Tag Archives: marijuana

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Shemia Fagan: Another Oregon Democrat Takes A Fall

What is it about some politicians who just can’t behave?

I remember a saying I was told growing up in New England, “Don’t do anything you wouldn’t want your parents to read about the next morning in the paper.” 

Former Secretary of State Shemia Fagan, who resigned under pressure today, should have followed that advice.

If she had, she certainly wouldn’t have signed up for a $10,000 a month consulting contract with the owners of the La Mota chain of cannabis dispensaries at the same time her office audited state regulations on cannabis businesses. Oregon Public Broadcasting (OPB) has pointed out that the cannabis entrepreneurs are also high-profile Democratic donors.

According to OPB, Fagan, a single mother with two children, justified taking the consulting job by saying she simply could not pay her bills on her $77,000-a-year state salary.

Some of this behavior, unfortunately, has a precedent among Oregon Democrats.

In 1993, I wrote a story for The Oregonian spelling out how John Kitzhaber, when he was State Senate President, pulled in about $90,000 in speaking fees around the country during his last three years as a legislator.

Kitzhaber had earned approximately $35,000 in honoraria in 1990, about $20,000 in 1991 and about $35,000 in 1992, with payments ranging from $100 to $3,000 per speech, plus expenses. As Senate president, Kitzhaber also was paid a monthly salary of about $1,976 during those years.

Kitzhaber ‘s draw was his advocacy of the Oregon Health Plan, a proposal to reform Oregon’s Medicaid program to broaden the number of people covered by limiting the types of procedures eligible for reimbursement. Kitzhaber authored the plan and shepherded it through the Legislature in 1989.

Fagan’s behavior is also reminiscent of the sudden downfall of Jennifer Williamson, a former House majority leader and a leading contender to be Oregon’s next secretary of state in 2020. Williamson suddenly dropped out of the race, attributing her action to a forthcoming story in Willamette Week about questionable expenditures of campaign funds when she served in the House.  

When will politicians learn?

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Marijuana: Oregon’s new lottery

Oregon government has found a new addiction – marijuana taxes.

marijuanapic

Oregon collected $3.48 million in marijuana taxes in January 2016, the first month of taxing legal recreational marijuana. Based on these returns, the future looks bright for Oregon’s budget.

Economics consulting firm ECONorthwest initially projected the state would see $38.5 million in marijuana tax revenue in 2016. The Oregon Liquor Control Commission, which regulates recreational marijuana, projected less. But if Oregon sales for the rest of the year stay on the current trajectory, Oregon will collect $41.76 million in 2016, the Bend Bulletin figures.

“While state officials were quick to caution that it will take time to get an accurate view of the money coming in through marijuana sales, the early estimate shows pot may be a bigger boon than initially thought for Oregon’s schools and police, which receive a portion of tax revenue,” the Bulletin said.

Under Ballot Measure 91, revenue after costs will be divided as follows: 40 percent to the Common School Fund; 20 percent to mental health, alcoholism and drug services; 15 percent to state police; 10 percent each to cities and counties; 5 percent to the Oregon Health Authority for alcohol and drug abuse prevention.

What a windfall is coming their way.

And soon enough, just as has happened with the State lottery, the Oregon Liquor Control Commission and the Legislature will find themselves looking for ways to generate more marijuana money.

Lottery money has already turned the state into an addict, as Oregon’s lottery take has gone from $87.8 million in FY86 to $1.12 billion for the fiscal year ended June 30, 2015, an increase of 6.1 percent over fiscal year 2014. The Lottery is a very big business.

Going forward, the Lottery is working hard to expand its audience and revenues with development of new games, platforms, and venues in order to attract more diverse demographic groups.

The lure of raking in lottery dollars without having to raise taxes has long been appealing to politicians anxious to satiate government’s insatiable thirst for revenue. In fact, the lottery is often referred to as a “voluntary tax”, though behavioral research calls the “voluntary” part into question.

Whatever it’s called, the state always wants more of it, just as it will with marijuana taxes. You can count on it.