The hurdles in Kotek's economic prosperity roadmap
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To revive Oregon's sluggish economy, Gov. Tina Kotek's Prosperity Council says the state needs to overhaul everything from its tax structure to its regulatory system.
Why it matters: Business leaders have spent years warning that Oregon is losing out on jobs and billions of dollars in investment due to red tape, workforce shortages and high costs.
- The 10-point roadmap, released last week, addresses many of those concerns, but not every recommendation faces the same odds — some would require lawmakers to rethink decades of Oregon economic policy.
Zoom in: Some of the council's recommendations build on efforts already underway in Salem.
- Faster permitting: State agencies would approve or deny permits within a set timeline, building upon legislation Kotek pushed for earlier this year.
- Building a better talent pipeline: Oregon needs to invest more in public universities and community colleges and improve K-12 educational outcomes to strengthen the state's workforce for in-demand jobs.
Yes, but: The recommendations that could have the biggest economic impact face the steepest political climb.
- Land-use reform: Business leaders argue Oregon is losing projects because it lacks development-ready sites, while others say those protections are essential to preserving farms and forests.
- Cutting regulations: The council recommends slashing regulations by 20% by 2029 — something other governments have done with success.
- Rethinking Oregon's tax structure: The council argues Oregon's reliance on income tax makes the state less competitive.
It also proposed short-term tax changes — like raising the estate tax exemption and giving more tax credits for research and development — to provide immediate relief.
The intrigue: Tax reform will be the most "politically difficult," John Tapogna, president of the Oregon Business Council, the state's largest business advocacy group representing major employers, tells Axios.
- "But if Oregon wants a stronger economy and a more durable revenue base, it cannot avoid the conversation."
Meanwhile, Kotek signaled support for replacing Oregon's current greenhouse gas emissions program with a system that would allow businesses to buy and sell emissions credits.
- "I'm going to look at the things I can do right now and start building them into my budget and proposals for the upcoming session," she said last week, per OPB.
The bottom line: While Kotek's Prosperity Council is made up of influential community leaders, heads of businesses, developers and lawmakers, its recommendations are just that — recommendations.
