As the Oregon 's 73rd Legislative Session formally convened on January 10, 2005, it was abundantly evident the central focus of the session would be the challenging task of crafting AND BALANCING a budget for the 2005–2007 biennium.

When the state's Legislative Assembly adjourned in 2001, the General Fund budget for the 2001/03 biennium was expected to be approximately $12.34 billion. Due to the significant economic downturn following the 2001 session, Oregon 's General Fund budget sustained significant losses. At the conclusion of the 2003 Legislative Session, the state's 2003/05 General Fund budget was estimated at approximately $11.5 billion. However, a proposed tax increase and a number of related provisions were referred to Oregon voters during a Special Election on February 3, 2004. After Oregon voters resoundingly rejected the proposed tax increases, approximately $545 million was “disappropriated” from the budget, leaving the 2003/05 budget at approximately $10.5 billion.

As the 2005 Legislative Session gets underway, it is anticipated the 2005/07 General Fund budget will ultimately be approved at a level of approximately $12 billion. This level is similar to that originally anticipated for the state's 2001/03 budget period.

The first week of the session has revealed that the legislature is interested in a number of issues impacting small business owners and retailers. Proposals relating to workers compensation and labor issues, unemployment insurance, and the perennial cigarette tax increase were among the first bills to appear. More business issues, fee proposals, and, of course, beer taxes will inevitably arise as the session progresses.

Throughout the 2005 Session, ONSA will be working to ensure that the interests of small retailers are well represented. To begin with, ONSA is already preparing opposition to HB 2048, which would reinstate the 10-cents per pack cigarette tax increase that was repealed by voters in 2004. In addition, ONSA continues to work with the Oregon Department of Agriculture to assure that any proposal relating to food inspection fees is fair and equitable. As you may recall, last year ODA proposed increases in food inspection fees of more than 100%. Such an increase is unacceptable to ONSA's members who are already struggling with increased payroll costs and eroding profit margins.

Business issues will be facing an uphill battle this session, especially in the Senate with 12 Republicans and 18 Democrats. However, ONSA will be making every effort to defeat those bills increasing the regulatory and economic burden on small businesses and retailers.

As session progresses, information about bills of interest to ONSA members will appear in the newsletter and on ONSA's web page . If you have questions about the status of a bill or how to contact your legislator, contact ONSA: (503) 316-9638.