Oregon elected officials’ reckoning with souring economic indicators was on full display Monday at a state business conference, where leaders acknowledged the challenges facing the state’s businesses but offered few specific fixes.
At the Oregon Leadership Summit, an annual gathering of top business leaders and elected officials, high-ranking lawmakers and Gov. Tina Kotek said they are determined to make Oregon an easier place to maintain and grow a business. Lawmakers in the Democratically controlled Legislature will have an opportunity to enact such policies during the monthlong legislative session that will begin in February.
Democrats shared a couple of specific policy ideas. House Majority Leader Ben Bowman, a Democrat, said he is preparing a proposal to streamline inconsistent permitting processes for businesses. And Kotek said she will ask lawmakers to boost state loan funding for site development in industrial zones and establish an office to streamline permitting on major projects.
But members of both parties provided few other specifics for how they intend to attract or retain business in the state. Instead, they spoke broadly about their goals and mentioned a hodgepodge of ideas with varying levels of detail and support.
“I completely agree that high taxes are a reason why some people are leaving,” said Bowman, a Tigard Democrat. However, Bowman did not suggest the state should cut taxes. Rather, he said Oregon needs to bring more accountability to its government. “I think what is really important is that we have a government that can actually deliver results,” he said. “And I think that is what we’re missing right now.”
The business summit occurred just one week after Kotek unveiled a plan to boost Oregon’s economy and make the state more business friendly as it faces sluggish population growth, high housing costs and other faltering economic indicators.
While the blueprint established a new council to carry out the plan, it did not set any deadlines or lay out any specific budget requests to meet its high level goals. Kotek said she will rely on the council to develop more specific timelines.
“Oregon cannot afford to be complacent,” said Kotek, who last week announced that she will run for reelection in 2026. “When the stakes are high, we must act with intentionality.”
Economic experts and business leaders on Monday noted that the state’s population growth has stagnated, that its workforce has been beset by an epidemic of layoffs, and that Oregon has fallen sharply in rankings of its tax and business climate by CNBC and the Tax Foundation, which advocates for lower taxes.
In a video presentation, Portland economist John Tapogna noted that deaths outnumber births in Oregon and argued that the state must change its mindset about growth to encourage new residents to move here. Tapogna said the state needs land-use, tax and regulatory reform and accountability in public education, along with more assertive forest management to reduce wildfire impacts.
Top lawmakers agreed that Oregon is at a turning point in its business and economic landscape, but they stopped short of committing to any significant changes beyond generally calling for more accountability in state spending.
House Speaker Julie Fahey, a Eugene Democrat, said she was open to revisiting Oregon’s land use laws and other long-established policies to try to encourage business growth. But Fahey offered few details and did not commit to make any specific changes during the short session.
Republican leaders, many of whom have long pushed Democrats to make Oregon more business-friendly by slashing taxes and regulations, called on their counterparts to collaborate with them during the short session.
“If my colleagues on the other side of the aisle are interested in reducing taxes and cutting regulations,” Senate Republican Leader Bruce Starr of Dundee said, “they’re going to find partners on the Republican side of the aisle. There’s no doubt about that.”
The short session is set to begin Feb. 2.
— Business reporter Mike Rogoway contributed reporting.