Oregon Lawmakers Grapple with Diverting Taxpayer Kicker and Beverage Taxes to Fund $280 Million Wildfire Fight

Oregon lawmakers must make some ‘hard decisions’ on diverting funds from existing income streams to raise the $150 million needed annually to fight wildfires.

The announcement was made earlier this week by Governor Tina Kotek, who said lives will depend on the decisions taken by lawmakers.

Onerous Task Following Trump Administration’s Fund Freezing

Their decisions have never been more critical since the Trump Administration’s wildfire fund freezing announcement earlier this month.

In the face of a growing wildfire crisis, the Oregon Departments of Forestry and State Fire Marshal formed a work group to devise solutions for sustainable wildfire funding. Kotek shared a summary of that group’s proposals with lawmakers on Monday.

The governor has asked lawmakers to withhold $150 million, earmarked for the state’s reserve fund, to provide one-time wildfire funding. She asked lawmakers to find an additional $130 million each budget cycle for fire readiness and prevention efforts.

The workgroup had to find solutions for lawmakers to raise $280 million each biennium to pay for wildfire prevention and suppression. Only two of the workgroup’s six top ideas propose new revenue streams.

Diverting Taxpayer ‘Kicker’ Fund to Firefighting is Likely to Meet with Resistance

The one championed by Ashland Democratic Sen. Jeff Golden, and the one most likely to be met with resistance, suggests retaining one year’s ‘kicker’ that could raise $144 million per biennium for wildfire prevention.

The ‘kicker’ is the revenue that exceeds the official economists’ forecast and is estimated at $1.8 billion to divide among taxpayers in 2026.

To achieve his ‘kicker’ plan, Golden needs a two-thirds vote of both chambers of the Legislature. He needs to recruit all Democrats, and earn the voting support of at least two Republican senators and four representatives.

Non-Refundable Tax on Bottled and Canned Beverages

Another suggestion for a new revenue stream is to increase the price of beverages in non-refundable bottles and cans by one to five cents. The work group estimates that $200 million could be raised at a fee of five cents per beverage.

However, Senator Fred Girod, Republican Stayton, believes the state has sufficient funds to foot the wildfire fighting bills. He suggests funding with a combination of insurance taxes and lottery proceeds. Sen. Girod favors a suggestion to withdraw $150 million from the state’s ‘rainy day’ fund.

Girod says insurance tax generates about $140 million per biennium, and taking 10% of lottery proceeds will generate an additional $200 million. Currently, lottery proceeds primarily fund K-12 schools, higher education, natural resources, and economic development.

But Golden counters, saying state lottery proceeds are under competitive pressure. He is hesitant to use state reserve funds for what he predicts will be a ‘rocky’ financial forecast in future years.