The Stakes for Oregon's Economy: A Look at SEDCOR’s Forum on Measure 118

On Wednesday, October 9^th, SEDCOR hosted our monthly Industry Insights. In response to questions and concerns we have heard from the business community, this month’s topic covered the implications of Measure 118. With a panel of industry experts from Oregon’s manufacturing and agricultural sectors, the event shed light on the potential effects of this proposed legislation, underscoring the challenges it presents for the state’s economic stability.

Measure 118 aims to increase the state’s corporate minimum tax, with the goal of redistributing the revenue to residents in the form of a $1,600 check per person. However, as speakers emphasized, the real-world impact could be much more complex, particularly for local businesses that already operate on tight margins.

Understanding Measure 118: What’s at Stake?

Preston Mann from the Oregon Business & Industry (OBI) highlighted the high stakes of the measure, stating that despite the seemingly attractive proposition of a "cash redistribution," Measure 118 could have a crippling effect on Oregon's economic ecosystem. With a potential $7 billion tax increase, Oregon’s businesses—especially in agriculture and manufacturing—would see costs rise dramatically, which in turn would impact supply chains, consumer prices, and ultimately, the state’s overall economic health.

Angi Bailey, President of the Oregon Farm Bureau, provided an in-depth analysis of how the measure could affect the agricultural sector, which is a cornerstone of Oregon’s economy. "Agriculture is the second-largest economic driver in Oregon, but year after year, farms are shutting down. This measure would accelerate that trend," she said, citing that increased production costs will be impossible to absorb, as most farmers are price-takers, not price-setters.

The Impact on Oregon's Manufacturing Sector

Jordan Beanblossom from A-Dec echoed similar concerns for manufacturing. He explained that labor shortages and high costs have already created a tough environment for manufacturers, who struggle to keep operations in Oregon. The cost of running a business is already high, and Oregon’s manufacturing growth fell behind the national average during an economic upswing. Measure 118 would further exacerbate the barriers for manufacturers to thrive here. With the cost of living and childcare already making it difficult to attract and retain talent, an additional tax burden could be the final straw for many,” he noted.

Ripple Effects Across Communities and Local Governments

The measure doesn’t just threaten private enterprises; it also stands to strain local governments. In attendance was Keizer Mayor Cathy Clark and she pointed out that Measure 118 could increase costs for municipalities by approximately $600 million, squeezing budgets and forcing difficult decisions on services and procurement. Moreover, with a potential impact to Oregon’s General Fund estimated by the Legislative Revenue Office of at least $1 billion,  the measure’s impact could lead to a reduction in services, from transportation to public safety.

Communication is Key: Educating Employees and the Public

One key takeaway from the forum was the importance of communication and advocacy. Despite the challenges in navigating political and economic messaging, Preston Mann stressed that employers have a critical role in educating their teams. "Employees trust their employers to provide accurate information on issues impacting their livelihood," he said. Companies should not shy away from engaging in dialogue about the measure’s consequences for their operations and for Oregon’s broader economic landscape.

The lack of clear information from proponents of Measure 118, who have relied on out-of-state funding and targeted marketing, means that businesses must be proactive in spreading factual data. While the "Yes" campaign frames the measure as a way to provide "relief" for Oregonians, the forum's speakers emphasized that this relief would come at the cost of thousands of jobs and increased prices across the board.

The Path Forward: Taking a Stand

Speakers at the forum encouraged attendees to take a proactive stance against Measure 118 by joining coalitions, reaching out to local chambers of commerce, and mobilizing support through their networks. Many in attendance voiced concerns that the measure, despite broad opposition from both political parties and a wide array of community organizations, is still very much a live issue. It’s easy to assume this won’t pass, but we need to make sure voters understand what’s at stake.

As the conversation wrapped up, Erik Andersson, SEDCOR’s President, emphasized the need for continued vigilance and advocacy. This isn’t just a fight for businesses—it’s a fight for Oregon’s future. The consensus among panelists was clear: Measure 118 poses a severe threat to the state’s economic stability, and stakeholders must act now to ensure voters make an informed choice.

Final Thoughts

The SEDCOR Industry Insights on Measure 118 provided a comprehensive look at the potential fallout of the measure, making it evident that this isn’t just another tax proposal. Its impact would be felt across sectors and communities, placing an immense burden on Oregon’s agricultural backbone, manufacturing, and local governments. The call to action is clear: educate, engage, and mobilize to protect Oregon’s business climate and economic future.

Oregon Business & Industry has created a website for joining the coalition against Measure 118 and it can be found here www.NoOnMeasure118.com. More than 600 employers, nonprofits, and community leaders who have endorsed a NO on Measure 118. OBI also has resources for employers on how educate and talk to your employees about this measure.