With all of the cash pouring into Oregon from the growing economy and these new taxes, it’s hard to believe that we are still in a fiscal crisis. But we are. Despite record setting revenues many schools had to lay off teachers because the increasing costs for salaries, healthcare and pensions (PERS) ate up all of the new revenue and then some.
Unfortunately Oregon’s elected leaders made little progress during the 2017 legislative session controlling these spiraling costs. Nothing was done to slow the growth of PERS costs, which are rapidly approaching 30% of payroll for many school districts, state agencies and local government employers. The cost of healthcare benefits for Oregon state employees is 50% higher than the national average but legislators rejected most reasonable reforms that were put on the table to address these costs.
Oregon desperately needs leadership in Salem to bring parties together and tackle Oregon’s fiscal challenges. Otherwise it will continue to be the state that can’t fund schools even when it is awash in cash and the state that doesn’t use the good times to save for the bad times. That’s fiscal insanity.
