The DEQ will hold a final RAC meeting June 30 on the Cleaner Air Oregon toxicity reference value rulemaking. DEQ is proposing to adjust toxicity values for 303 chemicals and make the most stringent air toxics regulatory program in the country even more stringent. OBI has made significant progress on priority chemicals that are likely to present challenges to Oregon manufacturers. However, there are still several chemicals of concern for which the proposed toxicity levels are far more stringent than necessary to protect public health, according to authoritative scientific sources. OBI has proposed a number of solutions to make DEQ’s proposals more workable and briefed the governor’s staff on our concerns. OBI will be submitting extensive technical comments to DEQ following the June 30 meeting and ahead of DEQ issuing a proposed rule. The Governor’s Prosperity Council has proposed a pause on this rulemaking as part of its comprehensive recommendations.
Universal health plan: During its June meeting, the Universal Health Plan Governance Board published a draft Universal Health Plan report, discussed its expenditure analysis and received a report from ECOnorthwest on the plan’s reserve funding strategy. During the meeting, board Director Miriam McDonell said the board met with Sen. Deb Patterson, D-Salem, chair of the Senate Interim Committee on Health Care, to discuss introducing a bill to fund the board’s work through the next biennium and another bill to refer the Universal Health Plan to the ballot in 2028.
Coos Bay grant: The Oregon International Port of Coos Bay announced June 22 that it has finalized a $25 million Infrastructure for Rebuilding America grant agreement with the U.S. Department of Transportation, marking another major milestone for the Pacific Coast Intermodal Port project. Combined with a $25 million investment from NorthPoint Development, the $50 million effort will fund environmental review, permitting and preliminary engineering for the new multi-berth container terminal on the north spit of Coos Bay, which NorthPoint will develop and operate under lease with the port.
Legislative Days Held June 15-17
From June 15-17, the state Legislature held committee days, which included informational hearings on topics that could lead to proposals during the 2027 legislative session. Below are reports on a few of the more notable hearings:
Federal tax connection: On June 15, the Senate Interim Committee on Finance and Revenue met to receive quarterly updates from the Department of Revenue and the Legislative Revenue Office on topics ranging from the tax credits that will expire unless they are renewed during the 2027 session to the recently passed tax on certain smokeless nicotine products. The committee additionally received updated information about the implementation of SB 1507, which OBI ardently opposed throughout the 2026 legislative session due to its punitive treatment of Oregon’s businesses and the anti-competitive impacts it will have on the state’s economy. Notably, the Legislative Revenue Office confirmed to the committee what OBI and other stakeholders have maintained throughout debate on the bills: The Legislature would not actually receive increased revenue from disconnecting from bonus depreciation. Rather, disconnection will change only the time frame in which the state receives the revenue in question. By disconnecting, the Legislature ensures that the state will be deprived of revenue during the biennia in which projected budget shortfalls are expected to be relatively large. OBI is working with industry stakeholders to reconnect to the provision of federal tax law allowing bonus depreciation as well as provisions providing incentives for qualified small businesses stock and qualified business income.
Property tax system: On June 16 the House Interim Committee on Revenue received an overview of Oregon’s property tax system. While the presentation provided useful information, the discussion was led by local government officials, who failed to note that Oregon’s property tax system is designed to ensure that the property tax burden borne by Oregonians grows predictably and affordably. OBI and other industry stakeholders are not opposed to reviewing or modifying Oregon’s property tax system, but the discussion must encompass broader state and local tax changes that make sense for Oregonians and Oregon’s businesses generally. OBI anticipates a strong push to increase revenue collections during the 2027 session, and the discussion may include property taxes.
Cancer presumption: On June 16, the Senate Interim Committee on Veterans, Emergency Management, National and World Affairs received testimony urging legislators to expand cancer presumption for firefighters. In 2022, after the last expansion of the presumption, the Management-Labor Advisory Committee (MLAC) and various parties agreed to wait until the National Institute of Occupational Safety and Health completed its long-term analysis of total cancer risk among professional firefighters before seeking any additional changes to the presumption law. That study has not been completed. A broad expansion of the cancer presumption would have significant effects on workers’ compensation insurance rates for employers using SAIF or other carriers. OBI will urge all parties to use the MLAC process to review this and any other legislative concepts.
Antitrust litigation expansion: Attorney General Dan Rayfield’s staff presented to several committees during legislative days. They provided a general overview of the Oregon Department of Justice’s (DOJ) consumer protection and fraud units to the Senate Interim Committee on Commerce and General Government. Their presentations also focused on a proposed expansion of the attorney general’s authority to pursue antitrust investigations and litigation. Currently, the unit has eight staff members, and the DOJ seeks to add 16 positions. Because the positions would be funded by settlement and judgment awards, the attorney general’s office would have an incentive to pursue litigation. Moreover, lawyers in the antitrust unit would have an incentive to push for large settlements to fund their positions. The Legislative Emergency Board approved the attorney general’s request for the authority to add the 16 positions. In addition to the new positions, OBI expects to see legislation in 2027 expanding state antitrust laws.
Anti-SLAPP exemption: Continue a recent trend, trial attorneys are asking the Legislature to modify statute to limit tools available to defendants in civil litigation. This proposal comes from an attorney representing Multnomah County in a suit against several oil companies. The suit, in essence, seeks to hold those companies liable for climate change. Defendants have filed several different motions to dismiss. They also filed an anti-SLAPP (strategic lawsuits against public participation) motion to dismiss, which required the plaintiff to demonstrate sufficient evidence to support the allegations in the suit. In a presentation to the Senate Interim Committee on Judiciary, the private attorney representing Multnomah County shared a proposal that the Legislature fully exempt government entities and their outside counsel from anti-SLAPP motions. It should be noted that some of the motions in this case revealed that the attorney himself funded some of the studies he sought to use as evidence against the companies. OBI expects to see related legislation during the 2027 session.
School funding model: The Senate Interim Committee on Education on June 16 discussed the state’s Quality Education Commission, a decades-old body that determines how much money the state should appropriate to fund Oregon’s K-12 schools. Oregon has some of the nation’s lowest K-12 math and reading scores despite spending more on K-12 education than the national average. Revisiting the commission’s funding model was a point of contention during the 2026 legislative session, and lawmakers appear increasingly interested in continuing the conversation in the 2027 session.
Health insurance mandates: Legislators in the House and Senate have previewed their intention to expand the list of state-mandated health insurance coverages next year. On June 16, the Senate Interim Committee on Health Care held a hearing on biomarker testing, which uses laboratory tests to identify biological markers that can help determine a patient’s disease risk or guide treatment decisions. Twenty-four states have passed some version of a biomarker testing insurance mandate, and Oregon legislators appear poised to introduce similar legislation during the 2027 session.
Notable News
Prosperity Council report: Gov. Tina Kotek’s Prosperity Council on Thursday issued a clear challenge to the governor—make a package of relatively small changes to the state’s tax code and replace the controversial Climate Protection Program—or risk the state’s further slide (Oregon Journalism Project).
Portland taxes, fees: The rising costs of daily life remain a growing concern across Oregon and the U.S. as inflation, tariffs and a host of other factors continue to drive up prices for groceries, gas and most retail goods. Yet many Portlanders say they are also struggling with the added financial burden of residing in a city whose local government insists that it’s grappling with an array of fiscal challenges — and has repeatedly sought to remedy them, in part, by returning to taxpayers and ratepayers (The Oregonian).
Under Amour closure: Under Armour is closing its Portland office and moving most of the jobs to New York and its corporate office in Baltimore. It’s another blow to the region’s footwear industry (The Oregonian).
MODA Center funding: The new owner of the Trail Blazers on June 24 showed no interest in putting money toward the Moda Center’s expected $600 million makeover, saying that simply keeping the NBA franchise in Portland was enough of a financial sacrifice (The Oregonian).
Bend appliance tax: Bend will soon levy a fee on natural gas appliances installed in newly built homes, a move city officials say will reduce greenhouse gas emissions, improve public health and advance their climate action goals (The Oregonian).
Agility goes public: Salem-based robot manufacturer Agility Robotics plans to go public in a deal valuing the business at $2.5 billion, its executives told The Wall Street Journal July 23 (The Oregonian).
Nike CFO: Nike on June 23 named an outside executive as the company’s next chief financial officer and said it will book a tariff refund in the current quarter’s financial results, sending its bruised stock slightly higher in after-hours trading. Dave Denton, previously CFO of the New York-based drug giant Pfizer, will succeed Nike CFO Matt Friend on Aug. 17 (The Oregonian).
Data center incentives: Statewide, data centers are receiving more than $450 million in local tax breaks from Oregon communities this year alone, according to data from local county assessors compiled by The Oregonian/OregonLive. That includes $118 million in Prineville (The Oregonian).
Data center challenge: An Oregon nonprofit and several allies are suing Hillsboro and Washington County over allegedly issuing improper property tax breaks for 17 data centers (The Oregonian).
Battery farm opposition: Community opposition to big battery farms is spreading across western Washington just as the technology takes on growing importance for the state’s clean energy transition and to stabilize the electric grid (Washington State Standard).
Oregon grape harvest: Washington’s decades-long reign as Pacific Northwest wine king might be over, snatched away by Oregon, at least by one key measure. The Evergreen State recently reported a wine grape harvest of 108,000 tons in 2025, less than half what it brought in just three years earlier. Oregon’s 2025 harvest report hasn’t arrived, but from 2021 through 2024, the state averaged 128,000 tons (Portland Business Journal).
Willamette River recreation: The Willamette River is one of Portland’s defining features, but a new analysis suggests the city has yet to fully tap its economic and recreational potential (The Oregonian).
Portland theater slump: Attendance at Portland’s major performing arts venues never fully rebounded from the pandemic, squeezing publicly owned theaters and the organizations that perform there (The Oregonian).
Alaska Air president: Alaska Air Group has named Chief Financial Officer Shane Tackett as its next president, a promotion that has historically served as a pathway to the CEO role at the airline (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.