Infrastructure as Stimulus?

Oregon needs a $1 billion public works program to help jump-start its slowing economy, said Senate President Peter Courtney, D-Salem.

“On the one hand, we have significant infrastructure needs. On the other hand, we have thousands of Oregonians out of work,” Courtney said. “With a public works program, we can address both problems while making a lasting investment in the future of our state.”

Courtney called on lawmakers to begin work on an economic stimulus package when they return to session in January. He said the state has already acknowledged that it needs to improve mental health facilities, prisons, and an “overloaded” highway system, and to modernize college campuses and retrofit schools to meet modern earthquake safety standards.

Oregon’s unemployment rate rose to 6.5% in August from 5.3% a year earlier, and the state lost 3,900 jobs over the same period. Courtney estimated that a $1 billion construction program would create 17,000 jobs.

“We’re not going to get the help we need from Washington. We can either choose to cross our fingers and hope things will get better, or we can take a bold step that will create jobs, put Oregonians back to work, and jump-start our economy,” the senator said.

A spokesman for Gov. Ted Kulongoski, who is also a Democrat, said the governor is open to an infrastructure bill but has not seen a specific proposal from lawmakers yet. Senate Republicans lambasted the plan.

“Spending beyond our means is what put our economy into the mess we face today,” said Senate Minority Leader Ted Ferrioli, a Republican from eastern Oregon. “Swiping the state credit card in the name of jobs not only doesn’t sound like a good idea, it isn’t a good idea.”

He said the state has borrowed $2.3 billion over the last two budget cycles and would create more jobs by cutting taxes than increasing spending.

The Oregon Office of Economic Analysis earlier this month trimmed its biennial revenue forecast by $119 million to $12.9 billion. The state is projected to have $736.9 million in reserves at the end of the biennium, boosted by contributions to its newly created rainy-day fund.

Oregon’s general obligation bonds are rated AA by Standard & Poor’s, Aa2 by Moody’s Investors Service, and AA-minus by Fitch Ratings.

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