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 14 ISSUE 1 january 2014
IN THIS ISSUE President’s Column...........1 OBA Member Resources...2 Chair’s Message...............3 2014 Legislative Work Plan....................................3 2013 Statesman Dinner..4-5 From Scarcity to Prosperity.....................6-7
Run, Forrest, Run… by Ryan Deckert
T
he seminal moment in the Academy Award-winning film Forrest Gump is Tom Hanks “Forrest Gump” dealing with frustration and setback by simply running... and running…and running.
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.
Ryan Deckert, OBA President
John Kitzhaber is our version of Mr. Gump. Along with admirable legislative leaders at the Capitol; we have simply been running forward towards our challenges lately – and each step begets the next. Frustration with student performance and the length of the academic calendar – we ran at the problem by re-organizing education delivery with one omnibus education Board (and Czar) responsible for results and cut Oregon’s unfunded PERS liability by 33%. The next step is turning this into tangible results in Oregon classrooms and lecture halls – lengthening the nation’s third shortest school year, reducing teacher/student ratio and fueling enrollment in our community colleges and universities. This will take greater investment in education at the state level and different bargaining agreements between school districts and their employees to ensure these new resources fulfill the objectives above. Concerned that health care costs were going to choke the budgets of public and private sector employers – our leaders ran at this dilemma
by convening all parties in a room (actually a lecture hall at Willamette University and endless Wednesday night meetings) creating Coordinated Care Organizations. (CCO’s) Our health care industry leaders accepted the challenge of holding health care inflation below CPI. Initial results are in, and we are charting the right course. Now we must translate those savings into Oregon’s businesses fueling more hiring and into Oregon’s classrooms fueling more teachers. Troubled by having the highest unemployment rate in America – we ran together, developing a plan to create 25,000 private sector jobs per year and ensuring Oregonians earn (per capita) the same amount as their peers in similar states. We have ranked #2 & #3 in economic growth these past two years and our unemployment rate just dropped below 7.4% (the national average as of November 2013 was 7.0%). Now the challenge is ensuring these are traded sector jobs which fuel the entire economy, rebuilding our middle class and driving revenue for schools, universities and other critical public services. The lesson for us has been obvious and simple…..when faced with a challenge, just run at it. And in Oregon….wear a NIKE fuel band and log your results as our latest initiative is beating Iowa as the healthiest state in the nation.
Balanced Voice
Oba member resources Contact Us! Our NEW address is: 200 SW Market Street, Suite 1840 Portland, OR 97201 Phone: 503-641-0990 Fax: 503-641-0959 Web: OBA-ONLINE.ORG Facebook: facebook.com/OregonBusinessAssociation Twitter: twitter.com/OregonBizAssoc OBA Staff:
Salem Contacts:
Ryan Deckert, President ryan@oba-online.org
Oregon Elected Officials Governor John Kitzhaber 254 State Capitol, Salem 97310 503-378-3111
Joel Fischer, Senior Policy Analyst joel@oba-online.org DJ Vogt, VP of Government Affairs djv@oba-online.org
Secretary of State Kate Brown 136 State Capitol Building 900 Court St. NE, Salem 97310-0722 503-986-1523
Gina Williams, Director of Public Affairs gina@oba-online.org
State Treasurer Ted Wheeler 159 State Capitol 900 Court St. NE, Salem 97301-4043 503-378-4329
Patti Winter, Director of Operations patti@oba-online.org
About OBA:
Attorney General Ellen Rosenblum Justice Building 1162 Court St. NE, Salem 97301 503-378-4400
Oregon Business Association is the state’s most effective advocate for the long-term enhancement of Oregon’s business climate.
Commissioner of Labor and Industries Brad Avakian State Office Building, 800 NE Oregon St., Suite 1045, Portland 97232 971-673-0761
Formed by a group of Oregon business leaders, OBA provides bipartisan, statewide business leadership that strives to ensure Oregon’s continued economic competitiveness. Today, more than 300 businesses, from Portland to Boardman, from homegrown to Fortune 500, have joined to support OBA’s commitment to a healthy economy for all Oregonians.
Oregon State Legislature www.oregonlegislature.gov Statewide Government www.oregon.gov Oregon Blue Book http://bluebook.state.or.us
Our Mission: Oregon businesses – large and small, urban and rural – working to achieve balanced policy solutions to strengthen quality of life and the state’s long-term economic competitiveness.
Our Vision: Build a sustainable Oregon economy that serves the common good.
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Chair’s Message: Above and Beyond As OBA’s Policy Committees and Task Forces set to work last fall assembling the association’s 2013 Legislative agenda, the overarching goal was one of long-term solutions. Collectively we created an ambitious agenda focused on the biggest structural issues impacting our state’s future. That meant taking on those big, tough policy challenges, ranging from health care to education to pension reform in a balanced manner.
In a remarkable contrast with the dysfunction that plagues our nation’s
capital, OBA continues to live up to our brand of a “Balanced Voice.” OBA’s policy committees are now back at work evaluating and making recommendations on the best path forward from where we all now stand, which is definitely in a better place. Our Strategic Plan uses four “pillars” that we utilize to ensure all of our policy work is focused, well-planned and supports the needs of our membership. Over the next year, our board, staff and committees will focus efforts around building a healthy, sustainable Oregon economy around the following Pillars central to OBA’s organizational structure: Sound
Budgeting and Resource Management; Grow the Economy; Prioritize Student Achievement; and Balanced Voice. Watch for details as we fine-tune our legislative agenda and build on our successes during the past year to hit more home runs for Oregon and the citizens we serve.
Gary Reynolds Chair, Board of Directors Oregon Business Association President, Perkins & Company, PC
OBA Board Approves 2014 Legislative Work Plan
F
ollowing up on a successful 2013 session, OBA staff and Policy Committee members are hard at work developing future policy initiatives following approval of the 2014 Work Plan in November by the OBA Board of Directors.
OBA is committed to continuing our efforts to “re-focus the debate” in order to eliminate Oregon’s “Circle of Scarcity” and build a “Circle of Prosperity.” As we move forward, our focus will shift slightly, while keeping our efforts in line with OBA’s Strategic Plan Pillars. Our effort over the next year will focus on five important steps Oregon can take to grow the economy. Stay tuned for member updates via email and on OBA’s website and social media channels as the plan is developed through Policy Committee activity and OBA outreach.
Reversing the Trend: From Scarcity to Prosperity
1. Rebuild the Middle Class (Pillar IV, Balanced Voice) 2. Rural Jobs Agenda (Pillar II, Grow the Economy) 3. Transportation and Infrastructure Funding (Pillar II, Grow the Economy) 4. Invest in Education (Pillar III, Prioritize Student Achievement) 5. Tax Reform (Pillar I, Sound Budgeting & Resource Management)
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OBA Statesman Dinner
A Night to Remember:
Honoring Our Leaders, Celebrating Oregon
Stateswoman of the Year Sue Levin accepting her award with Ryan Deckert, OBA President, left, and Gary Reynolds, OBA Board Chair, Perkins & Co.
O
BA hosted an enthusiastic crowd and special guests at our 13th Annual Statesman Dinner at the Oregon Convention Center on October 17, 2013.
The event honored Stateswoman Sue Levin, Executive Director of Stand for Children who received this year’s Statesman of the Year award for her efforts around funding public education. We also honored Oregon’s four legislative leaders who came together during the special session to negotiate a package of bills that will result in long-term public
2013 First Annual Lundquist Leadership Awards honorees, from left, Rep. Mike McLane, Sen. Ted Ferrioli, Rep. Tina Kotek, and Sen. Peter Courtney
school funding, trimmed PERS costs and a new, healthier fiscal trajectory for the state. Senate President Peter Courtney, Senate Republican Leader Ted Ferrioli, Speaker of the House Tina Kotek and House Republican Leader Mike McLane were recognized with the Lundquist Leadership Award (honoring the life of legislator and first OBA President Lynn Lundquist) following remarks by U.S. Senator Jeff Merkley and Pat Reiten, President and CEO of Pacific Power at PacifiCorp, the event’s presenting sponsor. Governor John Kitzhaber took the stage to a standing ovation and also celebrated
our Lundquist Award honorees, saying their actions and leadership provided “a beacon of hope to people here in the northwest corner of the last best place in America.” We also welcomed U.S. Senator Ron Wyden to the stage. The Senator’s appearance was tenuous considering the situation in Washington, DC and we thank Senators Wyden and Merkley for their presence. OBA Board of Directors Chair Gary Reynolds said of Senator Wyden, “Like Oregon, you stand in great contrast to what we see happening in Washington and we are proud to have you as our Senator.”
From left: Pat Reiten, PacifiCorp; U.S. Sen Ron Wyden; Governor John Kitzhaber; OBA Board Chair Gary Reynolds; Sen. Peter Courtney
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Ryan Deckert, OBA President; Craig Boretz, OBA Board, CON-WAY, Inc.; Portland Mayor Charlie Hales; Robin Richardson, OBA Board, MODA Health
Chip Terhune, Cambia; Inga Deckert, Tonkon Torp
Chris Fick, League of Oregon Cities; Toya Fick, Stand for Children, Rep. Bill Kennemer; Cherie Kennemer; Rep. Margaret Doherty
Rep. Vicki Berger; Rep. Mike McLane; Sen. Jackie Dingfelder; Rep. Margaret Doherty
Andy Shaw, Metro; Tom Hughes, Metro; Tim McCabe, Business Oregon
Marisol Delaney; Justin Delaney, OBA Board, The Standard; Rich Brown, OBA Board, Bank of America
Susan Reynolds; Gary Reynolds, OBA Board Chair, Perkins & Co.; Scott Bolton, OBA Board, Pacific Power; Rich Brown, OBA Board, Bank of America
Gov. John Kitzhaber; U.S. Rep. Suzanne Bonamici
Robin Richardson, OBA Board, MODA Health; Rep. Chris Harker; Rep. Chris Garrett
Thank you Sponsors! Presenting Sponsor
vip reception Sponsor
Many thanks to our Statesman event sponsors: Presenting Sponsor Pacific Power and VIP Reception Sponsor AT&T. Thank you also to A to Z Wineworks, Sokol Blosser Winery, and our volunteers from REAP and SOLVE. We thank our federal, statewide, legislative and local elected officials in attendance. Of course, we thank our members and guests for joining us at another wonderful evening of celebrating leadership, bipartisan policy efforts and the great state of Oregon. Statesman Photos and Video Links:
Event Recording: http://goo.gl/tmziAZ Sue Levin - A Day in the Life of a Stateswoman: http://goo.gl/pKqX6k Lynn Lundquist Tribute: http://goo.gl/KDu4YM Event Photos: http://goo.gl/VwK0O5 January 2014 Balanced Voice
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Reversing the Trend: From Scarcity to Prosperity OBA’s 2014 Legislative Work Plan As outlined on page two, OBA’s 2014 work plan identifies five major issues of focus for the next year. Oregon’s second annual short legislative session will be held February 3-March 9, 2014. The 2015 session will be held from February-July. During the past three years, OBA’s legislative agenda has focused on getting a better return with the money we have with significant cost savings and efficiency realized through legislation such as PERS reform, education re-design, health care transformation and corrections reform. Moving ahead, we’re looking at revving Oregon’s economic engine with long-term solutions to big issues affecting large and small businesses and their employees across the state.
OBA 2014 Policy Issue #1:
Rebuild the Middle Class An effort around rebuilding the middle class will focus on working towards policy solutions for Oregon’s “job polarization” issues, as employment opportunities continue to shrink in middle wage jobs with larger losses during the recession and slower growth in the expansion. This trend has unfortunately been reshaping the state and national economy for decades. The middle class comprises the vast majority of Oregon earners and thus, the base of our economy.
During this year’s quarterly economic reports, state economists repeatedly warned that Oregon’s rural areas are at risk of continuing to lose economic ground beyond the devastation of the Great Recession. OBA’s second major legislative agenda item for 2014 will be to look at natural resource policy and rural higher education for opportunities to reverse the trend of low wages, high unemployment and poverty, and the exodus of young people. As the chart above shows, this effort is also interrelated with our first agenda item to Rebuild the Middle Class.
OBA 2014 Policy Issue #3:
Transportation and Infrastructure Source: Oregon Office of Economic Analysis/Federal Reserve Bank of New York, U.S. Census Bureau
OBA 2014 Policy Issue #2:
Rural Jobs Initiative “’The exodus is already happening,’ said Rep. Cliff Bentz, R-Ontario. ‘They’re leaving because there is nothing for them to do.’ Either the state changes its natural resource rules ‘or those areas are going to empty out and die off.’” - The Oregonian
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• I-5 Bridge Replacement: Our staff team will be in Salem during the February Session working with legislators and leadership on this critical infrastructure issue. We support confirmation of a financing plan during the upcoming session and getting to work on construction. • West Coast Infrastructure Exchange: Oregon, California, Washington and British Columbia have partnered to create this exchange. The effort will focus on regional needs and funding for everything from airports to dams to transportation facilities. Learn more about the project here: http://westcoastx.com/. OBA staff and members of our Transportation Policy Committee will be involved as this project is fully developed.
I-5 Bridge -- 1917
OBA has convened a workgroup comprised of many of Oregon’s leading companies headquartered here along with businesses organized as S-corporations. We are doing core research to prepare for this conversation. This is a two year conversation with voters, neighbors and elected leaders to gauge interest in re-structuring Oregon’s tax system. Two things we keep in mind: 1. C omprehensive tax reform could deliver 55,405* (non-partisan Legislative Revenue office/OTIM analysis of Sen. Hass’s comprehensive tax reform proposal – SB 824) new private sector jobs to Oregon while largely reducing the average tax burden on Oregon families. This is achieved by lowering Oregon’s top five income tax rate and asking those not participating in the tax system – visitors and the cash economy – to begin participating.
• Statewide transportation funding package for 2015: Our Transportation Policy Committee and OBA staff will be working with elected leaders to develop an infrastructure financing plan for the 2015 legislature that includes priorities around innovation, technology and efficiency, and the capacity to support capital projects and economic growth.
OBA 2014 Policy Issue #4:
Tax Reform
2. N o other proposal (or the status quo) can deliver results like the figures above.
OBA 2014 Policy Issue #5:
Prioritize Student Achievement – Fulfill The Promise of 40-40-20 As OBA President Ryan Deckert mentions in his column (front page) we have taken on improving student achievement and reduced instructional days in Oregon (nation’s third shortest school year) in the past several years by focusing efforts on re-organizing education delivery and successfully cutting Oregon’s unfunded PERS liability by 33%. What’s next? Utilizing our new governance structure to achieve tangible results: • Reducing teacher/student ratio and fueling enrollment in our community colleges and universities through greater investment in education at the state level. • Lengthening the academic calendar for Oregon students.
Source: EcoNorthwest
Oregon has a relatively unique tax structure – relying heavily on high income taxes to fund a large portion of state services – including K-12 education, community colleges and universities. We are one of only five states that does not incorporate a consumption tax into its overall structure. Many businesses pay their state taxes at the individual income tax rate as they are organized as S-corporations; which pay the 9/9.9% rate. The other major weakness of our tax system is allowing tourists and the cash economy (which is surprisingly large) to go untaxed – which increases the tax burden on Oregonians and our businesses. The governor has convened business and labor leaders to explore comprehensive tax reform. OBA has long advocated that Oregon is overly dependent on volatile income taxes which boom in a strong economy and bust in a recession. To lower our high income taxes you would need to replace the revenue with a new broad based source of revenue.
40-40-20 Goal for Oregon: • Ensure that at least 40 percent of adult Oregonians have earned a bachelor’s degree or higher. (Currently at about 30%) • Ensure that at least 40 percent of adult Oregonians have earned an associate’s degree or post-secondary credential as their highest level of educational attainment. (Currently at about 18%) • Ensure that the remaining 20 percent or less of all adult Oregonians have earned a high school diploma, an extended or modified high school diploma or the equivalent of a high school diploma as their highest level of educational attainment. (Currently at about 42% with 10% not achieving a high school diploma or equivalent)
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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 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
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.
B oard of D irectors GARY W. REYNOLDS, Board Chair President, Perkins & Company, PC Erik Amos Director, Corporate Tax Division, Columbia Sportswear GARY BAUER Director of Government & Community Affairs NW Natural RUTH BEYER Vice President & General Counsel, Precision Castparts NIK BLOSSER, Immediate Past Board Chair President, Celilo Group Media SCOTT BOLTON Vice President of Government Affairs, Pacific Power Craig Boretz Vice President of Corporate Development Con-way, Inc.
Barbara Christensen Chief Sales and Marketing Officer Providence Health & Services Andrew Colas President & COO, Colas Construction Wendy Collie President & CEO, New Seasons Market JUSTIN DELANEY Vice President, Corporate Legal & Public Affairs The Standard Mark Edlen CEO, Gerding Edlen Jill Eiland Corporate Affairs Manager, Intel Corporation BRIAN GARD President, Gard Communications
JULIA BRIM-EDWARDS Sr. Director, Global Strategy & Operations, Government & Public Affairs, Nike
Alan Hickenbottom General Manager, Tanner Creek Division Christenson Electric
Rich Brown Senior Vice President-Market Development Bank of America
BERNIE KRONBERGER Vice President-Oregon Regional Manager Foundation-Charitable Contributions/Government Relations Social Responsibility Group, Wells Fargo
Matt Chapman President & Executive Director Northwest Evaluation Association (NWEA)
MARK A. LONG, Board Vice-Chair Managing Partner, Schwabe Williamson & Wyatt, PC
Oregon Business Association 200 SW Market Street, Suite 1480 Portland, Oregon 97201
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HIROSHI MORIHARA President, HM3 Energy, Inc. MARTY MYERS General Manager , Threemile Canyon Farms, LLC Darcy Norville Partner, Managing Board Member, Tonkon Torp Chad Paulson Vice President, General Council and Secretary Blount International, Inc. Robin Richardson Senior Vice President, Moda Health
Wally Van Valkenburg Portland Office Managing Partner, Stoel Rives Christian Venderby Chief Operating Officer, Vestas DON WASHBURN Private Investor Sean Waters Director of Compliance and Regulatory Affairs Daimler Trucks North America
DAVE ROBERTSON Vice President, Public Policy, PGE Mel Sears P.E., PMP, Principal Area Manager & Vice President Parsons Brinckerhoff Connie Seeley Chief of Staff, Office of the President, OHSU JARED SHORT President, Regence BlueCross BlueShield of Oregon PAT SMITH, Board Treasurer President/CEO, Unitus Community Credit Union BILL SMITH President, William Smith Properties, Inc.
Phone: 503-641-0990 Fax: 503-641-0959 Email: oba@oba-online.org
Sam Tannahill Founder/Director of Viticulture and Winemaking A to Z Wineworks
Phil Welker Executive Director, PECI Ken Wightman Chief Executive Officer, David Evans Enterprises, Inc.
RYAN DECKERT President, Oregon Business Association Patti Winter, Board Secretary Director of Operations, Oregon Business Association
www.oba-online.org