Gubernatorial Candidates Share Stage at OBI/PBJ Forum
Candidate forum: Gov. Tina Kotek and Sen. Christine Drazan answered questions related to Oregon’s competitiveness and business climate for more than an hour on Sept. 24 at the OBI/Portland Business Journal Competitiveness Summit and Candidate Forum in Portland. The event was the first joint appearance by the two candidates this fall. It took place in the Sentinel Hotel in Portland and was moderated by Portland Business Journal Editor Suzanne Stevens. OBI appreciates the support of the business leaders, sponsors and attendees who helped make the event happen – and, of course, the two candidates.
Learn more: Go here to watch a recording of the forum and here to read a recap of the event by Oregon Public Broadcasting.
OBI Releases 2027-28 Oregon Competitiveness Agenda
On Sept. 21, OBI released the 2027-28 Oregon Competitiveness Agenda, which offers an assessment of Oregon’s difficult economic and competitive position and a policy-driven path to greater prosperity.
Oregon needs a healthy economy, led by a thriving private sector, to create jobs, drive innovation and generate revenue for government services. Yet Oregon remains mired in a lengthy economic slump as other states compete aggressively for investment and residents.
To reverse the state’s slide, OBI’s 2027-28 Oregon Competitiveness Agenda identifies four areas on which policymakers must focus urgently:
- Prioritize economic and business development
- Improve affordability for residents and businesses
- Create a solutions-oriented regulatory environment
- Make tax and budget policies sustainable and competitive
These imperatives are followed by dozens of policy proposals that will make Oregon more attractive and affordable to businesses, individuals and families.
Go here to read the agenda.
Join Us for Vision Oregon 2026
Registration is open for Vision Oregon, OBI’s largest event of the year.
This year’s theme is Oregon’s Bounty: Growing and Making What the World Wants. Following remarks by Mike Thelin, there will be a panel discussion moderated Fort George Brewery Senior Vice President Bradley DePuyt. Panelists will include Sara Duckwall of Duckwall Fruit, Dan Occhipinti of Pacific Seafood and a representative of the dairy farming community, to be announced.
OBI also will present its highest honor, the Oregon Visionary Award, to two companies, ENTEK and Threemile Canyon Farms. The annual Coolest Thing Made in Oregon contest will conclude during Vision Oregon as well with the announcement of this year’s winner.
Vision Oregon will take place on Oct. 28 at the Portland Art Museum. Social hour will begin at 3:30 p.m., and the program will begin at 4:30 p.m.
Go here to register.
Join Us for Round Two of the 2026 Coolest Thing Contest
Round two voting: Voting in the first round of this year’s Coolest Thing Made in Oregon contest ended earlier today. Tomorrow, OBI will announce the eight products moving into the second round. Voting will begin at that time and continue until Oct. 5.
Where to vote: Go to OBI’s Coolest Thing Made in Oregon page tomorrow to check first-round results and to vote in round two. Participants are allowed to vote once per device per round.
How it ends: Following two additional rounds of voting, the winner will be announced on Oct. 28 during OBI’s annual Vision Oregon Event (learn more and register here).
Latest Podcast: Ivy Quach of QB Fabrication & Welding
Our interview: QB Fabrication & Welding may not be a household name, but odds are most Oregonians are familiar with its work. The Clackamas-based company makes transmission towers and substation structures that help move electricity throughout the Pacific Northwest. In this episode, President and CEO Ivy Quach talks with Oregon Business Matters about the family-owned company’s founding by her father, Ben Quach, its evolution and its transition to second-generation family leadership.
Listen to the interview here.
More episodes: Check out our recent interview with Dave Chown and Ahna Ward of Chown Hardware. Links to this and other interviews can be found on the Oregon Business Matters website.
The Oregon Business Matters podcast can be found on major podcast platforms, including Apple, Spotify and YouTube.
Oregon Scorecard Update: Median Household Income
U.S. Census Release: In September, the U.S. Census Bureau released inflation-adjusted median household income data for 2025. Median household income is the point at which half of households have higher income and half have lower income.
Oregon vs. U.S.: In 2025, Oregon’s median household income exceeded the U.S. median by 6%. The Oregon and U.S. medians were fairly close from 2005 to 2012. Oregon’s inflation-median has exceeded the U.S. median every year since 2013 (go here for a chart).
Trends: Oregon’s inflation-adjusted median household income has dropped slightly since 2020 while the U.S. median has increased slightly (click graphic for a larger image). Between 2015 and 2020, by contrast, Oregon’s inflation-adjusted median outpaced the U.S. median by a significant margin. In 2022, Oregon’s inflation-adjusted median, $94,790, exceeded the U.S. median ($81,460) by 16.4%, 10 percentage points higher than the 2025 gap. In 2022, Oregon’s median was the nation’s 11th highest, and in 2025 it was the nation’s 20th highest.
The big picture: Though Oregon’s median household income remains above the national average, the shrinking gap – and the state’s slide in income rankings nationally – correlates to an overall erosion of the state’s competitiveness and business climate. Oregon needs a healthy business climate to attract investment, drive innovation, create jobs and grow wages.
Learn more: Go here for Oregon data and here for U.S. data. Go here to compare Oregon with other states. Visit the Oregon Scorecard for more Oregon-specific data and rankings.
Apply for Job Creation Tax Credit Before Oct. 31 Deadline
Job creation credit: In 2026, the Legislature established the Qualified Jobs Creation Tax Credit, which offers employers in targeted traded-sector industries a credit for new jobs that meet certain criteria. The credit is $1,000 per new job, and each taxpayer is limited to $10,000 – or 10 jobs – per year.
The larger context: The credit is tied to SB 1507, one of the most damaging bills passed by the Legislature this year. It partially disconnected Oregon from the federal tax code to prevent Oregon businesses and residents from taking full advantage of three provisions of H.R. 1. These relate to bonus depreciation, qualified small business stock treatment and interest deductibility for new car loans. The inclusion of the job credit was a modest gesture acknowledging the competitive harm that would be done by the bill’s primary components. Qualifying businesses should consider applying for it.
Eligibility and deadline: Qualifying industries include advanced manufacturing, bioscience and biotechnology, clean technology, food and beverage processing, forestry and wood products, high technology and outdoor gear and apparel. The deadline to apply for the 2026 tax year is Oct. 31. Interested employers can learn more about the program and apply here.
Policy and Rulemaking Updates
CPP rulemaking: On Sept. 15, DEQ held the third of four rulemaking advisory committee (RAC) meetings for the Climate Protection Program (CPP) rule establishing a carbon intensity benchmark for designated emissions-intensive, trade-exposed (EITE) businesses. The rulemaking is intended to address the risk of leakage and enable businesses to continue to grow in Oregon, though only 37 businesses (those with emissions of at least 15,000 metric tons per year) will be directly regulated. Leakage refers to the shift of emissions, jobs and economic output to other states. DEQ presented draft policy recommendations that attempt to address leakage concerns and attempt to protect EITE businesses. However, those recommendations fall significantly short in providing the flexibility needed to keep these businesses operating in the state. The basic problem is that all sectors subject to regulation under the CPP (such as natural gas suppliers, transportation fuel suppliers and EITEs) are under the same emissions cap, such that any beneficial provisions to EITEs would require greater emissions reductions from others. This structure pits regulated sectors against one another. Favorable treatment for one sector would likely have significant negative effects on another sector, which is one of the basic structural defects of the CPP. Additionally, DEQ proposed including new requirements such as having certain information verified by a third-party professional engineer and labor standards for EITEs that need to buy additional compliance credits beyond what current regulations allow. OBI is preparing comments to submit on the latest proposal. The final RAC meeting will be held Oct. 21. We expect to see formal notice and comment of the proposed rule late this year.
Draft recycling rules: On Sept. 21, DEQ released its draft rules for the third rulemaking on the Plastic Pollution and Recycling Modernization Act (RMA). Throughout the rulemaking process, OBI has pushed DEQ to better align the program with similar programs in other states by creating a business-to-business exemption and excluding materials that are difficult or impossible to recycle, including garbage bags, clamshell containers and meat packaging. OBI also has pushed for more workable treatment of glass products and compostable packaging so that the program does not inadvertently discourage the use of materials that are recyclable already. While the draft rules provide some assistance on a couple of the above issues, it remains clear that the entire RMA needs a legislative overhaul. OBI has worked with stakeholders and legislators throughout the interim to develop potential legislation that would increase the program’s transparency, align it with similar programs in other states and lower the heavy costs it imposes on businesses and consumers.
Artificial intelligence order: On Sept. 23, Gov. Kotek issued Executive Order 26-26, which directs state government to develop procurement standards for advanced artificial intelligence, including independent third-party safety reviews, ongoing monitoring and potential restrictions on certain “frontier” AI models. The order does not directly regulate private businesses using AI, but it could affect companies seeking to provide AI products and services to state agencies. Key details, including what qualifies as frontier AI, which safety reviews will be recognized, what exceptions will apply and whether Oregon will adopt standards beyond widely accepted national requirements, remain unresolved and will be developed by the state’s chief information officer over the next 90 days. OBI will monitor the process closely to ensure the state protects legitimate public interests without creating unnecessary barriers, delays or compliance costs that discourage innovation and competition.
Permitting improvement: The Joint Permitting Council established this year by HB 4084 has been appointed and has begun to meet. Two important deadlines will pass this week. By Oct. 1, the council must establish eligibility and readiness criteria for Oregon’s new, narrowly applied “FastTrack” permitting program. By Oct. 3, eight state agencies must publish catalogs of economic development permits and report to the governor on opportunities to improve permitting, incorporate applicant feedback and provide fee relief for delayed permits. These deadlines will provide an early test of HB 4084’s permitting reform improvement policies and, ideally, provide momentum for the kinds of permitting reforms proposed in OBI’s Oregon Competitiveness Agenda.
Health authority concepts: The Oregon Health Authority has released 11 legislative concepts it plans to introduce during the 2027 legislative session. Of particular note, LC 215 would allow OHA to increase facility licensing fees by 3% annually for restaurants, pools, lodging and recreational facilities without legislative approval. Other concepts include public health and health care facility fee increases, funding requests for mental and behavioral health, technical changes to laws governing the Oregon State Hospital and changes to how certain patient records may be subject to public records requests.
Corporate practice of medicine: U.S. Sens. Ron Wyden and Jeff Merkley, both Oregon Democrats, and Elizabeth Warren, D-Mass., have introduced the Stop Corporate Takeovers of Physicians Act of 2026. Modeled on legislation passed in Oregon in 2025, the bill would require licensed clinicians to hold majority ownership of medical practices, restrict the activities of management services organizations and void certain employment agreements, with limited exceptions. The Federal Trade Commission, state attorneys general and private parties would have authority to enforce the legislation.
Notable News
Union wages decision: The Oregon Court of Appeals on Sept. 16 paved the way for the widespread conversion of existing buildings into affordable housing, overturning a BOLI requirement for union wages on such projects (Oregon Journalism Project).
Gubernatorial debates: After months of back-and-forth, the two leading candidates for Oregon governor will not participate in a televised debate hosted by The Oregonian/OregonLive and KGW, meaning there won’t be a gubernatorial debate in Portland this year (The Oregonian).
Knight gift: Nike co-founder Phil Knight and his wife, Penny, announced a whopping $1 billion contribution to the University of Oregon Sept. 23. The money will help start an engineering school in Eugene, a major boost to the university’s research ambitions and a potential competitor to Oregon State University’s well-established program just up the freeway (The Oregonian).
Portland foot traffic: Monthly pedestrian traffic in downtown Portland topped 3 million in both July and August, the busiest months since the pandemic, according to data from the Portland Metro Chamber. Nearly all the growth comes from increased visitor traffic — weekends this summer were almost as busy downtown as in 2019. There has been no meaningful growth in the number of office workers downtown, however, suggesting that Portland’s urban core still faces a long road to recovery (The Oregonian).
Portland pay-gap tax: A pair of Portland city councilors will seek to dramatically increase the city’s existing, first-of-its kind tax on public companies that pay their chief executives vastly more than they pay an average worker. The proposal, announced Sept. 23 by Councilors Mitch Green and Angelita Morillo, would apply to about 405 large corporations and would also cut taxes for thousands of small businesses, according to their offices (The Oregonian).
Oregon educational progress: Oregon students’ post-pandemic recovery in math and reading continues to inch along at a snail’s pace, new testing data from the state Department of Education shows (The Oregonian).
Data center rates: PacifiCorp has agreed to a plan that the utility and ratepayer advocates say would put all the costs of powering data centers on the facilities’ operators. The agreement, which still needs to be approved by regulators, is intended to bring the utility’s rate structure in line with the POWER Act. That’s the state legislation adopted in 2025 amid concerns that rising data center demand was driving up electricity rates for other customers (Portland Business Journal).
Data center report: For the first time since the explosive rise of artificial intelligence and spread of political tensions around data centers, researchers in Portland have quantified the size and scope of the industry in Oregon. A new report from ECOnorthwest and the University of Virginia, funded by the Portland-based nonprofit Lemelson Foundation, quantifies basic yet hard-to-find data (Oregon Public Broadcasting).
Salem moratorium: Salem City Council voted unanimously on Sept. 21 to place a moratorium on data centers in Salem. The moratorium begins immediately and lasts until Jan. 19, 2027 (Salem Statesman Journal).
Geothermal project funding: A geothermal developer has secured more than $135 million to reach new depths and advance superhot rock development in Central Oregon’s Newberry Volcano. Texas-based Mazama Energy says the investments, made by major venture capital companies and oil businesses, will allow it to continue its quest to drill thousands of feet below the surface to harvest heat to generate renewable power (Oregon Public Broadcasting).
Portland real estate: The rental market here is so depressed that something almost unthinkable is now commonplace: Six-figure earners are paying some of the same rents as lower-income residents who qualify for subsidized housing (Wall Street Journal).
OHP work requirements: Oregon has begun sending letters to about 600,000 Oregon Health Plan members warning them about new requirements taking effect next year that potentially impact their eligibility for Medicaid benefits (The Oregonian).
PeaceHealth layoffs: PeaceHealth plans to lay off 150 employees in November, with the majority of the cuts in Vancouver. The Washington healthcare system informed state officials of the layoffs Sept. 18. The affected jobs are in IT and do not include medical or care positions (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.