The OFC Blank Check Report #3

My Fellow Oregonian,

Oregon requires three-fifths of the legislature to approve any revenue increases. It’s a great line of defense against high taxes.

But this is Oregon. We don’t have low taxes, and our legislature and governor do everything in and beyond their constitutional power to make sure we have the luxury of paying more or our hard-earned dollars to the government. And in return, we get abysmal government services that never seem to function the way they’re supposed to. What a bargain.

I could cover several instances of this—and I will over time—but this week one in particular from the 2026 legislative session caught my eye. The Oregon Bureau of Labor and Industries (BOLI) ran into a cash problem this year. It’s not unusual when a government budget operates on a two-year fiscal year for agencies to need a budget fix in the second year, and, quite frankly, there’s no problem with the legislature using the short session to fix those budgets. However, this year the legislature fixed the BOLI budget by passing a tax increase and blowing right past the three-fifths requirement in the process.

The bill, HB 4027, created a new expenses fund for BOLI to be filled with new charges levied on each hour Oregon employees work. The bill passed the House with 33 votes, three short of the constitutionally required 36 votes.

But not to worry, says the legislature’s lawyers. This isn’t a tax because the legislature didn’t levy any rates but merely gave authority to an agency not accountable to the People to set the rates. Somehow, in their minds, an unconstitutional delegation of authority makes this tax not a tax and therefore it’s not subject to the rules of the constitution at all. Why even have a constitution at that point?

Somehow the clear and concise requirement for a three-fifths majority on revenue raising measures isn’t as clear and concise to legislators who think they’ve been given a blank check of authority to raise taxes. How is this fixed? Further define what raising revenue means. Leave no room for interpretation, and when the people are stepped on anyway, challenge it via lawsuit or referendum.

Thankfully, OFC’s friends at the National Federation of Independent Business (NFIB) and Portland Metro Chamber have joined a lawsuit asking courts to overturn the bill. My advice to the courts: if it looks like a tax, walks like a tax, and quacks like a tax, it’s a tax.

God Bless,

Nick Stark
Chief Executive Officer
Oregon Freedom Coalition

P.S. If you have a policy blunder you’d like to share, visit OregonFreedom.com/blankcheck to tell us the story. We’ll look into it and might just have some commentary.