By Eric Fruits, Ph.D.
Fake news is bad, but no news is even worse. Across the world, across the country, across the state, and across our communities, we are witnessing an obliteration of local news media. In Oregon, local newspapers are struggling and shuttering while TV and radio outlets focus more and more on national news fed by wire services.
Research soon to be published by the Journal of Financial Economics finds that when a local newspaper closes, local government wages and employment increase, municipal borrowing costs go up, as do county deficits. The authors argue local newspapers hold their governments accountable. When a community loses a paper, it loses some of that accountability.
It’s easy to blame Google and Facebook and media mergers for decimating local news. But, we ourselves are also to blame. We’re more likely to click on a story about a Trump tweet, celebrity gossip, or cute cats than we are to read a researched investigation into steep tax hikes, onerous regulations, and municipal malfeasance.
A tweet from Trump has virtually zero impact on our day-to-day lives in Oregon. At the same time, our legislature is right now passing bills that will affect all Oregonians every day. Our local governments and school boards are making decisions that affect how we work, how we live, how we travel, and how our kids are taught.
We all need to support local media, but it’s more than just buying a paper. Listen to the local news on the radio. Watch the local news on TV. More importantly, be engaged in your local community. That’s where everyday people can make a big difference.
Eric Fruits, Ph.D. is Vice President of Research at Cascade Policy Institute, Oregon’s free market public policy research organization.
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By Steve Buckstein and Kathryn Hickok
What do Pac-Man and public pensions have in common? An intriguing 2016 national study of pension debt and teacher salaries recently answered this question. Depending on what economic assumptions are made, it’s likely that unfunded public pension liabilities for all states and local governments exceeded $6 trillion last year. Based on the same assumptions, Oregon’s share of those liabilities likely approached $50 billion.
The study, The Pension Pac-Man: How Pension Debt Eats Away at Teacher Salaries, by Chad Aldeman of Bellweather Education Partners, concluded that unfunded public pension liabilities are eating away at teacher salaries in every state—just like the arcade game. This happens because the school districts teachers work for have to pay an increasingly larger share of their budgets into retirement funds for teachers who are no longer teaching, at the expense of those currently in the classroom.
To stop the PERS Pac-Man from eating teacher salaries, Oregon’s Governor and state legislators need to get serious about PERS reform. They should end the “defined-benefit” elements of PERS for all work done in the future. Instead, public employees, including teachers, should move to 401(k)-style retirement plans. The costs to future teachers, schools, and taxpayers will only get worse if we don’t end the PERS Pac-Man once and for all.
Steve Buckstein is Senior Policy Analyst and Founder of Cascade Policy Institute, Oregon’s free market public policy research organization. Kathryn Hickok is Executive Vice President at Cascade.
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