Oregon Democrats are going to get your kicker, one way or another

State Senator Jeff Golden wrote an Opinion column in The Oregonian recently calling for diversion of the next kicker, recently forecasted to be $1.8 billion, to a dedicated Wildfire Programs Fund, which the state treasurer would invest.

It’s just one more way for a hungry Democrat-run government to raid your pocketbook. 

The idea came out of a workgroup of 36 stakeholders chosen by Gov. Tina Kotek to deliberate over alternative funding sources for dealing with wildfires. 

The key options identified were:

  • Kicker Funds: One-time use to “jump-start” wildfire funding.
  • Bottle Bill Adjustment: increase the bottle deposit to include a non-refundable portion for wildfire funding.
  • Insurance retaliatory tax – Dedicate a portion of existing retaliatory taxes paid by out-of-state insurers to the State.
  • Ending Balance: Dedicate 0.5% of previous biennium’s appropriations (if there is an ending balance) to the Wildfire Fund. 
  • One time transfer from the Rainy Day Fund (RDF) – directed to wildfire.
  • Lottery Funds – Constitutionally dedicate a portion of lottery funds for wildfire.
  • Landowner assessment rates and existing structure – will be part of the solution. 

The proposal to create a Wildfire Programs Fund “stands out from the others,” Golden wrote.

“Funding for our programs would come not from the $1.8 billion principal—that would be preserved – but rather from the investment interest it earns.,” Golden wrote. “Assuming 5% annual return (a reasonable guess judging by the Treasury’s investment history), the fund would annually generate $90 million – $180 million each biennium – for wildfire programs. While that’s not enough to cover all our needs, it sure looks good relative to the $87 million budgeted in the current two-year cycle.”

The Legislature has fooled around with the kicker before. In 1991 and 1993, budget problems relating to Ballot Measure 5 of 1990 prompted lawmakers to suspend the kicker, withholding $246 million from taxpayers. Then, in 2007, lawmakers succeeded in diverting funds from the corporate kicker to a surplus account called the rainy day fund.

Public resistance to diversion of the kicker has historically been strong. As one current Reddit post says, “The Oregon State government is run as efficiently as an HOA. The kicker policy at least mandates them to return surpluses rather than letting this group of clowns spend it on whatever is fashionable and keeps them in office.”

There’s also long been suspicion that free-spending Democrats will take undue advantage of any relaxation in kicker policy.“This past session, I was approached multiple times by Democrats who wanted to use the kicker for some purpose, and their requests were well over $10 billion,” Senate Minority Leader Tim Knopp, R-Bend, told OPB in 2023. “The reason I haven’t done any of that is, once you open the door, you’re going to spend it all.”

That’s still true.