The Liftoff: Who leaked the Fagan story?
PLUS: Legislators sue each other; Knight makes $2 mill political donation; prominent union tosses out leadership; tolling moratorium announced; Republicans walk out; and more!
Welcome back to The Liftoff! Wow—it was a huge week in Oregon politics and news. So, we’ll jump right into it because there is a lot going on. As always, thank you for your feedback, views, and subscribes.
1. Shemia Fagan’s downfall: what’s next?
The biggest news of the week was the downturn of once-rising Democratic star Shemia Fagan. Today we examine how the week unfolded—and what the future may look like, including who Gov. Tina Kotek might appoint.
But, first a timeline:
On Monday morning, Fagan held a virtual press conference to discuss her contract work and release details of the contract with La Mota, the cannabis company she was working for.
From WW: “The contract shows she was paid substantially more for her cannabis consulting—$10,000 a month, plus $30,000 for every cannabis license obtained outside of Oregon and New Mexico—than her $77,000 state salary.”
At the press conference Fagan said: “I’m starting over financially after a divorce. I have two young kids. I have student loans and other bills. I’m a renter in the expensive Portland metro area, and I’m the sole income earner in my household.”
By Tuesday morning the Oregonian’s editorial board posted this headline: “Oregon Secretary of State Shemia Fagan must resign”.
Hours later, Fagan issued a press release saying she would resign on Monday, May 8th.
Governor Kotek swiftly issued a statement announcing that Fagan’s deputy, Cheryl Myers, will step into the position until the governor appoints a successor.
Other highlights from the whiplash of a week:
The Oregonian scrutinized her calendar, writing “Oregon Secretary of State Shemia Fagan traveled frequently out-of-state for lieutenant governor events and leadership training during the six months before she resigned this week, while mostly keeping her daily work schedule to seven hours or less, according to calendars released by her office.”
The Oregonian also reported that Fagan “sought input on a planned audit of the state’s marijuana regulators from the owner of an embattled cannabis company and appears to have revised the initial audit framework based on the woman’s feedback, according to newly released records.”
The Oregon DOJ and the Oregon Ethics Commission are still moving forward with their reviews.
Must listen: On Thursday the podcast City Cast Portland interviewed Sophie Peel, the Willamette Week reporter who broke the story. Most interesting tidbit? It was an anonymous tipster who emailed Peel from a “burner” email account.
Who is Cheryl Myers, acting Secretary of State? Myers has previously served in the Governor’s Office, chief of staff for the Higher Education Coordinating Commission and as operations & engagement director for the Oregon Department of Education. The Portland Tribune has a background piece on Myers.
What’s low pay gotta do with it?: “Oregon pays its statewide officeholders, including Secretary of State Shemia Fagan, a pittance compared to other West Coast states and significantly less than members of local governments including the Portland City Council and the Multnomah County Commission,” writes The Oregonian.
Of note from the article: Fagan’s modest annual government salary of $77,000 — is well below her California and Washington counterparts’ pay of $168,000 and $137,000 respectively.
Who will be the next Oregon Secretary of State?: The governor hasn’t yet announced whether she’ll appoint a “placeholder” who does not intend to run for election next year, or a person who wants the job long-term, writes Dirk VanderHart with OPB. Names floated in the article:
State Treasurer Tobias Read
Former Senate President Peter Courtney
Senate Majority Leader Kate Lieber
Rep. Janelle Bynum
Other names circulating include Mark Hass and Jamie McLeod Skinner.
Talk about timing: When the news broke that Fagan would resign, KOIN6 News was interviewing La Mota co-owners Rosa Cazares and Aaron Mitchell. KOIN got live reaction from the two. Watch the full clip here.
2. Republicans walk out; future of legislative session in question
GOP walkout freezes legislature: Oregon Senate Republicans staged a walkout Wednesday, with only 18 senators present when Senate President Rob Wagner called the 30-member Senate to order at 10:30am, reports Gary Warner with the Oregon Capital Bureau. The walkout coincided with a vote on House Bill 2002 (the abortion/gender-affirming care bill) before the Senate.
They walked out again on Thursday, and put the entire legislative session into question. Republican leaders say they’re protesting an unconstitutional process of passing bills that fail to meet legal requirements for readable language that the public can understand—a provision that has been largely ignored by both parties for decades.
While the Senate stalled, the Oregon House made major moves. Some highlights:
Ghost gun ban: The House split along party lines Tuesday to approve a ban on so-called ghost guns made with untraceable parts, reports The Portland Tribune.
Gender and abortion care protections: Fox News reports, “Oregon lawmakers have advanced a sweeping bill intended to protect abortion and sex reassignment health care for transgender people by boosting legal safeguards and expanding access and insurance coverage. Democratic representatives on Monday night passed the bill along party lines in a House floor vote that stretched for roughly six hours after Republicans sought to stall it.”
On Wednesday Rep. Emily McIntire (R-Eagle Point), Sen. Suzanne Weber (R-Tillamook) and Oregon Right to Life sued legislative leaders, alleging that they broke state law because the summary of the abortion and gender-affirming care law isn’t easy to understand, reports The Oregon Capital Chronicle. The lawsuit coincides with a Republican walkout in the Senate over the same readability issues on other bills.
On Thursday Marion County Circuit Judge David Leith denied the GOP petition to block Senate Democrats from passing House Bill 2002. “In doing so, Leith signaled serious misgivings that the case would ultimately succeed, nodding to arguments from government lawyers that the court had no authority to block the Legislature from doing its job,” reports OPB.
According to a news release from three Clackamas County representatives who have opposed tolling, “Gov. Kotek has pushed back tolling by at least one year as lawmakers from the Joint Committee on Transportation Oversight announced they were creating a group to review the state’s major transportation projects,” reports The Oregonian.
Some 2024 legislative election news, courtesy of the East Oregonian: “Hermiston Mayor David Drotzmann is considering adding this name to the slate of candidates seeking Bill Hansell’s seat in the Oregon Senate.” To learn more about Drotzmann, check out his interview on The Oregon Bridge.
3. Why the 1990 election changed Oregon forever: A conversation with Jeff Mapes
Jeff Mapes is a legendary Oregon political reporter. He spent over 30 years with The Oregonian and retired working for Oregon Public Broadcasting (OPB). He covered dozens of gubernatorial, congressional, and legislative elections in Oregon and had a front row seat to the changing political dynamics of this state. He also wrote and produced an acclaimed podcast called "Growing Oregon" about land use planning in Oregon.
If you enjoy The Oregon Bridge, we highly recommend Growing Oregon. In this episode, we talk about Jeff's storied career as a reporter: how he got started, how the state and political parties have changed, and key figures who made an impact along the way. We talk about land use planning, both historically and in the context of today's political debates. We spend the bulk of the episode talking about one of the most impactful and fascinating elections in Oregon political history.
In 1990, Barbara Roberts shattered Oregon's glass ceiling by becoming the first woman ever elected governor, defeating moderate Republican Attorney General Dave Frohnmayer, and independent candidate Al Mobley, who ran as a staunch conservative. We talk about what made the race so unique, and two other election issues in 1990 that still reverberate today: Measure 5 (property tax limits) and the spotted owl.
4. Sponsored Message from Harrang Long P.C.: Harrang Long’s Appellate Practice
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5. Taxable income flows from Portland to Washington
Thanks to our friends at ECONorthwest for authoring this section.
The pandemic ushered in a work-from-home era, allowing, for some, greater flexibility in choosing work locations. As a result, many individuals have migrated out of expensive urban centers to suburban areas and smaller metropolitan regions.
In the Portland region, taxes may also be a driving factor behind these moves. Oregon's progressive income tax contrasts with Washington's regressive sales tax, resulting in larger intraregional tax differences than inside any other US metro. In addition, two local income taxes were passed on the Oregon side in 2020.
Recently released IRS data from 2021, which tracks county-to-county moves, suggests that households may be responding to these tax differences (see chart). Throughout much of the past decade, taxable income flowed to Clark County. However, in 2021, the net flow to Clark increased in all three counties and totaled almost a quarter-billion dollars in Multnomah County alone. If the net outflow trend continues, fiscal conditions on the Oregon side will weaken. One way to stem the tide: ensure that tax revenues pay for well-delivered services that households and businesses value.
6. The Oregon Way: The Public Defender Crisis and Abortion Hotline
Oregon Way contributors Anna Sortun and Gary Conkling have new pieces for you this week. Sortun gives an update Oregon’s abortion hotline that educates Oregonians on questions related to abortion and Conkling gives the rundown on the state’s ongoing public defender crisis.
7. News Round-Up: Psilocybin, Phil Knight, and Ecola State Park
Outside Magazine has named Oregon’s Ecola State Park one of the Best State Parks for Dramatic Landscapes.
An Oregon man and former FBI agent was arrested for egging on protestors at the Capitol on January 6.
In a contested election, the American Federation of Teachers - Oregon replaced their two-term president Jaime Rodriguez with Ariana Jacob; Jacob won over 80% of the vote. At the same convention meeting, the union terminated their relationship with outside lobbying firm Mahonia Public Affairs, according to the Northwest Labor Press.
Governor Kotek toured Eastern Oregon’s Lower Umatilla Basin Wednesday, and “ramped up pressure on state government to solve” the crisis over contaminated drinking water reports OPB.
Derrick Peterson, a leading candidate for the Portland Public Schools Board, has dropped out of the race following revelations of alleged ties to Christian nationalists, according to the Oregonian.
Nike co-founder Phil Knight contributed $2 million on April 4 to the Bring Balance to Salem PAC to help Republicans gain seats in the Oregon Legislature, reports the Oregonian.
Oregon is the first state in the nation to open up a “functioning, legal system to obtain and use psilocybin.” Ryan Haas has the full story for OPB.
Thank you for reading!
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About the Authors
Ben Bowman is the state representative for Oregon House District 25 (Tigard, Metzger, and South Beaverton) and a member of the Tigard-Tualatin School Board. In his day job, he works as an administrator for a public school district. Previously, he worked as a legislative aide for former Reps. Margaret Doherty and Val Hoyle. He also co-hosts The Oregon Bridge podcast. In the newsletter and podcast, he speaks only for himself.
Alex Titus is a small business owner and consultant to businesses, nonprofits, and associations. Previously, he served as an Advisor in the Trump Administration and as a Policy Advisor to President Trump’s Super PAC. His writing has appeared in National Review, Fox News, The Hill, RealClearPolitics, and other publications.
Kristina Edmunson has been everything from press assistant for Governor Kulongoski, media advance associate for Vice President Joe Biden, and communications director for Attorney General Rosenblum. Born and raised in Eugene, she has been involved in some of the biggest and most controversial policy and legal decisions in Oregon over the last decade. She speaks only for herself in her contributions to The Liftoff.
Fagan should be, and likely will be indicted by Main Justice.
Shemia Fagan, I understand the difficulties you face in this economy. That doesn't excuse your accepting money from private companies that your department directly regulates. I'm a member of Oregon's progressive community, working to make social justice a priority in our state's leadership. Right now, we are fighting conservatives who want nothing more than to undermine our efforts. Your actions, that look alot like taking cash in exchange for political favors, after we celebrated your being elected, really hurts. I hope you can make this right, but maybe you need to step down.