Labor has voice on panel examining Oregon’s tax system
Several top labor leaders will be part
of a discussion of how to overhaul Ore-
gon’s tax system.
The 30-member Task Force on Com-
prehensive Revenue Restructuring, cre-
ated by the Oregon Legislature earlier
this year, had its first meeting Nov. 29.
Meeting monthly, it will have until Nov.
1, 2008 to develop a proposal for the
Legislature’s 2009 session.
Representing organized labor on the
task force are Leslie Frane, executive di-
rector of Service Employees Interna-
tional Union Local 503, and Jerry
Caruthers, executive director of the Ore-
gon Education Association. Two other
labor officials will be among the 13 non-
voting members of the task force: Bob
Shiprack, executive secretary-treasurer
of the Oregon State Building and Con-
struction Trades Council; and Ralph
Groener, political coordinator for Ore-
gon AFSCME (American Federation of
State, County and Municipal Employ-
ees) Council 75.
Labor’s role was spelled out by
House Bill 2530, which set up the task
force. Other slots were set aside for
businesses, local government officials,
and liberal and conservative tax and ad-
vocacy groups. The governor made 21
of the 30 appointments. The other nine
members of the task force include State
Treasurer Randall Edwards, and four
state senators and four state representa-
tives. A separate seven-member advi-
sory council of accountants, economists
and tax attorneys will help the task force.
Tim Nesbitt, former president of the
Oregon AFL-CIO, will be the gover-
nor’s staff liaison to the group. Nesbitt
is deputy chief of staff to Gov. Ted Ku-
longoski.
As detailed in House Bill 2530, the
task force is supposed to review Ore-
gon’s tax structure from top to bottom
— not just state revenues, but cities,
counties and school districts, too.
The state budget is funded mostly by
income tax, while county budgets rely
on property tax.
“The counties have a stable revenue
source,” Nesbitt said. “It just doesn’t
keep up with growth. The state has a
volatile revenue source, but it’s one that
pays off in good times.”
“Our concern will be making sure the
tax base is both adequate and equitable,”
said Frane about her union’s involve-
ment. “We want to make sure the tax
burden is shouldered appropriately and
that working people don’t pay a dispro-
portionate share.”
The task force will be led by former
Republican State Rep. Lane Shetterly of
Dallas, Ore. Shetterly led a group of 11
Republicans in the 2005 session of the
Legislature who bucked party leadership
and voted to refer a temporary income
tax surcharge to voters in order to avert
budget cuts. The surcharge was defeated
by a more than three-to-two margin.
Shetterly then resigned and was ap-
pointed by the governor to head the Ore-
gon Department of Land Conservation
and Development.
House members on the task force are
Phil Barnhart (D-Eugene), Tobias Reed
(D-Beaverton), Sal Esquivel (R-Med-
ford) and Scott Bruun (R-West Linn).
The senators are Ginny Burdick (D-
Portland), Kurt Schrader (D-Canby),
Frank Morse (R-Corvallis) and Rod
Monroe (D-Portland).
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E-Mail: gstorms@equitygroup.com
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7886 SE 13th Ave.
Portland, Oregon 97202
Direct: 503-495-4932
Branch: 503-233-8883
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