BALLOT MEASURES ARE ON THE HORIZON  

It's that time again for the elections cycle -- that is, if you can get your mind off what's more important, the holidays and time with your families. 

That time again? Ballot measures. 

The process in Oregon calls for proposing ballot measures at about this time of the year, then devoting time and money to collecting signatures to get on the ballot. Signatures are due to the Secretary of State's Office in Salem in July 2012 after which staff there will review the submissions to decide which ones have collected enough -- about 75,000 for a statutory change and about 95,000 for a Constitutional change -- to make the ballot. 

Certification in July starts the official campaign season. Managers gear up to run the campaigns, which tend to start in earnest after Labor Day when Oregonians return from vacation. Fund raising starts in earnest, too.

The amount raised tends to indicate whether campaigns will have enough wherewithal to engage in an activity important to OAB members -- buying political ads on radio and television stations. Some ballot measure campaigns tend to run under the radar of media advertising, if only for lack of money. Others, the high-profile measures that garner public attention and special interest commitments, focus on a key issue -- how to communicate with Oregonian voters.  

And that's where media advertising comes in.  

Heading toward the ballot in November 2012, here are some of prospects for measures, along with an assessment of whether they are likely or not: 

* A ban on gillnet fishing. Possible. 

* A ban on plastic bags: Not likely. 

* A change, patterned at least in part after what happened in the State of Washington, on state liquor sales: Not likely, at least not this time around. 

* A ban on real estate transfer taxes: Likely, especially after news last week that the measure sponsor, the Oregon Association of Realtors, just received more than $320,000 from the National Association of Realtors, to help with signature collection. 

* A ban on same sex marriages: Not likely; at least proponents say they will not be ready until one of the next cycles. 

* A ban on studded tires: Possible.

In addition, Our Oregon, a liberal, union-based organization, filed 13 new initiatives with the Secretary of State's Office last week. Most of them will not go anywhere and, in any event, the organization will have no ability to push all of the initiatives. But, still, the list is instructive if only because unions, especially public employee unions, will be active in the upcoming election cycle.

What follows, thanks to Jim Craven, lobbyist for Tech-America, the organization of high-tech companies in Oregon, is a listing of the 13 initiatives. And, if you look at them, even quickly, one message is clear -- unions are prepared to advocate a clearly anti-business message on the campaign trail.

Measure 28

Statutory: Changes Measure 67 corporate income tax rates.

Under Measure 67, the following tax rates apply for corporate taxable income beginning in 2013: 6.6% for income below $10 million. 7.6% for income above $10 million.

This measure would set those rates beginning in 2013 at 6.6% for income below $10 million and 10% for income above $10 million.

Measure 29

Statutory: Same as Measure 28 above, but repeals the “Hass amendment” added to Measure 67 which says that any revenue generated from a corporate tax rate above 6.6% beginning in 2013 will flow into the state’s Rainy Day Fund.

Measure 30

Constitutional: Repeals corporate kicker for biennia beginning July 1, 2013.  

Measure 31

Constitutional: Corporate kicker excess revenues dedicated to Rainy Day Fund beginning July 1, 2013.  

Measure 32

Constitutional: Changes personal income tax kicker.

Personal income tax kicker credits not allowed for taxpayers whose adjusted gross income is in the top 1% of all personal income taxpayers. The share attributed to these taxpayers remains in the general fund.  

Measure 33

Statutory: Changes Measure 66 personal income tax rates.

Under Measure 66, personal income tax rates beginning in 2012 were the following (double the dollar thresholds for joint returns):

Income if less than $125,000 = 5-7-9% depending on income

Income if more than $125,000 = 9.9%

This measure adjusts those rates as follows beginning in tax year 2012:

Income from $125,000 to $500,000 = 9.9%

Income above $500,000 = 13.6%  

Measure 34

Statutory: Same as Measure 33, but effective date begins for tax year 2013.  

Measure 35

Constitutional: Corporate kicker excess revenues are “retained in the general fund and used to provide additional funding for public education, K-12.” Not clear what “additional” funding means – additional to what?  

Measure 39

Statutory: Changes Measure 66 personal income tax rates.

Beginning in tax year 2013, the following personal income tax rates would apply:

Income if less than $125,000 = 5-7-9% depending in income

Income if more than $125,000 but < the “top 1% threshold” = 9.9%

Income if more than the “top 1% threshold” = 13.6%  

Measure 40

Constitutional: “Total tax expenditures authorized by Oregon law” shall be no more than the general fund budget. The phrase is not defined; would probably refer to tax expenditures as defined in the 1995 Budget Accountability Act. The 2011-13 tax expenditure report says that the total of all tax expenditures equals $31.3 billion. The measure provides no guidance for how the Legislature would enact the limit.  

Measure 41

Constitutional: Complex limitations on tax expenditures.

Like Measure 40, this measure limits total tax expenditures to no more than the general fund budget. It goes on to exempt a host of existing income tax and property tax exemptions from counting towards that total (mostly social welfare type tax breaks). It then lists a number of existing tax expenditures for which the Legislature shall “develop and apply a means test.” These include:

• Cafeteria plans
• Capital gains on home
• Pension contributions
• Self-employed health insurance
• IRA contributions
• Medical expenses
• Home mortgage interest
• Federal pension income
• Personal exemption
• Retirement income
• Inventory  

Measure 42

Constitutional: Protects rights of public employees to make voluntary payroll deductions. Says that deductions for charities, nonprofits, and other organizations shall not be restricted based on the nature of the organization or how it uses it funds. (“Other organizations” such as labor unions, for instance?)  

Measure 43

Constitutional: No law shall restrict the ability of public employees and employers to negotiate terms of voluntary payroll deductions, including such areas as which employees may deduct and where the money goes. Does not require employers to make available such deduction programs

 

Dave Fiskum, with CFM Strategic Communications, is the lobby representative for the OAB.