Advocacy in Action: Chamber Offers Perspective on City of Springfield Fiscal Strategy

On Monday, December 8th, the Springfield City Council will convene a special session and public hearing to discuss next steps on a potential new local payroll tax. Ahead of this meeting, the Springfield Area Chamber of Commerce has submitted a formal letter to Mayor Sean VanGordon and members of the Springfield City Council outlining the Chamber’s perspective on the City of Springfield’s developing fiscal sustainability strategy.

Representing nearly 800 member employers across the region, the Chamber affirmed its shared commitment to long-term fiscal stability and the protection of essential public services. The letter emphasizes that the Chamber’s role, first and foremost, is “to champion a larger vision: one centered on growing Springfield’s tax base through targeted and responsible economic development, intergovernmental coordination, and balanced fiscal policy.” The Chamber’s perspective in this particular conversation is that stability cannot rely exclusively on short-term tools, such as cost reductions or new taxes, but must be matched with forward-looking, growth-oriented strategies that expand Springfield’s economic competitiveness and tax base.

The Chamber praised the thoughtful work of the Mayor’s Fiscal Stability Task Force and acknowledged the City’s efforts to incorporate community input. At the same time, Chamber leadership expressed reservations about the timing of additional tax proposals and the risk of relying too heavily on short-term fixes. Protecting Springfield’s reputation as a business-friendly, well-managed city, the Chamber noted, will depend on maintaining transparency, predictability, and accountability as fiscal decisions move forward.

In its letter, the Chamber highlights five core viewpoints:

1. Concern over timing of local tax increases
   Layering new local taxes during a period of rising statewide regulatory and cost pressures may limit reinvestment, slow hiring, and undermine Springfield’s competitive position. The Chamber urges careful consideration of timing and sequencing.
2. Short-term stabilization balanced with long-term growth
   Short-term revenue tools should complement—rather than overshadow—strategies that strengthen the City’s long-term economic base, including business retention and expansion, industrial and commercial development, and protection against unfunded mandates.
3. Library services and fiscal prioritization
   The Chamber supports a fair, transparent evaluation of library services within a balanced budget framework. The letter encourages exploration of innovative, partnership-focused operating models to maintain community value without increasing pressure on payroll tax rates or the General Fund.
4. Payroll tax guardrails, transparency, and simplicity
   Chamber members expressed openness to the proposed shared payroll tax rate, provided it is implemented with clear guardrails, fiscal discipline, and predictable processes. The letter outlines several standards—including advance notice, a locked rate period, independent advisory oversight, and transparent reporting—to maintain public trust and economic stability.
5. Long-term stability through growth-driven regional action
   The Chamber notes that fiscal sustainability ultimately depends on structural economic growth and coordinated regional efforts. Priorities identified include activating development in the Gateway and Glenwood areas, strengthening business retention and expansion tools, advocating for fairer state revenue distribution, and protecting limited local tax capacity.

The Chamber concludes its letter by reaffirming its commitment to collaborating with City leaders on a practical, predictable, and forward-looking approach that preserves essential services while supporting a strong and growing economy.

How to submit testimony to the Springfield Mayor and City Council
The letter was submitted preceding the special session and public hearing slated for Monday, December 8th, 2025 in which the Council will address the Fiscal Stability Task Force recommendations, with a focus on the local payroll tax.

For those interested in submitting testimony on behalf of themselves or their business, join in person at 6:15pm on 12/8 at Springfield City Hall or submit your thoughts via email to City Councilors and the Mayor:

• mwebber@springfield-or.gov
• smoe@springfield-or.gov
• krodley@springfield-or.gov
• bblackwell@springfield-or.gov
• astout@springfield-or.gov
• abuck@springfield-or.gov
• svangordon@springfield-or.gov

More About the Springfield Chamber’s Business Advocacy Efforts
As a trusted convener and provider of business resources, the Springfield Chamber is committed to fostering policies and incentives that contribute to our competitive position in private sector job creation, retention, and economic growth. The Chamber recognizes the systemic interdependencies of a healthy economy and provides an ear and a voice for local business at the confluence of government, commerce, and community. Through a robust platform of member advocacy services, the Chamber advocates for business by increasing visibility, dialogue, and representation at local, state, and federal policy circles around issues of impact and interest to their members.