JULY 2016
Basin Business
Thursday, July 28, 2016, Herald and News
KLAMATH BASIN
Business
September summit Rural business economic summit coming in September
— Page 2
Going solar
Tulelake soils workshop — Page 4
KCEDA committees key to success — Page 4
June jobless numbers hold steady in region — Page 7
H&N photo
Employees of EcoSolar install solar panels over a pavilion going up at Steen Sports Park. The project, backed by Pacific Power’s Blue Sky program will generate about 25 percent of the park’s energy needs. Other solar projects are planned in the park in the future. See details on Page 3.
A publication of the Herald & News Chamber: www.klamath.org
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Thursday, July 28, 2016, Herald and News
Basin Business
Rural business opportunities focus of upcoming workshops
From a press release
T
he Second Annual Rural Business and Innovation Summit will focus on the challenges and opportunities facing rural businesses. The summit is scheduled for Sept. 14 and 15 at Klamath Community College and is hosted by the Klamath County Chamber of Commerce. Startups, entrepreneurs, corporate business leaders, accelerators, and investors will come together to exchange ideas, share experiences, and discover best practices that provide a competitive edge and lead to thriving business in rural areas. The summit will inspire entrepreneurs to accelerate innovation, cultivate a successful business ecosystem within their communities, and take advantage of opportunities for growth. “Business owners and entrepreneurs in a rural area have some unique challenges and opportunities,” said Heather Tramp, the Chamber’s program and marketing coordinator, “We wanted to give rural business a place to come together, collaborate, and learn from each other as well receive practical tips and ideas from a dynamic group of speakers who understand rural.” She also indicated the Chamber invites businesses from around the state and even northern California to attend the event. Tramp says the speakers have been hand-selected for their expertise and knowledge of rural business. The topics will help inspire, motivate, and educate. Topics include: 10 Trends in Rural Favor: Presented by Becky McCray, author of the award winning book “Small Town Rules”) — All your life, you’ve been told that small towns are dying, drying up, and disappearing, and that there’s nothing you can do to change it. What if, just once, there
Oklahoma businesswoman Becky McCray is the keynote speaker for the Rural Business and Innovation Summit, sponsored by the Klamath County Chamber of Commerce, Sept. 14-15.
was some good news about rural? There is! Big trends are moving in our favor: brain gain, changing retail dynamics, new travel motivations, and more! Learn why we have a future and how to shape the future of your town. Latinos in Oregon: Challenging the American Dream (presented by Vince Adams, Extension Educator, Rural Communities Explorer) — Latinos important force changing the demography and economy of Oregon.
Utility has an app for that New Pacific Power mobile app features help you do more To make it easier to manage your electric account, Pacific Power is updating their popular mobile app with new features, according to a press release. In addition to the ease of paying bills and reporting power outages through the app, you will be able to: n View your full billing statement (for up to six months) n Enroll in our Equal Pay option to pay the same amount each month n Choose paperless billing to save time and reduce waste n Learn about ways to save energy and money Download the Pacific Power mobile app for free on the App Store or Google Play. Learn more at pacificpower.net/app.
Vince Adams
Participants will learn about the current state of the Latino population in Oregon, why it’s growing so rapidly, and why that change is likely to continue. In this session we will discuss the social and economic challenges facing Latinos. At the same time we will show that Latinos are making growing contributions to the Oregon economy through the labor force and entrepreneurship and are a largely unrecognized asset across the state. Grand Slam: The Seven Steps to Creating a Winning Team (presented by Steven Kauffman, co-author of The Garbageman’s Guide to Life: How to Get Out of the Dumps) Tickets for the summit are on sale now and can be purchased through the event’s website at www. ruralbizsummit.com or by calling the Chamber at 541-884-5193. Tickets are $99 for Chamber members, $149 for non-Chamber members. The Klamath County Chamber of Commerce is extending the special Chamber member Steven pricing for those who are members Kauffman of any Chamber. The Klamath County Chamber of Commerce has served Klamath County since 1905. It is a member-based association made up of businesses and individuals who work together to advance the civic, economic, industrial, professional, and cultural life of Klamath County and the City of Klamath Falls, through advocacy and broad communication connections. Membership is available to businesses, organizations (including non-profits) and individuals. Contact information: Heather Tramp, 541-884-5193, heathert@klamath.org
Contact the Chamber Klamath County Chamber of Commerce
205 Riverside Drive, Suite A Klamath Falls, OR 97603 Office: 541-884-5193 Fax: 541-884-5195 Charles “Chip” Massie Executive Director cmassie@klamath.org
Heather Tramp: Marketing and Program Coordinator Email: heathert@klamath.org www.klamath.org www.facebook.com/Klamath Chamber twitter.com/AccessKlamath
Basin Business
Thursday, July 28, 2016, Herald and News
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KOA Kampground marks 30 years in K Falls
H&N file photo
Dave Steen, right, turns the traditional shovel of dirt over during a groundbreaking for a solar pavilion at Steen Sport Park.
Solar pavilion to rise in Steen Park H&N Staff reports A picnic pavilion — adorned with solar panels on its rooftop — is under construction at Steen Park. Groundbreaking ceremonies took place at the site adjacent to the indoor batting cages recently. Steen Park board members Dave Steen and Mike Reeder said the $225,000 project will take about three to four weeks to complete. Todd Andres, community representative for Pacific Power, presented a check to the group for 80 percent of the project cost from the utility’s Blue Sky energy conservation program, about $175,000. “There are a lot of positive things happening in Klamath Falls right now, and this is one of them,” Andres said. “The solar panels will provide 25 percent of our electricity needs for the park and for Mike’s Fieldhouse,” Reeder said. He said he hopes more panels will be built in the future to cover the water Chad Taylor and Coty Gottlieb of EcoSolar are installing solar panels on the pavilion in Steen Park this week in hopes of having the site generating power by mid-August.
From a news release Tammy McCoskey has never asked precisely how or why her parents Chuck and Claudia chose to purchase the campground that is now the Klamath Falls KOA Journey 30 years ago. She does, however, remember why. “My father was the manager of a grocery store and Mom wrapped meat in the meat department,” she said. “They decided they wanted something different. That’s when they decided to purchase a campground.” At the time, the McCoskey family lived in southern California. Tammy and her younger sister opted to remain there while their parents and brother moved north. Tammy worked for a cement contractor there until she got a call she never expected. “In November of 1987, my brother died in an auto accident,” she says. “He was just 17, but a big part of the campground operation. I was about 23, and Mom called and said they needed help, so I came up. I never left.” For more than a decade Tammy worked alongside her parents as they managed the campground. In 2004, Chuck and Claudia were ready for another change—retirement. Along with her business partner, Lisa DeFord, Tammy made the decision to purchase the campground. Today the Klamath Falls KOA Journey is a favorite of Oregon travelers thanks to its comfortable pull-through and back-in RV Sites with either full or partial hookups. Recently, Tammy and Lisa added a deluxe cabin to the property, a popular
option in addition to the camping cabins and tent sites. Amenities include a swimming pool, children’s playground, a game room and designated pet areas. As she reflects back over the last 30 years that her family has owned the Klamath Falls KOA Journey, Tammy says it’s been a good business — and one she’d do again. “It takes a lot of work,” she says. “You also need to be up for changes and open to what people are suggesting. Just because you haven’t done it before doesn’t mean it won’t work in the future.” Located at 3435 Shasta Way, the Klamath Falls KOA Journey is one of 490 opento-the-public KOA campgrounds in the Kampgrounds of America system in the U.S. and Canada. It is open year-round. For more invormation, phone 541-8844644 or visit www.koa.com. Reservations may be made online or by phoning 800-562-9036.
pumping operations. EcoSolar is building the 70-foot by 120-foot pavilion with the solar panels.
Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye
Edwin Tuhy, O.D. Optometrist
Jennifer Sparks, O.D. Optometrist
New Patients Welcome
2640 Biehn St. • 541.884.3148 • www.klamatheyecenter.com
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Thursday, July 28, 2016, Herald and News
Basin Business
The important work of KCEDA committees Formed to get things done By GREG O’SULLIVAN KCEDA Executive Director
K
lamath County Economic Development Association (KCEDA) is an organization that prides itself on meeting its goals. One of the ways we achieve those goals is by forming committees to carry them out. These committees are comprised of KCEDA members — all business owners located here in Klamath County — who care deeply about helping the community. One of them is our Quality of Life committee, which has now branched out into the stand-alone organization Klamath Excellence. Klamath Excellence exists to enhance and restore the beauty of Klamath County in an effort to improve the quality of life it offers people and businesses. It seeks to engage Klamath’s residents in various beautification projects and cleanup activities that benefit the community and encourage economic growth. Although no longer an extension of KCEDA, Klamath Excellence continues to oversee the rejuvenation of the area beautifully and we fully support them in those
efforts because we have seen the good work they do. If you are interested in getting involved, visit KlamathExcellence. org to learn more. Next, we want to tell you about KCEDA’s Strategic Relations Committee. This is a group of KCEDA members who regularly meet with cities throughout Klamath County O’Sullivan to discuss what their needs are, and strategize on any assistance KCEDA may be able to provide them. The committee has met with the cities of Malin and Crescent, and is scheduled to meet with the cities of Merrill and Chiloquin soon. One exciting accomplishment of the Strategic Relations Committee was assisting with the effort to help the Crescent Sanitary District to acquire the land for a new wastewater system that will decrease groundwater pollution. As a result, people and businesses in and around Crescent will enjoy cleaner, healthier water. Economically speaking, this will also afford 20 or more local businesses the possibility of expansion in the Crescent area of Klamath County.
KCEDA was among several regional organizations that received a letter from the office of Governor Kate Brown thanking us for supporting this project at the public level. “This decision marks a major milestone in our partnership to address public and environmental health concerns and support future economic and community development,” the letter said. “Many thanks to everyone in the accomplishment of this milestone ... We look forward to continuing the partnership to bring this project across the finish line.” KCEDA not only cares about the people and businesses of Klamath County, but also the environment they live in; through our Strategic Relations Committee, we have been able to demonstrate that on a practical level. KCEDA forms committees for the purpose of getting things done. Our members enjoy joining committees that take on special projects for the benefit the community. Greg O’Sullivan is executive director of the Klamath County Economic Development Association (KCEDA). For information, visit ChooseKlamath.com.
Soils workshop focuses on biotic farming; healthy, sustainable crops By H&N Staff TULELAKE — Bringing more life into farming or looking at growing as a long-term investment rather than year to year harvest is part of the mantra that Brendon Rockey will speak to at a workshop set in the Basin in August. The workshop is for growers introducing them to information on biotic farming systems, understanding soil health concepts, while trying to grow and survive their businesses in unstable markets. Rockey is a biotic farmer from Venture, Colo., based in the San Luis valley, the heart of potato country there. He’s been showing producers across the globe how to end their chemical dependencies and add more nutrient to the soil in return. Other speakers are Rob Wilson of the UCCE Intermountain Research Station and James Komar, USDA soil scientist. Rocky is partnered with the Soil Guys, a group that specializes in biotic farming. See the website soilguys. com Rockey is a third-generation specialty potato grower who is fulfilling his vision to increase the industry’s access to biotic-supported products and methods he practices on his farm, which continue to improve the farm’s health every season. “I’ll be talking about soil health; farming without harsh chemicals and synthetics or fertilizers,” he said. “We grow specialty potatoes but use a diverse cover on top, or a special rotation or plant flower strips along the side of
the rows to create a habit that is beneficial cover.” “If you add other plants alongside potatoes, it adds nitrogen to the soil and improves its overall hearth.” The workshop will look at the long-term benefits of building soil, growing crops for less cost while still maintaining the yield and a higher quality yield, Rockey said. “We even bring livestock to graze the cover top,” he said. “For too long, we’ve been trying to kill all of our problems off. Soil Guys (the group he’s associated with) tries to bring more life back into the system. It’s a systematic approach, not a linear one. We’re looking at the big picture that reaps benefits within five years.” The workshop will be Wednesday, Aug. 17 from 2:30 p.m. to 6 p.m. Dinner will follow. It will be at the Tulelake Brendon Rockey of Venture, Colo., will speak at Butte Valley Fairgrounds and is sponsored by the Lava the Tulelake workshop Aug. 17. Beds-Butte Valley Resource Conservation District, P.O. Box 861, 611 Main Street, Tulelake, CA 96134. Phone: 530line Auto Parts, J.W. Kerns, Inc., Les Schwab Tires, Gold 667-3473 ext 110 Fax:530-667-3125. Dust Potato Processors, Basin Tire Service Inc. and Additional sponsors; Winema Elevators LLC, Basin Fertilizer & Chemical Co., Macy’s Flying Service, StateUSDA-NRCS Tulelake Service Center.
“For too long, we’ve been trying to kill all of our problems off. Soil Guys tries to bring more life back into the system.”
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Thursday, July 28, 2016, Herald and News
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Cascade Health Alliance welcomes interns From a press release The Cascade Health Alliance offices have some new faces this summer. Five new interns, all students from the Oregon Institute of Technology, joined the staff earlier this month, and will be working closely with various departments within the company. “We are happy to welcome our 2016 summer interns,” said CHA CEO Tayo Akins. “The internship experience provides the students an opportunity to learn core skills and launch their careers in the managed care sector of the health care industry. “The ability to attract and retain the next generation of health care leaders from Oregon Tech is important to us and the local economy in Klamath Falls. We will challenge our interns to bring fresh new ideas to the company and our projects aim to give them a true sense of their future careers.” Kyla Patty: Community Advisory Council Intern; a junior at Oregon Tech; her major is Population Health Management; from McMinnville. Patty is a full-time intern this summer working with the Community Advisory Council, or CAC. She will continue as a part-time intern through December. Patty will be focusing on outreach and recruitment for the CAC, which will include working at various community events, including a weekly booth at the farmers market. She will also be planning a caregiver training event through her internship, and participating in other community outreach projects. Patty is looking forward to recruiting more members to the CAC. “I like the idea of getting to reach out to people and help them help themselves in the long-run,” she said. Patty’s work with CHA will be closely related to her career goals upon completing her degree through OIT. Keoni Roberts: Health Informatics Intern; a senior at Oregon Tech, major is IT Health Informatics; from New Zealand and Tillamook. Roberts is a full-time intern this summer working in Finance and IT and is also taking classes this summer, and is working on a senior project with Lucas Simmons. Simmons and Roberts will be assisting with several new software implementa-
Submitted photo
The five interns at Cascade Health Alliance are, from left: Timothy Visser, Kyla Patty, Cord VanRiper, Lucas Simmons and Keoni Roberts.
tion projects and streamlining existing data processes. “It’s really the career field that I want to go into,” Roberts said of the internship. Lucas Simmons: Health Informatics Intern; a senior at Oregon Tech, his major is Health Informatics; from Elko, Nev. Simmons is a full-time intern this summer working in Finance and IT. “I’m excited about taking these reports and making them automated,” Simmons said. This internship is a unique opportunity, Simmons said, and he is happy to be selected for an internship in his chosen career field close to his family. Cord VanRiper: Quality Management Intern, a 2016 Oregon Tech graduate; majored in Population Health Management and Biology-Health Sciences; from Cañon City, Colo. VanRiper is a full-time intern this summer working in Quality Management. He will be working on retiring outdated performance improvement projects, or PIPs, and developing new PIPs and initiatives attached to those projects. He’ll also be working closely with department director Amanda Blodgett on a variety of
other QM projects. “Amanda has a really good vision for the department and initiatives, and how we can help members,” he said. VanRiper is excited to be working in a field closely related to his population health management degree, and to work in a position that allows him to bridge health care and health policy, which he hopes to also do later in his career. VanRiper plans to attend medical school in the future.
Timothy “TJ” Visser: Information Technology Intern; Junior at Oregon Tech; Health Informatics Major; rom Silverton, Ore. Visser is a full-time intern this summer working in network security administration and maintenance. He will be working on server and directory updates, licensing audits, and other technical requests. He’s looking forward to leaning more about IT and about network systems, he said. “Just getting hands-on experience is really good,” TJ said.
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Thursday, July 28, 2016, Herald and News
Basin Business
Klamath Goodwill launches veterans preference program Program provides employment services and peer support
From a press release Southern Oregon Goodwill proudly introduces Veterans Preference Program to help those with recent or past military service build careers in civilian life. The program will focus on employment services including work experience, skills assessment, training, job placement, and help creating a business plan. “Southern Oregon Goodwill is proud to serve the brave men and women who have sacrificed so much to serve their country,” said Greg Lemhouse, Southern Oregon Goodwill Vice President of Workforce Development. “We believe veterans have much to offer the community and workforce with their unique set of skills and leadership experience, and it is part of our mission to help empower them to find meaningful employment.”
Veterans referred to Goodwill for work experience will be sent to workplaces that use their current skills and give them a chance to gain new skills. A Goodwill Employment Specialist will help each participant transfer military experience into the civilian workforce and pick up new abilities. Mentoring will focus on issues that could inhibit veterans from finding and keeping a job. The end goal is placing all veterans into meaningful careers matching their aptitudes, experiences, and desires. The program gives veterans free access to Southern Oregon Goodwill Learning Lab classes, including GED preparation, vocational certification, and computer skill building. Participants also can apply to Southern Oregon
Goodwill job postings before the job is posted publicly. Veterans interested in starting their own businesses can get help from a Goodwill Business Development Specialist, who will help them develop business plans and connect with lenders. Veterans cohorts will meet monthly. The confidential meetings facilitated by a Goodwill training coordinator and Marine Corps veteran will provide an open forum for veterans to address topics of common interest or concern. Participation is voluntary and members can continue to participate as long as they want. For more information and to connect with the program, veterans can visit http://www.sogoodwill.org/programs/veteran-services/ or in Klamath County:Klamath and Lake counties: Sandy Boatright, Director of Workforce Development, 541-947-3300 or sandy.boatright@ sogoodwill.org. julie.fletcher@sogoodwill.org or marketing@sogoodwill.org
Cash crunch: When customers pay late, businesses juggle JOYCE M. ROSENBERG AP Business Writer NEW YORK — Small business owners are contending with a calendar problem that becomes a cash flow problem — they’re waiting longer to get paid. Some customers, whether they’re consumers or other companies, are taking more time to pay than they did six months ago. That makes it hard for owners to manage cash flow and pay their own bills, and some are now asking for more money up front or requiring credit card payments. At TSR Hockey in Salem, New Hampshire, the customers include the owners of ice rinks and local sports teams whose orders for uniforms and equipment can run into the tens of thousands of dollars. In the last year, some customers have taken two or three months to pay, compared to a month previously. The company is sympathetic — youth hockey teams, for example, are waiting for parents to pay too, says business manager Susan Frazier. “If they don’t get all their money, we don’t get all our money,” she says. But TSR Hockey now asks teams to put 50 percent down when they place an order, with the balance due upon delivery. Some types of merchandise now must be ordered online with a credit card. Companies’ slowdown in paying is reflected in a drop in PAYDEX, an index that tracks how much time small businesses take to pay their own creditors.
business. Slow payers in turn create problems for Allen: “I have payroll to make every two weeks, rent and other expenses.” To ease the crunch, she’s now taking credit card and electronic payments, and that helps some clients pay faster. Allen does have to pay a fee for accepting credit card payments, but getting paid faster helps her cash flow. Slower payments may also be part of some companies’ business strategy, a lingering effect of the Great Recession, says Mary Driscoll, a researcher with Houstonbased metrics company APQC. Many publicly held companies began paying more slowly to build up their cash reserves and balance sheets, she says. “They got in the habit of extending payment times as a matter of policy,” Driscoll says. In a study released in October by APQC, two-thirds of the businesses surAP photo veyed — most of them small businesses Susan Frazier, business manager for TSR Hockey, poses for a picture at — reported getting slower payments in the business in Salem, N.H. Small business owners are contending with a the previous three years. A 2014 study calendar problem that becomes a cash flow problem. by researchers at Georgia Institute of Technology’s Scheller College of Business PAYDEX fell 3 percent during the first consumers and companies prioritize showed that companies of all sizes are takhalf of this year from the last six months which bills will be paid first. ing longer to pay — 46 days in 2014 versus of 2015, according to Dun & Bradstreet Valerie Allen has seen it at her epony35 in 2009, even though the economy was Credibility Corp., which compiles the mous public relations company in Shermuch healthier in 2014. index. That decline in the index — which man Oaks, California. Some businesses may also use partial means companies are taking longer to set“I’ve had clients who used to pay on payments as leverage to get a better deal, tle up — followed a 1 percent increase at time like clockwork all of a sudden being says Robert Pellegrini, an attorney with the end of last year when compared with more than 30 or 45 days late,” Allen says. PK Boston, a law firm based in Massachuthe first half of 2015. They don’t give a reason, but Allen has setts. A small business that’s waiting for its The economy likely is one reason, as been aware of the ebb and flow of their money may not want to retaliate.
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tinued in Klamath County over the past year. Employment levels are up by 360 jobs (+1.6%). Nearly 60 percent of all those jobs added over the past year were from the public sector, primarily State Government (+120). Private employment growth was anchored in health care and leisure and hospitality. Meanwhile there were significant job losses in manufacturing and retail trade. Lake County: The seasonally adjusted unemployment rate rose to 6.2 percent from the revised rate of 6 percent in May. The unemployment rate was down from last June when it was 7.7 percent. Employment levels in Lake County rose by 90 jobs in June, fewer jobs than typically expected this time of year. After accounting for strong gains in May, Lake County’s seasonal hiring has been fairly typical this summer. Employment levels in June were little changed from last year (-20 jobs). Manufacturing shed 40 jobs from last year, while federal government agencies hired 40.
Multiple Listing Service assistance available Home buyers are often faced with overwhelming decisions surrounding the purchase of a new or first time home. The process can be simplified with assistance from a realtor. Diana Kellstrom, an Oregon Licensed Realtor with Fisher Nicholson Realty. Kellstrom can guide buyers through the home buying process. Utilizing the Multiple Listing Service
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Financial tips for newly single women
Jobless numbers reflect the norm in area counties From a press release Early summer hiring was consistent with seasonal norms across both Klamath and Lake counties. Despite typical hiring, unemployment levels rose slightly in June. Growth in the local labor force was a significant factor in the rise of local unemployment rates. Klamath County: The seasonally adjusted unemployment rate ticked up to 6.7 percent in June from the revised rate of 6.5 percent in May. The rate remains down from this time last year when it was 7.9 percent. Significant growth in the labor force was a factor in the rising unemployment rate. Klamath County added 310 jobs in June, fairly typical hiring for this time of year. Education began posting job losses as the school year came to a close, while tourism and public-sector agencies filled seasonal positions. Consistent, yet slow, job growth con-
Thursday, July 28, 2016, Herald and News
(MLS) allows buyers to “shop” for homes in an online platform. Once the MLS process has been completed, Diane and the home buyers’ can view the homes in person to select the right fit. To speak with Kellstrom about purchasing your next-or your firsthome, call or text her at 541-331-0218, or email her at dianakellstrom@gmail.com or via the web at www.fnrhomes.com/dianakellstrom.
Within a marriage, a man and a woman’s financial circumstances are generally pretty much equal. But if a divorce occurs, the woman’s situation tends to be somewhat more challenging than that of her ex-spouse. And that’s why, during this major life transition, you may want to meet with a professional financial advisor to go over your spending needs and your cash flow, so that you know what you absolutely need today — and how you can plan for tomorrow. But before we get into some possible steps you can take, let’s look at some of the reasons that women may fare worse than men, financially speaking, following a divorce: nLower income — The average woman’s family income drops by 37 percent after divorce, according to the U.S. Census Bureau. And in many cases, divorce exacerbates a situation in which women were already trailing men in earnings. In fact, women still only earn 77 cents for each dollar earned by men, according to the U.S. Bureau of Labor Statistics. n Smaller retirement accounts — The average balance on women’s defined contribution plans (such as 401(k) plans) is only 60 percent of men’s average balances, according to LIMRA, a financial services research organization. Of course, “averages” are just that — averages. But whether you recognize yourself in the above numbers or not, consider these suggestions: Create an emergency fund. Try to put six months’ to a year’s worth of living expenses in a liquid account. Once you’ve established this emergency fund, you won’t have to dip into long-term investments to pay for unexpected costs, such as an expensive car repair, a new furnace or a large medical bill. Contribute as much as you can afford to your retirement accounts. Even if you will eventually receive
some of your ex-spouse’s retirement funds, you need to take full advantage of your own savings opportunities — because it’s pretty hard to save “too much” for retirement. If money is tight, it won’t always be easy, but contribute as much as you can to your 401(k) or similar employer-sponsored retirement plan. At a minimum, put in enough to earn the employer’s match, if one is offered. Rebalance your investment portfolio. If you are now investing for yourself, you’ll want to take a close look at your asset mix to make sure it is appropriate for your situation. For example, your risk tolerance may be quite different than that of your ex-spouse’s, so if you now have total control over an investment portfolio, you need to make sure it reflects your needs and preferences. Consequently, you may need to “rebalance” your holdings. Above all, get some help. As mentioned above, now is a good time to meet with a financial advisor. And if you don’t have much experience in managing your finances, you may even find it helpful to work with a trust company, which can collaborate with your financial provider to manage your assets and can also provide a variety of other functions, including bill payment and recordkeeping. A trust company’s services can prove especially valuable to you and your family should you ever become incapacitated. Unfortunately, a divorce may leave you feeling “at sea” in many areas of your life. But by following the above suggestions, you can at least help keep your financial ship in calmer waters. Meredith Hoffman Financial Advisor-Edward Jones 1307 S Alameda Ave, Suite B Klamath Falls, OR 97603 541-273-2483
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Basin Business
Thursday, July 28, 2016, Herald and News
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July 2016 Newsletter for Oregon State Senator Doug Whitsett, District 28 Senator Doug Whitsett
R-Klamath Falls - District 28 I represent the citizens of Senate District 28, which includes Klamath, Lake and Crook, as well as parts of Jackson and Deschutes Counties. As Senator of one of the largest Senate districts in the state, it is extremely important that my constituents remain in contact with me about the issues and concerns that affect their lives. You and I must work together to protect the common interests of rural Oregonians. I encourage you to contact my office by either email or telephone so that I can know how to best serve you. I look forward to hearing from you soon. Best Regards, Senator Doug Whitsett
Capitol Address: 900 Court St. NE, S-311 Salem, OR 97301 Capitol Phone: 503-986-1728 Newsletters: www.leg.state.or.us/whitsett Email Senator Doug Whitsett: sen.dougwhitsett@state.or.us
ODOT WANTS MORE OF YOUR MONEY... A LOT MORE OF IT. The lion’s share of Oregon’s highway division funding is raised by state fuel and weight-per-mile taxes, as well as certain vehicle license and registration fees. That highway fund revenue is constitutionally dedicated to the maintenance, preservation and construction of Oregon highways and bridges. Prior to 2002, the Oregon Department of Transportation (ODOT) budgets were traditionally on a pay-as-you-go basis. The agency was not authorized to spend more revenue than it collected from taxes and fees during each budget cycle. That all changed during the administrations of former Governors John Kitzhaber and Ted Kulongoski. An undeniably large backlog of much-needed highway and bridge improvements had accumulated and the amount of money needed to pay for those deferred projects would have required very significant increases in fuel and weight-per-mile taxes. Rather than taking the unpopular votes to raise the necessary revenue, legislators began borrowing the money to pay for the needed highway projects. Legislators were told the agency would be able to immediately spend about six dollars, on highway and bridge construction projects, for each dollar borrowed through bonding of future income from newly enacted highway taxes and fees. The principle and interest on the new highway revenue bonds would be paid by future revenue raised from those new taxes and fees. A super-majority of the Legislative Assembly allowed themselves to be repeatedly convinced this was good fiscal policy. They enacted smaller tax and fee increases, and borrowed against a lot of the future revenue from those increases in order to get a much greater “bang for the buck.” Beginning in 2003, the Legislative Assembly enacted a series of Oregon Transportation Investment Acts (OTIA), as well as the 2009 Oregon Jobs and Transportation Act (JTA) to help address the backlog. The preponderance of the new highway and bridge construction projects were funded by issuing highway revenue bonds to be repaid with fuel and weight per mile tax receipts collected over the next 25 years. I voted against these bills because I was concerned they would diminish the state highway fund and negatively affect ODOT’s future ability to maintain Oregon’s highways. The Legislative Assembly also authorized borrowing several hundred million dollars in lottery revenue bonds to fund a series of Connect Oregon bills. Originally, the funding was to be used for needed multimodal freight and public transit projects. Most of those projects have already been completed. The principle and interest on the debt will be paid out of the state’s share of future lottery earnings over the next 25 years. ODOT’s highway division has been spending nearly half a billion dollars of this borrowed money, during each two year budget cycle, for more than a decade. A lot of needed highway and bridge modernization have been completed. However, the agency has already spent all but about $100 million of the money borrowed through revenue bonds. The principle and interest payments on currently outstanding highway revenue bonds will cost nearly half a billion dollars per budget cycle until the year 2034. The total payments will require between $4.5 and $5 billion dollars of future highway fund and lottery revenue. The debt service on all that borrowed money is now jeopardizing the entire ODOT budget.
Not a single dollar of that enormous amount of money will be available to maintain, preserve or build Oregon highways until after the year 2034. A future generation will be forced to pay for the roads and bridges and other facilities constructed with the proceeds from these revenue bonds. That infrastructure will largely be deteriorated by the time the debt is repaid. Oregonians are being told the story that revenues derived from the fuel taxes are declining and are now inadequate to meet the agency’s needs. Further, they allege the revenue reduction is largely due to increasing fuel efficiency and the advent of more electric and hybrid vehicles. These allegations simply are not accurate. Both Oregon’s fuel and weight per mile tax revenues have continued to increase each biennium in an almost linear fashion. Receipts from vehicle license and registration fees have continued to grow as well. Nearly 4.3 million vehicles are registered in Oregon. According to ODOT data, only about 4,000 are electric hybrids and about 150 are all electric vehicles (EV). The total number of EV and hybrid cars currently registered in Oregon comprise about 1/100th of one percent of registered vehicles. Their cumulative effect on either highway wear and tear or highway fund revenue is insignificant and is likely to remain negligible into the foreseeable future. The real reasons for ODOT’s budget shortfall are significantly more complex. The monumental budget deficit is caused by a combination of the agency’s growing and prolonged debt payments, the reality that there is no more borrowed money to spend, the impending huge compensation increases for its approximately 2,500 highway division employees and its propensity for spending too much highway fund revenue for “highway related” purposes. ODOT spends an enormous amount of highway fund money on agency administration and land use and environmental mitigation planning. Expenditures on other non-highway motor vehicle services including certain funding for public transit, highway and bridge art, extensive landscaping, facilities for bicycle and pedestrians, solar installations and EV charging stations. In short, ODOT is spending a great deal more money than it is “earning.” Much of that spending is on employee compensation and activities other than paving roads and building bridges. A significant portion of that spending could, and I believe should, be refocused on the actual preservation, maintenance and construction of highways and bridges. ODOT leadership has been promoting the enactment of a vehicle mileage tax (VMT) as a more equitable and fair way to raise the money needed to continue funding its operations. Make no mistake, simple math demonstrates their proposed 1.5 cent per mile VMT is anything but a “revenue neutral” shift in how Oregonians are charged to use their highways. Oregon currently charges a 30 cent per gallon tax on motor fuel. An automobile making 20 miles per gallon (MPG) would break even at the proposed level of taxation and vehicles making less than 20 MPG could actually pay less. However, for vehicles designed to comply with Corporate Average Fuel Efficiency (CAFÉ) standards, the proposed VMT will amount to
a 50 percent increase for cars making 30 MPG, a 100 percent increase for cars making 40 MPG and a 200 percent increase for cars making 60 MPG. Trucks currently pay a commensurate weight per mile tax based on their calculated share of wear and tear caused to Oregon roads. The proposed new tax would “equitably” increase the weight per mile tax to maintain that balance of shared cost. Moreover, the VMT will unfairly tax rural Oregonians who must drive further for virtually every daily activity. For instance, a five-mile round trip to the grocery store would tax an urban dweller seven and a half cents while each 70 mile round trip to town will tax the rural Oregonian $1.05, regardless of vehicle fuel mileage. The VMT would create a massive tax increase for vehicles that are designed to comply with CAFÉ standards. Nevertheless, it is likely to be among the options considered by lawmakers in the upcoming 2017 session to help ODOT fill its ever-growing budget gap. ODOT officials launched a voluntary pilot project in the hopes of demonstrating its success in being the first state in the nation to fund its highway division with a VMT. The agency spent more than $6 million attempting to convince a minimum of 5,000 Oregonians to volunteer to sign up for the pilot program. The agency expenses also included extensive travel to other states and nations to convince their governments to enact similar taxes. The lack of public support among Oregonians for either the VMT or the pilot program is apparent. To date, fewer than 900 Oregonians have volunteered for the demonstration project. That less than 20 percent participation rate was achieved only after the agency’s staff mounted a statewide promotional campaign and ODOT paid a public relations firm more than half a million dollars over two years to promote the pilot project. Despite ODOT’s multinational sales pitch and extensive travel, no other U.S. jurisdiction has enacted a VMT. Far too often, the use of borrowed money and other budgetary ploys are influential in the legislative process. The gimmicks are routinely used for building political and public support for programs that would not otherwise pass scrutiny or gain approval. As with ODOT’s current legislatively created budgetary “fiscal cliff,” the long-term consequences of such approaches are proving to be both prohibitively expensive to the public and severely limiting to the ability of our public agencies to function effectively. Oregon voters should expect and demand better use of their tax money. Please remember—if we do not stand up for rural Oregon, no one will. Best regards, Doug Follow the link below to subscribe to an electronic version of my weekly legislative newsletter updates: https://public.govdelivery.com/accounts/ ORLEG/subscriber/new?topic_id=ORLEG_30.