Image provided by: University of Oregon Libraries; Eugene, OR
About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (April 9, 2019)
A8 OFF PAGE ONE East Oregonian Tuesday, April 9, 2019 PERS: Ballot measures could tackle complex, expensive pension challenge Continued from Page A1 option to either get the pen- sion plan or to contribute to a 401(k)-style savings plan, but not both. Under both petitions, current public employ- ees would contribute to the costs of their pension. But they wouldn’t have to con- tribute more money than they already do to retire- ment, because the money they contribute to the exist- ing 401(k)-style plan could get redirected to make the required pension payment instead. And the state would either create a new 401(k)-style savings plan for new hires or have the state treasury study creating one. Although benefi ts would get reduced under the peti- tions, backers argue pub- lic employees and taxpay- ers could see other positive effects — such as being able to hire more teachers or pay- ing those teachers more. But if the state does noth- ing, schools and other public entities would have to make cuts to cover rising PERS bills, said Tim Nesbitt, interim executive director of Oregon PERS Solutions. “If we make no changes, the path we’re on means lay- offs, and tighter budgets for raises,” Nesbitt said. Nesbitt is a former chief of staff to Kulongoski when he was governor and before that, was a state union leader. As part of Kulon- goski’s post-recession Reset cabinet, Nesbitt authored a report on the state’s fi scal problems. Oregon PERS Solutions has received funding from the Oregon Business Coun- cil to push the petitions. The Oregon Business Council’s directors include representatives of major Oregon businesses such as Intel, Portland Gen- eral Electric and Columbia Sportswear. Employer assessments to fund retirements are expected to subside eventu- ally, as more current retirees — who benefi t from more generous retirement plans before the state made drastic reforms in 2003 — die and their benefi ts end. Unions counter that the latest proposal would effec- tively add a fourth tier to PERS, adding complexity to a mind-boggling system. They also say cutting future benefi ts wouldn’t pro- vide any relief from the sys- tem’s current $26.6 billion pension debt, or unfunded liability. “These corporate-backed proposals would drasti- cally reduce the promised retirement benefi ts to work- ing teachers, fi refi ghters and other public employ- ees,” Patty Wentz, a spokes- woman for the Oregon PERS Coalition, said in a statement. “They will create more problems than they solve, don’t reduce the unfunded liability, and would result in more lengthy and costly legal battles for the state and local school districts.” According to a poll from FM3 Research, commis- sioned by public employee groups, about 33 percent of respondents supported and 56 percent opposed “further cutting retirement benefi ts for public employees” to address the unfunded pen- sion liability. The margin of error in the August 2018 poll was plus or minus 4.3 percent, with a 95 percent confi dence interval. Lawmakers took testi- mony on similar ideas last month. In 2016, the Ore- gon Supreme Court over- turned most of a slate of 2013 reforms that aimed to cut costs in the system. The upshot of that decision was that lawmakers can’t tweak retirement benefi ts that PERS employees have already earned. Seventy-two percent of the pension debt is attributed to benefi ts due to work- ers who have retired, and 22 percent is due to closed accounts, said Melissa Unger, executive director of SEIU Local 503, in legisla- tive testimony last month. “Cutting benefi ts doesn’t change the math that we must pay for that debt,” Unger wrote. The median PERS recip- ient gets about $24,000 per year, Unger said. Kulongoski said that employees may be getting less in salary and other ben- efi ts because covering retire- ment benefi ts is so costly. “It seems to me there’s an equity argument for these young workers coming in, who are probably taking less in salary, taking less in other benefi ts, to be able to pay for this increasing PERS cost,” Kulongoski said in an interview. Gov. Kate Brown’s offi ce has considered using a sur- plus from the state’s work- ers compensation fund to partially pay down the sys- tem’s debt. Brown is also propos- ing to give school districts an additional $100 million in the 2019-21 biennium to cover their PERS costs. ——— Reporter Claire Withy- combe: cwithycombe@ eomediagroup.com or 971- 304-4148. Withycombe is a reporter for the EO Media Group working for the Ore- gon Capital Bureau, a col- laboration of EO Media Group, Pamplin Media Group, and Salem Reporter. Huffman, 12 other parents to plead guilty in college scheme By ALANNA DURKIN RICHER Associated Press Staff photo by E.J. Harris A small creek overfl ows into a pasture at a residence on Monday in Gibbon. Floods: High water overfl ows creeks Continued from Page A1 Umatilla inundated fi elds at Nolin near Rieth, and the Bureau of Reclamation reported McKay Reservoir south of Pendleton was at 93 percent capacity, so the dam was releasing water. He advised Community Park, Pendleton, where McKay Creek runs, could have some standing water. Still, he said, for long- time locals, this is the kind of thing they have come to expect and deal with in the early spring. Lohmann also said the rain should ease off start- ing Tuesday. The last front raised the freezing level to 8,000 feet. The next system moves in Wednesday, she said, and looked to be a “fast hitter” that while bring- ing some rain will drop the freezing level to about 5,000-6,000 feet. UAS: Offi cials seek more investments Continued from Page A1 make sense to develop,” he said. Chrisman said the new UAS industrial park should spur private development. Public Works Director Bob Patterson said there was a way for UAS companies to take part in sharing the cost of infrastructure: system development charges. System development charges are fees assessed to developers for the impact their structure will put on a public system. Patterson said these charges can either be lev- ied up front or spread out through utility bills. The council adopted the methodology needed to assess system development charges for water, sewer, and stormwater in 2015, but members stopped short of implementing them. And since then, most of the council has turned over and hasn’t had in-depth dis- cussions revisiting the topic. Pendleton Mayor John Turner said he liked the idea of having UAS com- panies building their own hangars and infrastructure, but he didn’t know enough about system development charges to talk about them. Turner said the city had a role to play for provid- ing infrastructure for UAS companies that will gener- ate revenue for the airport. While some companies don’t pay monthly utility fees for water and sewer , Chrisman said he expects all customers at the UAS indus- trial park will pay for their own utilities. With the city still wait- ing on fi nal word about its $3 million grant from the U.S. Economic Develop- ment Administration, the city will have to wait to start on the industrial park proj- ect because it wants to use the grant for road extensions to the site. St. Anthony Provider Spotligh t Katie Morioka, WHNP-BC, DNP is now accepting new patients. Nurse Practitioner Education: Oregon Health Science University Insurance Accepted: Most major insurances, Medicare, Medicaid Special Services: Womens Health Katie Morioka, WHNP-BC, DNP 3001 St. Anthony Way Pendleton, OR 97801 Call for your appointment today 541.966.0535 FOR MORE INFORMATION VISIT WWW.SAHPENDLETON.ORG BOSTON — “Desper- ate Housewives” star Felic- ity Huffman and a dozen other prominent parents have agreed to plead guilty in the college admissions bribery scam that ensnared wealthy families and ath- letic coaches at some of the nation’s most selective uni- versities, federal authori- ties said Monday. The actress and the other parents were charged last month in the scheme, which authorities say involved rigging standard- ized test scores and bribing coaches at such schools as Yale and Georgetown. Huffman, 56, was accused of paying a con- sultant $15,000 disguised as a charitable donation to boost her daughter’s SAT score. Authorities say the actress also discussed going through with the same plan for her younger daughter but ultimately decided not to. She will plead guilty to a single charge of con- spiracy and fraud, accord- ing to court documents. Those charges are punish- able by up to 20 years in prison, but the plea agree- ment indicates prosecutors will seek a sentence of four to 10 months. Experts have said they expect some parents will avoid prison time if they quickly accept responsibil- ity. All of the defendants AP Photo/Steven Senne, File In this April 3, 2019 fi le photo, actress Felicity Huff man ar- rives at federal court in Boston to face charges in a nation- wide college admissions bribery scandal. will have to return to Bos- ton to enter formal guilty pleas, but no new court dates were set. Other parents charged in the scheme include promi- nent fi gures in law, fi nance, fashion, the food and bev- erage industry and other fi elds. It’s the biggest col- lege admissions case ever prosecuted by the Justice Department. The scandal embroiled elite universities across the country and laid bare the lengths to which sta- tus-seeking parents will go to secure their children a coveted spot. The consultant, Rick Singer, met with Huffman and her husband, actor William H. Macy, at their Los Angeles home and explained to them that he “controlled” a testing cen- ter and could have some- body secretly change their daughter’s answers, author- ities said. Singer told inves- tigators Huffman and her husband agreed to the plan. Macy was not charged. Authorities have not said why. In a statement offering her fi rst public comments since her arrest, Huffman apologized, took respon- sibility for her actions and said she would accept the consequences. “My daughter knew absolutely nothing about my actions, and in my mis- guided and profoundly wrong way, I have betrayed her. This transgression toward her and the public I will carry for the rest of my life. My desire to help my daughter is no excuse to break the law or engage in dishonesty,” she said.
