The hurdles in Kotek's economic prosperity roadmap

To revive Oregon's sluggish economy, Gov. Tina Kotek's Prosperity Council says the state needs to overhaul everything from its tax structure to its regulatory system.

Why it matters: Business leaders have spent years warning that Oregon is losing out on jobs and billions of dollars in investment due to red tape, workforce shortages and high costs.

The 10-point roadmap, released last week, addresses many of those concerns, but not every recommendation faces the same odds — some would require lawmakers to rethink decades of Oregon economic policy.

Zoom in: Some of the council's recommendations build on efforts already underway in Salem.

Faster permitting: State agencies would approve or deny permits within a set timeline, building upon legislation Kotek pushed for earlier this year.

Building a better talent pipeline: Oregon needs to invest more in public universities and community colleges and improve K-12 educational outcomes to strengthen the state's workforce for in-demand jobs.

Yes, but: The recommendations that could have the biggest economic impact face the steepest political climb.

Land-use reform: Business leaders argue Oregon is losing projects because it lacks development-ready sites, while others say those protections are essential to preserving farms and forests.

Cutting regulations: The council recommends slashing regulations by 20% by 2029 — something other governments have done with success.

Rethinking Oregon's tax structure: The council argues Oregon's reliance on income tax makes the state less competitive.

It also proposed short-term tax changes — like raising the estate tax exemption and giving more tax credits for research and development — to provide immediate relief.

The intrigue: Tax reform will be the most "politically difficult," John Tapogna, president of the Oregon Business Council, the state's largest business advocacy group representing major employers, tells Axios.

"But if Oregon wants a stronger economy and a more durable revenue base, it cannot avoid the conversation."

Meanwhile, Kotek signaled support for replacing Oregon's current greenhouse gas emissions program with a system that would allow businesses to buy and sell emissions credits.

"I'm going to look at the things I can do right now and start building them into my budget and proposals for the upcoming session," she said last week, per OPB.

The bottom line: While Kotek's Prosperity Council is made up of influential community leaders, heads of businesses, developers and lawmakers, its recommendations are just that — recommendations.