But that proposal is potentially on shaky legal ground. The Oregon Supreme Court overturned a 2003 attempt to suspend the COLA. The Oregon Department of Justice has suggested several ways that Kitzhaber’s proposed changes might hold up in court, despite the previous ruling. The agency admits, however, that “no guarantees are possible“ that court wouldn’t overturn the proposal. The Legislative Counsel’s office, however, says the changes would be thrown out by the Supreme Court.
What are the legal arguments for and against capping the COLA? What is the likelihood that Governor Kitzhaber’s proposal could survive in court?