Legislative leaders' No. 1 special session issue: jobs jobs jobs

Democrats respond to economic crisis and push kicker law reform to the back burner

By Steve Law

Pamplin Media Group, Feb 1, 2010, Updated Feb 2, 2010 (9 Reader comments)

Tribune file photo

Oregon lawmakers returned to Salem Monday to begin a special session. House and Senate leaders said they plan to focus on job creation and helping the unemployed instead of putting efforts into changing the state's unique budget kicker law.

Democratic legislative leaders promised Monday to work on job creation and aiding struggling families and small businesses, as state lawmakers kicked-off a one-month special session in Salem.

In a mid-day press conference, House and Senate leaders vowed to pass a bill releasing $19 million in unemployment benefits authorized last year but never spent. They also announced plans to streamline and increase small-business loans.

One proposal would give small businesses grants of around $2,500 for every new employee they hire, or no-interest or low-interest loans, said House Majority Leader Rep. Mary Nolan, D-Portland.

Legislative leaders dampened expectations that they’ll pursue reform of the state’s popular income tax “kicker” system, which would require voter approval of a constitutional amendment.

Senate President Peter Courtney, D-Salem, said he’s not convinced there’s enough campaign funding to pass such a constitutional amendment in November. That’s because the just-approved Measures 66 and 67 tax-increase campaigns left business and labor groups at odds and depleted of funds.

“There’s still some hard feelings out there,” Courtney said. “I don’t want it to lose, pure and simple,” he said of calls to put a kicker reform before voters. “That’s my one reservation today.”

During the 2009 legislative session, some business and labor groups said they would support a tax-reform commission’s proposal to divert some of the kicker rebate money into a reserve fund. Once such a fund grew to a reasonable size, the entire surplus would then go into kicker rebates, as before.

Gov. Ted Kulongoski is pressuring lawmakers to use the special session to put a similar plan before voters. However, Democratic leaders have lost some of their resolve to tackle kicker reform at this time.

Responding to the crisis

House Speaker Dave Hunt, D-Gladstone, who earlier said kicker reform would top the Democrats’ agenda for the special session, said some the labor and business groups that were “allies” on the topic now are wavering. “It’s very unclear whether they currently are allies,” he said.

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