Two Legislative Incumbents Face Stiff Challenges

It is unusual but not unheard of that two sitting legislators — a House Democrat and a Senate Republican — are facing stiff primary challenges. Even more unusual, both could lose in the May election.

Rep. Mike Schaufler, D-Happy Valley, a member of the building trades, often parts company with his more liberal Democratic colleagues, as well as public employee labor organizations, such as SEIU and AFSCME.

Plus, last summer at a labor convention, he got into trouble when a female lobbyist claimed he groped her breast. Schaufler called it "innocent horseplay."  House Democrats took the incident seriously and stripped Schaufler of the chairmanship of House Business and Labor Committee.

Now many of Schaufler's Democratic colleagues are backing his primary opponent, Portland teacher Jeff Reardon, who has never run for political office before. 

Here's the way Oregonian political reporter Jeff Mapes described the high-stakes and money-laden Schaufler-Reardon race:

         The newly detailed disclosure reports show that — if money is indeed the mother's milk of politics — two incumbent legislators face tough reelection races. In a House district including parts of Southeast Portland and Clackamas County, six Democratic legislators took the rare step of writing campaign checks aimed at taking out one of their own colleagues, Rep. Mike Schaufler, D-Happy Valley. The six lawmakers wrote checks totaling more than $10,000 for high school teacher Jeff Reardon's race against Schaufler, who has departed from Democratic orthodoxy on some issues and also lost a committee co-chairmanship following a flap about his behavior at a labor convention. 'There's always a risk when you do something like this,' said Portland Senator Ginny Burdick, who gave $1,500 to Reardon. Portland Senator Chip Shields gave Reardon $5,000. Schaufler, who has released his own list of legislators endorsing him, continues to have strong support from several business and labor groups and maintains a fundraising lead over Reardon.

The other incumbent under fire is Senator Chris Telfer, R-Bend. She was surprised to learn just before the candidate-filing deadline that former representative Tim Knopp, now executive director of the Central Oregon Homebuilders Association, decided to run against her.

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Huge Issues Loom in 2013 Session

The short 2012 session just ended and there are nine months until the 2013 legislature convenes, but it is still timely to look ahead at the issues that need resolution or are just ripening for action.

At the top of the list is how Governor Kitzhaber's health care transformation strategy will work and whether newly forming coordinated care organizations can squeeze out cost savings in serving Oregon's Medicaid population. The health insurance exchange will get up and running, just as the federal health care reform measure lands in the U.S. Supreme Court, which could toss some or all of the controversial reform legislation.

Despite a slow economic recovery, many parts of Oregon still feel the after-effects of recession and could benefit from state efforts to boost employment. Strong differences exist between Republicans and Democrats on how to stimulate job growth, especially in rural Oregon.

As a result of education reform measures pushed by Kitzhaber, K-12 school districts are signing achievement compacts to promote improved student learning. A question remains whether this reform will under-perform or have unintended consequences as have previous reforms such as No Child Left Behind and Race to the Top.

Lawmakers in February approved a measure that deals with home foreclosures. However, consumer advocates felt it didn't go far enough, while bank and title company officials said it might not work as expected.

Kitzhaber, who will be entering the last two years of his third term, has vowed to give tax reform another shot. This has proven to be as elusive as the pot of gold under the rainbow. While a majority of Oregonians feel the state's current tax system isn't sustainable, there is no clear consensus on how to refine or replace it. A state sales tax is certain to make another stage appearance, with a few clapping and others throwing big red tomatoes. 

Local governments are pressing for expanded access to property tax revenues. They are looking for authority to exceed property tax rate limitations for voter-approved levies. The temporary state hospital tax expires and hospital interests may be less willing to go along with an extension after proceeds were diverted from their original purpose.

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Contrasting Views on Jobs Legislation

The Oregonian headline tells the story: "Congratulations and complaints."  Congratulations for handling the big issues of health, education and early learning reform. Complaints about the failure of a number of jobs bills.

Issues directly related to Oregon's economy tended to take a back seat during the short session in Salem, notwithstanding claims to the contrary in various post-session communications by legislators to their constituents.

In floor speeches on the Health Insurance Exchange (House Bill 4164), achievement compacts for school districts (Senate Bill 1581) and health care transformation (Senate Bill 1580), Democrats painted a picture of those major reforms mattering to small businesses in Oregon. Major business associations supported all of the reforms, but it is not clear that any of the bills will create jobs on their own. 

Democratic leaders said as health care costs go down, businesses will have more money to invest in creating jobs. Legislators on both sides of the political aisle and Governor Kitzhaber deserve credit for taking on big issues such as health and education reform.  

House Democratic Leader Tina Kotek, D-Portland, continued that theme in a piece in the Statesman-Journal, "We promised to give businesses the tools they need to grow and hire, stand up for middle-class Oregonians and prioritize the essential services Oregonians need most. Now that the dust has settled after last week's adjournment, I am happy to report that we delivered on those promises."

Republicans pointed out what was left on the cutting room floor during the legislative session and pointed the finger at Democratic opposition.

“With 190,000 unemployed Oregonians, the legislature’s inaction on jobs and the economy is inexcusable,” said House Republican Leader Kevin Cameron, R-Salem. “Nonetheless, House Republicans continued to work with the Governor and legislative Democrats to find common ground on other issues. We’ll continue to provide lea

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Legislative Control Center of Political Battles

Candidate filing day produced one clear conclusion — the political battles in Oregon this year will center on House and Senate races key to determining which party is in control when the 2013 legislature convenes. The House is split 30-30 and Democrats narrowly control the Senate 16-14.

Republicans failed to field a candidate for state treasurer or attorney general, even though the latter will be an open seat. Republican Bruce Starr is challenging Labor Commissioner Brad Avakian, a Democrat, but it is a non-partisan post.

Republicans and Democrats see the battle for control of the House through different lenses. Rep. Kevin Cameron, R-Salem, told The Oregonian, "I want to avoid the one-party situation in the future so at least there's a healthy balance in the policy coming out of this building."

Rep. Tina Kotek, D-Portland, said, "Democrats were blocked from passing stronger consumer legislation and from more closely scrutinizing tax breaks that take away money for services. We are going to get a lot of national attention... Oregon is one of the most likely legislative chambers in the country to shift to Democratic control."

Retirements could play a significant role in tipping the partisan balance in both the House and Senate. Two GOP senators are calling it quits — Jason Atkinson, R-Central Point, and Dave Nelson, R-Pendleton. Both seats tilt heavily Republican. However, the Senate seat held by retiring Joanne Verger, D-Coos Bay, could prove pivotal. 

House Co-Speaker Arnie Roblan, D-Coos Bay, is running for the seat against Scott Roberts, a Coos Bay physician. Roblan beat Roberts in 2010 in a House race. If Roblan wins again, the seat will remain in the Democratic column and it may be difficult for Republicans to control, or even earn a 15-15 split.

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Judging Oregon's First Annual Session

Wolves.  Guns.  Trees.  Bar pilots.  Teen dating.

Before the recently completed legislative session in Salem, you would not have expected those subjects to make the short list of issues to be considered during the four-week sojourn at the Capitol. But they all came up.

To many observers, the list of not-so-important, complicated and controversial issues made for a confusing session. Every legislator had the freedom to introduce two bills each and almost all used it, meaning there were 180 bills in the hopper at the start of the session. Each interim committee had authority to introduce five bills each, which is how you get to nearly 300 bills.

Governor Kitzhaber, for his first official experience with a short, regular legislative session, came to the Capitol with the next steps on four ambitious reform proposals — health care transformation, education, early learning and health care exchange. Those four measures would tax any legislative session, regardless of length

Officials who pushed for the annual session would have called out three issues that should occupy legislators for those four weeks — rebalancing the sometimes-volatile state budget, handling emergencies (fires, floods, other natural disasters) and fixing unintended problems in bills passed the previous session.

To veteran Salem observers, those issue priorities made sense, especially adjusting the budget at a time when tax revenues dipped more than expected, caseloads for some state agencies grew and federal revenue vaporized.  

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Oregon's Last Republican Governor

A piece in the Salem Statesman-Journal brought back a lot of memories for me.

In a column entitled "Atiyeh Laid Foundation for Oregon Economic Diversity," state government reporter Peter Wong recalled the last Republican governor of the state, Vic Atiyeh, who is approaching his 89th birthday. He still goes to his office in Portland and often shows up for ceremonial events at the Capitol he loved where he served as a state senator and held the governor's office for eight years.

I had the privilege of working for the Atiyeh Administration from 1979 through 1987.

Here are excerpts from Wong's piece:

"He (Atiyeh) turns 89 on Monday – and this month also marks 30 years since he took part in the longest special session of the Oregon legislature in state history. Officially, that session lasted 37 days, ending on March 1. But lawmakers took a weeklong break in the middle of the session after they found that the gap between tax collections and state spending was $100 million more than had been projected.

"The unlikely combination of a Republican governor and Democratic legislative majorities — with some Republican support — cut spending and raised taxes to balance the budget. They started the two-year cycle in mid-1981 with a spending plan for $3.2 billion — the Oregon Lottery did not exist then — and ended it with $2.9 billion, even after the tax increases. The unspent balance in the tax-supported general fund was around $3 million.

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Imagery Takes Center Stage

Governor Kitzhaber won plaudits for his rhetorical eloquence last week when describing his Early Learning Council initiative (House Bill 4165) using analogies.

At one point, a legislator on the House Human Services Committee, Rep. Mitch Greenlick, D-Portland, responded to the governor with the analogy of a wing walker.  For Early Learning Council reform to go forward, Greenlick said, those involved should think of the wing walker, who always had the instruction to not let go with one hand without having a good grip with the other.

Greenlick's point? Before the state goes all the way down the road of Early Learning Council reform, it should not lose a grip on the good programs operated by the longstanding Children and Families Commission system.

Kitzhaber, never short on words to describe his vision, quickly responded with another image. What he is asking groups to do in adopting a new system for early learners, the governor said, is like a rope-climbing experience for someone working out. Sometimes, he said, you have to let go of one rope before grabbing another.

Two more legislators — Senators Al Bates, D-Ashland, and Jackie Winters, R-Salem — continued the use of analogies when the health care transformation bill, Senate Bill 1580, came up Friday.  

Bates said it was important for legislators "to stay on the path" toward reform. Winters, in supporting a medical malpractice reform proposal, which wasn't added to the legislation, said, "it's not like we are blazing a trail here; many other states have taken the initiative we are proposing to take."

Those who are good at public podiums often use analogies to drive home a point with a word picture.

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Jobs Bills in the Mix

In a short legislative session dominated by budget concerns and Governor Kitzhaber's ambitious reform efforts in health care, education and early learning, jobs bills have taken a back seat. But that doesn't mean they won't make it to the finish line.

There are major bills to coordinate the state's economic development activity, create more enterprise zones and reduce temporarily Oregon's capital gains tax rate. And there is legislation to clarify how and when to tax data centers such as Facebook's that were prize catches by previous economic development recruitment.

Here is a quick overview of some of the significant jobs-related legislation in Salem:

House Bill 4040: Drafted by two influential legislators — Reps. Tobias Read, D-Beaverton, and Cliff Bentz, R-Ontario, along with State Treasurer Ted Wheeler, the Oregon Investment Act seeks to align state economic development programs and incentives to make them more inviting to private sector companies. The measure has passed out of the House Transportation Committee, so remains alive.

Read, Bentz and Wheeler co-authored an op-ed in The Oregonian explaining their intentions:

"Oregon spends significant Oregon Lottery profits and other funds today to enhance business development. Yet those tools are scattered across multiple agencies and have little strategic connection, and sometimes have little accountability to measure results.

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Legislature to Lose Two Veterans

Two veteran moderate Republican legislators have announced they won't run for re-election. Their retirements will be a loss for the legislature.

Rep. Bill Garrard, R-Klamath Falls, who owned radio stations, served three terms in the House after a stint as a county commissioner — where he became the first Klamath County commissioner to win re-election in more than 100 years. Senator Dave Nelson, R-Pendleton, came to the legislature in 1996 with a background as a wheat rancher with a law degree.

From geographical extremes — Southern and Eastern Oregon — Garrard and Nelson carved out moderate reputations in Salem. They accomplished the tough feat of representing conservative districts while finding a way to work with colleagues on both sides of the aisle, including more liberal colleagues from urban Oregon. Their ability to find middle ground on tough policy is a hallmark of their legislative service.

Garrard and Nelson found status in Salem as members of the Joint Ways and Means Committee where they worked across party lines to craft compromises on thorny budget issues.  

Garrard was best known for his work on land-use during controversy over ballot measures dealing with property rights. His experience running a radio station in a rural area made him sympathetic to the plight of other small business operators — and underdogs in general.

Nelson battled to build electronic infrastructure, not only in Eastern Oregon but throughout the state.  One of his accomplishments — the "Nelson Technology and Opportunity Partnership” —rightfully bears his name. On Ways and Means, he led efforts to pinpoint appropriate investments for the State Radio Project, a major effort to provide interoperable public safety communications capabilities throughout the state.  

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Accurate Expectations for Short Session

Many Oregon legislators have lived through the different pace of the "experiments" with two short legislative sessions – one in 2008 and one in 2010. A number of new legislators and — perhaps more important — Governor Kitzhaber have not had the special experience.

That raises questions about proper expectations for the short session, which comes amid a lingering recession that has resulted in declining state tax revenue projections and just before the campaign season formally launches that will determine which party controls the House and Senate. The special session is scheduled to end no later than March 5, the day before the filing deadline for the May primary and November general elections.  

There are at least five major issues on the special session platter. Four of them are there because of initiatives by the governor as he seeks to re-make state government. The issues are:

         *  The need to balance the state budget in the face of a continuing recession that is sapping general fund resources for K-12, higher education, law enforcement, prisons and social services. The prospect of spending cuts is viewed as so dire that SEIU and AARP have bought advertising to decry further reductions in home, health and long-term care.

         *  Taking the next steps in the governor's education investment strategy, which will consolidate education management and funding priorities from kindergarten through graduate school under his leadership and an appointed education czar.

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