House Passes Oregon Stimulus Act
Dear Friends,
President Obama has recently asserted that we will be judged by the rightness of our actions; that all of us must take bold and sometimes difficult steps to help our families, our neighbors and our communities. Like any family faced with an emergency without the money to pay for it, we are using our good credit to keep us afloat in times of great crisis and need. Although paying for these projects directly would be less costly in terms of absolute dollars, the amount we plan to bond has to be set against the scale of the crisis we now face. This is likely to be the worst economy Oregon and the nation have seen since World War II. A line of Nobel-prize-winning economists have supported the notion of using stimulus packages like this one to bolster business activity. Given our current challenges, we have to be pragmatic and do everything possible to avert further calamity.
To ensure the stimulus has an immediate, positive impact on our economy, the projects associated with it were selected based on the following criteria. In short, they had to be…
- A priority on a state agency’s list of deferred maintenance or new construction;
- Ready to start by April of this year;
- Retain or create private sector jobs, not simply perpetuate state government positions; and
- Lead to improvements or permanent structures that will outlast the life of the bond.
In addition, it’s important to note that because of the bonding instruments used, only state-owned facilities were eligible for this particular stimulus package. As noted below, others, with broader public purpose applications, will likely be part of future stimulus packages.
None of this is to say that we should borrow to the extreme limit of our means–a figure currently estimated to be about $1.1 billion. We don’t know the full length and depth of the recession and will need to maintain considerable reserves. That said, the stimulus package offers to reverse years of neglect and put people back to work right away in our hardest hit sectors in every corner of the state. The rising unemployment figures don’t even tell the full story. Oregon’s Labor Economist Art Ayre estimated recently that over ten thousand Oregonians can be considered ‘discouraged workers’–workers legally able and wanting to work, but not actively searching for positions. Although not perfect, Senate Bill 338 offers hope to these and other folks displaced and discouraged due to tough economic conditions.
Please note that this stimulus package is likely to be the first of a series of other, targeted packages designed to provide a ’staggered stimulus’ to the economy. The items in SB 338 may be considered part of a first phase effort; the federal stimulus package, particularly, it’s community infrastructure and transportation-related components, may be considered, a second phase effort; and a likely state-sponsored transportation package, which would take effect next year, may be considered a third phase effort. The notion is to provide a constant stimulus to the economy over an extended period in order to cushion Oregonians from the worst possible consequences of the downturn.
It’s an honor and a privilege to represent you in Salem.
Regards,
Rep. David Edwards