| Speech by Governor Ted Kulongoski |
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| May 24, 2005 |
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Rotary Club of Portland
REMARKS BY GOVERNOR TED KULONGOSKI
Tuesday, May 24, 2005
I want to start by thanking Craig Stack for inviting me to the Rotary Club of Portland – and for leading this organization with great skill, and through what I know is a busy Centennial Year.
I also want to thank Chuck Pruitt for his introduction – and outstanding service to the Portland community.
Chuck – two Sundays ago, I went up to Seattle for a baseball game with one of your Lane Powell colleagues: Steve Ungar. I mention this because although lawyers receive their fair share of criticism, many live by your motto: “Service above self.” They do pro bono work. They serve on boards and commissions – as Steve does. And they join great service organizations like the Rotary Club of Portland.
Attorneys are only one of many business and professional groups whose members are committed to service. And the best proof of that is right in this room. This Rotary Club – the 15th oldest – is made up of a broad cross-section of Portland leaders. You’ve each achieved real success in your careers. But you’ve also looked beyond your own bottom lines. Beyond your own professional advancement. Even beyond your own futures, to the future of Oregonians whose lives are more troubled but no less valuable – or filled with potential – than our own.
I’ve been on both sides of the American Dream. On the outside – trying to reach it. And on the inside – counting all of my blessings that now add up to a truly wonderful life. But believe me, I wouldn’t be where I am today without help. And the same is true for many of you. I know how important it is to have supporters, mentors, and humanitarians on your side. I’m talking about citizens who understand the meaning of stepping up and giving back – citizens like each of you.
I spend a lot of time talking about the importance of service. My children heard it when they were growing up. And now I try to use my ability to reach the hearts and minds of Oregonians – which is one of the great privileges and responsibilities of being Governor – to encourage public service.
I define service broadly. It includes everything from helping to clean up the Willamette River, to contributing to the Campaign for Equal Justice, to finding strength in numbers by joining a Rotary club. What’s important isn’t where we serve. Or how we serve. But only that we serve. Because in doing so we acknowledge our common humanity. We acknowledge that we are each other’s keeper. And we acknowledge – in President Kennedy’s words – that here on earth, God’s work must truly be our own.
I’m not someone who believes that private giving is the answer to all of our social and economic problems. Government has a critical role to play in protecting children and strengthening our economy, communities and schools. On the other hand, government cannot do it alone. The public sector needs private sector partners: People from business who make it their business to serve the greater good. Not everyone accepts that challenge. But Rotarians always do. And for that you all have my deep appreciation – and lasting admiration.
I’d like to read you a quote I found from Albert Einstein. He once said, “We can’t solve problems by using the same kind of thinking we used when we created them.”
I already mentioned the critical role government must play in building Oregon’s economy, increasing the use of technology, strengthening our schools, and competing in the global marketplace. But that critical role does not mean abandoning critical thinking. The public sector – with help from our private sector partners – needs to put an end to business as usual.
We’ve been on a hamster wheel for at least two decades – racing hard but not moving forward, while all around us our economy, our workforce requirements, our competitors, and the educational needs of our children keep changing. The status quo has become a luxury we can no longer afford. The time has come to get off the wheel – and get ahead of the curve, to make Oregonians the most innovative, most competitive, most skilled people in the country. That’s my vision – and I’m determined to make this vision a reality.
Just as charity begins at home – so does change. That is why the first place I’ve looked to change the status quo is right in the building where I work. I began with the 03-05 budget, which came at the height of the recession. Revenue was falling so rapidly, I literally had to cut more than 2-billion dollars from schools and other vital services. But with smart management, we made our way past the storm.
Last fall, I threw out the rulebook on how to write a budget. Instead of using current services, I established six core principles – and funded programs based on their ability to advance one or more of those principles. Then in January, I submitted my budget to the Legislature.
The House and Senate have now agreed that total discretionary spending should not exceed 12.393 billion dollars. I’ll be the first to admit that in Salem, numbers – not to mention egos – matter. That’s why there is so much back and forth going on about relatively small differences between the House and the Senate on school funding and other programs. But what matters to me is you, your children – and making sure that Oregon moves steadily, and irreversibly, toward long-term economic growth. That’s why my focus is not on a rigid allegiance to a particular budget number – but on making sure that our investments are sustainable and pay dividends now and for generations to come.
On this issue – I have my red lines. I’m not going to give up critical long-term investments in Oregon’s economy and quality of life – in order to fund projects that, at best, pay only short-term dividends.
The kind of strategic investments I’m talking about are: ConnectOregon, which will do for our rail, air and port systems what last session’s transportation package did for roads and bridges, increasing the bonding capacity of our community colleges and universities to a record 450-million dollars; and doubling our investment in Oregon Opportunity Grants – to help qualified students have the opportunity to go to college.
I’m going to talk more about education shortly, but first I want to remind you of what I said about the budget when I spoke to the Oregon Business Council. I set down rules that I have no intention of abandoning simply because our economy is getting stronger, and revenue forecasts are up.
Those rules are: First – fiscal honesty. I can’t accept any budget that isn’t based on real numbers – or doesn’t fund programs with real dollars. In other words: No gimmicks.
Second – fiscal stability. I actually think we’re in a particularly dangerous time – because as our economy turns around and grows, our willingness to throw fiscal caution to the wind grows too. That’s why my recommended 05-07 budget inherently included a spending limitation and a long-term plan for a rainy day fund. The point is – the time to create a rainy day fund is when the sun is out. And that’s now!
And third – fiscal responsibility. This means we will not borrow to cover ongoing operating expenses. And we will keep to an absolute minimum – shifting of costs to future budgets, or taking money out of reserve funds. The budget I sent to the Legislature back in January followed all three of these rules. I’m going to insist that the budget that the Legislature sends me in June or July follows them as well.
As I’ve already suggested, accepting the need for change is an absolute pre-condition for growing Oregon’s economy – and building long-term prosperity. This doesn’t mean we haven’t made a lot of progress over the last three years. National survey after national survey says we have one of the best business climates. And contrary to what most people believe about Oregon – our overall tax burden on business is low.
The recession hit Oregon very hard – and our unemployment rate was, for a time, higher than any other state. Too many Oregonians are still out of work. But we now have one of the fastest growing job markets in the country. Thousands of new jobs – in both the service and manufacturing sectors – have come to Oregon. And as we recently announced – Google, one of the hottest stocks on Wall Street – is on the way.
Many major companies – Freightliner and Intel are good examples – have chosen to invest in Oregon and add jobs. I made reforming PERS my top legislative priority last session – saving Oregon taxpayers billions of dollars. We re-established direct flights to Europe, Asia and Mexico. Because of the 2003 transportation package, Oregon will spend billions repairing our roads and bridges, putting Oregonians to work immediately – and keeping Oregon open for business for the long-term. We’ve expanded the availability of industrial land, cut much of the regulatory red tape that slows down business – and speeded up the permit process in a big way. So my fundamental goal of growing the economy and creating more family wage jobs is being met. But, together, we must do more. Oregon needs structural changes in the way it invests, in the way it competes, and most of all – in the way it educates.
Mark Twain is one of my boyhood heroes. He became a believer in change when he visited Virginia City, Nevada – a town of rampant sin and abundant booze. “It was no place for a Presbyterian,” Twain said, “and I didn’t long remain one.” Well, I have a message of my own – which doesn’t involve sin and booze. Oregon needs new businesses, a highly trained workforce, and a great quality of life – and although we’re a state on the move, if we stick with the status quo in an era of globalization, we won’t long remain one.
That’s why we have to face up to three challenges that will determine our long-term economic destiny. Those challenges are leadership, technology and education. These are not new. As a state – we have, to some extent, always relied on leadership, innovation and brainpower to keep our economy moving forward. What is new is the globalization of our economy – which has not only dramatically increased the speed of change and the demands of the marketplace, it has also put us in competition with the whole world.
Globalization is not going away. That doesn’t mean I’m going to stop demanding fair – not just free – trade. But I’m also going to do everything I can to make Oregon a winner in the global marketplace. Already, one in four of our manufacturing jobs are directly tied to exports. We are a traded sector state. That’s a good thing and we need more of it – not less. But the only way we’re going to be able to harness the benefits of globalization is to put a premium on leadership, technology and education.
In one respect, the Rotary Club of Portland is not a good venue for talking about the importance of leadership – because I know I’m preaching to the converted. You represent the very best of private sector leadership – not only in your individual businesses and professions, but also because of your commitment to service. As Rotarians, you lead effectively. You lead by example. And you lead for the benefit of others. I can’t emphasize enough how important I think this is for Oregon.
We need public discourse about investing in our schools, infrastructure, cultural assets and environment. We need public discourse about the link between workforce training and competing in a 21st century economy. And we need public discourse about the importance of service.
But public discourse doesn’t happen by itself. It requires the spark of leadership – from those of us in government, and from private citizens and organizations that recognize that we are a stronger community when we plant the seeds of prosperity together.
The second challenge we face is technology. As I’ve said in other forums: I want Oregon to be the Innovation State. This doesn’t mean abandoning older industries. Timber and agriculture are essential to Oregon’s economy. And for many of our rural communities – timber and agriculture is the economy. But even older industries can be more profitable and competitive with new technology. So I want to help these industries modernize with cost-saving innovation.
I also want Oregon to develop new industries that are at the cutting edge of science – industries that will do for the American economy in the 21st century what computers did in the closing decades of the 20th century. That’s why I announced the creation of the Oregon Innovation Council – to recommend to the Legislature and me a long-term plan for making Oregon the Innovation State, and why money for the Oregon Nanoscience and Microtechnologies Institute is in my recommended budget – and needs to stay there.
Which brings me to our third – and probably greatest – challenge in this era of globalization: Education.
I am absolutely convinced that Oregon’s economic future rises or falls on the financial, political and moral commitment we make to pre-K through 20 education. If we want globalization to be a wind at our back – and not a storm in our face – we must provide a first rate education to students of every age – and knock down barriers to education for students of every age.
The fact is: Nothing will put the Oregon economy into overdrive faster than a well-funded and accessible pre-K through 20 education system that – like a well designed machine – has specifications that meet the needs of the customer. Or in the case of education – two customers: students and employers. I’d like to read you a quote from someone who thinks that the specs for America’s education system are outdated at best – and a threat to this nation’s future at worst.
This is Bill Gates speaking to a conference in Washington that I attended: “American high schools are obsolete. By obsolete, I don’t just mean that our high schools are broken, flawed and underfunded . . . by obsolete, I mean that our high schools – even when they are working exactly as designed – cannot teach our kids what they need to know. Our high schools were designed 50 years ago to meet the needs of another age. Until we design them to meet the needs of the 21st century, we will keep limiting – even ruining – the lives of millions of Americans every year.”
What Bill Gates didn’t say – and didn’t have to because his meaning was clear – is this: If I have to go to India or China or any other country to hire the engineers, designers and technicians my company needs – I will. Here’s something else America’s leading industrialist didn’t say – but is implied in his warning: The biggest beneficiary of investing in education, and treating the whole system – meaning pre-K through 20 as an enterprise – is the business community.
I know that this is a humanitarian and service organization – set up to help others. But many, if not most of you, are business leaders or licensed professionals. I am here to tell you that you have an opportunity to do yourselves a service, and that is to support – and encourage other business and civic leaders to support – a strategic restructuring of education in Oregon. In other words, let’s take Bill Gates’ advice, and do more than add a new coat of paint to a flawed system. Let’s change the system.
My goal is to stop managing by sector – and to have one coordinated system that delivers education in a way that is better, faster and more cost effective. But having said that, there are still changes that need to be made in each of the four basic pieces of our education system – starting with pre-school.
Here’s my mantra on pre-schoolers: For the most part, today’s five year olds enter school with dramatically different experiences than you and I had at that age. Many are raised in single-parent homes – with a TV in every room, but few, books. English is often their second language. Their parents work long hours – and meals are served on the run. At a very young age these children are bombarded with messages promoting lifestyles of the rich and famous – and the need for immediate gratification. Drugs – legal and illegal – pervade their culture. And so – unfortunately – does violence.
Then these children show up at the schoolhouse door and to everyone’s great surprise – they’re not ready to learn. Well, we shouldn’t be surprised. What we should be is alarmed – and ready to invest in pre-school education, mentoring for young parents, prevention, and reading programs like SMART.
Next comes K through 12. Oregon has a long tradition of supporting public education. And even with the severe cuts we had to make over the last four years, our public schools still perform well compared with most other states. But we can – and must – do more for K through 12 education, starting with smaller classes and restoring essential programs that were left on the cutting room floor when we downsized our investment in education.
We also need to change the way our schools do business. That’s why I proposed consolidating many of the Education Service Districts, and having those that remain handle central office administrative services for most districts. And notwithstanding opposition from interest groups benefiting from the status quo, I will continue to advocate for a statewide K through 12 health insurance pool. We don’t need 198 school districts each negotiating their own health plan. What we need is cost savings that can be plowed back into the classroom.
If we are to truly modernize our public schools, demanding more from ourselves is only half the battle. We also have to demand more from our students. That means imposing higher standards.
Let me be blunt: We need tougher graduation requirements. We’re not doing young Oregonians any favors when we make education a cakewalk – while other states and countries are making education a rigorous hike. That’s why I commend Portland public schools for their action last night to raise their graduation requirements – as other schools districts in Oregon have already done.
This issue is not about the merits of CIM and CAM. And it is not a criticism of teachers, administrators – or the thousands of Oregon students who are working hard, excelling in school, and doing very well on college entrance exams. But it is simply a fact that unless we do a better job challenging students – especially in foreign languages, math and science – they won’t be able to compete, and we won’t be able to attract the technology industries we need to grow our economy.
One of the biggest problems in Oregon’s education system has been our past failure to help students make a smooth – and quick – transition out of high school and into a training program or post-secondary education. But that’s starting to change. High school students can now take courses – and earn credits – at community colleges. Over 30,000 post-secondary credits were earned by Oregon high school students last year.
This is just one example of how we are responding to the changing reality that most students work and need flexible time schedules – and a curriculum that matches their career plans. At the same time, I have made workforce training a major priority. Workforce training may not be the only answer – or the perfect answer – to Bill Gates’ charge that our high schools are obsolete; but is it certainly a necessary answer.
Let me just briefly tell you some of what we’re doing in workforce training. First of all, we’ve given out millions of dollars in workforce training grants. We’re studying the training needs of not just local – but regional – economies, especially the Portland metropolitan area. We’re organizing consortia of different industries – such as metals and health care – to make sure that our workforce training aligns with the skills employers are looking for. We’re helping to fund the Portland Workforce Alliance, which connects businesses with schools to better prepare students for today’s jobs – not yesterday’s.
I asked the Chair of the Oregon Workforce Investment Board, to appoint a committee – with members from business and labor – to develop a workforce strategy for manufacturing businesses in the state’s critical traded-sector clusters. And I’m sending the unmistakable message that every Oregonian deserves an opportunity to succeed – and with the right training he or she can succeed.
Let me play future historian for a moment. Fifty years from now we will look back at this time and come to one of two conclusions: Either we turned a corner for Oregon by reversing a decade of disinvestment in post-secondary education, or we turned our back on Oregon’s economic future by continuing to treat post-secondary education as an ATM card for the rest of the budget.
I’m determined to make sure that history says: We turned a corner. Oregon has one of the least accessible university systems in the country. Tuition is too high, and financial aid is too low. We must close the affordability gap by controlling tuition costs and increasing financial aid. That’s why I want the Legislature to raise funding for Oregon Opportunity Grants by 50-million dollars; provide bonding authority that will allow our community colleges and universities to invest in major capital construction projects; and create an endowment that will help give every qualified Oregonian access to a post-secondary education.
Is that too much ask of our legislators – from both parties – when the stakes for Oregon’s future are so high? I don’t think so. I also don’t think that it is too much to ask the federal government to get off the sidelines – and get on the side of making post-secondary education a right and opportunity based on how hard a student is willing to work, not on how much he or she is able to pay.
I quoted President Kennedy early in my remarks. Let me quote him again. He said that as a country we don’t do things because they are easy – we do them because they are hard. He was talking about his challenge to put humans on the moon before the end of the 1960s. He rallied the Congress and the nation to his cause. Congress put the money on the table – the American people supported Kennedy’s larger-than-life vision.
I’m not on the side of cynics who believe that our country is too partisan – and too past its prime – to do great things. We’re not! I’m an optimist, and I know we can make universal post-secondary education America’s next successful moon shot. All we need is the will, the passion, and the foresight to extract America’s greatest natural resource: Our invaluable – and untapped – reserves of brainpower.
If brainpower is our greatest asset – then the desire of millions of Americans, and many thousands of Oregonians, to serve others is a close second. And no organization is as devoted to serving others as Rotarians. This club in particular has stood guard since 1910 over the humanitarian needs of the Portland community. Not because any law required it – but because your conscience demanded it.
Einstein was right: We can’t solve problems by using the same kind of thinking we used when we created them. But we can solve them when we do what each of you has done: Let our conscience – and what Lincoln called the “better angels of our nature” – do our thinking for us.
Thank you.
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