OBI Releases Oregon Scorecard
OBI this month released the Oregon Scorecard, a web-based collection of data and rankings that shed light on Oregon’s business climate and declining economic competitiveness. For each piece of information, the Oregon Scorecard also presents up to 20 years of historical data in graphical form.
It is now widely known that Oregon’s economic competitiveness is waning. In 2025, the state fell a stunning 11 places in CNBC’s annual America’s Top States for Business ranking and now sits only 39th. The nonpartisan Tax Foundation, meanwhile, ranks Oregon only 49th for corporate taxes.
These trends are alarming, as is much of the economic data collected on the Oregon Scorecard. Oregon needs a healthy private sector to provide jobs, to support philanthropy and to generate revenue for public services.
Beyond traditional economic indicators, like tax rankings and GDP growth, Oregonians can find information about education outcomes, housing affordability and electricity prices, population, crime rates and other indicators that contribute to the state’s overall economic picture.
To solve the problems facing Oregon, policymakers must focus on improving private-sector health and commit to economic development.
Vote on Transportation Package Delayed Yet Again
What happened: The potential passage of a transportation funding package that would raise roughly $4.3 billion over 10 years has been delayed yet again due to the illness of a senator needed to provide a crucial vote. A vote on the package now will take place no sooner than Sept. 29. Read The Oregonian’s story about the newest delay here.
Special session so far: Following the failure of the Legislature to pass a transportation funding package during the 2025 regular session, Gov. Kotek summoned lawmakers for a special session that began Aug. 29. On Sept. 1, the House approved a funding package (HB 3991) that would raise billions of dollars by, among other things, hiking the gas tax by 6 cents per gallon, boosting vehicle registration and title fees and doubling the 0.1% payroll tax paid by all working Oregonians to fund public transportation. A vote in the Senate was delayed initially until Sept. 17, however, because Sen. Chris Gorsek, D-Gresham, was unable to attend for health reasons. Without Gorsek, the package is unlikely to meet the 18-vote threshold for passage. When it became apparent that Gorsek wouldn’t be able to attend on Sept. 17, Senate consideration of the bill was delayed again.
Session costs mount: Legislators receive $178 per-diem payments when the Legislature is in session – as it is now, even though nothing substantive is happening. Had the special session concluded on Sept. 17, per-diem payments for legislators would have amounted to about $180,000, according to The Oregonian. The cost of the special session will continue to increase until adjournment.
The State of Public Schools as Classes Resume
Businesses and schools: Among the many reasons elected officials must seek to improve Oregon’s economic environment is the connection between business success and school funding. The private sector creates jobs – about 1.7 million in 2024 – that generate the income-tax revenue upon which Oregon’s schools rely. Businesses are also taxed directly, paying corporate income taxes and the corporate activity tax, which alone is expected to generate more than $3 billion during the 2025-27 biennium for public education. Business owners also pay personal income taxes. Finally, the state retains the corporate “kicker” to support public education. That figure will be $922 million in early 2026. Apart from funding, business owners and leaders care deeply about the outcomes resulting from that spending. Employers need a well-trained and prepared workforce, they need quality schools to recruit and retain employees, and they too have children in schools across Oregon. Suffice it to say, Oregon’s businesses are heavily invested in the state’s public schools – and committed to their success.
For these reasons, OBI has sought to shed light on both school funding – an exceedingly complex process in Oregon – and school performance. If you’d like to know more about these things as students settle into the new school year, check out the resources below:
- Oregon School Funding, Sources and Distribution: This 2024 report commissioned by the OBI Research and Education Foundation explains where funding for public education comes from and how it’s spent. Read it here.
- Podcast Interview with Stand for Children Oregon Executive Director Sarah Pope: Funding for Oregon’s schools has increased dramatically in recent years, yet the state’s performance on nationwide benchmark tests has not. In this Oregon Business Matters podcast interview, Sarah explains why this problem persists and what other states have done to improve outcomes. Listen to Sarah’s interview here.
- Webinar with the College Board: OBI is working with the U.S. Chamber of Commerce to promote AP Business Principles/Personal Finance, an experiential course developed by the College Board that will be offered to high school students nationwide starting in the 2026-27 school year. Check out OBI’s conversation with Clare Bertrand, the College Board’s director of career strategy and business partnerships, here.
- The Oregon Scorecard: OBI’s recently released Oregon Scorecard contains historical data about school funding, performance and enrollment, including the state’s NAEP rankings and Georgetown’s Edunomics Lab’s noted Return on Investment graphic. Check out the Oregon Scorecard’s Government and Education page here.
Policy and Rulemaking Updates
Recycling program: On Sept. 17, the Recycling System Advisory Council met to receive updates about Oregon’s Plastic Pollution and Recycling Modernization Act (RMA). The conversation focused largely on the recyclability of aerosol containers and responsible end markets – a delayed and unworkable component of the RMA that is the subject of new rulemaking. At the meeting, Circular Action Alliance (CAA) also disclosed a report on its 2025 data. The CAA is the nonprofit chosen by DEQ to collect fees and administer the RMA, and its report should have contained information – long sought by industry stakeholders – about the expenditure of program fees. Yet the most recent fiscal data has been redacted from the report. While the report promises that the data will be available eventually, this is yet another cause of frustration for the industry stakeholders funding the floundering program. As part of a coalition, OBI is working with other stakeholders and legislators to obtain financial data, including how much the program will cost businesses and, ultimately, consumers.
Off-site fabrication: HB 2688, which passed during the 2025 session, requires that workers who manufacture certain “bespoke” items for public works projects must be paid at prevailing wage rates, dramatically expanding historical prevailing wage law. A key problem with this is the confusion about what is covered. In addition to many questions from manufacturers and contractors, proponents themselves have made claims about intent that are not consistent with the adopted statutory language. As a result, there will be a lot of interest in the rulemaking BOLI plans to do. The law does not go into effect until July 2026, so formal rulemaking likely won’t begin for some time. BOLI plans to hold listening sessions and take written feedback prior to rulemaking. OBI expects to know more about that within the next few weeks.
Health care affordability: As part of ongoing discussions about the cost of health care for patients, the Oregon Health Policy Board created the Affordability Committee. The committee is charged with developing and recommending cost-reduction and cost growth-reduction strategies. The first meeting was held on Sept 15. Paloma Sparks serves on the committee to represent employers as health insurance purchasers. The next meeting is scheduled for 2 p.m. on Oct. 28.
Rest break rules: BOLI has begun a rulemaking process to implement HB 2541 which codified existing practices of extending rest break periods for the expression of milk to agricultural workers. That legislation was noncontroversial and passed easily. However, the proposed rules have significant changes unrelated to the legislation that employers should be aware of, including the elimination of a provision allowing for the modification of rest breaks in collective bargaining agreements. OBI will submit comments on the proposed rule and provide updates.
Prevailing wage rules: BOLI is proposing a permanent rule to clarify when delivery drivers are covered by the prevailing wage law in construction. The rule recognizes that with the expansion of delivery services, many drivers are merely delivering supplies with little direct interaction with contractors. A temporary rule had been in place but expired in July. The comment period for the proposed permanent rule closes on Oct. 24.
Campaign finance reform: The secretary of state has released proposed rules for the implementation of HB 4024 (adopted in 2024). The bill was a set of sweeping campaign contribution limitations adopted by the Legislature and represented a fundamental shift in campaign finance in Oregon. There is a lot to digest, but OBI is evaluating the proposed rules and will engage in the process to ensure campaign finance laws are implemented in alignment with legislative intent.
Oct. 30 Webinar: HR 1 Tax Changes Employers Should Know
HR 1 has made many changes to the federal tax code that will be of interest to businesses in Oregon. It has made many 2017 changes from the Tax Cuts and Jobs Act permanent, altered the treatment of overtime pay and tip income, and much more.
To make sense of these changes and how they’ll affect businesses in Oregon, experts from Perkins & Co will join OBI for a webinar on Thursday, Oct. 30. Webinar panelists will be Jordan Patterson, Katie Powell and Trent Baeckl.
The webinar will run from 10 a.m. to 11 a.m. and include plenty of time for questions.
Go here to register.
Oct. 9 Webinar: HR 1 and Employer Obligations
The many changes created by HR 1, also known as the One Big Beautiful Bill Act, include more than a few that will affect Oregon workplaces. These touch on a range of benefits, including health savings accounts, flexible spending accounts and various fringe benefits.
To help make sense of these changes, attorney Iris Tilley will join OBI for a webinar on Oct. 9. Iris is a partner with Barran Liebman LLP in Portland and specializes in employment law and ERISA.
There will be plenty of time for questions from webinar attendees.
A separate webinar on the tax implications of HR 1 will be scheduled later in October.
Go here to register.
Oregon Business Matters Talks with NIL Expert Max Forer
If you follow college sports, you’ve heard the term NIL, which stands for “name, image and likeness.” You also probably know NIL refers to the payment of collegiate athletes. Beyond that, you can be excused for knowing little about the complex world of collegiate athlete compensation.
In this episode of Oregon Business Matters, host Angela Wilhelms talks with an expert in this rapidly evolving area. Max Forer is a partner with Miller Nash in Oregon and a former offensive lineman with the Oregon Ducks. If you’re at all curious about collegiate sports, this episode is a must-listen.
Oregon Business Matters focuses on insights, issues and initiatives that affect Oregonians’ shared prosperity and the state’s economy.
Episodes can be found on OBI’s website here and on major podcast platforms, including Apple, Spotify and YouTube.
Join the 2025 Manufacturing & Innovation Roadshow
OBI’s Manufacturing & Innovation Roadshow is back for its fourth year. On Oct. 6 and 7, the Roadshow will visit seven manufacturers and host two roundtable discussions in the Willamette Valley and southern Oregon.
The Roadshow, which coincides with National Manufacturing Week, will make stops in Marion, Linn, Lane, Douglas and Jackson counties. Participants will tour industry leaders Garmin, ATI, PakTech, Richardson Sports, Con-Vey, Carestream and Harry & David. They’ll also participate in a pair of roundtable luncheons at the University of Oregon and Rogue Community College’s Table Rock campus.
Check OBI’s Manufacturing & Innovation Roadshow web page for updates as the itinerary is finalized and short profiles of participating manufacturers are posted. Go here to register for as many stops as you would like.
Don’t Miss OBI’s 2025 Vision Oregon Event
Don’t miss OBI’s 2025 Vision Oregon Event, which will take place Oct. 22 at the Portland Art Museum.
Vision Oregon will kick off at 3:30 with an hourlong networking reception, followed by this year’s program:
Entrepreneurship in Oregon: Celebrating Vision and Supporting Growth
Join OBI for a lively and informative panel discussion featuring:
Greg Davis, founder and CEO, Overwatch Imaging
Jonathan Hurst, co-founder and chief robot officer, Agility Robotics
Pallavi Pande, founder and owner, Dtocs
Facilitated by
Cara Turano, president and executive director, Oregon Entrepreneurs Network
Visionary Award presentations
This year’s Oregon Visionary Award honorees are Daimler Truck North America and NIC Industries. Learn more here.
Announcement of the winner of the 2025 Coolest Thing Made in Oregon contest
Follow the progress of this year’s contest here.
Go here to register.
Notable News
Nvidia and Intel: Intel’s stock jumped more than 20% on Sept. 18 after it announced a $5 billion investment from Nvidia, along with plans to cooperate on new technology for data centers and PCs (The Oregonian).
Oregon Republicans: Oregon Senate Republicans chose one of their most experienced members to lead the caucus on Sept. 15 after outgoing Minority Leader Daniel Bonham, R-The Dalles, stepped down and announced plans to resign from the Senate. He will be replaced by Sen. Bruce Starr, R-Dundee (Oregon Capital Chronicle).
Federal manufacturing push: President Trump’s team is weighing a plan to spur the construction of factories and other infrastructure in a bid to jump-start the American manufacturing sector, according to documents and people familiar with the discussions. Under the plan, the administration would use money from a $550 billion investment fund established as part of trade negotiations with Japan to invest in the development of semiconductors, pharmaceuticals, critical minerals, energy, ships and quantum computing (The Wall Street Journal).
Oregon polarization: A Democrat in the Oregon Legislature recently voted against her party’s transportation package. She was bullied as a result, she said, and decided not to seek reelection. A Republican voted in favor of the transportation tax package. He was labeled a “criminal” and a “traitor,” he said, and switched political parties. In this era of hyper-partisanship, the fate of Reps. Annessa Hartman and Cyrus Javadi reflect the broader trend of a growing political divide permeating the country (Oregon Public Broadcasting).
Oregon labor market: Oregon employers have reported more than 11,000 layoffs since the start of last year, a torrid pace of job cuts amid the steady deterioration of the state’s labor market (The Oregonian).
Semiconductor layoffs: Semiconductor industry supplier Edwards Vacuum notified workers Sept. 16 that it plans to shut down production at its Hillsboro site and lay off 140 workers, the latest in a historic spate of Oregon job cuts (The Oregonian).
Travel spending: Gov. Tina Kotek on Sept. 16 sent the heads of Oregon agencies a missive to tighten their belts to help close a projected $370 million hole in the state’s two-year budget caused by policies adopted by the federal government (The Oregonian).
Homeless programs: Homeless services providers and tenant advocacy groups in Oregon are slashing jobs and programs. Leaders are blaming the cuts on reduced funds through the Legislature’s recently passed housing budget (Oregon Public Broadcasting).
Vote delayed again: The Oregon Senate has once again delayed its final vote on a proposal to raise transportation taxes and fees that had been expected to take place Sept. 17 (The Oregonian).
Manufacturer agreement: One of the Oregon semiconductor sector’s biggest players and the much smaller subsidiary of a Japanese company have decided to stop fighting and to work together. Lam Research and JSR/Inpria on Sept. 15 announced a nonexclusive cross-licensing and collaboration agreement. Inpria had sued Lam in 2022, and with the move, the sides agreed to dismiss patent infringement claims against each other (Portland Business Journal).
Portland trees: The city of Portland is launching a major expansion of its citywide tree planting and tree care efforts, including restarting its relationship with the well-known nonprofit Friends of Trees. The initiative, announced Sept. 15 by Portland Parks & Recreation’s Urban Forestry division, aims to plant a total of at least 15,000 trees over the next three years. The effort will be funded via $40 million from the Portland Clean Energy Community Benefits Fund, the climate justice fund seeded by a 1% tax on large retailers in the city (The Oregonian).
School layoffs: Plans for how to close a $5.5 million budget hole at Multnomah County’s third-largest school district are up in the air after teachers and support staff overwhelmingly rejected a proposal to absorb 10 days without pay this school year. If the Reynolds School District and its employees can’t come to an agreement by early November, Reynolds will need to cut an estimated 79 positions by Nov. 7. Reynolds has lost 20% of its enrollment over the last decade (The Oregonian).
I-5 bridge: A replacement for the Interstate 5 bridge across the Columbia River could get its final environmental and federal approvals early next year and move into construction shortly thereafter, planners told a joint committee of Oregon and Washington lawmakers Sept. 15 (The Oregonian).
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.
- 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.
- ODP Business Solutions: Helps OBI members save money on office furniture, supplies and other services.
- 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.