On Wednesday, Governor Brown issued her proposed 2019-2021 budget and policy agenda. The Governor’s recommended budget includes $23.6 billion in spending, including $2 billion in new revenue for schools that would be raised in the 2019 session. The Governor also outlines a strategy to cover $623 million to fund the Medicaid budget, including provider taxes, cigarette taxes, and employer assessments. Highlights are below.

Budget highlights:

• $133 million additional investment for career technical education/ Measure 98
• $406.1 million for affordable and stable housing
• Health care/ Medicaid funding
  • Hospital assessment – Increase the hospital assessment from 5.3 to 6% of net patient revenue (Revenue: $98 million)
  • Provider tax – Extend 2% premium assessment and expand it to include stop-loss coverage (Revenue: $410 million)
  • Subsidized employer assessment (Revenue: $119.5)
  • Cigarette tax

Policy priorities:

• Cap-and-trade
• Dissolve the Oregon Department of Energy and replace the agency with a new Oregon Climate Authority that will assume responsibilities for cap-and-trade and clean energy.
• Subsidized Employer Assessment (from above) – tax employers who do not meet threshold health care contributions for their workers (i.e. those who work 30 hours a week at firms with 50 or more employees who are enrolled in OHP).

For additional information, read the 48-page report here.