Wednesday, January 13, 2010

PENDLETON
Kitzhaber talks future
Former governor gets into Oregon’s job, economy outlook

By PHIL WRIGHT
The East Oregonian

Wednesday, January 13, 2010

Former Governor John Kitzhaber hosts a campaign meeting Tuesday in Pendleton. Kitzhaber has thrown his hat back in the political ring and is running in the Democratic primary for governor. Staff photo by E.J. Harris

Former Governor John Kitzhaber speaks about his economic vision for the state Tuesday during a campaign meeting in Pendleton. Staff photo by E.J. Harris

Democrat John Kitzhaber revealed his 20-page plan to move Oregon out of the recession and into sustained economic growth.

The former Oregon governor stopped Tuesday morning in Pendleton to discuss the first policy paper of his gubernatorial campaign. More than 30 local civic, business and education leaders packed the community room at the Pendleton City Hall to meet with Kitzhaber, who spoke in broad terms rather than specifics and said he's still working on the plan's details.

Oregon can get out of the recession, Kitzhaber said, but it will be tough. His plan calls for immediate action to create jobs, a strategy to diversify Oregon's economy and a long-term focus to ensure prosperity, including a state budget that covers as much as 10 years, not two.

"You can't operate the state, any more than a small business, two years at a time," he said. "You really need a 10-year budget."

For the short term, Kitzhaber said he wants to get capital for smaller companies, put people back to work in rural communities - such as through forest thinning that could lead to creating biomass - and focus workforce training on high-demand jobs.

Diversifying the state's economy will mean targeting more foreign investment in Oregon and finding ways for Oregon companies to supply each other.

Looking forward, Kitzhaber said Oregon needs stable funding, and that means revamping the state's "kicker" tax rebates so the money goes into a rainy day fund.

As governor, Kitzhaber pushed for reforming the kicker, money the state "kicks" back to taxpayers if the state's revenues exceeds economic forecasts. But majority Republicans in the Legislature derailed those efforts and convinced voters to protect the kicker in the Oregon Constitution.

Revising the kicker is "absolutely essential," he said, and would be part of the "deep system reform" Oregon needs if it wants to continue to deliver public services as it has.

"This transformation can't happen overnight," he said, "or even in one biennium."

Kitzhaber's plan for economic development, though, is primarily in the Democratic mainstream. He touted education from preschool through college as an investment and said Oregon is poised to be a world leader on renewable energy and sustainabilty.

And, he said, getting this done will take serious leadership from the governor's office. Considering the bipartisan state of Oregon politics, especially around the upcoming Jan. 26 vote on two tax measures, that could be a serious challenge.

Kitzhaber said the campaigns for and against the measures have been divisive, but he also said he felt Oregonians have become disillusioned with politics as usual and are ready to talk about real change.