Cascade Policy Institute

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P o l i c yI n s t i t u t e OREGONApr i l 17,2013

We are now halfway through the Oregon legislativesession.Cascadehasbeenin the Capitolalmost every day,workingto l imit government andprotectyour freedom.Unfortunately, this task is like playing thegameWhack-a-Mole.Every time we club one bad ideainto submssion, two more pop up. Those seeking Crony Capitalism handouts or another nanny-stateregulation areshameless. I f they want it, they demand it.Whether in theCapitol, adebatewith aMetroCouncilor, or at acity hearing, we are often theonly organized voice defending limited government and opposing nanny-state regulations, highertaxesandfees, and crony capitalism.Withyoursupport, we at Cascade Policy Institute will beableto continue toprovide thisvoice,push back, and be anadvocatefor vou.Belowaresomeof the more wasteful pork-barrel spendng proposals we hope to stop:

The Lane TransitDistrict ( LTD ) is requesting nearly $16million instatefunding toexpand a so-called "bus rapid transit" line (which is not very rapid) to West Eugene.Thisextension is strongly opposed by property owners along the route whowil l losesomeof their land. This project is completelyunnecessarybecausefaster express-busservice could be offered in the existing general-purpose lane. Theonly reasonit is beingproposed is that L TD hopesto leverage $75million in federal funds, whichthey thinkofas "free money."

The governor is proposing a new agency called theUnmanned Aerial SystemsCenter ofExcelence (UASCE). The mission of this bureaucracy wil l be to subsidize "researchanddevelopment andbusinessdevelopment for unmanned aerial systems."Apparently, stateplanners believebuildingdroneswil l be the "next bigthing" for the Oregon economy - i fonly the legislaturewi l l capitalize itwith $2.5million of publicfunds to subsidze highlyrisky start-ups. Even i f such companies become financially successful, I 'm notsureastate-run drone excellence center is something to be proud of.

Another proposed new center is being called thePIE/Oregon Storyboard. Thisoutfitwould "recruit,trainand promote early stagehightechnology startups indigital

4850 S W S ch o l l s Fe r ry R d. Suite 103 ' P o r t l and , O re g on 97225 t: 503.242.0900 f: 503.242.3822 www.cascadepol i cy .org info@ cascadepol i cy .org5 S1119


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storytelling, videogames, film and television industries." The governor wants $900.000to give away to 20-something hipsters.

DriveOregon is seeking an increasefrom its current biennia budget of $1.2million to$2.25mill ion for 2013-15.DriveOregon is the taxpayer-supported cheerleading armforthe electric vehicle industry and has worked to place subsidized electric car chargingstations throughout theWillametteValey. Most of themoccupy vauable parking stals atvenues like theRoseGarden and reman unused. I f you've ever seenthemand wonderedwho is paying for them now youknow.Y ou are.

TheOregon Built Environment and SustainableTechnologiesCenter is seeking anincrease from its $3.6mill ion biennia budget to $8.0mill ion for 2013-15. The goaof BEST isto support "emerging technologies and companies throughresearchandcommerciaizationgrants." One could hardly thinkof a riskier way to alocate taxpayerdollars. We mght be better off i f we pad astatebureaucrat to buy Lottery ticketswithmoney appropriated to BEST.

Theseare just a few of the hundreds of spending requestspending in the legislativeappropriations commttee. Advocates insist that every project is a "need," not a "want," andrationaize that on a per-capitabasis, they only cost taxpayers a few dollars per year. This is theprimary way you lose moreof your freedomeachyear - death by a thousand cuts.What is it worth to vou tostopthis slow death bv a thousand cuts? Is it worth $50. $100 or$500? Please consider joining us in this fight with your tax-deductible gift todav!I f the outrageous proposas noted above are not enough to convince you, as they say in themdnight infomercias, "But wait, there's more!"Another boondoggle we are tryingto wrestle to the ground is theEnergyTrust of Oregon.Ratepayersnow send more than $320mill ion every twoyearsto the Trust,which literally hasmore money than it knows what to dowith.Whilesomepeople orbusinessesbenefit from ETOwith subsidized new appliances or retrofitprojects, most of us simply pay autility surcharge eachmonth but never get anything in return.I f you're a customer ofPGE or PP&L, you are probably paying a tax approaching 6%of yourmonthly bi l l . I f you're a natura gas customer, the premumisslightly lower.It's time to repea thesetaxesand spinoff the ETO as an independent non-profit that rases itsbudget the old-fashioned way: through voluntary contributions.And then there's TriMeL The Portland transit monopoly has beena financia black holefor decades.Management has madevirtually every mstake possible: Operatingcostsareunsustanable, capita costs for rail projects are roughly 1.000 times greater than comparable busroutes, and debt service on bonds is cannibaizing theagency'sgenera fund.Despite the fact that the al-funds budget for TriMet has gone up by 125% since 2005, levels ofactua transit servicehave dropped by more than 14%.


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A new member of the legislature, Chris Gorsek (D-Troutdale), has introduced HB 3316, whichwouldchangethe board ofTriMet. Currently, the board is comprised of sevenpeople appointedby the governor. Under Rep. Gorsek's bi l l , thiswouldbe changed to 11 people appointed byvariouslocal governments.I havemetwith Rep. Gorsek to advise him that much moreneedsto be done, and he is verywilling to consider bolder reforms.By the time you receive this, I wil l havetestified at theA pri l 15 hearing, and hope topersuadethe commttee thatTriMet is afailed experiment andneedsto bepartially dismantled.Most of the smaller cities need to fo l low in the footsteps ofWilsonville, Sandy, and Canby,which left TriM et yearsago and created their own transitdistricts. Theseoperations are muchcheaperand better focused on customer needs. Statelawneedsto be amended to allowcities toleaveTriMet at any time, for anyreason.We'restanding up for PERS Reform andagainsttax increases.The Democratic majorityhas announced that itwil l enactonly modest PERS reform,which is being derided by almosteverybody as " P E R S L ite."The Democratic proposal is much weaker than what Governor Kitzhaber was seeking and thuswil l require a tax increaseto balance thestatebudget. Since any tax increaseneedsa 3/5 majorityapproval in both legislative chambers, Republicans wil l need to provide two votes oneachside.O ur challenge between now and J une 30 is to ensure that the legislaturedoesnot find the3/5 majority to raise taxes, but we need vour help.The governor's proposed budget for 2013-15 already shows a revenue increaseof $1.6 bi l l ionover the currentbiennium. By ourdefinition, this is not a "revenue crisis" as commonlydescribed in thepress.Legislators should learn to live within theirmeans,as we all do in ourown households andbusinesses.Certainly, PERS is wreaking havocwith local school districts; and we don't enjoy watchingeducational programs disappear.But simply raisingtaxesis not the answer.The problem is that the legislature has steadily enhanced PERS so much that it promses more toretirees than can be delivered. I f the current legislative body doesn't havethe courage to cut backsomeof thesepromses, there wil l never be asolution. Over time, rational taxpayers andbusinessowners wil l simply leave thestaterather thanserveascashcows for timid politicians.Thetruth is, every sessionof the legislaturerepresentsa threat to your property and your civillibertiesbecauselegislators always want to "do something" to justify their existence - and"doingsomething" usuallymeansexpanding the reach of government.Our job is to push back, by reminding them thatstategovernment is supposed to serve us.not rule us. But we need vour support in order to continue pushing back!


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Last week weco-releasedwith our colleagues at Americans for Prosperity-Oregon a detailedblueprintfor reform, entitledFacingReality2013. This report followsup on several majorproposals in our first Facing Realityreportpresentedto the 2011 legislature. Now, weupdatethe cost savings from privatizing liquordistributionandsales, reducing correctionscostsdownto the national average,elimnatingthe costlyPERSpick-up, and aligningstateemployeecompensation with the privatesector.Together, these four proposals alone would save state government more than onebillion dollarsin this bienniumalone, more than countering any claims that weneedtoraisetaxeson hardworkingOregonians andbusinesses.FacingReality 2013 alsosummarized the economc benefits, including 50.000 more jobswithinfive years, whichOregonwouldreapby becomng a Right toWork state.Right toWork wouldallowemployees towork, and employers to hire, without letting a labor union get in the way bycommanding payments from unwilling workers.Coincidentally, an initiative petitionmay be circulated soon to grant such freedom to all Oregonpublicemployees. I f thathappens.Cascadewill be in the forefront ofmakingthe economc andmoral casefor its approval.Constrainingbig government is an expensive job. It requires extratravel, additionalresearch,and increased costsofprintingandpostage.I hopeyouwil l consider making agenerouscontributionof $50, $100, $500, or more today, insupport of thiswork. The five-month legislativesessiononlytakesplace every twoyears, and weareright in thethick of things.The time for us tomakea difference is NOW!I f you are able tosendacontributionof any size, itwill helpkeepusengaged in the daily battle.Thank you for yourgeneroussupport.

JohnA . Charles, Jr.President & CEOPS. With the recent passing of former British PrimeMinister, Margaret Thatcher, I am remndedof a quote ofherswhich, in an often amended form, states, "The problemwith socialism is thatyou eventually run out of otherpeople'smoney." Whilewe are not a Socialist nation, we aredoinga very good job of spending "otherpeople'smoney."Pleaseconsider joiningus in stopping the involuntarytakingof your financial resourcesthroughincreased taxation andfees, bygivingavoluntary, tax-deductiblecontributiontoday. Thank you.

Sincerely,

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Cascade Policy Institute