NEWS UPDATE FROM STATE REPRESENTATIVE DAVID GOMBERG: Oceans of News!

6/3/2024

Dear Neighbors and Friends,

Later this week, June 8, we will observe World Oceans Day.

The official designation of World Oceans Day is an opportunity to raise global awareness of the current challenges faced by the international community in connection with our oceans. Those oceans cover over 70% of the planet. It is our life source, supporting humanity’s sustenance and that of every other organism on earth.

The ocean produces at least 50% of the planet’s oxygen, it is home to most of Earth’s biodiversity and is the main source of protein for more than a billion people around the world. The ocean is also key to our economy with an estimated 40 million people being employed by ocean-based industries by 2030.

The ocean is now in need of our support.

With 90% of big fish populations depleted, and 50% of coral reefs destroyed, we are taking more from the ocean than can be replenished. We need to work together to create a new balance with the ocean that no longer depletes its bounty but instead restores its vibrancy and brings it new life.

Here in Oregon, we have much to celebrate with the formal signing of two critical pieces of ocean legislation.

According to Environment Oregon, House Bill 4132, increases the state’s investment in our system of five marine reserves and protected areas following the 10-year anniversary of Oregon’s marine reserves program. A Senate vote of 26-3 followed a unanimous vote (55-0) by the House. The bi-partisan bill championed by chief sponsor Representative David Gomberg (D-10) and Oregon’s Coastal and Environmental Caucuses will help protect the health and biodiversity of marine ecosystems for ocean wildlife and Oregonians into the future.

“It’s been a decade since we’ve established marine reserves off our Oregon Coast,” said Gomberg. “And while they have been invaluable in our understanding of changing ocean conditions and consequent impacts on our fisheries and natural environment, I’m heartened to see my colleagues support legislation like this that will strengthen the program, facilitate better engagement with tribal communities and our fisheries, and truly carry out ocean conservation the Oregon way.”

Learn more about our reserves here.

Representative Gomberg and the Oregon Coastal Caucus were joined by a broad coalition of environmental organizations for the formal signing of HB 4132 to renew and expand our commitment to Oregon’s five marine reserve sites dedicated to conservation and scientific research.

The Governor also signed House Bill 4080A into law, reinforcing Oregon’s commitment to requiring robust public engagement and strong labor standards for any future development of wind energy off our coastline. Bringing offshore wind to Oregon’s coast must be done correctly, which means including strong workforce equity provisions, robust labor standards, and ensuring that labor, conservationists, tribal leaders, and a diverse community of stakeholders are engaged to explore the impacts and benefits of offshore wind development.

The federal government is moving forward. A coalition of legislators, fishing boat operators, and seafood companies, tribes, and environmental organizations is calling on Governor Kotek to ask the BOEM to urge delays of a planned auction for floating wind energy projects until the state has finalized this roadmap for offshore wind development.

Chief Sponsors Grayber and Gomberg are joined by representatives of Oregon’s fishing industry, Tribes, and coastal communities for the signing of HB 4080 to improve coastal engagement before wind energy is established here.

On a more discouraging ocean subject, I continue to get daily updates on the tar-like substance that has been washing up on Oregon’s beaches and endangering wildlife. Officials warned people not to touch it in a statement released Saturday.

Updated reports can be found here.

Officials added that people shouldn’t try to clean up the substance themselves and that anyone who touches it should wash it off with soap or degreasing dishwashing detergent and water.

Please do not try to handle affected wildlife. This is dangerous for you and the animal. Instead, call 1-800-22-BIRDS (1-800-222-4737) to alert trained rehabilitators. When these birds are found, they’re taken in and stabilized, cleaned and monitored in a pool to ensure their feathers will once again be waterproof. This allows the birds to stay warm and function normally in the wild.

The source of the petroleum-based tar is under investigation, with multiple agencies involved and assisting. To report oil sightings, please call 1-800-258-5990.

The most important news of the legislative week was the quarterly revenue forecast. Oregon’s economy continues to grow steadily, but at a slower pace than it has in recent years, state economists told lawmakers on Wednesday. But they also warned that additional tax collections – and refunds – might not happen because of uncertainty with the national economy.

More people working and more people earning more for that work means state income increases while individual tax rates remain unchanged.

April personal income tax collections are coming in higher than expected, leaving a “fifty-fifty proposition” that Oregonians will receive a $582 million kicker tax credit in 2026, two years after the state paid out the largest kicker in state history. The credit kicks in whenever income tax payments are 2% higher than forecasts when crafting the two-year budget.

Oregonians received over $5 billion in kicker payments this year, with about $1,000 going back to the median taxpayer who earns between $35,000 and $40,000 annually.

Legislative reactions to the forecast were predictively mixed. Some credited the legislative effort to foster a positive business climate and prudent fiscal decisions. Some legislators used the forecast to call for more spending on housing, schools, and behavioral health. And some observed that the state has continued to “take more than enough of our hard-earned tax dollars and should reduce spending”.

For my own part, I see the forecast as a necessary but flawed tool to base our spending on. We need to know how much money to expect before we decide how much to spend. Guess too high and we can’t pay our bills. Guess too low and we limit spending and return the balance to taxpayers. Either way, it is a well-intended and well-educated guess. Projecting the economy in the face of pandemics, wildfire, global conflict, national elections and inflation have become increasingly difficult and increasingly wrong. Changing the kicker law seems unlikely. And changing our forecasting methodology seems elusive.

There are still four more forecasts before lawmakers receive the final March 2025 numbers they’ll use to craft the next two-year budget, and a lot could change in the coming months. But for now, forecasters estimate the state will have about $34 billion in its general fund, up slightly from the 2021-23 biennium, and lawmakers will have more money available to dip into in case of emergencies in the current two-year budget cycle.

The legislatively approved budget (LAB) for the 2023-25 biennium is $124.631 billion total funds, an increase of $3.37 billion from the 2023-25 budget adopted at the end of the 2023 session. Here is a glimpse of how those numbers have changed over time and where those dollars go.

I’m often asked where lottery funds and marijuana revenues go. Both are specified in state statutes. The forecast this week gave a good current update on income and distribution.

There was also some interesting data on cannabis consumption. In summary, the number of users is up, but prices are down. With slower price increases in the years ahead, this has a direct impact on the revenue outlook because Oregon levies its recreational marijuana tax based on the sales price, and not the quantity consumed. You can read more on page 29 here.

Here is some tax news that I’m not happy about.

A bipartisan bill that would exempt wildfire settlements from federal taxation is now mired in election-year politics that could leave hundreds of Oregonians facing massive tax bills on settlements they’ve received from PacifiCorp after the devastating 2020 wildfires.

The federal stalemate comes after the Oregon Legislature unanimously passed my bill during this year’s short session to exempt those settlements from state taxation.

Wildfire survivors continue to pursue compensation for losses and emotional harm in Oregon Courts. Many cases have already been resolved. Last summer, a jury found PacifiCorp liable for some fires and determined that its actions before and during the fire were grossly negligent, reckless, and willful. Settlements or awards range into the millions of dollars for some plaintiffs.

Settlements of that size, however, will push many victims into the highest federal tax bracket of 37%.

As it stands, the federal government taxes victims on the entire amount of any settlement or jury award as ordinary income. That includes a substantial portion they never see: the 25% to 40% cut that typically goes to their attorneys. And due to a change in tax law passed during the Trump administration, victims who aren’t filing business returns can’t deduct those attorney’s fees from their settlement income. Meanwhile, attorneys are also required to pay taxes on the settlement fees, so those fees are taxed twice.

So – if you receive $1 million from a jury, pay $370,000 in federal taxes and $400,000 in attorney fees, you end up with $230,000. That means victims, many of whom are still reeling financially as they look to rebuild and get their lives back on track, could end up with as little as 25% of the gross amount they are awarded by a jury or in mediation.

Let’s hope for a resolution of this federal logjam soon!

Highlights of my week in the district included the B’nai B’rith Camp Scholarship Dinner, a delightful gathering at Connie Hansen Garden, and National Cancer Survivors Day at the Center for Health Education in Newport.

The BB Camp event raises funds for local kids to attend camp during the summer. In a community where working parents can’t find daycare, 20 percent of our kids are listed as homeless, and more than half receive free meals at school, B’nai B’rith has hosted more than 5,000 local children – the great majority on full scholarship. They care for them, feed them, and educate them. And speaking of feeding, the Camp also used its kitchens to provide more than 350,000 free meals – so far – to fire survivors, families in need, and hungry children.

The larger BB Camp complex has been used for local weddings, concerts, and events for the north Lincoln community as well as religious services. It is a well-regarded asset and I’m pleased to be a strong supporter.

Cancer Survivors Day provides an opportunity for all people living with a history of cancer – including America’s more than 18 million cancer survivors – to connect with each other, celebrate milestones, and recognize those who have supported them along the way. It is also a call to action for further research, more resources, and increased public awareness to improve the lives of cancer survivors.

Cancer has touched so many lives in our community – including my own family. Susie and I were pleased to be there.

The week ahead is as busy as ever. Monday I speak at the Small Business Management Graduation Celebration in Newport, and at the Oregon Coast Visitor Association business social in Gleneden Beach. Tuesday and Wednesday I have meetings about wildfire recovery and plans for further public safety investments next session. And Thursday I’m honored to say a few words at the Court of Honor for new Eagle Scout Tobias Shieff.

Friday the Department of Land Conservation and Development is holding a community listening session regarding offshore windleasing that is being explored by the Bureau of Ocean Energy Management. You can join me at Newport High School at 5:30 pm.

Saturday the Siletz Valley Fire District is holding an open house. And Sunday I’ll be celebrating with the Newport Chamber of Commerce at the Newport Aquarium.

Make a note that on June 18, the legislative Transportation Committee will hold one of twelve community listening sessions in Tillamook. That’s our closest opportunity to comment on highway repairs and how we will pay for things moving forward. More information on that next week!

And that, friends, is the news for now.

Warm Regards,