Why This Effort?

The Framework

Summits & Regional Meetings

View Plan Documents

Initiative Tracker
|

Initiative
Tracker -- Improve
Public Finance and Services
Objective
Revamp
Oregon's system of public finance and budgeting to provide
stable funding for critical public services and to create strong
incentives for economic growth
Initiative Leaders
Malia Wasson, U.S.
Bank; Brett
Wilcox, Summit Power Alternatives; Northwest Aluminum,
Ken Thrasher, Compli
Menu
Agenda
for 2008
The Oregon Business Plan recommends
that the Governor and Legislature:
-
Expand
the budget horizon and establish performance expectations.
Absent
long-term forecasts of revenues and expenditures, the state’s
visionary leaders – from both the public and private sectors –
will struggle to implement broad, important policy changes to
education and healthcare. The Governor and legislative leaders
should develop and require 10-year forecasts of programs and
policy initiatives under current law. As they expand the policy
horizon, they should set clear performance expectations for each
major program in the budget.
-
Finish
the Reserve Fund work. Lawmakers
and voters should be applauded for the creation of two reserve
funds during the past five years. Oregon stands a much better
chance of maintaining its core education, healthcare, and public
safety services during the next downturn. However, some additional
work should be done. The bulk of revenue sitting in the newly
created ‘rainy day” fund
came from a one-time source, and the adequacy of the fund
in future economic cycles hinges on the election of fiscally
prudent lawmakers.
-
Diligently
monitor the condition of the volatile pension system.
Oregon’s
comprehensive reform to its pension system was perhaps the most
difficult and important public policy change of the last decade.
Strong investment returns since 2003 have further strengthened the
system’s financial position. However, PERS remains inherently
volatile, and business leaders call for routine and robust
analyses of the system’s long-term condition.
-
Review
public employee compensation and ensure that public-sector pay
supports the state's strategic goals.
Having
overhauled the retirement system, policymakers should now conduct
a full review of public sector compensation. The state knows very
little about how public compensation stacks up to compensation for
similar work in the public sector of other states, the private
sector in Oregon, or any other appropriate benchmark. Policymakers
should thoroughly inventory compensation packages and then
determine where compensation policies support the state’s
strategic goals and where they don’t. In some cases compensation
may be too high, in some cases too low, and in others, generally
appropriate.
-
Diversify
the state tax base and address
the inadequacy of local revenue in timber counties.
Business
leaders call for a revenue system that promotes economic vitality
and provides stable support for fundamental public services. At
the state level, Oregon’s system falls short on both counts. At
the local level, uncertainty around long-time federal payments has
left critical public services in flux in the 18 O&C counties.
Business leaders will participate on, and collaborate with, the
Task Force on Comprehensive Revenue Restructuring to design an
adequate and stable revenue system.
For
a more detailed description of these recommendations, please review
the 2008
Oregon Business Plan Policy Playbook and Initiative Guide.
Tell
us what you think about our 2008 Public Finance
recommendations. Review public finance accomplishments here.
back
to top
Track
another initiative
|