For Immediate Release: February 5, 2002

For more information contact: Janice Thompson 503-283-1922

"I've been actively monitoring the legislature for a long time. All too often important decisions like those to be made in the upcoming special session are influenced more by political spending than by what Oregonians want for our state," says Kappy Eaton, chair of the steering committee of the Money in Politics Research Action Project (MiPRAP). Ms. Eaton is also an active member of the League of Women Voters of Oregon and American Association of University Women.

The political decisions about Governor Kitzhaber's proposal to help fill the budget shortfall by increasing taxes on cigarettes, beer, and wine to will be particularly influenced by political money. In the last two election and legislative cycles $5,286,867 has been spent in legislative campaign contributions, contributions to leadership PACs*, and lobbying expenditures. This political spending is by the tobacco and alcohol industries and two of their key allies, the Oregon Restaurant Association and Oregon Grocery Industry Association. Seventy-four percent (74%) of candidate campaign contributions went to current legislators who will be making budget decisions in the upcoming special session.
 

Industry/Ally	Lobbying expenditures 1999-2001	1998-2000 legislative campaign contributions			2000 contributions to leadership PACs
Tobacco	$728,135	$165,830			$75,270
		% to Dems	% to Reps		% to Dems	% to Reps
		9%	91%		41%	59%
Beer, Wine, Liquor	$1,047,066	$293,798			$16,262
		% to Dems	% to Reps		% to Dems	% to Reps
		32%	68%		19%	81%
OR Restaurant Association	$1,572,640	$532,817			$60,264
		% to Dems	% to Reps		% to Dems	% to Reps
		6%	94%		10%	90%
Oregon Grocery Industry Association	$564,206	$209,055			$21,524
		% to Dems	% to Reps		% to Dems	% to Reps
		7%	93%		1%	99%
Spending Totals	$3,912,047	$1,201,500			$173,320
		% to Dems		% to Reps	% to Dems		% to Reps
		13%		87%	16%		84%
Total Political Spending by Tobacco and Alcohol Industries and Key Allies		$5,286,867

The political clout of the alcohol special interests is demonstrated by the 24 years that have passed without any increase in beer taxes that were last raised in 1977. Wine taxes were last raised in 1983 by two cents to fund the Wine Advisory Board that promotes the development and marketing of Oregon wines. A Legislative Revenue Office analysis ranks Oregon's beer tax as 49^th lowest among the states and our wine tax as 46^th lowest. This analysis factors in both excise and sales taxes on these products.

Currently Oregon's tax on a pack of cigarettes is $.68, which is the lowest tobacco tax on the West Coast. Polling data released by the Tobacco Free Coalition of Oregon shows that 65% of voters would support a 50-cent increase in the tobacco tax. This increase is estimated to bring in $79 million during this biennium, according to the Legislative Revenue Office, and would prevent almost 15,000 kids from becoming addicted smokers.

A national poll indicates that 87% of voters believe that when a politician receives special interest contributions his or her vote is affected on issues of concern to those groups.

"In contrast to polling data the political rhetoric about not raising tobacco or alcohol taxes leads you to wonder if legislators are really more concerned about future donations from these industries," says Janice Thompson, Executive Director of Money in Politics Research Action Project.

*Leadership PACs in Oregon:

Leadership Fund - supporting Republican candidates for Oregon Senate

Majority 2000 - supporting Republican candidates for Oregon House

Senate Democratic Leadership Fund - supporting Democratic candidates for Oregon Senate

Future PAC - supporting Democratic candidates for Oregon House