NEWS UPDATE FROM STATE REPRESENTATIVE DAVID GOMBERG: A Basically Boring Update

>By State Representative David Gomberg, House District 10

10/6/2025
Dear Friends and Neighbors,

I promised my overworked, one-person staff that I would write a boring newsletter this week.

The last two reports have generated over 250 emails each, and getting each of you a personal response has been challenging since the legislature had both a Special Session and quarterly interim committee meetings last week.

So true to my word, today I present a deep dive on Oregon’s evolving economy.

Do you think you’re middle-class in Oregon?

The level of income that defines a household as “middle class” changes regularly with inflation and the cost of living. The socioeconomic label is informal, but a recent study from GoBankingRates explored what level of income is needed in each state to be considered middle class, including Oregon.

Mississippi, Arkansas, and West Virginia had the lowest threshold to be considered middle class. In Mississippi, a two-person household needed to make just $41,999 a year to meet the GoBankingRate criteria. On the other hand, Maryland and Massachusetts required the most income to be considered middle class. A two-person household in Maryland would need $71,611, nearly doubling the requirement in Mississippi.

What income qualifies as middle class in Oregon? According to GoBankingRate’s analysis, that will vary with family size.

2-person family middle-class income range: $57,795 to $173,386
3-person family middle-class income range: $70,143 to $210,430
4-person family middle-class income range: $82,018 to $246,054

Oregon has a lower cost of living than its West Coast neighbors of Washington and California, but a higher cost of living than its Mountain West neighbors of Idaho and Nevada. As such, its middle-class income range fell in between those states.

A living wage calculator from the Massachusetts Institute of Technology estimates that for a one-adult, zero-child household, you’ll need to make at least $52,328 per year in Oregon. This gross income accounts for housing costs, utilities, internet, transportation costs, and more. For a two-adult, zero-child household, that number bumps up to $71,871.

This number is a statewide average and drops outside the Portland and Bend metro areas. Medford and Springfield are the most economical places for those seeking a lower cost of living, according to Redfin.

MIT said the cost of living in the Eugene-Springfield area was $47,680 for a single, childless adult and $66,674 for a household with two adults and no children. In the Salem area, the number was $49,612 for an adult with no kids and $68,087 for two adults with no kids.

Where does Oregon rank in cost of living?

The cost of living in Oregon is 12% higher than the national average, according to World Population Review.

U.S. News and World Report ranked Oregon as No. 43 in its cost of living analysis, naming it the eighth most expensive state to live in. The states dubbed as having the lowest cost of living are Arkansas and Mississippi, which is consistent with the GoBankingRates data.

Oregonians are feeling a bit gloomier about their finances, with more saying they would struggle to afford a significant, unexpected expense.

One-third of people say they would have to borrow money to cover a $400 emergency, according to a new poll from Oregon Consumer Justice and the Oregon Values and Beliefs Center. That’s up from about 25% in the fall of 2023 but down a smidge from 35% last fall.

Oregon’s figures closely mirror national data collected by the Federal Reserve, which has been tracking the subject for more than a decade. The Fed finds that 37% of people say they couldn’t cover a $400 expense, up from 32% in 2021.

Faced with a financial crisis, Oregonians say they would most likely sell something or borrow from a friend or family member to come up with emergency cash. The Oregon poll finds, unsurprisingly, that there are big differences in financial security based on demographic factors:

75% of Oregonians over age 75 say they could easily cover a $400 emergency. Just 22% of those age 18 to 29 agree.
64% of college grads are confident they can come up with $400 in a pinch. Among those who didn’t graduate from high school, only 18% say the same.
44% of white Oregonians say they have the $400 for an emergency. It’s just 28% for nonwhite Oregonians.

Housing and utility costs represent Oregonians’ biggest financial stressors, according to the poll. Thirty-nine percent of respondents listed each of those as areas of deep concern.

Credit card debt, unspecified loss of income, unexpected fees or penalties, and layoffs are Oregonians’ other major worries.

The new poll comes as Oregon’s economy shows growing signs of strain, with layoffs climbing steeply in each of the past two years and unemployment rising steadily. The state’s jobless rate was 5.0% last month, the highest level since the pandemic. Read the story in the Oregonian here.

Oregon’s labor market has been anemic recently, with the manufacturing, construction, and hospitality sectors all struggling. But growth was robust in one segment of the economy: Jobs paying more than $60 an hour ($125,000 a year for full-time workers).

Employment at the top of the wage scale grew by 10% last year, amounting to 36,000 more high-paying jobs, according to a recent analysis by Oregon Employment Department economist Molly Hendrickson. That growth was nearly twice as fast as in any other wage category.

Low-paying jobs, meanwhile, declined sharply during 2024. Oregon had 68,000 fewer positions paying under $15 an hour at the end of the year.

Where did all those low-paying jobs go? Most of them turned into higher-paying jobs. Oregon’s minimum wage rises every year, pegged to inflation. The lowest legal wage varies from region to region across Oregon, based on each community’s cost of living, but the state’s standard minimum wage rose 3.2% last year to $14.70 an hour and again this year, to $15.05.

Each time the minimum wage goes up, Hendrickson said workers in low-wage categories may move up a notch — pushing wages up for those above them, too.

That’s good news for workers, as far as it goes. But some low-paying industries, like hospitality, are genuinely shrinking. That can make it hard for Oregonians to find entry-level jobs to start their careers and support their families.

Oregon’s construction sector, for example, has been shrinking since 2023. But the job losses were concentrated among lower-paying jobs, so the industry’s median wage increased by 3.3% last year after adjusting for inflation. Construction added more than 4,500 jobs paying above $60 an hour.

On balance, Oregon’s growth in high-paying jobs outweighed losses at the bottom of the pay scale. Oregon’s median hourly wage was $24.24 last year (about $50,000 a year for full-time work). That’s a 5.4% increase, nearly double the rate of inflation.

Read this story here.

Cost of living and access to housing continue to be top priorities for Oregonians. The regular 2025 legislative session adjourned on June 28^th. Laws that were passed and went into effect 90 days after, on September 26, expand access to housing and protect Oregon consumers, ultimately putting money in the pockets of those who need it most. Here are a few examples.

Expanding Affordable Housing Access (SB 1086 & HB 3232): HB 3232 makes it easier for certain affordable housing to get a property tax break, removing the rule that the housing must be built or changed after the tax break program started. SB 1086 calls on the Director of the Department of Consumer and Business Services to work with the Oregon Building Officials Association to propose an apprenticeship program for building inspectors, helping train and grow the workforce that’s essential for producing more housing options.

Preventing Youth Exposure to Marijuana Advertising (HB 3724): HB 3724 prohibits the advertising, packaging, and labeling of marijuana products in ways that are likely to appeal to minors or encourage them to unlawfully possess or consume marijuana. The bill aims to reduce youth exposure to marketing that could normalize underage marijuana use while maintaining legal access for adults.

Strengthening Consumer Data Privacy in Vehicles (HB 3875): HB 3875 requires motor vehicle manufacturers and their affiliates to comply with state privacy laws when collecting, controlling, or processing personal data obtained from a consumer’s use of a motor vehicle. The bill applies these privacy requirements regardless of how many consumers’ data the manufacturer or affiliate collect. Companies now must honor your request to delete your personal data, give you a copy of your data, or stop selling it or using it for targeted advertising.

Protecting Privacy in Short Term Rentals (SB 470): SB 470 gives guests in Oregon hotels and short-term vacation rentals the authority to sue innkeepers, landlords, and reservation services if these rental providers record still photos, videos, or audio of the guests in private spaces. Until this law was passed, photos and videos taken or shared without consent counted as an invasion of privacy only if nudity was involved. SB 470 widens the definition to any images taken when a person reasonably expects privacy in their vacation rental or hotel room.

Construction continues in your Capitol and the House chamber is currently closed.

Protecting Job Applicants’ Privacy (HB 3187): HB 3187 makes it illegal for employers to ask for or require certain information about a job applicant’s age or the dates they attended or graduated from school. The bill is designed to help prevent age discrimination in hiring.

Promoting Awareness of Cash Payment Requirements (SB 1176): SB 1176 directs the Bureau of Labor and Industries to educate both businesses and residents about the rule that places of public accommodation, like retail stores and restaurants, must accept cash as payment for goods and services. The bill aims to make sure everyone understands their rights and responsibilities when it comes to accepting cash.

Regulating Compensation for Veteran Benefit Services (SB 150): SB 150 is intended to protect veterans from being charged improper or excessive fees. Oregon has Veteran Services Offices (VSOs) all over the state that provide assistance claiming benefits at no charge to veterans. This new law bans anyone from taking compensation for services that are free through local VSOs, and the statute prohibits unreasonable fees for providing help that isn’t available at VSOs.

Support for Small Business (House Bill 2248): HB 2248 creates a formal division of employer assistance inside the Bureau of Labor and Industries (BOLI) to provide opinions to employers seeking to comply with state employment laws. The measure specifies that employers relying upon such communications in good faith cannot be punished with penalties by the agency.

Protecting Paid Leave Applicants Senate Bill 69: SB 69 guarantees individuals appealing their Paid Leave Oregon benefits can still file a complaint to BOLI while they are in the process of finding out if they will receive benefits. The law allows the use of sick time for any purpose that qualifies for Paid Leave Oregon, which would include family or medical leave.

Sick Time for Blood Donations (Senate Bill 1108): SB 1108, which goes into effect in January, allows workers to use sick time off to participate in an accredited voluntary blood donation program, such as one run by the American Association of Blood Banks or American Red Cross.

Banning Child Marriage (Senate Bill 548): SB 548 raises the minimum legal marriage age in Oregon to 18, eliminating the previous exception that allowed 17-year-olds to marry with parental consent. This change aims to protect minors from potential exploitation and aligns Oregon with a growing number of states prohibiting child marriage.

In a season of drastic governmental cutbacks, one Oregon agency has found some relief.

The Bureau of Labor & Industries (BOLI), which, according to the state labor commissioner, has suffered from cuts and underinvestment for decades, got a 30% bump in the latest state budget. State lawmakers allocated an additional $18.7 million to the agency’s 2025-27 budget for a total of more than $80 million.

The wage and hour laws BOLI enforces include minimum wage and overtime, child labor, sick leave, rest and meal periods, making allowances for nursing moms to breastfeed or pump breast milk, and more. Since the agency created a simplified process for submitting claims online, those claims have gone up by more than 200%.

In the 1980s, the agency had one employee for every 5,750 Oregon workers; by 2024, that ratio had fallen to one for every 20,000. In the five-year period that wage claims increased by more than 200%, staffing remained flat, leaving thousands of Oregonians without timely recourse when wages were stolen.

BOLI plans to use the money to tackle a backlog of 7,500 civil rights and wage theft cases, and take other steps to improve efficiency. The agency says the change will allow it to clear a backlog of cases that forced it to stop investigating wage theft claims for workers making over $52,710 annually or $25.34 per hour back in October 2024.

The agency plans to add staff around the organization — intake specialists, mediators, case investigators, customer service professionals — and replace its outdated and crash-prone case management system.

On October 1, the Bureau announced that it is lifting the income threshold on wage claims, restoring investigations for all Oregonians who believe they have not been paid what they are owed.

Last weekend, I was pleased to meet with Lincoln County home care workers and personal support workers. I also dropped in on local arts advocate and leader Catherine Rickbone’s 80th birthday celebration.

As I said, I spent the first half of last week in Salem. Morning meetings typically began at eight and evening commitments ended after seven. The Ways and Means Committee reviewed more than 20 items during its Wednesday meeting. I had conferences with the director of OLCC, the Employment Division, Department of State Lands, the Oregon Watershed Enhancement Board (OWEB), Department of Revenue, Housing and Community Services, and the Department of Geology and Mineral Industries (DOGAMI).

Thursday, I sat down with the Small Business Development Centers Advisory Board. Friday, Rep. Paul Evans and I recorded our fifth news interview about disaster preparation and resilience in the aftermath of recent tsunamis. Susan and I enjoyed the Oregon Coast Jazz Party in Newport on Friday and Saturday nights.

Saturday, I attended the Benton County Legislative Breakfast and then a town hall hosted by the League of Women Voters.

All of this is to say that while this report may trend toward being a bit boring, legislative life is anything but that.