Oregon talks over transportation, health care melting down

(AP) — After hours of heated debate Saturday among lawmakers in Salem, negotiations over a long-term transportation package appeared to be melting down as a January special election-showdown over a $670 million health care tax began to take shape.

Sixteen House Democrats sent a letter to Speaker Tina Kotek signaling the transportation package may be in jeopardy if they don't agree to raise new tax revenue before the 2017 session ends July 10 as required by the state's constitution.

"In the final days of the 2017 session, we believe that the Legislature must re-focus on the all-important task of identifying additional revenue to support education and other essential state services, ensure government transparency and reduce waste so we can protect critical services," the House Democrats wrote.

House Democrats also moved forward with their plans to set a special election on Jan. 23, rather than November, for a potential ballot fight being launched by two Republican lawmakers over newly-approved taxes on hospitals and insurers' health care premiums.

The tax is designed to fund Medicaid health plans for more than 350,000 low-income residents over the next two years and fill a large portion of the state's budget shortfall in the 2017-19 cycle that began Saturday.