State
Blue Mountain Eagle
Wednesday, June 22, 2016
A9
Brown declines traditional summer debate with Pierce
By Paris Achen
Capital Bureau
SALEM — Gov. Kate
Brown has declined to partic-
ipate a July 22 debate that has
been longstanding tradition
for candidates in the race for
Oregon governor.
The debate, organized and
moderated by the Oregon
Newspaper Publishers Asso-
ciation, has typically ushered
in general election campaign
season for the past 30 years.
“It is disappointing be-
cause she was not elected in
by the voters, so it seems un-
fair for voters to miss out on
this opportunity,” said Laurie
Hieb, ONPA executive direc-
tor.
Brown gave no specif-
ic reason for skipping the
90-minute debate, which is
typically streamed live on
newspaper websites and re-
ported in news stories.
“The governor is looking
forward to debates and forums
as soon as the fall arrives, but
IP28
Continued from Page A1
that are so low — the low-
est in the country — that our
schools and critical services
are badly underfunded,” their
website states.
Hart said far more than
1,051 businesses will be af-
fected, however, by the “pyr-
amid” effect of the tax. A
restaurant may not have more
than $25 million in sales, she
said, but still be hit by higher
prices on utilities, ingredients
and equipment they purchase
from companies that do fall
under IP28.
The Legislative Revenue
Ofice’s report estimates the
law will result in 38,200 jobs
lost in the private sector but
17,700 added in the public
sector, for a net decrease of
20,500 jobs statewide.
A list of businesses that
will be taxed is not public re-
cord, but Paciic Power has
already stated publicly that it
would see its tax bill raised
by $40 million per year and
would have to raise rates 3-4
percent to cover the cost.
EO Media Group
Gov. Kate Brown has declined to participate a July 22 debate that has been
longstanding tradition for candidates in the race for Oregon governor.
right now she is focused on
her oficial duties,” said Liz
Accola Meunier, Brown’s
campaign spokeswoman.
Republican gubernatorial
nominee Bud Pierce agreed
The gross receipts tax pro-
posed in IP28 is not a “sales
tax” in the traditional sense
of the word. Consumers will
not see, for example, a 5-cent
tax added directly to their $2
gallon of milk. But if the farm
where the milk was produced,
the plant where the milk was
packaged and the store where
the milk was sold are class
C corporations with at least
$25 million gross sales, they
will each have to hand over
2.5 percent of their sales to
the government — in effect
taxing the same milk multiple
times.
Hart pointed out that the
tax is on sales, not proit,
which means that a business
must pay the same amount
whether it is making huge
proits or losing money.
She said that IP28 is be-
ing marketed as an increase
in money for schools, seniors
and health care, but once the
money is in the general fund it
can be used for anything.
“There’s no plan, no ac-
countability for how that mon-
ey will be spent,” she said. “In
the bigger picture, I couldn’t
agree more that schools need
to the debate the same day
ONPA extended the invita-
tion, Hieb said.
Hieb initially said that be-
fore declining the invitation,
Brown’s campaign asked
more money, but tax policy
does not belong on a ballot
measure.”
The coalitions being
formed on both sides of IP28
show the ballot measure is
shaping up to be a ight be-
tween public employee unions
and businesses.
A report from Oregon’s
Ofice of Economic Anal-
ysis, obtained in draft form
and published online by The
Oregonian, estimates that the
average Oregon-based corpo-
ration affected currently pays
$200,000 in taxes but will see
their tax raised to $2.2 million
by IP28, while the average
qualifying business based out-
side of Oregon pays $300,000
under current law and would
pay $3 million under IP28.
A Class C Corporation is
taxed on its net income and
then shareholders are taxed
separately on distributions.
An alternative is to become
an S corporation, for which
proits are taxed just once at
the shareholder level. C cor-
porations can convert to S
corporations, but only if they
have fewer than 100 share-
holders.
ODOT asks for moratorium on oil trains
By Paris Achen
Capital Bureau
SALEM — The Oregon
Department of Transporta-
tion has asked the federal
government to put a mor-
atorium on oil trains in the
Columbia Gorge and certain
other parts of the state over
concerns about inadequate
inspections.
The request follows the
oil train derailment in Mosier
June 3, which sparked a ire,
forced the evacuation of 100
people and spilled oil into the
ground and the city’s sewer
system.
Union Paciic oficials
have concluded that the
metal fastener system that
connects the railroad tie to
the rail failed, causing the
railway to break apart and
derailing 16 oil tanker cars.
The federal railroad admin-
istration is conducting its
own investigation into the
cause.
Inspections and tests by
the state and Union Paciic in
the days leading up to the de-
railment failed to reveal the
defects.
whether the governor could
get a copy of the questions
in advance, which ONPA de-
clined.
But an email chain with
Hieb provided by Brown’s
campaign shows that Mi-
chael Kolenc, Brown’s cam-
paign manager, actually asked
whether the questions would
be reviewed by a committee.
“Do you happen to have a
list of the editor and publisher
members? Do their questions
need to be reviewed by a com-
mittee?” Kolenc wrote.
The campaign also asked
who would be asking the ques-
tions, and Hieb said she didn’t
yet know.
The campaign then declined
the invitation.
“We were told she needs to
focus on her ‘oficial duties,’”
Hieb said. “I emailed her cam-
paign manager back and asked,
do you have a minute to discuss
on the phone, and he didn’t re-
ply.”
Pierce, a Salem oncologist,
said the governor’s excuse is
“very weak.”
“I am still practicing med-
icine as I run,” Pierce said. “I
am focused on taking care of
patients with cancer and blood
diseases and running for ofice,
State issues inal rules implementing
new minimum wage law
By Paris Achen
Capital Bureau
Oregon’s Bureau of Labor
and Industries inalized new
minimum wage rules Wednes-
day, requiring employers to pay
a regional rate based on where
the employee works more than
50 percent of the time.
The rules are a compromise
between a proposal favored
by labor groups and requests
by business groups to base the
rate on where the employer is
located.
“I appreciate that both in-
dustry associations and mini-
mum wage advocates stepped
up to advise our agency’s
rulemaking process,” said La-
bor Commissioner Brad Avaki-
an in a statement. “As Oregon
raises its minimum wage for
more than a hundred thousand
workers next month, we hope
that the rules will provide fair-
ness to workers and employers
alike.”
The Legislature in February
boosted minimum wage rates
and set a schedule for increas-
es with three different regional
rates, based in part on the area’s
cost of living and income lev-
els. Proposed rules that deined
location of itinerant employ-
ees required employers to pay
different rates if an employee
worked in a different region for
four hours or more.
Business groups opposed
the rules because they said it re-
quired onerous recordkeeping.
Under the inal rules, no
additional recordkeeping is
required for most employers,
said Charlie Burr, labor bureau
spokesman. When an employ-
ee works in multiple regions
the majority of the time, the
employer may choose whether
to pay the employee the highest
rate or to track the employee’s
hours by location and pay them
different rates according to
where they worked.
Delivery workers who re-
port to and from the same loca-
tion will be paid the rate of the
region where they report.
Betsy Earls, vice president
and counsel of Associated Or-
egon Industries, said the inal
rules are an improvement from
what was originally proposed,
but the guidelines still have
shortcomings.
“Those are huge strides, so
June 25th and 26th, 2016
INVITATION
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much better,” Earls said.
Earls argued that lawmak-
ers intended employer location
to mean the location where the
employee reports to work, rath-
er than different pay based on
where employees go during the
day.
She said exempting delivery
workers and not other workers
that work in multiple locations
from the rules doesn’t make
sense.
The labor bureau will hold a
series of seminars to help em-
ployers comply with the new
rules.
The irst-of-its-kind law
takes effect July 1, bumping
up the state’s minimum wage
from $9.25 to $9.75 in urban
counties, and $9.50 in rural
counties.
In 2017, wage increases
will further diverge according
to region. In rural areas such as
Grant County, the wage gradu-
ally climbs to $12.50 in 2022.
SILVER SPUR CAFE
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so we are all busy.”
“It’s obvious she doesn’t
want to be there to answer ques-
tions,” Pierce said. “We know
she is the incumbent and feels
she is the strong favorite. It
might be a good political move
as the incumbent, but it is very
disrespectful to the Democratic
process. If you are the leader
of the state, Oregonians want
to know what you are thinking
and to take hard questions.”
Republican Chris Dudley,
a former NBA player who ran
for governor in 2010, may be
the only other gubernatorial
candidate from a major party
who has opted out of the event,
according to the ONPA.
Instead of a debate, the as-
sociation has given Pierce 30
minutes to present and answer
questions during the associa-
tion’s convention July 22 at the
Oregon Garden. The conven-
tion also includes a presenta-
tion on a controversial corpo-
rate sales tax measure on the
November general election
ballot.
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EMPLOYMENT OPPORTUNITY
The Blue Mountain Eagle, a family-owned weekly newspaper in a stunningly beautiful Oregon
community, is seeking an energetic, dedicated reporter. Topics include forest health, logging,
public lands grazing, water supply, wildlife habitat improvements and wildfire resilience in
addition to coverage of small-town life and local government.
The Eagle is located in John Day, Oregon, just three hours from Bend and Pendleton. The
community is at the center of an evolving natural resource restoration economy, which gains
statewide and even national attention. The location offers year-round recreational opportunities,
including backpacking, camping, fishing, hunting, snowmobiling and horseback riding.
Serving the community for 146 years, the Eagle is the oldest weekly newspaper in Eastern
Oregon and is part of EO Media Group, an award-winning and innovative news organization with
an active family of owners. This position offers excellent advancement opportunities in a
company that prefers to hire from within. EO Media Group owns 11 newspapers and 17
websites that provide accurate, fair and timely reporting about the people and issues impacting
the communities we serve in the Pacific Northwest, reflecting the responsibility and spirit of a
free press.
We seek a journalist who is passionate about local news and excited about the opportunity to
publish in print, online and with social media. Candidates must be able to develop story ideas,
take photographs, develop sources, prepare website and social media updates and work in a
cooperative team environment.
Journalistic integrity is a must.
Journalism education or experience is required
for this full-time position offering health and
retirement benefits. Send resume, letter of
interest and several clips of (or links to)
your work to EO Media Group,
P.O. Box 2048, Salem, OR 97308-2048;
by fax to 503-371-2935; or by email to hr@eomediagroup.com
FRIDAY, JUNE 24TH
10 a.m. - 2 p.m.
Old West Federal Credit Union
The event is open to the community with
Secure Shredding provided by
Accu shred of La Grande