Wrapping Up 2025

Replies to this message are sent to an unmonitored mailbox.
To contact me, please click here: Rep.LucettaElmer@oregonlegislature.gov

Wrapping Up 2025

Hello Friends,

During this holiday season, I'm reminded of so many things that make life beautiful.  Homes are decorated, and families and friends are gathering.  I hope you are able to enjoy all the festivities that bring our community together.  2025 has been full of challenges and some victories in state government.  It has been an honor to serve each of you this year and I look forward to pressing forward with our goals for 2026.  Please read on for some end of the year updates.  May you and your families be blessed this Christmas and holiday season.

Oregon House Republican Caucus Welcomes Representative Matt Bunch 

We welcomed a new Representative to the House Republican Caucus.  Born and raised in eastern Oregon, and an alumnus of Oregon State University, Representative Matt Bunch built an impressive career in insurance and financial management, while also giving back to his community as a development officer for the Oregon FFA Foundation and a bus driver for the Oregon City School District. Rep. Bunch and his wife of 40 years, Maryjane, have three children and four grandchildren. Rep. Bunch was appointed to fill former Representative Christine Drazan’s seat after she was appointed to fill an open Senate seat. Rep. Bunch ran for House District 51 in the last election cycle but stepped down and endorsed Drazan when she announced her bid. Even though I’ve only known Rep. Bunch for a few weeks days, it is easy to see that he shares my love for Oregon and its people, and possesses a fierce passion for fiscal responsibility, local governance, and improving public safety and education. I am looking forward to working with Rep. Bunch and am positive he will be an invaluable addition to the caucus.

Governor Reveals “Prosperity Roadmap”:

Too Little, Too Late 

The first step towards progress is admitting you have a problem. Last week, Governor Kotek finally acknowledged that Oregon businesses are struggling, but only produced a five-page “Prosperity Roadmap” — including a cover and tail — of word salad and no viable long-term solutions.   Kotek plans to add a “Chief Prosperity Officer” to her team and create a “Governor’s Prosperity Council” to advise her on economic and workforce policy. The rest of her “Next Steps” are wishful projections and empty words that offer no real solutions to Oregon’s business crisis.   Oregon Business & Industry (OBI) thanked the Governor for taking the first step. However, in their statement, they also highlighted three bills passed in the recent long session — signed by Governor Kotek hardly two months ago — that directly contradicted her “Roadmap.”   The statement from OBI stated, “The second and third steps will be more difficult than the first, but no less critical. To do no more harm, elected officials must say ‘no’ to new or increased taxes, harmful and burdensome regulations, and other policies that erode the state’s business climate and increase costs unnecessarily.”  The “new or increased taxes, harmful and burdensome regulations, and other policies” that OBI lists as examples include: SB 916, which will provide striking workers with unemployment benefits; HB 2688, which will require manufacturing to follow the prevailing wage standards; and SB 426, which will make contractors liable for actions by subcontractors.   Republicans have been talking about this for years — businesses are fleeing the state, our unemployment rate has been at 5% since August, and layoffs happen by the hundreds each week. In the past 30 days, more than 1200 Oregon workers lost their jobs after large corporations, including Intel, Providence, and Nordstrom, downsized operations in Oregon.   More government is not the solution. The government needs to get out of the way to let the private sector do its job. Our economy has problems that have been built up over decades; workgroups and a new government position will not fix the problem. Correcting our business economy will require a cultural shift — away from big government and towards a government that both supports the private sector and encourages it to grow.

November Legislative Days Revolve Around State’s Budget Deficit

Legislators and staff were back in the Capitol just before Thanksgiving to work on policy ideas for the upcoming short session. The conversation largely revolved around Oregon’s projected $888 million budget deficit, which the majority party claims is the result of President Trump's "One Big Beautiful Bill," H.R.1.

But if the state government is losing all this money, where is it going? Back in the taxpayer’s pockets. The federal budget bill may not be as big of a boogie man as some would have you believe.

The bill includes several provisions that relieve the financial strain on Americans by slashing taxes for the middle and lower classes and making it easier for businesses to succeed. It is estimated that H.R.1 will save the average Oregon taxpayer $3,157 in 2026.

Tax relief provisions include:

● No Tax on Tips — Establishes a temporary federal income tax deduction of up to $25,000 for “qualified tips,” including cash or charged tips received from customers or through tip sharing

● No Tax on Overtime — Establishes a tax deduction of up to $12,500 for qualifying employees receiving overtime pay that is reported on a Form W-2, Form 1099, or other specified statement

● No Tax on Car Loan Interest — Establishes a tax deduction of up to $10,000 on a loan used to purchase a vehicle for personal use that was made in the U.S.

● Increase in the Child Tax Credit — to $2,200 per child, and makes it a permanent, inflation-adjusted credit after 2026

● Deduction for Seniors — Adults age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law

● Qualified Business Income Deduction — Makes the 20% qualified business income deduction permanent for pass-through entities, while also providing a minimum deduction of $400 for any business with $1,000 or more in qualified business income

● Enhanced Business Expensing and Depreciation — Raises Section 179 small business expensing limits to $2.5 million (up from about $1.29 million), with a higher phase-out threshold of $4 million, and restores full bonus depreciation for capital investments, canceling the remaining phase-down of this expensing benefit

Oregon’s politicians have become overly dependent on federal dollars. The tax breaks worked into H.R.1 will be a welcome relief to hardworking Oregonians. Maybe this budget deficit will encourage state leaders to strengthen the economy, stabilize existing revenue streams, and support families and businesses instead of squeezing their constituents.

Democrats Agree: We Must Cut Excess, Grow Private Sector 

In a recent Op-Ed, democratic Co-Chairs of the Joint Committee on Ways and Means, Senators Kate Lieber and Tawna Sanchez, wrote an Op-Ed in the Oregonian titled: Trump cuts leave Oregon with a billion-dollar problem and no easy solutions.  

While they tried to place the blame for Oregon’s failing economy on President Trump and his administration, the federal tax cuts for the middle class uncovered glaring systemic issues that not even Oregon Democrats could ignore: When taxes primarily fund government operations, and business regulations are implemented heavy-handedly, the economy and private sector tank.  

In their op-ed, the co-chairs acknowledged Oregon’s budget deficit and looming tax cuts, saying future policy to get the state out of debt “...must include strategies to grow private sector jobs that stimulate our broader economy and provide good wages to hardworking Oregonians.”  

Republicans have been saying this for years, raising the alarm about Oregon’s shrinking private sector and fleeing businesses. While the op-ed shows progress, Oregon’s majority party needs to take responsibility for the economy that their policies created.  

Our current policies are about to land us in a whole lot of debt, and even the Democrats are seeing it. It’s time for Oregon’s legislators to wake up to the state of their economy and stop playing the blame game. 

You can read Senator Starr and I’s rebuttal op-ed here: Oregon’s budget crisis didn’t start in Washington. It started here at home.

Revenue Forecast: Abysmal or Improvement? 

Recently, the Office of Economic Analysis released its fourth-quarter economic forecast. You can watch their presentation to the legislature here. They found that Oregon’s budget deficit now sits at -$63.1 million — up $309.5 million from the previous forecast of -$372.6 million.   Even though the state’s deficit has decreased, the job market doesn’t show it. Intel cut hundreds more jobs in Oregon – bringing Oregon’s total job losses this year to more than 3,000. And Providence Oregon cut more than 150 additional jobs in its latest round of cuts.  A recent poll revealed how Oregon voters are feeling about the economy:  67% say the economy is seriously off on the wrong track.  66% say it would be difficult to find a similar job in Oregon if they left their current job.  64% say taxes are too high.  53% say they would be likely to explore relocating to another state to find a new job.  The poll surveyed a wide variety of individuals with backgrounds representative of Oregon’s current demographic. It is safe to say that more than half of Oregonians view the economic situation of the state negatively.    Oregon’s rising unemployment numbers and high taxes are harming families and forcing businesses to leave our state. If we want to see our budget grow, we must cut taxes and create an economic climate where businesses can thrive and grow – not fear loss and decline.

What's Your Kicker? 

Life and Legislation Podcast

I recently recorded the 20th episode of my podcast, Life and Legislation With Lucetta.  This is a great place for you to not only stay up to date on current issues, but to learn more about the legislative process and get to know me both personally and professionally.  In the most recent episode, we give Oregon a "report card" and I explain where we need improvement and my solutions on how to reach our goals.  You can find the audio podcast on any platform or watch the video version on our YouTube channel.

Statewide Report Care Reveals Source of Educational Woes 

The Oregon Department of Education (ODE) released its annual Statewide Report Card a few days before Thanksgiving, and like the year before, it highlighted the State’s abysmal education system.   Over the 2024-2025 academic year, ODE reported 2,300 fewer students and 258 fewer teachers than the previous year. Despite this, districts added 639 staff positions, none of which were teachers, including 454 educational assistants, 365 support staff, and 11 district administrators. ODE received a record-breaking budget this past year, yet they chose not to invest in licensed educators and instead added less qualified positions with minimal training — opting for a quick fix over a long-term, viable solution.   Superintendents saw their salaries grow by 29% from 2018-2024, while teachers’ salaries increased by 26%. The appropriate salary adjustment for inflation (according to the U.S. Bureau of Labor Statistics) is closer to the increase teachers saw, while the increase superintendents saw was higher. Despite Democrats consistently advocating for higher teacher wages alongside the unions that endorse them, the numbers show that the priority is raises for administrators over educators.   In 2024, 4th-grade testing scores in reading and math were lower than the national average, according to the National Assessment of Educational Progress. Once again, our students are falling behind. No matter how much money we throw at education, no tangible progress has been made.

Democrats Decide to Use $7.5 Million in Emergency Funding for Planned Parenthood 

Oregon Democrats announced they would use $7.5 million from the Emergency Fund for the Oregon Health Authority to fund Planned Parenthood facilities.  Democrats argue the decision was necessary in lieu of federal Medicaid funds no longer available to fund Planned Parenthood until at least July 2026 per President Trump’s House Resolution 1. However, Oregon does not face a gap in access to reproductive health care services without its Planned Parenthood affiliates. Federally Qualified Health Centers (FQHCs) provide all non-abortion reproductive health care services Planned Parenthood claims, with 270 locations across the state.  Further, taxpayers funded 81% of Oregon abortions from 2021-2025 – a nearly 80% increase from 2013-2015, in which taxpayers funded 45% of Oregon abortions – despite a recent poll showing that 53% of taxpayers oppose their dollars being used for abortion.   Given the availability and access to other clinics that provide reproductive health care services and Oregon’s strained financial climate, using emergency funding for Planned Parenthood is neither urgent nor necessary. We need to stop the political posturing and get back to listening to what Oregonians want – and use their tax dollars accordingly.

Oregon Business Plan's Annual Leadership Summit

On December 8th, leaders from across Oregon gathered at the Oregon Convention Center for the 23rd annual Oregon Business Plan Leadership Summit. House Majority Leader Ben Bowman, Senate Majority Leader Kayse Jama, Senate Republican Leader Bruce Starr and I engaged in a legislative roundtable to confront the forces shaping our state’s future and to chart a path forward.  

Discussion topics included education, land use, housing, and businesses.  "We have to get government out of the way... [and] let the private sector work," explained Senator Starr. Founder, Chairman, and CEO of Ampere Computing Renee James noted the great need for an improvement plan with measurable goals.  She closed by posing the question, "Why should I start a new business in Oregon?" As I've shared often, Oregon has so many wonderful things to offer.  It's not hard to attract people to our state, but we have to be more business friendly.  The panel discussion left me feeling optimistic about working as a team to better manage our state budget and improve our state ratings across the board.

Visit from OTAO

The Occupational Therapy Association of Oregon (OTAO) and practitioners from all across the state joined legislators in Salem in November.  Occupational Therapy Practitioners (OTPs) achieve a doctorate in occupational therapy and enjoy a robust scope of practice under the watch of their licensing board. These practitioners are trained, tested and proven in mental and behavioral health services, as well as the physical care. OTPs are value-adds in every setting they practice in, (re)habilitating and empowering their clients: children and students, hospital, home-health and in-clinic patients, even incarcerated individuals.

They came to share information and to forecast what they believe is a solution to staffing shortages and workforce challenges in Oregon come the next couple of years. 

Legislative Champion Award

I was honored to receive the Legislative Champion Award from the Oregon Resource Association for my work on supporting our IDD (intellectual and developmental disabilities) Direct Support Professionals and Providers during the 2025 Legislative Session. The stories I’ve heard from parents, siblings, caregivers, and self-advocates always speaks to me. This award belongs to them because they are the ones who navigate systems, advocate for their loved ones, and provide care that is often invisible but absolutely essential. It is a privilege to carry their voices into our Capitol and champion their needs every day.

Ladies of the Lobby and Legislature

Last week, I hosted a special Favorite Things Christmas event for the ladies of the lobby and legislature.  It's truly a joy to work alongside these incredible women and it was wonderful to take an evening to celebrate special friendships and look forward with optimism to the future.

Glide and Gather at Evergreen

As you prepare for all the Christmas and holiday festivities this month, be sure to visit the Evergreen Aviation Museum to see the Goose Lights and skate under the Spruce Goose!

Holidays at the Capitol

The Holidays at the Capitol is in full swing. You can view the performance schedule here. You can tune in to the live stream at this link. The livestream will be active Monday-Friday until December 19.  It's been wonderful to hear the beautiful music from so many schools and groups!  On behalf of my entire team, I want to wish you and your family a blessed Christmas and holiday season!

Yours truly,

Representative Lucetta Elmer
House District 24

Capitol Phone: 503-986-1424
Capitol Address: 900 Court St. NE, H-395, Salem, Oregon 97301
Email: Rep.LucettaElmer@oregonlegislature.gov
Website: https://www.oregonlegislature.gov/elmer