Government and Politics

Oregon lawmakers are locked in a stalemate over whether to make additional cuts to the state's pension system for public employees.

The debate will affect every unit of government in Oregon. Most of the conversation at the capitol has surrounded the impact to state agencies and schools. But city and county governments are also watching the pension battle closely. 

Oregon lawmakers are locked in a stalemate over whether to make additional cuts to the state's pension system for public employees.

The debate will affect every unit of government in Oregon. Most of the conversation at the capitol has surrounded the impact to state agencies and schools. But city and county governments are also watching the pension battle closely. 

There’s suddenly a flurry of talk in Olympia about a quick resolution to the weeks-long budget stalemate. The change in rhetoric follows Tuesday’s positive revenue and caseload forecasts.

Budget writers will now have an additional $300 million-plus to help bridge their differences. They can thank a recovering housing market and improved consumer confidence.

The House and Senate have been locked in a partisan fight over whether to raise additional revenues by closing some tax exemptions. This new money could now fill that gap.

Protracted budget talks in Olympia could see a breakthrough after Tuesday’s release of an updated revenue forecast. That’s the quarterly report that projects how much money will flow into state tax coffers in the coming months.

Lawmakers are expecting some positive news. A couple of hundred of million dollars to the positive could prove a game-changer in the weeks long budget stalemate.

A plan that would give state government broad powers to step in and bail out struggling timber counties could advance soon in the Oregon legislature. A House panel could vote as soon as Monday on a bill that could lead to a temporary tax hike in counties that are struggling to maintain basic services.

A companion measure was approved in the full House Friday.