| Speech by Governor Kulongoski |
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| Friday, March 5, 2004 |
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Listen to the Governor´s State of the State speech online:
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State of the State Address 2004
REMARKS BY GOVERNOR TED KULONGOSKI
Friday, March 5, 2004
My fellow Oregonians. I’m going to talk to you today about my vision for Oregon – what we’ve accomplished together and where I intend to lead this great state the next three years.
But for a brief moment I want to put aside all of the usual topics of a State of the State address and ask you to think about – and remember – two simple truths. The first is that many of Oregon’s sons and daughters are still in harm’s way in Iraq and Afghanistan. Several have died in the line of duty. These young soldiers are my heroes. They are the best Oregon has to offer. And until they’re all back safely in the arms of their families – the state of our state will never be fully whole.
The second truth is that we live in the best state in the best nation in the world. With the challenges we face – and there are many – it’s easy to forget how fortunate we are to call this beautiful and economically bountiful state our home. Sometimes we ride the wave of progress – without having to hope for more. Other times we need to put hope front and center – and remember how blessed we are to live here. If there’s one place on earth where justice and dignity are always stronger than the passion of the moment – and hope is always stronger than fear – it is right here in Oregon. Times change. Economies change. But the gift of Oregon does not change. This is still the last best place to live and raise a family.
So what is the state of our state today? As your Governor, I can report to you that Oregon is strong and getting stronger.
I say that knowing full well that many Oregonians are frustrated with their government – and have been for a long time. I share these frustrations. They led me to run for Governor in the first place. For much of the last decade Oregon government seemed to be taking an extended tour away from common sense. The economy was booming. But instead of using those good times to make a great state even better – the Legislature let the clock tick away on government reforms, crumbling roads and bridges, and saving for a rainy day. As budgets grew they actually cut our commitment to higher education, paid little attention to job creation and economic opportunity, and pursued fiscal policies that left us with a budget that was financially unsustainable.
All this took place – not surprisingly – during a period of unprecedented partisanship in a state long known as a place where Democrats and Republicans work together. It was enough to make Oregonians shout – like Howard Beale in the movie Network – “I’m mad as hell and I’m not going to take it any more!”
I didn’t shout. But I did roll up my sleeves. I did step on the gas. And now I’m steering Oregon away from the detour we’ve been on – and back toward a stronger economy and responsible budgeting.
This new direction for Oregon is a shared achievement. I’ve worked closely with members of both parties. Yes, we have our differences on some issues. But we negotiated and compromised – without the destructive partisan rancor of past years.
I said I would set a new tone in Salem – and I have. I said I would govern with an open door – and I have. And I said I would work across party lines to turn Oregon’s economy around – and I have. As a result – during a time of recession and painful budget choices – we still made great progress for Oregon.
I’m going to talk about that progress. But first I want to tell you about some of the good economic news in Oregon. Just last week we announced that state revenue has grown by 120-million dollars over our previous forecast – 76-million of which is money not spent during the 01-03 budget cycle. To give you an idea what 76-million dollars can buy: It is enough to hire 385 state troopers, or add five days to the school calendar. About half of the 76 million comes from program savings. But the other half comes from administrative overhead belt tightening by state agencies. We cut the cost of doing business. By working smarter, we’ve stretched our tax dollars – steering money to vital programs and services that otherwise might have been cut.
The 545-million in cuts that the Legislature mandated if Measure 30 was defeated still must be made – and will be made. But at least for now, it appears that the rest of the projected revenue shortfall has been eliminated because state government is more efficient – and our economy is recovering. This is very good news.
The news on jobs is also looking better – although we have a long way to go. There was a very small up tick in our January unemployment rate. But the overall trend for the past 6 months has improved – and I think that trend will continue. We’re actually starting to “in source” jobs. Major companies – including high tech giants like Sun Microsystems and Intel – are moving jobs from California to Oregon. This is not an accident. It is the result of actions my administration has taken to improve the business climate in Oregon. California businesses recognize that Oregon has big cost advantages – especially workers comp, which I led the reform of more than ten years ago.
I’ve said this many times before – but I’ll say it again. A jobs recovery that is just high tech – and just in the Valley – will never be good enough for me. That’s why I’m working with the Legislature to bring jobs to every region of this state. In the last year, I spent countless hours with company executives to create new employment opportunities in Oregon. That hard work is paying off.
T-Mobile brought 750 jobs to Redmond. Cardinal Glass brought 70 jobs to Hood River. Brentwood Corporation created 70 jobs in Molalla. Jobs were also created or retained in Ontario, Baker City, Grants Pass, Astoria, Tumalo – and many other Oregon communities. Just last week we were working with Keystone RV in Pendleton. The outcome of our talks is that the company will add 125 jobs to its current workforce of 350.
All of these new and retained jobs are a clear sign that the worst is behind us. But I’m far from satisfied. That’s why I’m going to keep selling Oregon’s competitive advantages – and I’m going to keep strengthening those advantages by investing in education and workforce training. I’ll have more to say about that in a few minutes.
There are other signs that Oregon – and Oregon’s economy – is strong and getting stronger. Most of our export industries – especially high technology manufacturing – are out performing their national competitors. The most advanced semi-conductor work in the world is done here in Oregon!
The greatest threat to the solvency of this state – the huge unfunded liability of the Public Employee Retirement System – has been brought under control. This too required bipartisan support. PERS reform will save Oregon taxpayers over 9-billion dollars. And what may be the most important sign that Oregon is getting stronger: The days of business as usual in state government are truly over!
This is a work in progress. But we already have a real record of improving government efficiency – and getting the most out of every dollar. We’re merging data and network centers – savings taxpayers $20 to $40-million per biennium. We’re modernizing the way government makes purchases – again, saving an estimated $20-million each biennium. We’re merging 30 separate motor pools, cutting the number of SUVs, and using more natural gas vehicles – for cleaner air and lower fuel costs. Even in my own office – I clamped down on expenses and returned 170-thousand dollars to the General Fund.
We’re talking to our private-sector partners – and adopting many of their best business practices. Through Executive Orders and other actions, I’ve cut regulations; made it much easier to apply for and receive business permits; eliminated positions and froze wages; and brought in agency heads and board members who – like / me – will not tolerate abuse of the public purse.
Not all cost savings come from the top. Much of it comes from public employees themselves. From teachers to park rangers to health care workers, this state’s public employees are delivering high quality services – with great professionalism and often little recognition. But that hasn’t stopped many public employees from coming up with new and imaginative ways to save money.
Let me give you two examples. The first is Randy White who works for the Oregon Lottery. We needed to upgrade 2,500 video lottery terminals. The manufacturer’s proposed price was $450 per terminal. Randy figured out a way to do it for $12.50 a terminal. When you do the math, the savings is over a million dollars. And Carolyn Thiebes saved the Department of Human Services a half-million dollars just by coming up with a checklist for people applying to get on the Oregon Health Plan. The list greatly reduces the number of pending applications – which reduces administrative costs.
Randy and Carolyn are here today. Please stand up. I congratulate these great public employees – and ask everyone who works in government to follow their lead by looking for way to deliver services cheaper, faster and better.
Our bipartisan successes go beyond more jobs, more revenue, and more responsive government. I already mentioned reforming PERS. But that was only the beginning. We created a Children’s Charter, which promises to get children ready to enter school – and keep children safe, healthy, and adequately fed and sheltered.
We set up an Employer Workforce Training Fund – to help both employers in search of workers – and citizens who want to upgrade their skills. After years of deadlock, we passed the largest public works project -- our transportation package – since we built the Interstate Highway System in Oregon. Repairing our roads and bridges will mean thousands of high paying jobs for Oregon families – and thousands of business opportunities for large and small Oregon companies.
To boost our high tech sector, we're funding a collaborative state of the art research center involving the University of Oregon, Oregon State University, and Portland State University called the Oregon Nanoscience and Microtechnologies Institute. We also created incentives for Research and Development jobs in Oregon. Tourism is our third largest industry. But we lag behind most states in promoting tourism. That’s why – again with bipartisan and industry support – we created a tourism promotion fund. This fund is going to pay big dividends for Oregon’s economy. With a near unanimous vote in the Legislature, we maintained public support for art and culture – which are critical economic assets for the state.
Oregon’s public land use laws have been models for the nation – and will continue to be. But we can’t expect to attract new businesses to Oregon if we put all land off limits to business. I said when I was running for Governor that I would increase the availability of industrial land. We passed legislation to do just that. A few dozen of these new industrial land sites are – or soon will be – shovel ready. This does not mean we are abandoning our commitment to the environment. Yes, we want more development – but we’re focusing on sustainable development. That means actively recruiting clean industries and promoting the use of renewable energy.
There was one other important bipartisan measure that passed last year – the tax bill that was eventually repealed by the defeat of Measure 30. To the people of this state who are worried about what is going to happen to our schools and other critical services, I say to you: The death of Measure 30 is not the death of good government. It is not the death of effective government.
Voters told us to manage the shortfall – and we will. At the same time, we will protect our most vulnerable citizens – and invest in our economic future by investing in people. The majority of Oregonians have had their say – and their message is unmistakable.
They feel tapped out, unsure about what comes next for their job and their children, and skeptical that government is doing all that can it to cut costs. As I said, we’re making changes to restore the public’s trust in government. But after two major tax battles in less than two years – the time has come to say: Time out!
Measure 30 is yesterday’s headline. What I care about is tomorrow’s headline – which I want to read: Oregon’s economy continues to grow, continues to create jobs, and continues to come to the aid of the budget. In other words, state revenue will grow as the economy grows. A relentless focus on economic opportunity is the best road to a stronger Oregon – and a more stable budget.
I know that many of our citizens do not see Oregon getting stronger. When they hear about an economic recovery, they ask: “What recovery?” I understand that. At another point in my life – I was there. It is not fair to ask a family without a job; a senior choosing between food and prescription drugs; a high school graduate without money for college to see a rising sun from deep inside the shadows.
There has also been no let up in the pleas for help that the Oregon Food Bank hears every day. That’s why I created a campaign on behalf of the food bank that has already collected well over a 100-thousand dollars to fight hunger. But this fight is not over. So I encourage all Oregonian to give generously to the food bank.
If we choose to see only our strengths – and not the pain of our neighbors – then we will have failed ourselves morally. Yes, we can turn our backs on Oregonians who need help – and stay true to our belief that there is no better place to live than right here. But we cannot turn our backs on Oregonians who need help – and stay true to our values. Having a community spirit is at the heart of our pioneer spirit. If we walk away from one – we walk away from the other.
I pledge to you – I will not walk away.
I wish I could say the same for the federal government – which is abdicating its responsibility to the workers this country. Over 2-million have lost their jobs. Millions more are working part-time when they want to work full time; working without health insurance; and working in fear today that they’ll be out of work tomorrow.
Yesterday, the President started running ads touting his support for jobs and workers. Yet, when our bipartisan Congressional delegation and I asked the Administration to extend unemployment insurance benefits for Oregon’s long-term unemployed – the silence was deafening. This does not strike me as compassionate. And it is certainly not the kind of partnership Oregon needs with the federal government.
Currently, there is a transportation bill sitting in the Senate that will mean tens of thousands of jobs for workers here in the northwest and across this country. The President has threatened to veto the bill – even though it is probably the fastest way to create new living wage jobs.
The President would be better served following Oregon’s lead where Democrats and Republicans in last year’s legislative session put together a transportation package that is both an infrastructure bill – and a jobs bill. Mr. President – if you want to be the jobs President, this is your opportunity!
But there is only so much state government can do on its own. We cannot alter trade pacts. We cannot change the business model of Wal-Mart whose goal is to import the cheapest goods possible – and pay their workers the lowest salaries possible. But we can – and I will – make sure that the skills of Oregon workers align with needs of companies who are in-sourcing not out-sourcing jobs.
The federal government has been as shortsighted about children and their education as it has been about jobs. The No Child Left Behind Act is great in theory. But it will not work without a strong federal partner. The law demands high standards – which I agree with – and then tells cash-starved states to expect no help from Washington in reaching those standards. Here’s an idea: No more unfunded mandates!
The President wants to send a mission to Mars. I’m as intrigued by the planets as the next person. However, what we really need this decade is not a trip to Mars – but a Marshall Plan for K through 16 education. If we invest in children and education with the same vision that we showed a half-century ago after the defeat of Germany and Japan – we will be rewrite history and secure our own prosperity!
In the meantime, I want you to know that as long as I am Governor, the children of this state will continue to go to the head of the line. As long as I am Governor, I will always measure the success of my job by how many Oregonians have a job that pays them a family wage. As long as I am Governor, I will work day and night – and in a bipartisan way – to make Oregon government more responsive to the needs of our citizens. And as long as I am Governor, I will reject any vision for Oregon that calls on the people of this state to lower their expectations, compromise their values, or give up on any community – no matter how rural or remote.
I will also reject any vision for Oregon that is fiscally irresponsible. As the federal budget races out of control, the only kind of budgeting we now do in Oregon is Smart Budgeting.
Smart Budgeting means that the old days of simply adding money to whatever an agency spent the year before are over. Now we go through every agency budget line by line and focus on essential government functions. The process is rigorous and transparent. Frugal and disciplined.
If there’s money to pay for a program in the current year – but not future years – its funding is going to be scrutinized even more closely because we want services to be sustainable over the long term.
And there are no more “use it or lose it” spending sprees at the end of the budget cycle. I am watching out for that kind of spending like a hawk. Agency managers know the rule – just don’t do it! On the other hand, we’re going to give managers incentives to spend less of your money – and to have money left over when the budget cycle is over.
Along with Smart Budgeting comes smart debt management. We will not mortgage our children’s future by borrowing endlessly to pay for current operating expenses. We will not fund programs or fill holes in the budget with one-time revenue sources on anything near the magnitude we did in 2001. The days of rolling up budget shortfalls to the next legislative session are over.
We will not go on scavenger hunts – where we rob Peter to pay Paul. Doing so is simply bad budgeting. But there is another problem with this sort of scavenger hunt: Paul almost always has more political clout than Peter. So you end up with proposals like the one last year to take money earned by the Commission for the Blind and give it to some other constituency. It’s not fair. It’s not moral. And it’s not the Oregon way.
Now that you know the vision I reject. Let me tell you about my positive vision for Oregon.
I see an Oregon with an economy that continues to grow and create living-wage jobs; an Oregon with an economic environment that attracts new businesses and retains existing ones; an Oregon with a system of lifelong learning that demands excellence, and provides high standards, and offers citizens many options – from professional and technical training in high school, to workforce development, to a revitalized network of community colleges and universities; an Oregon with a healthcare system that fits our budget and the needs of children, seniors, pregnant women and the poor, an Oregon with a marketing strategy that will help us sell our goods and services to the world, an Oregon with an environment that is understood to be an invaluable economic asset – and is protected for future generations, an Oregon that practices tolerance and enforces civil rights for all people – no matter their race, religion, ethnicity or sexual orientation, and an Oregon that deeply believes in the redeeming power of hope.
How will we reach this vision? With a pretty simple formula that I call The Oregon Equation. The formula is: O = C + E2.
This is what the equation means: The way to achieve a prosperous Oregon is to take care of our children, grow the economy, and stand guard over our environment. I put them in the same equation because they are linked.
We build a prosperous future not by focusing one day on our children, the next day on our economy, and on our quality of life the day after that. We build a prosperous future by understanding the connections between all three. When we educate and take care of our children, they are much more likely to grow up and use their brainpower to perform jobs that power our economy – and much less likely to end up under the supervision of the criminal justice system.
When we protect our environment, families want to raise and educate their children here, and sustainable businesses – knowing their employees want a high quality of life – are easier to recruit here. When we grow our economy, revenues increase and can be used to better fund our public schools, invest in job training, and expand access to higher education.
These are just three of many ways that our children, economy and environment are linked. The dots really do connect. The sum really is greater than the parts. There really is an Oregon Equation. And if we invest wisely in the right side of the equation – children, the economy and the environment – we know what we’ll get on the left side of the equation, profitable businesses, a rush of new high-paying jobs, educated children, and long-term prosperity for Oregon. That’s exactly the direction I intend to lead this great state.
Let me start with education. Just as we too often see the dots – and not the links between the dots of children, the economy and the environment – we do the same with education. We focus on pre-K, or K through 12, or community colleges, or four-year institutions. Workforce training is also looked at separately. But they’re not separate.
They’re all part of investing in Oregonians. They’re all part of lifelong learning. And they’re all part of building an economy that can produce high wage jobs – and a workforce capable of performing those jobs. Put another way: If the endgame is a better economic future for Oregon – and it is – the way to reach that endgame is by following a straight line that starts with pre K and ends with higher education.
We can literally change our economic future by investing in people from the very beginning. That’s why I will fully fund health care services for children and pregnant women. I’m also going to continue funding SMART – a program that gives adults the chance to read to young children, which better prepares the children for school.
And there is much about our schools to be proud of. I’m especially proud of some young men and women who are here today. They’re from Grant High School. They won the Classroom Law Project’s Constitutional Law Project in Oregon. And now they’re planning a trip to the national competition in Washington DC. Most important – they represent the very high caliber of education that is still available in Oregon’s public high schools.
Here are some other signs that Oregon’s public schools still make the grade: We are consistently number one or two in the nation in SAT scores. Our dropout rate is falling across the state. We’re closing the achievement gap. Sixty to seventy percent of our high school students take a curriculum that prepares them for college – twice the national average. And a full 80-percent of our third graders meet or exceed benchmarks.
So don’t let anyone say that our public schools are failing. They’re absolutely not! Our teachers are doing a great job under difficult circumstances. Oregon teachers are not terrorists! They’re trainers, tutors and tremendous assets for our communities.
Having said that – if we’re truly honest with ourselves, we have to admit that for the last three years we have seriously shortchanged education. Even the best teachers and principals – working with the most involved parents – cannot do more with less forever. If we keep cutting our investment in public education – we are certain to end up with an inferior education system. And that is a recipe for economic disaster.
When it comes to fighting for putting more money in the classroom – I will never give up. Our children deserve schools that are open for a full year. Schools with reasonable class size. And schools that have a range of programs – including art, music, language and classes for the gifted and talented.
Last year I proposed to the Legislature a smart and painless way to raise more money for our schools. Under Senate Bill 6, school districts would stop purchasing health insurance separately. Instead we would pool these purchases – giving us the power to negotiate a better price.
If Senate Bill 6 had passed – we would have saved enough money in the next biennium to add several days to the school calendar. The Legislature – by one vote – turned down Senate Bill 6. But I intend to come right back next year with the same proposal. We have to get this done!
Our high schools and community colleges must offer young people multiple paths to success – including technical training and professional careers. Oregonians who have been out of school for a number of years – or need retraining – can improve their skills or change careers by entering a workforce development program.
For students graduating from high school or community college, there must be a university system that is affordable, accessible, and academically first rate. That means top faculty, modern facilities, and programs that meet every need. Anything less will leave Oregon a second tier state with a second tier economy.
That’s why I’m taking higher education off the back burner where it has sat for at least a decade – and making it a major priority for my administration. I take this very personally. I know from my own experience the life-altering possibilities that a college education offers. It is only because the GI Bill opened the door to college and law school that a young Marine from a Missouri boys’ home made his way from the cab of a truck to the Governor’s Office in Oregon.
In recent years the higher education tank in Oregon has been running close to empty. Programs have been cut. Faculty has been lost. Tuition has skyrocketed. We need to get higher education off this downward spiral – and start moving forward again. I just overhauled the Board of Higher Education and shined a spotlight on this issue. My charge to the Board is simple: Bigger. Better. Faster. I want less money spent on administration and more money spent on improving quality inside the classroom.
Last year I proposed a plan that would allow all qualified Oregon students the chance to attend a community college or university in Oregon – public or private. The Legislature did not act on my proposal. There was far too much hand wringing and battling over turf – and far too little concern about improving higher education and growing our economy. But I have no intention of giving up. I’m asking all Oregonians to join me in creating a fund that will support access to college for every eligible Oregonian – and to put this fund in the Constitution where it will serve as an economic engine for generations to come.
This is the only way we can truly build intellectual capital in Oregon – which will bring us higher paying jobs; jobs that better fit the needs of the marketplace; and a vibrant Oregon economy.
Even as we invest more in our intellectual capital – we must remember the rest of the Oregon Equation. That means focusing on the economy and the environment. As I’ve already said, for the economy – education is job number one. But we also have a comprehensive economic development strategy that goes beyond jobs and job training. It includes investing in infrastructure, marketing Oregon products; and negotiating direct airline service from Portland to Europe, Latin America and Asia.
The strategy is also about supporting small and minority businesses; helping farmers hold onto their land by having strong agriculture and food processing sectors, stemming the decline in wood products, and promoting culture, film-production and tourism.
When I talk about the environment, I mean both our natural environment – and our social environment. A strong social environment begins with public safety. That’s why I’ve ordered a top to bottom review of Oregon’s public safety system. Everything from sentencing, to shutting down the manufacture and sale of methamphetamine, to stopping elder abuse. It’s all on the table. And it’s all going to be dealt with – because the one thing I want to make absolutely sure of is that the people of Oregon are safe in their homes and on the streets of their communities.
As for our natural environment – I have a long agenda, which includes – as I mentioned – sustainable development and renewable energy. Under an Executive Order that I signed last year, every state agency – including universities – must make sustainable development part of their training, planning and mission.
But my top environmental priority over the next three years is to clean up the crown jewel of Oregon’s river system – the Willamette River. I don’t just mean parts of the river – I mean the entire river – from the headwaters east of Eugene all the way to the Columbia. This will be a huge endeavor that we cannot afford alone. That’s why I went straight to the President and asked for – and received – 13-million dollars to complete the clean up of the McCormick and Baxter superfund site in Portland Harbor.
Now I’m working with our Congressional delegation to secure millions more from the Army Corp of Engineers to clean up old mine tailings, upgrade dams on tributaries, and restore wetlands – all to improve water quality and preserve our precious natural resources. I’m also leading the Willamette Cleanup Authority that will explore new ways to fund the restoration of the Portland Harbor.
But it’s not just government that is stepping up. Our fight to save the Willamette has been joined by a much larger coalition that crosses political and regional boundaries. SOLV is helping this fight at the grassroots. Businesses and environmental organizations are also participating – and so is the Port of Portland. I’m extremely proud that so many members of the Oregon community have agreed to be my partners in restoring the health of the Willamette. This is as it should be. The Willamette River is our legacy – and our lifeline to a healthier future.
Oregon has been through some rough times. And for many of our fellow citizens the rough times continue. But the worst is over. The recovery has started and the economy is growing. Jobs are starting to come back. Government is both more citizen-friendly and more cost-efficient. If revenue forecasts have to be revised – they’re being revised upward.
Oregon really is strong and getting stronger.
I said when I was running for Governor that better days were over the horizon. Well now they’re above the horizon. So I say to you from the bottom of my heart, although we live in the beautiful west, the sun in the east best symbolizes what’s to come. Oregon is rising.
Thank you and God bless Oregon.
Contact:
Mary Ellen Glynn 503.378.6496
Marian Hammond 503.378.6169
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