Readers respond: Don’t sap Oregon economic development funds

Gov. Tina Kotek’s commitment to boosting prosperity through economic development is encouraging, and I hope her efforts are successful, (“Oregon’s governor unveiled a ‘roadmap’ to business prosperity. Here’s what’s at stake,” Dec. 2). Too often, Oregon’s leading industries and businesses hear platitudes on the importance of economic development only to witness actions that dilute economic development funds, which provide high returns on investment.

Oregon hospitality and leisure is the third-largest private employer sector, creating more than 200,000 jobs and generating $14 billion in annual economic activity – driven in part by state and local lodging taxes.

The state’s 1.5% lodging tax raises approximately $40 million a year and is reinvested in economic development, including tourism promotion and related infrastructure. But some state lawmakers are trying to increase the tax and divert the additional revenue for things without economic benefits – things which should be paid for with general funds. Worse yet, there are efforts to change how county and city lodging taxes are distributed.

State and local lodging taxes are designed to be an economic development tool, and the current system has proven itself – a $40 million investment at the state level and hundreds of millions at local levels for a $14 billion return.

The economic headwinds facing Oregon’s economy are fierce. We should be laser focused on creating the strongest multiplier effect we can with these finite economic development resources. If lawmakers care about Oregon’s economic prosperity, they will abandon these harmful proposals in the upcoming session, and the governor should rebuke any efforts contrary to the goals of her economic development roadmap.

Jason Brandt

Brandt is president and CEO of the Oregon Restaurant and Lodging Association

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