Productivity and benefits: The missing education links
A recent document from the Confederation of Oregon School Administrators (COSA) trumpets that schools have been more effective at “controlling pay” than has the private sector. This line has already been repeated by state legislators, but it is misleading for a variety of reasons.
First, in the private sector increases in wages are a (more…)
Pass a tax, reject an opportunity
Multnomah County voters just approved Oregon’s only local income tax, primarily to help schools. The 1.25 percent three-year tax is on top of Oregon’s already high 9 percent state income tax. Voters clearly value education, but this new money will largely benefit the teachers’ union, not the students. Rather than help the schools in a positive way, the new tax will allow the school system to avoid doing two things it must eventually do: control spending and become accountable for learning outcomes.
First, supporters of the new tax failed to recognize (more…)
Another wild pitch: Sports teams and economic development
Proponents of a taxpayer-supported baseball stadium in Portland argue it and a team would generate significant economic gains for the city, if not the state. Terrific! But, wait a minute, if the benefits are such a sure-thing, how come private investors aren’t lining up to invest their own money?
The reluctance of private investors to put their money where home plate is points to (more…)
Business collects taxes, but doesn’t pay them
As Multnomah County voters make up their minds about the new county income tax measure, newspapers are printing letters to the editor pro and con. One misguided writer said he’s voting no because only people will be taxed, not corporations.
There is plenty wrong with Measure 26-48, but (more…)
Be aware of choices during Hunger Awareness Week
According to a United States Department of Agriculture survey, Oregon is the hungriest state in the country. This ranking prompted Gov. Kulongoski to name April 27 through May 3 “Hunger Awareness Week.” But, there is reason to be skeptical of Oregon’s status.
To start, according to other USDA sources, in terms of (more…)
Education freedom advances
The Oregon State Senate recently advanced education freedom by eliminating mandatory testing of homeschool students, and House members will consider the bill in the coming weeks. If this bill is passed into law, it will treat home education the same as private schools by not subjecting either to government intervention.
Senate Bill 761 passed 20 to 9, but there are (more…)
Show us the leadership
With April Fool’s Day just passed, Governor Kulongoski is poised to break his pledge to make Oregon state government live within its means. The April 13 Oregonian headline reports, “Kulongoski, long against tax increase, says it appears inevitable.” The governor should keep his pledge to work on Oregon’s spending problem. That would be leadership.
The governor must hold legislators’ feet in the fire and (more…)
Business of the City
The Mayor of Oregon’s largest city delivered her annual State of the City address last Friday. The disconnect between her vision for economic development and the business climate reality was palpable.
Mayor Katz’ “new” economic development strategy calls for (more…)
Sell government assets for a "win/win" situation
Some assumptions concerning public policy are false. “If government doesn’t do it, nobody will” is a particularly pernicious one. This assumption fosters a tendency for government to hoard assets that could be utilized better in private hands, and to greater benefit for the public.
Raw and developed land, sports stadiums, infrastructure like sea ports and even airports may serve the (more…)
Remove mandates and health insurance will be more affordable
More Oregonians should be able to afford health insurance. To help achieve that goal legislators should repeal onerous mandates and regulations that price insurance out of reach for many. Removing these restrictions would allow individuals and families the opportunity to buy coverage tailored to their needs, and also lessen pressure on the Oregon Health Plan.
Don’t follow Portland school district’s lead
The recent deal between the city, county and school district and teachers’ union restored 24 days to the school year, but it is not a model for other cities and school districts to emulate. The city and county’s intervention sidetracked the school board from efforts to control spending and improve education.
Much attention will focus on the failure to (more…)
No plan(ners) required
A Portland newspaper editor recently implored in print, “We need a plan, people, soon.”
Why just one plan? In Portland, for example, some want tax incentives to attract business, others want more business taxes to fund our schools. Some want Major League Baseball, others want to invest in engineering schools. To planners such disparate talk sounds like (more…)
Don’t adopt the "Daughter of 28"
Close on the heels of Measure 28’s failure Portland and Multnomah County officials have started dreaming of more creative ways to tax people, rather than live within the means of taxpayers. Specifics about the new taxes are hard to come by. There is no consensus on whom to tax or what to tax.
Multnomah County Commissioner Lisa Naito has proposed that (more…)
New approach to education can reduce achievement gap
Oregon education officials recently revealed what many have long known – the public schools have not addressed the persistent achievement gap between white and minority students. The Oregon Department of Education (ODE) will request a waiver from the portion of the federal No Child Left Behind Act that requires schools to make adequate yearly progress for all students, regardless of race or income level.
The ODE is worried that schools will miss (more…)
The fatal conceit of selective tax breaks
Oregon legislators are eager to review existing tax breaks. The thinking is, some breaks may have outlived their usefulness.
A state representative questioned, “Are there things on the books that could be limited or eliminated to find revenue to apply to other tax credits?” He noted that perhaps the legislature could (more…)
Kitzhaber doubts power of government?
After holding various political offices for 22 years, former Governor John Kitzhaber recently said he sees an “apparent inability of our public institutions to deal in a timely and effective manner with the problems confronting us as a nation and as a society.” Kitzhaber called for even more citizen involvement as a way to bring people together on key public issues.
We would be headed in a positive direction if (more…)
Measure 28: No cure for Oregon’s ailing economy
Many proponents of Measure 28 advocate it as the key to bolstering Oregon’s ailing economy. However, if higher taxes and more government spending were truly the cause of a strong economy, then Oregon would currently enjoy one of the healthiest economies in the nation.
Cascade Policy Institute president Steve Buckstein points out, “The state’s general fund budget has grown at (more…)
Following New Zealand’s lead
The New Year brings promise and opportunity for Oregon. Though we face challenges, we can look to New Zealand, a country of similar size and population, for guidance on turning around a wayward economy.
The Honorable Maurice P. McTigue, a former New Zealand Member of Parliament and Cabinet Minister, states that his country (more…)
A sales tax could cost Oregon jobs
Oregonians have nixed a sales tax nine times at the ballot box, yet at the December 9th Oregon Leadership Summit in Portland some business and political leaders were getting ready to try again. They proposed reducing state income taxes in return for a new sales tax.
Governor-elect Kulongoski and other leaders said (more…)
An emerging consensus on school spending
The intellectual debate about school spending in Oregon is coming to a close. The numbers and analysis in Cascade’s Oregon K-12 Revenue and Expenditures, 1990-2001 were largely confirmed by a report from the Oregon School Board Association (OSBA), done by economic consulting firm ECONorthwest.
Both studies found that (more…)
Have a prosperous New Year
Here’s wishing everyone a prosperous New Year. That’s not a trite phrase; it’s the foundation for our dynamic culture, a clean environment, and more.
What would you do if you had more money? You might be able to take your family on a vacation. Spend more time with your children. Maybe you would be able to (more…)
A Thanksgiving story to celebrate
Most children are taught that Thanksgiving celebrates the Pilgrims’ first harvest and their sharing it with Native Americans. However, this version of the story suffers from serious omissions.
For its first few years the Plymouth plantation organized farming on a communal basis; each person was expected to work as much as they could, and take from common resources only what they needed. With little individual incentive to produce, colonists refused to (more…)
Temporary is a long-time in government-speak
During the last session Oregon legislators created the current budget shortfall. They added new programs and spent more on existing programs than forecasts showed the state would have revenue to support. This irresponsibility has led to the January election on a temporary three-year income tax increase.
The legislature’s irresponsibility is a red flag about a (more…)
Improving Oregon’s budget and business climate
Now that Oregon has a new governor-elect, speculation begins about how he will deal with Oregon’s continuing budget shortfall and poor business climate.
Conventional wisdom says (more…)
To reduce the influence of money, limit government’s power
Every now and then we hear the call for taxpayer-funded political campaigns at the national or state level. Now, it’s even at the local level.
Two Portland government officials want taxpayers to underwrite campaigns for city elections. City Commissioner Erik Sten and Auditor Gary Blackmer contend that the (more…)
Majority vote does not change wrong into right
A sign in a government community center reads, “Exercise your freedom and vote!” This exhortation may sound good, but it should cause one to pause and ask: Is freedom really about voting?
Cato Institute president Ed Crane once remarked that the people in Poland, China, and other such places did not, and do not, rebel against oppression just so they can vote. Rather, they risk their lives to be free to live without (more…)
Flaws in education reform exposed
Discontent with Oregon’s education reform is now coming from new areas. Recently the Tigard-Tualatin School Board voted to side with teachers and drop state-required work samples that schools use to assess student learning in a variety of subjects.
Those who question the state’s curriculum and assessment policies correctly see this as a (more…)
First, do no harm
Why are so many Oregonians calling for a single-payer health care plan funded by personal income and payroll taxes? In large part such calls result from believing several myths about our health care system.
The first myth is that (more…)
A better direction for special education
A recent report by an Oregon legislative task force outlines how the state should improve special education. A number of concerns prompted the task force’s formation. Spending for special education has risen rapidly in the past decade, as documented by a new Cascade Policy Institute study. Significant resources are expended on paperwork and administration and special education programs are driven by (more…)
An electric idea to save taxpayers half-a-million bucks
Portland’s Mayor Katz and Commissioner Sten are spending a half-million dollars to study the city’s rights to acquire most of PGE’s assets, possibly through condemnation. The idea of a government takeover of PGE should die a quick death.
Here’s the most obvious question. A sour economy has pushed commissioners to seek (more…)
Principles, not taxes, needed to balance state budget
In June of 1993 Cascade Policy Institute published the report Seven Principles of State Budget Reform. Ironically the opening sentence asked, “Why is there another fiscal crisis in Oregon?”
The current so-called budget crisis is not an accident: It was created by the (more…)
September 11th
Even after a year, it’s too early to know what September 11th will eventually come to symbolize for our country. What it should not symbolize is a turning point beyond which Americans willingly began giving up some of the very liberties that made, and keep this country great.
Before the attacks, Americans were (more…)
Canadians and Brits wait for health care … and wait
Oregonians will vote this fall on a ballot initiative that advocates a virtual government take over of all health care in the state. A look at Canada’s government-run health care system offers insight into the side-effects of such an idea.
To control costs, the Canadian government has (more…)
Put children, not schools, first
The bipartisan No Child Left Behind education bill is unlikely to achieve its stated aims. However, it has helped show that many associated with government schools are more interested in preserving power than improving education.
The new federal law requires school districts to inform (more…)
GOP: The Bigger Government Party
Republicans in Oregon and elsewhere are in danger of losing votes, and elections, due to their hypocrisy about smaller government and lower taxes. Gubernatorial candidate Kevin Mannix is exemplar. He’s deservedly catching flak for being an advocate of higher state spending in the next biennium.
Political satirist P.J. O’Rourke notes, “Giving money and power to government is like (more…)
Time to revisit privatizing Social Security
The stock market has plunged over the last two years. Recent corporate accounting scandals have shaken the public’s trust in big companies and their management. Is now the time to revisit privatizing Social Security? You bet it is. In fact, if you’re going to start investing in the market, wouldn’t you prefer to start when the Dow is 8,700, rather than 10,000?
Over long periods of time, market rates of return have (more…)
The high cost of government health care
Dr. David MacDonald is a co-founder of the American Association of Patients and Providers. Talk with him and he’ll provide numerous examples of decreasing health care costs in Oregon and across the country. From routine lab tests to MRIs to office visits, cost reductions are happening, he explains, because patients and physicians are once again becoming active consumers.
This trend is gaining momentum. The results will be (more…)
Education freedom key to religious liberty
The debate surrounding government education and religion took an interesting turn with recent court decisions regarding school vouchers and the Pledge of Allegiance. Together these two decisions provide a template for thinking about how to respect the rights of both the religious and the irreligious within education.
The Bill of Rights limits government’s involvement in (more…)
Charter school law too restrictive
Oregon passed its charter school law to foster educational freedom. The recent negotiations over the Mitch (Multisensory instruction teaching children hands-on) Charter School in Tigard-Tualatin illustrates one of the law’s several flaws.
Charter schools must receive approval from the local school district, a significant (more…)
Victory for school choice!
Last week the U.S. Supreme Court issued its long awaited ruling that low-income children in Cleveland can use publicly funded vouchers, worth up to $2,250 per child, to attend secular or religious private schools. The decision makes good on the promise made nearly 50 years ago in Brown v. Board of Education. The message from the High Court is that parents of all income levels have the right to choose the safest and best schools for their children.
Wealthier families can already (more…)
Business support for public power raises red flags
The failure of so-called electricity deregulation in California and the bankruptcy of Enron Corporation have led to calls for public ownership of Enron subsidiary Portland General Electric. Some businesses have jumped on the bandwagon, including large electricity consumers such as computer chipmaker Intel.
Public ownership proponents argue that (more…)
Keep the quorum: Preserve the double-majority rule
Low voter turnout in the recent Oregon primary election helped block numerous tax measures throughout the state. For that reason, some people wish to eliminate the 50 percent turnout requirement, which is simply a quorum rule.
To pass certain tax measures during a primary election, 50 percent plus one of those casting ballots must (more…)
Do teacher unions really benefit children?
During the recent primary election the Oregon Education Association (OEA) got what it wanted by defeating Ballot Measure 13 and electing Susan Castillo to Superintendent of Public Instruction. Although the OEA’s effectiveness is admirable, it is questionable whether the union’s actions actually improve education.
The OEA is a union and like all unions is (more…)
Lesson from New Zealand: Plow under U.S. farm subsidies
President Bush showed his anti-consumer, anti-taxpayer side on Monday, May 13: he signed legislation that increased farm subsidies by $83 billion. This legislation, supported by Oregon’s U.S. Senators Smith and Wyden, and Representatives Wu, Walden and Hooley, shows corporate welfare is alive and kicking in Washington, DC with bi-partisan support.
U.S. farm subsidies were to have gradually ended with the (more…)
School funding waltz: Measure 5, equalization and legislative puppeteering
Political candidates and editorial boards across the state blame Measure 5 for centralizing education funding in Salem. Although the initiative did give the state a greater role in school funding, a number of other changes have also furthered state involvement in education.
A case study is the Condon School District in eastern Oregon, which is struggling with budget cuts. Lynn Wilkins, Condon School Board chairman, said, “Prior to Measure 5 passing in 1990, Condon was (more…)
Drug prohibition, cigarette taxes and terrorism
When U.S. Drug Czar John Walters spoke in Portland last Friday he touched on the theme of his administration’s ad campaign: that if you use illegal drugs you’re helping to finance terrorism. He could have more accurately said that if you prohibit the sale of drugs, or raise cigarette taxes to abnormally high levels, you’re helping to finance terrorism.
We can ban products, but (more…)
Black holes in education spending
Oregon’s budget crisis is a blessing in disguise for schools. It has helped expand education debates from a myopic focus on total funding to a more useful discussion about spending priorities.
Despite an 11 percent increase in the K-12 education budget from the previous biennium, core education services are (more…)
Defuse drug testing debate through school choice
The Oregon Court of Appeals and the U.S. Supreme Court heard similar cases last week about the constitutionality of drug tests in school.
Here in Oregon, sixteen year old Ginelle Weber and her parents object to Oakridge High School’s random drug tests for athletes. The federal case involves (more…)
Universities can flourish without Salem
The Oregon University System will sustain an additional $27.2 million in budget cuts, announced Governor Kitzhaber last week. The budget crunch should prompt universities to seek independence from budgeting decisions in Salem. One school may have a unique opportunity that could be instructive for the others.
A philanthropist offered the Oregon Institute of Technology a $100 million endowment to enable the school to (more…)
Creative solutions for school budgets
School districts in Oregon face budget cuts that present opportunities to empower teachers, control costs and direct greater resources to the classroom. Districts should consider the following proposals.
Health care: In the short-term, increasing deductibles and co-payments and limiting the employer contribution are the (more…)
CAFE carnage: Death by fuel economy standards
Dozens of Oregonians are killed every year by fuel economy standards on new cars. The situation may soon get even worse.
The federal government’s Corporate Average Fuel Economy (CAFE) standards impose average mile per gallon (mpg) requirements on every automaker’s yearly output of new cars. The current standard is (more…)
Greater health insurance freedom would reduce OHP demand
Much noise was raised about protecting the Oregon Health Plan from budget cuts in the recent special legislative session. A more constructive ruckus would have started with the question: how can we get more affordable private health insurance, and thereby reduce the need for the OHP?
Randall J. Pozdena, Ph.D., noted in a November 2000 Cascade report, “Oregon is one of 16 states identified by the U.S. General Accounting Office as having (more…)
Education freedom linked to high test scores
The Manhattan Institute recently released its 2001 Education Freedom Index, which measures four types of educational freedom: the ability of parents to pursue charter school options, subsidized private schools, public school choice and home-schooling. Oregon ranked 16th, falling 11 places from the previous year. The drop in Oregon’s ranking occurred as other states sailed past Oregon to implement school choice reforms.
According to the report’s author (more…)
Oregon lives beyond our means
When Governor Kitzhaber argues that we should pursue revenue increases to balance the budget, let’s not forget that Oregon is a very high spending state. According to recently released U.S. Census data, Oregon state and local governments spend more per capita than all but seven other states. This stark fact bolsters the argument that the budget should be balanced by cutting spending, not by raising taxes.
Fourteen months ago, long before (more…)
Socialized Medicine in Great Britain: Lessons for the Oregon Health Plan
by Professor John Spiers
Dr. John Spiers is a professor in the Business School, The University of Glamorgan, UK, a Senior Research Fellow at The Institute of Economic Affairs, and a Health Policy Adviser at the Social Market Foundation, both in London. He recently spent a month in our state studying the Oregon Health Plan. This paper is adapted from a talk Dr. Spiers gave on March 18, 1999 for Cascade Policy Institute, where he has been named an adjunct scholar.
1. Introduction:
The Oregon Plan, well intentioned as it is, mirrors the overall problems of American health care. The way this is structured prevents the working and the non-working American, the better off and the poor, from controlling their own lives and building better personal care. (more…)