Oregon Public Broadcasting

The 2009 Oregon legislative session appears to be in its final hours. But even as lawmakers put the finishing touches on a rapidly dwindling list of bills, a new fight is emerging over a pair of major tax increases passed earlier this month. Salem Correspondent Chris Lehman explains.

Majority Democrats approved tax hikes on corporations and upper-income households. Legislative leaders said the money was needed to help offset a $4 billion budget deficit.

Most Republicans opposed the plan, and now a coalition of business groups is pledging to force the issue onto the ballot.

They've hired powerful lobbyist Mark Nelson, who is confident in the group's ability to gather 55,000 signatures over the next three months.

Mark Nelson: “I think Oregonians understand that taxation kills jobs and hurts the economy as we try to come out of this recession and or depression that we're in.”

Lawmakers are maneuvering to quicken the pace of that referendum should the signature drive be successful. One bill would move up the election to January, rather than next May.

That way schools and state agencies will know sooner rather than later whether they can count on an additional $800 million.