State finances not looking so healthy
So says budget member Richardson
From our weekly issue dated April 28, 2010
A bleak financial future is faced by the state of Oregon due to rampant government expansion and spending and the growing demands of its Public Employees Retirement System (PERS).
That“s the studied conclusion of Rep. Dennis Richardson (R-Central Point), a member of the budgetwriting Ways & Means Committee.
Richardson was the guest speaker during the Thursday, April 22 luncheon meeting of the Josephine County Republican Women at a restaurant in Grants Pass.
Approximately 25 people attended, including Josephine County Sheriff Gil Gilbertson, House District 3 candidate Wally Hicks, and county commissioner candidate Simon Hare.
Since his election in 2002, Richardson has represented House District 4, which covers parts of Josephine and Jackson counties.
He said that the state government budget has grown from $41 billion in 2005 to $60 billion in the current biennium, figures he called “jaw-dropping“ and “unsustainable.“
There also is a “very serious looming problem“ with the costs of PERS, Richardson said. Around $825 million will be spent on PERS this biennium, he said, and that figure will jump to $1.3 billion in the next biennium.
Richardson said that the state“s current budget includes $1.5 billion of onetime money, including federal stimulus dollars.
“That money is going to be gone,“ when the Legislature develops the next budget, Richardson said.
Further complicating the problems, Richardson said, is the national recession. Oregon continues to have double-digit unemployment, which is particularly bad for a state that depends largely on income taxes to fund state programs, he said.
The state is borrowing $4 billion this biennium, Richardson said, which adds to future debt obligations.
Richardson said that he has discussed the coming financial storm with some of the Democrats in legislative leadership positions. They have acknowledged the need for another stimulus from the federal government to balance the state“s books, Richardson said.
“That“s not a strategy, it“s a wish. It“s a dream,“ he said. “We cannot count on it.“
Those looming financial issues are not unique to Oregon, Richardson added, as other states and the federal government are facing similar situations.
But he said that the challenges can provide American citizens the opportunity to reassess the principles that founded the nation.
“Socialistic principles do not work,“ Richardson said. “People want their country and state back.“
Richardson said that voters will have the opportunity to alter the state“s course in the November general election.
Democrats currently hold a supermajority in the Oregon House and Senate, and have controlled the governor“s office since 1987.
But Gov. Kulongoski is prohibited by law from seeking a third consecutive term, and Richardson said that Republicans have “excellent candidates throughout the state.“
Independent and nonaffiliated voters in Oregon have trended Democrat in recent elections, Richardson said, but could change their minds in November. Richardson cited the recent election of Republican Scott Brown to the U.S. Senate seat long held by Democrat Ted Kennedy.
“I believe what happened in Massachusetts can happen in Oregon,“ he said. “When that takes place, we will be ready.“
If Republicans can capture majorities in Salem, Richardson said, there will be a “quantum shift in policy.“
He accused the state“s current leadership of having a “lack of vision as to how the economic system works.“ He said that public sector unions, including the Oregon Education Association, American Federation of State, County & Municipal Employees, and Service Employees International Union, have “undue influence“ in state government.
Dues to those unions are collected by the state and used to elect Democrats to office, Richardson said, who then “pass laws to protect those who elected them.“
“There is very little longterm vision shown in the Legislature,“ Richardson said.
(Full Disclosure: Scott Jorgensen served as an aide to Rep. Richardson during the 2005 legislative session.)
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