U.S. Public-Pension Shortfall $4.6 Trillion, Group Says

U.S. public pensions are $4.6 trillion short of the amount of assets needed to cover projected liabilities, an advocacy group said. That’s more than twice what Moody’s Investors Service estimated this month. ✧ The average plan is 41 percent funded, State Budget Solutions said in a report today. The Alexandria, Virginia, group’s partners include the American Legislative Exchange Council, which advocates “conservative public policy solutions,” the Freedom Foundation and the State Policy Network, which is composed of “free-market think tanks.” Read more at Bloomberg... Read More......

Rep. Richardson: Oregon: Confusing "Debt" with Revenue

DENNISRICHARDSON.ORG/NEWSLETTER, 3/18/2011 by State Representative Dennis Richardson (R-Central Point)

In the upcoming 2011-13 State Budget, $940 Million will be spent from General and Lottery Fund revenues just to service Oregon’s “tax supported” debt.

Imagine… $940 Million…nearly ONE BILLION DOLLARS, that must be budgeted and paid “off the top.” Think of it…a Billion Dollars we cannot use to educate or provide health care for our children. A Billion Dollars we cannot use to protect our citizens or to provide care and food for our most vulnerable seniors. A Billion Dollars from the 2011-13 budget, siphoned off in payments on long-term debt. How did Oregon accumulate such a high amount of debt? I believe incurring such high and burdensome debt levels stem from Legislators who, in their efforts to do good with other people’s money, deluded themselves into confusing debt with revenue. And those debt payments must be paid for decades. It is sobering to realize that much of this debt will not be paid off until long after our grandchildren are grown, our children are retired, and we are dead and buried. Read more of Rep. Richardson's March 18, 2011 Newsletter...

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Oregon: Lawmakers Must Address Revenue Shortfall

Press release by the Senate Republican Office issued August 26,2010. Contact: Jonathan Thompson (503) 986-1957

Lawmakers Must Address Revenue Shortfall Salem, OR – Thursday lawmakers received news the state’s expected revenues are down another $377.5 million. This brings the total decline since the end of the 2009 Legislative Session to $1.268 billion. Still, the halls of the State Capitol in Salem remain largely empty. Senator Chris Telfer (R-Bend) wants to change that and renewed Republican calls for an emergency session of the Oregon Legislature. ∴ “It is long past time for members of the Legislature to return to Salem and do the job for which we were elected,” said Telfer, who serves on the Senate Finance and Revenue Committee that received the revenue forecast. “Allowing another round of across-the-board reductions to all agencies is just plain wrong.”

The Governor has the ability to deal with budget shortfalls by reducing all budgets equally, regardless of priority to Oregonians. After the last revenue forecast agency heads were directed to cut 9% from their budgets. At the Department of Human Services, which has a total budget of more than $15 billion, the reductions included ending programs like Oregon Project Independence which helps keep seniors in their homes and out of more expensive nursing homes. The total cost of this vital program was just $7.6 million out of a $15 billion budget for the department.

“We have seen too many cases where state agencies look to punish Oregonians for revenue shortfalls by cutting the most vital programs first,” said Senator Bruce Starr (R-Hillsboro). “It is long past time for legislative leadership to step up and do the work Oregonians expect.”

Should the Legislature come into emergency session, one option for budget reductions include removing just the general fund money from the Department of Land Conservation and Development (DLCD). The savings this biennium would be about $7 million and could be used to fund a more important program like Oregon Project Independence. Any functions DLCD is no longer able to afford would fall to counties which have a vested interest in the local economy.

“We must make sure anything we fund from this point forward helps create jobs,” said Telfer. “We will not fix our budget problems until we get Oregon families back to work.” Republicans in the Legislature are in the process of putting together plan to help balance the state budget without the need for across the board cuts. Read More......