Morning Roundup

Gov. Brown warns of budget cuts, Klamath Falls develops renewable energy project and MAX boosts Milwaukie.

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1. Without Measure 97, state budget faces 10% cut

Gov. Kate Brown is developing two budgets depending on which way Measure 97 swings. If the corporate tax increase fails, expect between 10% and 12% cuts across the board, the Portland Business Journal reports. Brown says in lieu of Measure 97 schools will suffer and the Oregon Health Plan will see a reduction in benefits.

2. Klamath Falls to use lake network as a battery

Swan Lake Valley, just outside Klamath Falls, is trying to use the lakes to power a water battery. Known as pumped storage hydroelectricity, the battery in Swan Lake is one of six like projects in Oregon, Washington and Idaho. OPB reports Swan Lake is the furthest along in the federal regulatory process.

3. Milwaukie’s economic glow

The MAX Orange Line began service from Portland to Milwaukie last September. Since then, the city has benefited from a rise in home sales and property values, the Oregonian reports. For example, Milwaukie homes sell in 24 days — twice as fast as the rest of the Portland metro area.

4. Longshoremen lobby for end to Port subsidy program

The International Longshore and Warehouse Union is asking the 9th U.S. Circuit Court of Appeals to shut down a Port subsidy program. The Port of Portland program pays ocean carriers to stop at the terminal. The program is languishing since ocean carriers no longer visit the terminal. The Capital Press reports the Port defends the subsidy because they hope ocean carriers will one day return. 

5. Portland Art Museum is expanding

The museum announced Thursday it will add a $75 million three-story gallery space. OPB reports the museum has already raised $22.15 million to fund the project. The plan is to break ground in 2018.

6. A Bend pharmaceutical lab lost its European credentials

Bend Research, a pharmaceutical contractor, can no longer sell its drugs in the European Union because the plant does not meet good manufacturing practice regulation, the Bend Bulletin reports. The lab is expanding. Bend Research has reportedly fixed most of the issues and will soon ask for a reinspection.

7. Sweet Cakes by Melissa closes

The Gresham bakery made famous for refusing to bake a cake for a same-sex wedding in 2013 announced the business has closed, according to the Oregonian. The Gresham storefront closed in 2013, but Aaron and Melissa Klein continued to sell cakes online. The Kleins were ordered by the Bureau of Labor Industries to pay $135,000 in damages to the lesbian couple. More than $500,000 had been raised for the bakers by supporters, but the Kleins said the judgement forced them to close shop.

8. Ebb and Flow: Blue Star opens fifth location

This week’s new business openings and closings, hires, fires and promotions.