Balanced Voice N e w s a n d I s s u e s F R O M T H E O R E G O N B US I N ESS ASS O C I AT I O N
Volume 12 ISSUE 2 DECEMBER 2012
IN THIS ISSUE Now the Fun Begins.........1 Chair’s Message...............2 Business Briefs & Member News...................3 2012 Annual Statesman Dinner...........4-5 2013 Legislative Agenda...6 Strategic Plan..................7 Committee Profiles...........8
Oregon Businesses large and small, urban and rural – working to achieve balanced policy solutions to strengthen quality of life and the state’s longterm economic competitiveness.
Now the Fun Begins by Ryan Deckert
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lections (expensive and at times divisive) are a necessary evil to get us to the real show of governing in an increasingly global economy where Ryan Deckert, competition for the jobs OBA President of tomorrow start in the classrooms and lecture halls of today. And that is where our story begins. The Oregon story is to live up to the moniker: things look different here. We are the place that leans into tough challenges, takes on the status quo and demonstrates that elections are just that: elections. Governing is for the grown-ups. Oregon is well-situated to be the beneficiary of this global hunt for traded sector investment. We sit on the edge of the Pacific with port access to expanding Asian markets. We are also comparatively well- educated and have shown others that there is an economic dividend to governing effectively. If this 2013 legislature can do it one more time, we are certain things really will look different here, and the reason why governing is for the grown-ups. Unfortunately there is no glamour in the set of decisions our elected leaders will need to make to set the foundation for the Oregon comeback. It is no easy task for Democratic legislators to tell their friends (and supporters!) that we must enact sensible reforms to Oregon’s retirement system to ensure precious public resources go to reducing tuition, lowering class sizes and
lengthening a too-short academic calendar in our schools and universities. Where is the joy for Republicans in explaining to their political consultants that we cannot continue to politicize every vote on corrections policy, labeling opponents as soft on crime and sympathetic to criminals? The research is crystal clear: The most effective way to reduce recidivism is to throw everything you’ve got at it – in some cases that is a jail cell – and in others it is in-home detention, community corrections or technology like electronic bracelets. Do we really have to follow Texas as the leader in sensible correction reform that saves money and yields lower crime rates? You will read in the following pages OBA’s 2013 Legislative agenda. Our members talked to experts, commissioned studies and put in the time to develop a plan that can be summarized in five words: a few more tough votes. But, if our citizen leaders can do it one more time, we can use this economic recovery to set the course for a true investment agenda -- unlocking our potential and advantages in the new economy. Former Gov. Tom McCall famously pondered whether we deserved to have such a special place as Oregon. Would we be good stewards for our children and grand-children? We are seeing a renaissance in public policy by leaders who McCall would say, “Are not statues framed against a red sky. They are leaders who say, ‘This is my community and it is my responsibility to make it better.’” Let the fun begin!
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Chair’s Message: No Beds, No Bonds
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ver the past decade, state spending on corrections and public safety has represented one of the fastest growing parts of the state budget – growing at a much faster rate than spending on schools. And without reform, officials project that Oregon taxpayers will spend about $600 million over the next 10 years to add 2,000 new prison beds. OBA is making a very clear recommendation to the Legislature in the next session: do not bond for or build any additional prison beds in the state. OBA’s Sound Budgeting Task Force met with public safety officials and experts as the group crafted our 2013 legislative agenda on corrections. Oregon needs a safe environment for our citizens and for the conduct of business, and OBA supports actions that will continue the reduction of crime in Oregon. But while there is certainly a place for prisons, it is increasingly clear that spending more on prisons is not money well spent. Rather than continue the dramatic growth in the prison budget, we support directing a portion
of public safety dollars toward cost-effective and proven methods of reducing incarceration and recidivism. We are heartened by efforts in states like Texas that are reducing incarceration rates by focusing on stopping the problem before it starts through, for example, funding early learning and student risk assessment programs. Here are some of the key guidelines OBA has adopted with respect to corrections and public safety: 1. Informed Decision Making in Sentencing. Promote the use of cost-benefit analysis and risk assessment tools in crafting sentences. 2. Improved Sentencing Guidelines. Develop revisions to sentencing guidelines which incorporate the intent underlying the mandatory minimum sentencing initiatives, the principles of the 1989 sentencing guidelines and the advances in the understanding of the causes of and methods to reduce recidivism.
4. Judicial Discretion. Restore appropriate judicial discretion to sentencing. 5. Eliminate the Need for New Prison Beds. No beds and no bonds in the biennium. The links between education, incarceration, public safety and employment cannot be disputed. OBA is committed to supporting efforts to bring about important reforms, and we look forward to working with legislators, Governor Kitzhaber and the Oregon Public Safety Commission in the upcoming legislative session to ensure that our public safety dollars are directed toward reducing the root causes of incarceration and recidivism. Special thanks to OBA Sound Budgeting Task Force Member and Dunn Carney Attorney David Zehntbauer for his support in crafting the OBA legislative agenda on public safety and corrections.
3. Reduce Recidivism. Reduce recidivism through the use of the most cost-effective and proven options. a. Education b. Community corrections c. Drug and Alcohol Treatment d. Education and Job Training e. Visitation
Nik Blosser Chair, Board of Directors Oregon Business Association President, Celilo Group Media
Board of Directors NIK BLOSSER, Board Chair President, Celilo Group Media GARY W. REYNOLDS, Board Vice-Chair President, Perkins & Company, PC Erik Amos Director, Corporate Tax Division Columbia Sportswear Morgan Anderson Northwest Region Government Affairs Manager INTEL GARY BAUER Director of Government & Community Affairs, NW Natural LEN BERGSTEIN President, Northwest Strategies
Matt Chapman President & Executive Director Northwest Evaluation Association (NWEA) Barbara Christensen Chief Sales and Marketing Officer Providence Health & Services
SCOTT BOLTON Vice President of Government Affairs, Pacific Power JULIA BRIM-EDWARDS, Immediate Past Board Chair Director, Government & Public Affairs Western States and Canada, Nike Rich Brown Senior Vice President, Market Development Bank of America
HIROSHI MORIHARA President, HM3 Energy, Inc.
JUSTIN DELANEY VP, Corporate Legal & Public Affairs The Standard
MARTY MYERS General Manager , Threemile Canyon Farms, LLC
BRIAN GARD President, Gard Communications
Alan Hickenbottom General Manager, Tanner Creek Division Christenson Electric Cheryle Kennedy Tribal Chairwoman The Confederated Tribes of Grand Ronde PETER KRATZ Executive Vice President, Operations Harry & David
Oregon Business Association 6975 SW Sandburg Street, Suite 250 Tigard, Oregon 97223 2
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MARK A. LONG Managing Partner, Schwabe Williamson & Wyatt, PC
Andrew Colas President & COO, Colas Construction
Adam Grzybicki President, Oregon/Alaska/Hawaii AT&T
RUTH BEYER Member, Stoel Rives LLP
BERNIE KRONBERGER Vice President-Oregon Regional Manager Foundation-Charitable Contributions/Government Relations Social Responsibility Group, Wells Fargo
December 2012
MIKE RADWAY Senior Director of Government Relations Knowledge Universe DAVE ROBERTSON Vice President, Public Policy, PGE
JARED SHORT President, Regence BlueCross BlueShield of Oregon PAT SMITH President/CEO Unitus Community Credit Union BILL SMITH President, William Smith Properties, Inc. Jennifer Spall Director of Public Affairs & Government Relations, Wal-Mart Stores, Inc. Christian Venderby Chief Operating Officer, Vestas DON WASHBURN Private Investor
Alysa Rose President and CEO, Rejuvenation
Sean Waters Director of Compliance and Regulatory Affairs Daimler Trucks North America
JOHN W. RUSSELL President, Russell Development Co.
Ken Wightman CEO, David Evans Enterprises, Inc.
Lisa Sedlar President & CEO, New Seasons Market Connie Seeley Chief of Staff, Office of the President OHSU
Phone: 503-641-0990 Fax: 503-641-0959 Email: oba@oba-online.org
RYAN DECKERT President
Oregon Business Association
www.oba-online.org
Business Briefs & Member News OBA Supports “Fix The Debt” Effort A plan containing core principles to guide the process to solve our national debt issues is being supported by the Oregon Business Association. OBA is also urging members of our Oregon Congressional Delegation to support the plan and help solve the growing federal debt that threatens our future. Read our full support statement at www.oba-online.org/news. The Campaign to Fix the Debt is a non-partisan effort -- learn more about the campaign itself here: www.fixthedebt.org.
Schrader, re-elected November 6, represents Oregon’s 5th Congressional District (Marion, Polk, Lincoln & Tillamook Counties as well as the bulk of Clackamas and small portions of Multnomah and Benton Counties). He is a veterinarian from Canby who was first elected to Congress in 2008. During the OBA meeting, Schrader said the number one request he receives from constituents is, “I want you to work together with the other side.” He also stressed his commitment to working towards solving the national debt issue, saying, “Curing the fiscal issue is critical to solving the jobs problem.”
Welcome New Staffer, D.J. Vogt! We are please to welcome the most recent addition to our staff, new OBA Legislative Director D.J. Vogt. D.J. most recently served as a policy and budget analyst in the Governor’s budget office, focused on economic development. In this position, he was responsible for advising the Governor and Chief Financial Officer on economic development policies and budgets for state government. Mr. Vogt also developed recommendations and proposals for the Governor on statewide fiscal policies, issues and program areas. Before joining the State of Oregon, D.J. managed financial analysis and investor relations activities for Schnitzer Steel Industries, Inc., a $3 billion metals recycling company based in Portland, Oregon. Prior to relocating to Oregon in 2006, he served as Senior Advisor in the Office of Legislative Affairs for the U.S. Department of the Treasury in Washington, D.C. As a White House appointee, D.J. managed legislative agendas and advised the Secretary on legislative strategies to achieve the administration’s policy objectives in tax policy, foreign investment and pension reform. Earlier in his career, D.J. was a management consultant with Ernst & Young LLP, and he began his career as a financial analyst in the investment banking group of LaSalle Partners Limited (now Jones Lang LaSalle) in Chicago, Illinois. He holds a Master of Business Administration and a Master of Public Policy from Duke University and a Bachelor of Science from the University of Notre Dame. D.J. is very active in non-profits and community organizations in Oregon. He currently serves on the board of Hands On Greater Portland. He lives in West Linn with his wife and two daughters. Contact D.J. at 503-641-0990, dj@oba-online.org.
OBA Meets with Congressman Kurt Schrader A group of OBA business leaders met recently with Congressman Kurt Schrader (D-Oregon) to discuss the state of national affairs and Oregon’s role in large issues such as the fiscal crisis and jobs creation. OBA Meeting with Congressman Schrader
OBA’s policy committees and task force groups meet monthly from July to November. We thank our committed volunteers for their time and dedication.
OBA at Work Our Health Policy Committee met November 19 with Sen. Elizabeth Steiner Hayward and Rep. Alissa Keny-Guyer to prep for the upcoming legislative session. Health Policy OBA Health Policy Committee meets with Sen. Committee Chair Elizabeth Steiner Hayward (left) and Rep. Alissa is Gayle Evans of Keny-Guyer (right) to prep for the upcoming Unitus Community legislative session. Committee chair is Gayle Evans Credit Union. Our (far right) of Unitus Community Credit Union. Health Policy goals for 2013 are focused on Medical Liability Reform, Coordinated Care Organizations and the Health Insurance Exchange. See Page 6 for more information about OBA’s full 2013 Legislative agenda.
Kudos! OBA Board Vice Chair Gary Reynolds, shareholder and president at Perkins & Co, has been named to the Board of Directors of the American Institute of Certified Public Accountants (AICPA). With this position, Gary becomes only the third person in Oregon to be selected to serve in the past half century. The AICPA is the world’s largest member association representing the accounting profession, with nearly 386,000 members in 128 countries. The association sets the ethical standards for the profession and U.S. auditing standards for audits of private companies, nonprofit organizations, federal, state and local governments. “We look forward to Gary’s service on the AICPA Board of Directors representing both CPAs in Oregon and those nationally and internationally,” said Sherri McPherson, CAE, President/CEO of the Oregon Society of Certified Public Accountants (OSCPA). December 2012 Balanced Voice
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Health Care Heroes Feted at 2012
Statesman Dinner
The 2012 OBA Statesman of the Year Award Honorees Are: Commissioner Tammy Baney, Deschutes County Sen. Alan Bates, Senate District, Ashland Dr. George Brown, CEO, Legacy Health Dr. Bob Dannenhoffer, Roseburg Rep. Tim Freeman, House District 2, Roseburg Megan Haase, FNP, CEO, Mosaic Medical, Prineville Rep. Tina Kotek, House District 44, North Portland
Andrew McCulloch, CEO, Kaiser Permanente Dr. Joe Robertson, President, OHSU Lillian Shirley, Director, Multnomah County Health Department Greg Van Pelt, Chief Executive, Providence Health & Services – Oregon Region
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elebrating leaders who put policy before party for the greater good was the theme of the night as the Oregon Business Association honored a team of 11 “Health Care Heroes” with its prestigious Statesman of the Year Award. Each year, OBA presents its Statesman award to leaders and visionaries exemplify the definition of Statesman as one who promotes the common good of the citizens of Oregon with great wisdom and integrity.
participated in a question-and-answer session with April Baer of Oregon Public Broadcasting, offering his views on the November elections.
Guest speaker Ron Shaich, founder of Panera Bread
Previous OBA Statesman Dinner keynote speakers have included U.S. Secretary of Education Arne Duncan, U.S. Rep. Paul Ryan, U.S. Sen. Chris Dodd, U.S. Sen. Lincoln Chafee and U.S. Sen. John Edwards.
In addition to the awards, nationally recognized speakers Mark Penn and Ron Shaich addressed the audience of about 550 attendees. Penn served as chief political strategist and pollster for former U.S. President Bill Clinton and was recently hired by Microsoft as Corporate VP, Strategic and Special Projects. Penn presented remarks on the “New American Electorate” and
Please go to OBA-Online.org for additional information and photos about the event. April Baer of OPB interviews guest speaker and political strategist Mark Penn
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Congressman Kurt Schrader introduced business leader Ron Shaich, founder of Panera Bread and co-founder of No Labels. Shaich spoke passionately about the importance of breaking gridlock in Washington D.C. by pushing elected leaders to work together.
Thank you Sponsors! OBA Board Chair Nik Blosser thanks event sponsors
From left, Congresswoman Suzanne Bonamici; Jill Eiland and Bridget Burns
Commissioner Deborah Kafoury and Sen. Mark Hass
Presenting sponsor
James Walker, Krystal Gema and Charles McGee
VIP sponsor Statesman honoree Megan Haase, Mosaic Medical at the podium
Congressman Kurt Schrader introducing Ron Shaich
Statesman honoree Dr. Bob Dannenhoffer, at the podium
Statesman honoree, Greg Van Pelt, Providence Health & Services, at the podium
Statesman Honoree Andrew McCulloch, Kaiser, at the podium
Guests mingle at the pre-event Reception
Rep. Matt Wand (left) and Mike Dewey
Founding OBA board member Tom Kelly (center) with guests
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OBA Board Praises Policy Committee Efforts, Approves 2013 Legislative Agenda After meeting since July, our hardworking policy committees submitted their 2013 legislative agenda recommendations to the OBA Board of Directors for finalization on November 7. This effort is our vision at work – to “build a sustainable Oregon economy that serves the common good.” Following is the legislative agenda outline, but the full document is available on our website at OBA-Online.org/Policy Committees and will soon be published in printed and electronic form. Please contact Gina Williams, OBA Public Affairs Director, to have a printed copy sent to you: gina@oba-online.org.
pillar three:
pillar one:
Sound Budgeting and Resource Management
Structure Education Systems to Prioritize Student Achievement
A. Sound Budgeting & Resource Management Task Force
A. Education
i. Revenue Reform ii. Total Compensation & PERS Stabilization iii. Corrections Reform B. Health Policy i. Medical Liability Reform ii. Coordinated Care Organizations iii. The Health Insurance Exchange
i. E ducation Redesign – Driving 40/40/20 ii. University Autonomy
pillar four:
Balanced Voice A. Balanced Voice i. Court Funding – Judicial Budget
pillar two:
Grow the Economy A. Business and Finance i. 2013 Tax Credits ii. Oregon Investment Board iii. Interstate Tax Competiveness B. Environment and Economic Development i. 10 Year Energy Plan ii. Energy Efficiency iii. Columbia River Water iv. Streamline Permitting C. Transportation i. Columbia River Crossing ii. Connect Oregon V
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Please note: The policy committee work and resulting 2013 Legislative Agenda aligns with our recently adopted five-year Strategic Plan, shown on the next page. Watch for OBA updates as the session nears. We will keep you well-informed in the months ahead on our work in Salem.
OBA News: Are you on our list? Whether it’s breaking news from Salem, member news, policy committee updates or the latest OBA PAC endorsements, we work hard to keep our members informed on issues that matter to you. Subscribe to our Balanced Voice eNewsletter by sending an email to gina@oba-online.org.
Your membership in OBA helps to make Oregon an even greater place to live and work. We thank our members for your generous support!
Oregon businesses – large and small, urban and rural – working to achieve balanced policy
Mission: solutions to strengthen quality of life and the state’s long-term economic competitiveness.
vision: Build a sustainable Oregon economy that serves the common good Strategic Imperatives Sound Budgeting and Resource Management
Grow the Economy
Structure Education System to Prioritize Student Achievement
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Construct and effectively manage a strategic, sustainable, and stable state budget and public finance system.
Create a policy climate that drives economic growth, wage growth, entrepreneurship, and environmental stewardship.
Develop a Pre-K through University public education system that prepares all students to participate in civic and economic life.
Create an environment that promotes bipartisanship, independent thought, and effective policy development.
Initiatives/focus areas 1. A dvocate for state budget to focus on strategic investments and outcomes • Bend the health care cost curve and improve quality • Achieve education redesign to invest in improved student outcomes
1. A dvocate for tax policy, regulations, and smart investments that encourage innovation and economic development • Support research-tomarket innovation initiatives • Invest in important infrastructure projects
2. S upport government spending decisions that yield the greatest return on investment • Reform corrections policy and sentencing to create a sustainable and safe system • Bring overall public employee labor costs in line with long-term market and revenue projections
2. C ultivate Oregon’s leadership position in environmental quality and clean technology • Support conservation efforts to ensure best use of natural resources • Advocate for energy policies that encourage economic growth and Oregon’s competitive advantage
3. C hampion tax policy that enhances per capita income • Implement a budget stabilization package that includes kicker reform tied to disciplined state savings • Develop short and longterm revenue changes and strategic investments
3. A dvocate for and support traded-sector job growth • Promote sustainable initiatives that utilize Oregon’s natural resources and create jobs in rural Oregon • Support policies that benefit traded sector industries
1. H elp establish an integrated and aligned system-wide approach to governing and funding public education • Streamline education governance to improve access, affordability, and outcomes • Establish common ground with stakeholders regarding the need for stable, adequate funding for the education continuum 2. A dvocate for an accountable system that delivers better student outcomes, innovation, and efficiency • Ensure effectiveness of achievement compacts • Give educational institutions greater freedom to operate 3. Enhance support for teachers, principals, and schools to improve student achievement • Support teacher mentor and other professional development programs
1. P romote the mission and values of OBA among decision influencers and the general public • Communicate OBA’s mission and values through strategic communication efforts • Improve transparency and civility of elections • Connect businesses to issues important to the common good 2. Engage in policy leader identification, education, and recruitment • Increase interaction between business leaders and elected officials • Grow influence of Centered Leadership Forum (CLF) 3. Raise influence of OBA PAC* • Increase PAC contributions *Please keep in mind that the OBA PAC is an independent and separate entity, but its mission is aligned with that of OBA
foundational tools Leadership/Staffing • President, VP of Operations & Public Affairs, Legislative Director, Senior Policy Analyst, Office Manager • Board of Directors, Executive Committee, Nominating Committee, Chairs Council • Strategic partnerships & alliances
Planning & Communications • 5-Year Strategic Plan • Balanced Voice (electronic and print) • OBA website • Committee and BOD communications • Earned media
Membership • R obust recruitment and retention efforts • Focus on broad-based membership that reflects and supports OBA’s mission
Public Policy • OBA policy committees • Relationships with Governor’s office and legislators • Collaboration with other business associations and other stakeholders • Research/education for OBA members, stakeholders, and policy leaders • OBA Political Action Committee
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Oregon Business Association 6975 SW Sandburg St., Suite 250 Tigard, Oregon 97223
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OBA Committee Profiles Oregon Business Association members have the opportunity to participate in the direction of the organization by joining one or more committees. Committees report to the Executive Committee and Board of Directors with recommendations on OBA positions on public policy issues in Oregon. For more information on how to get involved in OBA’s policy committees, please contact Gina Williams at (503) 641-0990 or gina@oba-online.org.
Business and Finance Committee Chair: Robert Manicke, Stoel Rives OBA believes a healthy business environment is essential for fostering economic growth. This committee was formed to analyze business climate and economic development issues, including those that impact business profitability such as regulatory requirements, wage-related issues, immigration issues, cost changing mandates, tax credits and incentives. The committee also focuses on tax and finance issues. Education Committee Interim Chair: Kathy Swift, Capital Pacific Bank OBA works to develop a world-class education system from pre-kindergarten through higher education. The committee was formed to analyze educational issues such as funding and policy issues related to curriculum requirements, workforce training and life-long learning, cost-savings mechanisms and skill assessment. Environment & Economic Development Committee Co-Chairs: Bill Edmonds, NW Natural & Rick Glick, Davis Wright Tremaine
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OBA believes that healthy, sustainable environmental practices can go hand-in-hand with a strong, healthy economy. This committee addresses traditional environmental issues as well as land use, water and air quality, forestry, and economic development in the clean energy sector.
Health Policy Committee Chair: Gayle Evans, Unitus Community Credit Union OBA believes that health care affordability and access are critical business issues. This committee was formed to analyze business health care insurance and related issues such as traditional employer health care insurance cost containment as well as societal and public sector health, health care and health policy issues including delivery, parity and quality. Transportation Committee Chair: Joan Snyder, Stoel Rives OBA works to restore and maintain a reliable, efficient infrastructure and transportation system that accommodates growth and moves people and goods efficiently. This committee examines issues of multi-modal planning and the associated funding issues.