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Hello Friends,
There was a cartoon in my local paper this morning. It pictured two riders on the 2020 roller coaster. One was screaming in terror. The other tried to reassure her. “Relax.” he said. “It’s half over…”.
I’m concerned that as we ride out 2020, we also think about what happens in 2021. Our immediate future will largely be determined on how we manage the remainder of this year, and how we re-craft our state budget.
New guidelines were announced this week by the Governor as Oregon strives to reduce expanding COVID numbers, hospitalizations, and fatalities. Changes included use of masks, social groups, and restaurant/tavern hours. I like some of the new requirements; I’m asking questions about others.
My email in-box reflects the divisions in our communities. “Close the beaches and parks to keep us safe!” “Lift restrictions on our businesses or we will be forced to close!” We continue to be caught between threats to our health and threats to our economy. Finding the right balance is difficult.
As a coastal small business owner, I learned long ago that you make money in June, July, and August, or you close in September. This week I talked with local Chamber of Commerce leaders as part of Senator Roblan’s Fireside Chat series. You can listen in here.
As our local unemployment rate continues to soar twice above the state average, I’m seeing the effects ripple through our economy. People unemployed or underemployed have difficulty paying rent, buying food, or purchasing essentials. That means local businesses and landlords also have trouble paying bills. Stores are conservative in their stocking decisions which results in empty shelves at the grocery. And whether through poor decisions, difficulty in communication, or fear that unemployment benefits will not be forthcoming, too many people are going to work when they have been advised to stay home.
My legislative office is comprised of myself and my one-person staff, Tyler Janzen. We’ve been seeing as many as 1000 emails a day, particularly when Emergency Board meetings are scheduled, and spend most of each day working to help constituents still waiting for unemployment benefits. The current backlog is hovering around 50,000 people – most of whom are in the new and more complex self-employed or “PUA” category. The Employment Division reports to the Governor and a legislator’s ability to make a difference is limited. But we are determined to try!
A month ago, I suggested we begin sending minimal benefits to claimants while their applications were slowly being processed. That suggestion, I learned, is contrary to federal requirements. Instead, last week, the Emergency Board reached into the bank of federal COVID relief money to commit $500 to people still waiting for those benefits.
Five hundred dollars will not solve any family’s financial problems if they have been without income for months. But given the seriousness and breadth of the problem, I was pleased to support this proposal. I remain concerned that it will take time to develop this new program, qualify recipients, and disburse funds. And I worry that money might not quickly reach the people needing help the most.
Meanwhile, the Employment Division continues to chip away at the claim mountain. They report they hope to have all current applications finalized by August 8. I sincerely hope they succeed. But I remain frustrated that Oregon has failed too many Oregonians. A new web page was rolled out last week to help anyone check their status. You can find the new site here. Filling out the "Contact Us" form on the site is the fastest way to get your info to a claims processor if you are still waiting for benefits. If you continue to have questions or problems, please let my office know and we’ll do all we can to help.
For weeks I have been referencing our loss of tax revenue. When people work less, they pay less income tax. When businesses sell less, they pay less corporate tax. Travel less and we collect less gas taxes. The list goes on and on leaving us with at least $1 billion less than we anticipated pre-COVID.
This week, the Joint Committee on Ways and Means released their budget framework and the values that will guide budgetary decisions. Subcommittees have been meeting and accepting public testimony. Our challenge is to find efficiencies and cost savings within state government to ensure we are prudently utilizing our reserves to preserve and maintain as many programs and services as possible.
To be clear, there are no new tax proposals being discussed for this biennium. As we move into this difficult budget cycle, I'm burnishing my reputation as a debt hawk by focusing on recovering collectible debt from state agencies which accumulates as a result of inability to bill or follow up on invoices. As any small business owner knows, starting with accounts receivable staves off more painful choices. It's my hope that my efforts will yield critical dollars for education, health care, and housing.
I expect to be called to Salem again for a second special session in early August. The June session was focused on policy questions; the August session will address the revenue shortfall and adjusting the state budget.
Reducing budgets is never fun and certainly not easy. Sometimes it feels like squeezing a balloon. Make education a priority, and you have to reduce more in health care, or public safety. My priorities as this process unfolds will be to protect our kids and grandkids, working families, and retirees.
If you are interested in more details about new policy developments, check the following stories and links:
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Paycheck Protection Program applications extended to August 8: Use the SBA's Lender Match to connect with one of the many lenders and submit an application for the Paycheck Protection Program forgivable loan.
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The U.S. Department of Agriculture Rural Development is making available up to $1 billion in loan guarantees nationwide to help rural businesses meet their working capital needs. Questions related to USDA Business Programs in Oregon may be directed to a local Business and Cooperative Specialist.
- Oregon's total nonfarm payroll employment rose by 56,600 jobs in June, following a gain of 26,100 jobs in May. Over the past two months, employers added back nearly one-third of the jobs that were cut in March and April. Read the news release from the Oregon Employment Department.
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Oregon OSHA recently issued statewide mask, face shield and face covering guidance to help businesses comply with face covering requirements for indoor public places. Read more.
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The Healthy Schools Reopening Council convened for its first remote meeting this week. The council is charged with advising the Governor and the Oregon Department of Education as school districts develop plans for a safe return to school. Read more.
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The Oregon Office of Economic Analysis looks at the statewide distribution of funds through the Paycheck Protection Program. The July 7 blog post uses recent data to show the counties and industries that have received funding, and what this means for Oregon’s economy.
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The Oregon Small Business Development Center Network has developed a guide for businesses to use as they consider when and how to reopen.
Please take this time to talk with family members, distant friends, and retired neighbors. Everyone is stressed, although not necessarily for the same reason. Sharing a reassuring smile will help you feel better. Remember to count your blessings and stay connected — while respecting social distancing of course.
Warm Regards,
Representative David Gomberg
House District 10
email: Rep.DavidGomberg@oregonlegislature.gov
phone: 503-986-1410
address: 900 Court St NE, H-471, Salem, OR, 97301
website: http://www.oregonlegislature.gov/gomberg
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