Tag Archives: SB611

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Oregon’s “Illegals Industry”

You may have already heard of the term “homeless industrial complex” . It’s usually a derogatory term referring to a network of organizations involved in addressing homelessness that actually perpetuate it due to the jobs and financial incentives involved in the effort.  While multiple outreach entities rake in millions, the steady supply of people living on the streets persists and even grows.

It’s not so much a nefarious conspiracy as blind ideology, argues an article in CityWatch, an opinion, and news website out of Los Angeles, where homelessness has grown as spending on it has accelerated. 

In the same vein, it looks like many of the efforts in Oregon to help immigrants in the US illegally have spurred the creation of an “Illegals Industry” that, while claiming to be positively managing a problem is spurring it. And in the process, just as with homelessness, government is lighting our money on fire. 

As scholar Clay Shirky says, “An organization that commits to helping society manage a problem also commits itself to the preservation of that same problem, as its institutional existence hinges on society’s continued need for its management”. That’s the Shirky Principle at work: “Institutions will try to preserve the problem to which they are the solution.” 

The current debate in the Oregon legislature over a Food For All Oregonians program proposed by  SB 611  illustrates the the problem Illegals Industrial Complex. The program proposes providing nutrition assistance to residents of Oregon who are under 26 years of age or 55 years of age or older and who would qualify for federal Supplemental Nutrition Assistance Program benefits but for their immigration status. In other words, it would extend to people in the United States illegally food benefits equivalent to those provided under the federal Supplemental Nutrition Assistance Program (SNAP) program. 

Written testimony supporting SB 611 submitted by the Oregon Food Bank to the Senate Committee on Human Services noted that the bill is supported by a coalition of more than 165 Oregon organizations.[1]

The endorsers include churches, unions, groceries, educational institutions, refugee organizations, anti-poverty groups, Planned Parenthood, health services, foster care programs, ethnic interest groups, immigrant aid groups, homeless advocates, farmers markets and a host of other social service groups. 

“Immigration status shouldn’t exclude anyone from being able to feed themselves or their family,” Food for all Oregonians says. 

While all may have a sincere concern for the non-citizens in Oregon, supporting state funding of free food for non-citizens also encourages immigrants to come here illegally, perpetuating the problem. As the Economic Policy Innovation Center, a conservative think tank, puts it, ” Many illegal aliens become eligible for taxpayer-funded welfare programs, costing billions of dollars annually. These benefits… are a significant pull factor for illegal immigration.”

Oregon has already expanded free health insurance that mirrors Medicaid to all residents who qualify, regardless of their immigration status. Non-citizens, including undocumented residents, also have access to Oregon driver licenses, despite Oregonians voting 66% to 44% in 2014 against giving driver’s license privileges to people without proper U.S. government documentation. The Legislature overrode voters in 2019 by pushing a bill through (HB 2015) with a clause that didn’t allow for a citizen referendum.

Several bills are also before the 2025 legislature that would offer other benefits to non-citizens.

SB 703, for example, directs the Department of Human Services to provide grants to non-profit service providers to assist individuals who are non-citizens to change their immigration status or obtain lawful permanent resident status. The bill is sponsored by 4 Democratic senators, 5 Democratic representatives and 1 Republican representative. 

You can be sure Oregon’s Illegals Industry will support all of these bills, regardless of the cost or impact. .

[1] Food for All Oregonians, Campaign Endorsers 

1st Baptist HOPE Food Pantry, 211 Info, Accent Network, Access Care Anywhere, Adelante Mujeres, Afghan Support Network, Afghanistan Oregon Association, AFL-CIO, African Refugee Immigrant Organization (ARIO), African Youth & Community Organization (ayco), APANO, Arab American Cultural Center of Oregon, ARISE and Shine, Basic Rights Oregon (BRO), Beyond, Toxics, Black Oregon Land Trust, Blanchet House of Hospitality, CAMPO, Cascade Aids Project (CAP), Catholic Community Services of Lane County (CCSLC), Central City Concern, Centro Cultural, Children’s Institute, Clackamas Community College, Clackamas Service Center, Clay Street Table, Columbia Gorge Women’s Action Network, Community Alliance of Lane County (CALC), Community Connection of Northeast Oregon, Inc., Community for Positive Aging – Asian Food Pantry, Community Pulse Association, Consejo Hispano, Consolidated Oregon Indivisible Network, Eastern Oregon Association for the Education of Young Children (EOAEYC), Eastern Oregon Center for Independent Living (EOCIL), Eat Drink Washington County, Ecumenical Ministries of Oregon, Educate Ya, Estacada Area Food Bank, Ethiopian and Eritrean Cultural and Resource Center, Eugene-Springfield SURJ, EUVALCREE, Familias en Acción, Family Forward, Farmers Market Fund, Feed’em Freedom Foundation, First Tech Credit Union, Food Corps NW, Food for Families, FOOD For Lane County, Food Roots, Forest Grove Foundation, Friends of Family Farmers, Gorge Grown Food Network, Growing Gardens, Guerreras Latinas, HAKI Community Organization, Hand Up Project, Healthcare for All Oregon, High Desert Food and Farm Alliance, Hood River County Board of Commissioners, Hood River Latino Network (HRLN), Human Services Coalition of Oregon, Innovation Law Lab, Interfaith Alliance on Poverty, Interfaith Movement for Immigrant Justice (IMIrJ), IRCO, Iu Mien Association of Oregon, Ka Aha Lahui Olekona, Klamath Grown, Lane Community College, Latino Community Association, Latino Network, Lending A Helping Hand, Lift UP, Living Islands Non-profit, Maihan Social and Cultural Community, Malheur County Democratic Central Committee, Medford Food Co-op, Metro City Council, Mercy Connections Inc, Micronesian Islander Community (MIC Oregon), Milwaukie Spanish SDA Church, Montavilla Farmers Market, Muslim Educational Trust, National Partnership for New Americans, Neighborhood House, New Seasons, Next Up Action Fund, Nonprofit Association of Oregon, North Coast Food Web, Northwest Center for Alternatives to Pesticides, Northwest Family Services, NOWIA Unete Center for Farm Worker Advocacy, Nutrition Garden RX, OneAdonaI (we help!), Ontario Mini Market, Oregon AFSCME, Oregon Association of Relief Nurseries (OARN), Oregon Center for Public Policy (OCPP), Oregon Farm to School & School Garden Network, Oregon Food Bank, Oregon Health Equity Alliance, Oregon Human Development Corporation, Oregon Hunger Task Force, Oregon Just Transition Alliance, Oregon Latino Health Coalition (OLHC), Oregon Law Center (OLC), Oregon League of Conservation Voters (OLCV), Oregon Organic Coalition, Oregon Public Health Association, Oregon Rural Action, Oregon School Based Health Alliance, Oregon State University-Extension, Oregon Synod, Oregon Worker Relief, Our Children Oregon, Our Community Birth Center, Pacific Refugee Support Group, Partners for a Hunger Free Oregon, Partnership for Safety and Justice, PCUN, People’s Food Co-op, Planned Parenthood Advocates of Oregon, Plaza de Nuestra Comunidad, Portland Central Kitchen, Portland Open Bible Community Pantry, Raíces, Reedsport Collective, Right To Health, Inc, RISEN Community, Rogue Farm Corps, Rogue Food Unites, Rural Organizing Project (ROP), Sanctuary Committee of Temple Beth Israel, Sarah’s Foster Care, Seed to Table Oregon, SEIU Local 503, Sisters of the Road, SnowCap, Social Justice Coalition, Central Lutheran Church, Portland, Somali American Council Of Oregon (SACOO), Somali Oregon Service Center, Springfield Eugene Tenant Association, St. Timothy Episcopal Church, Start Raising Young African Lives, Ten Rivers Food Web, Tides of Change, Tikkun Olam Committee of Temple Beth Israel, Tillamook County Board of Commissioners, Tualatin Food Pantry, Tualatin Valley Gleaners, UFCW, Unite Oregon, United Congolese Community Organization of Oregon, Urban League of Portland, VIVA Inclusive Migrant Network, We Do Better Relief, Welcome Home Coalition, Western States Center, William Temple House, Willowbrook Food Pantry, Working Theory Farm, Zenger Farm

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Oregon’s Revised Rent Control Bill: Lipstick on a Pig

When a piece of legislation is flawed from the get-go, fiddling with it is fruitless. 

Oregon’s Senate Committee on Housing and Development voted on April 3 to amend a rent control bill (SB 611) and send it to the Senate floor for a vote. 

The original bill capped rent increases at 8%, or 3% plus the consumer price index, at buildings more than 3 years old. An amendment changed that to 10% or 5% plus the consumer price index. 

But the problem isn’t the percentages. The problem is that rent control doesn’t work. Any short-term benefits, including the applause of some constituents, are always overshadowed by the long-term problems rent control creates.

In a review of 140 economics studies on rent control in Economics Journal Watch, economists overwhelmingly agreed that, “A ceiling on rents reduces the quantity and quality of housing available.” From the abstract: “I find that the preponderance of the literature points toward the conclusion that rent control introduces inefficiencies in housing markets. Moreover, the literature on the whole does not sustain any plausible redemption in terms of redistribution.”

Oregon foolishly started down this road in 2019 with a law prohibiting landlords across the state from raising rents more than 7 percent per year, plus the annual change in the consumer price index (CPI) at buildings more than 15 years old. Now, rather than abandon the whole idea, Democrats in the Senate, backed up by tenant groups, continue to ignore economic realities. 

Potentially compounding the problem, the legislature is considering House Bill 3503  which would allow cities and counties across the state to enact their own rent control laws.

In testimony submitted to the House Committee on Housing and Homelessness, Ariel Nelson, a lobbyist for the League of Oregon Cities, endorsed the bill, arguing, “The current state preemption prevents local governments from enacting rent control policies that are tailored to the specific needs and circumstances of their communities. Local governments are closer to their communities, more responsive, and are able to act more quickly. HB 3503 will provide local governments with a critical tool to address the affordable housing crisis for their residents.”

But, as with SB 611, the measure would likely do more to hamper than stimulate the construction of more affordable housing in Oregon. 

As Deborah Imse, Executive Director of Multifamily NW told the committee, “… this legislation opens the door for 417 municipalities to enact their own rent control. That is 417 different sets of requirements that not only do nothing to address the underlying cause of rising rents, but create a regulatory hellscape for housing providers in every corner of the state. That is arguably irresponsible state policy and simply not sustainable for any housing provider, large or small.”

But, hey, what do Democrats care. No matter how compelling the case against rent control, advocates can position themselves as saviors against the forces of evil. And that can translate into votes. 

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United Way Is Way Out of Bounds Endorsing Rent Control in Oregon

The United Way has some good programs.  Offering rental assistance. I get it. Last-minute help to prevent evictions. Makes sense. But supporting rent control legislation. That’s over the line.

Not willing to leave the current bad enough rent control law alone, the Oregon legislature is back with Senate Bill 611 that would limit annual rent increases to 3% plus inflation or 8% total, whichever is lower. The exemption would apply to buildings 3 years old or newer. 

The bill has the support of numerous progressive and social welfare groups, including United Way of the Columbia Willamette, which has apparently deluded itself into thinking social justice concerns override economic realities. 

It has also apparently deluded itself into thinking it’s legitimate for a non-profit, which sustains itself on millions of individual and corporate contributions and says it is ”…deeply committed to helping create a just and equitable region where all people can thrive…” should advocate for legislation that contradicts economic realities and is opposed by property owners across the state?

United Way of Board members include:

  • Greg Geshel, Vice President Human Resources at Comcast
  • Ashlee Irwin, Medicaid Business and Strategy Consultant at Kaiser Permanente
  • Mahir Patel, Vice President of Pharmacy Services at PacificSource Health Plans
  • Tichelle Sorenson, Academic Director of the MBA Program at PSU
  • Layla Zare, Vice President and Relationship Manager at Bank of America
  • Kim Spalding, Senior Manager at Perkins & Co.
  • Charlene Zidell, Vice President, Strategic Partnerships & Family Vision at The Zidell Companies.

Do the employers who endorsed placement of all these people on United Way’s board support the deeply flawed rent control bill their employees are pressing so hard for?

Somebody should ask.

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Rent Control: When Will Oregon’s Legislators Learn?

“Next to bombing, rent control is the most effective technique so far known for destroying cities.”   Assar Lindbeck, Professor of Economics

During the French Revolution, the National Convention, an attempt at a national legislature, passed the Law of the Maximum imposing a maximum price on dozens of essential goods, mostly food items. The limitations discouraged farmers and producers. They began producing less or hoarding what they did produce, rather than selling food below its real value. Less food made its way into the towns and cities, which only exacerbated the shortages and led to the emergence of a thriving black market 

This is what happens when governments take actions that contradict economic realities.

Welcome to the Oregon legislature and rent control. 

Oregon started down this road in 2019 with a law prohibiting landlords across the state from raising rents more than 7 percent per year, plus the annual change in the consumer price index (CPI). The limit only applies to buildings that are more than 15 years old.

Not willing to leave bad enough alone, now the legislature is back with Senate Bill 611 that would limit annual rent increases to 3% plus inflation or 8% total, whichever is lower. The exemption would apply to buildings 3 years old or newer. Landlords would also have to cover three months’ rent if a tenant has to relocate through no fault of their own, up from the current requirement of one month of rental assistance for a no-fault eviction.

This foolishness is what you get when Oregon’s Democrats are left in charge. 

The problem is, no matter how much liberals embrace the concept, rent control doesn’t work. Any short-term benefits, including the applause of some constituents, are always overshadowed by the long-term problems rent control creates.

  • Landlords who can’t raise the rent on their property to a market price are more likely to cut back on maintenance and less likely to invest in improvements. Not only will landlords have absolutely no economic incentive to invest more in their properties, they may not even have the funds because of limits on their rental income.
  • Rent control distorts the housing market by misallocating rental units to those who are already renting them. Whenever government prevents the charging of prices high enough to clear the market, shortages will occur.
  • The imposition of rent control can lead to a “demolition derby” where older controlled rental units are purposely torn down and replaced with higher priced units.
  • Rent control does not guarantee low rents because it doesn’t regulate the starting rent for a new tenant. When a tenant in a rent-controlled unit moves out, any savvy landlord will set the rent in the new lease at the current market rent, which is likely to be much higher.
  • In a review of 140 economics studies on rent control in Economics Journal Watch, economists overwhelmingly agreed that, “A ceiling on rents reduces the quantity and quality of housing available.” From the abstract: “I find that the preponderance of the literature points toward the conclusion that rent control introduces inefficiencies in housing markets. Moreover, the literature on the whole does not sustain any plausible redemption in terms of redistribution.”
  • A broad survey of economists by the IGM (Initiative on Global Markets) Forum revealed a similar repudiation of rent control. The Forum is a program of the University of Chicago’s Booth School of Business. “Rent control discourages supply of rental units,” said Associate Head of the MIT Department of Economics, David Autor. “Incumbent renters benefit from capped prices. New renters face reduced rental options.”
  • Once rent control is imposed, it is extremely hard to get rid of, even where its futility is eventually recognized. That’s because rent control will have held rents far below the market rate, so removing them is likely to cause immediate and substantial rent increases, something few politicians (and even some rent control critics) will be willing to embrace in the face of a potential public outcry.

The bill has the support numerous progressive and social welfare groups, including the Southern Oregon social justice nonprofit Rogue Action Center, Partners for a Hunger-Free Oregon, The United Way of the Columbia Willamette and The Pacific Green Party, all of which have apparently deluded themselves into thinking social justice concerns override economic realities.

Rent control supporters claim its the quickest and easiest way to provide relief to renters in danger of being priced out of their home, but the fact is it just makes the problem worse.

When will liberal legislators learn?