Oregon's secret surplus is fools' gold - Oregon paper attacks FreeRepublic

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[chance33_98]

Oregon's secret surplus is fools' gold

01/28/03

ROBERT LANDAUER

O regon Has At Least $11.04 Billion In Potential Surpluses of the Taxpayers Money It Is Not Using."

This provocative headline appeared over material distributed during the statewide special election on the temporary income-tax increase. Regardless of how the vote turns out tonight, it's important to challenge this misinformation and manipulation. It was distributed by FreeRepublic.com, which describes its operation as "The Premier Conservative News Forum."

Their idea is that the state has "potential surpluses equal to $3,147 for every man, women and child in Oregon" that could end an artificial budget crisis (www.freerepublic.com/focus/news/824703/posts).

Theirs is a cramped, peephole view of the world of a type widely and unfavorably known in economic circles.

The authors, for instance, were shocked that Saif Corp., the workers' compensation insurer, has piled up $3 billion of reserves over 67 years -- more than enough to fund Oregon's current services shortfall.

This money is not available for General Fund uses. Most of it has been set aside to cover already-filed claims, the rest to pay for injuries for which claims have not yet been filed. Experience enables the company to estimate these future claims quite accurately.

If Saif didn't set aside the money, it would be put out of business, closed. And if the reserves were raided, current premiums couldn't continue to cover payments for work injuries that have accumulated over many years.

The insurance industry calls these long-term obligations its "tail."

Saif's tail is 60-70 years long, says Cecil Tibbetts, vice president of external affairs. "Saif has a claim that came to it in 1939. The company is still paying because the person was totally and permanently disabled, and the company must provide wage replacement and all medical expenses . . ."

Among other big pools of money supposedly available to be drained are $1.6 billion of unemployment compensation reserves, $74 million of Residential Assistance reserves, $641 million of Housing and Community Development money, $596 million of Oregon Health & Science University funds and on through some 40 state accounts. To these they would add "potential surpluses at the school districts, cities, or counties in Oregon."

As with the Saif case, the authors get many facts right, but fail to get the right facts. The most important missing information is that they don't present corresponding liabilities or restrictions on the use of that cash; for example, accounts payable that are paid July 1, the start of the fiscal year.

The presentation ignores constitutional and legal limits on use of the "potential surpluses." The Unemployment Insurance Fund may be used only to provide jobless benefits. Similarly, other laws covering fiduciary responsibilities prohibit accessing or using the moneys for other purposes.

No matter how hard we rub the lamp these propagandists offer, no genie will let us collect a multibillion-dollar bonanza of surpluses.

I t was common during the election to see letters to the editor and hear talk-show groupies say things like this: "The public is quite aware that there is no such thing as a temporary tax increase."

Rubbish! Oregon enacted temporary tax increases twice before in order to ease recessions' hammer blows to public services. A 45 percent Oregon income tax surcharge was imposed in 1955. It was in effect for that year and for 1956, then ended. In 1982, Republican Gov. Vic Atiyeh and the Legislature's Democratic majority collaborated on a one-year income tax surcharge rising from 5 percent to almost 9 percent depending on ability to pay. It was extended for two more years by the 1983 Legislature and then died.

In addition, about 20 percent of locally imposed property taxes are either temporary bonds to raise money over a fixed period or are local-option taxes, temporary additions over the permanent taxing authority. In fiscal 2002 total property taxes were $3.1 billion. Of that $481 million were bonds, and $126 million were local option taxes. They require local voter approval, and most have a maximumn five-year life. Reach Robert Landauer, editorial columnist, at 503-221-8157, or robertlandauer@news.oregonian.com

[timestax]

Ain't life wonderful!;o) 16 posted on 01/28/2003 9:36 PM PST by dixiechick2000 (Democrats ARE an evil terrorist organization!) [ Post Reply

DITTO !

[dixiechick2000]

Oooooh! It sounds like a new thread in the making. Keep me posted!

[dixiechick2000]

This is a GREAT night!

[Grampa Dave]

Great job.

What a bs er and a whiner this left winger is.

You guys caught him with his hands and his elbows in their hidden cookie jars.

Also, remember a 4% cut in a proposed 6% increase in a budget is not a deficit. The lying libs like to portray this example as a deficit.

Good job.

The left wing sleaze bags in Oregon and California make the Enron sleazebags look honest.

[Sir_Ed]

The Oregonian had an article on their editorial page that said they will have an on-line only story on "The phenomenom of 'Freeping'" this coming Thursday...

Should be interesting!

Ed

[Timesink]

This money is not available for General Fund uses.

Just like the tobacco fund money, Mr. Landauer?

[Timesink]

The Oregonian had an article on their editorial page that said they will have an on-line only story on "The phenomenom of 'Freeping'" this coming Thursday...

I hope they don't mind if we repost it here. After all, it'll quadruple their circulation.

[Eastbound]

Here's Walter Burien's Page, the original whistle blower on this topic.

[chance33_98]

Oregon Attacks, Freepers victorious, details at 11 Ping

[Carry_Okie]

The Oregonian had an article on their editorial page that said they will have an on-line only story on "The phenomenom of 'Freeping'" this coming Thursday...

Cool! I always wanted to be a phenom.

[Blood of Tyrants]

The word "reserves" only means that they have taxed you MORE than what is required to run the government for years and years.

[EBUCK]

I will, but I get the feeling that some of what he said is true...

[EBUCK]

Please post it and ping me!! I'd love to see it.

[EBUCK]

Yup, bait switch, lie, cheat, steal, and then LOSE!!! Funny huh? After all their bleating about cuts it only took a few letters to local papers to get the message out and fin, it was over. Not one "major" media outlet ran anything counter to the OEA company line yet they still failed...great day to be an Oregonian!

[EBUCK]

phenom = John Travolta with a tumor right???

[Eva]

It sounds as though Oregon needs some tort reform on workmen compensation funds. Who is benefitting from the interest on all this money?

[JudgemAll]

Rubbish! Oregon enacted temporary tax increases twice before in order to ease recessions' hammer blows to public services. A 45 percent Oregon income tax surcharge was imposed in 1955. It was in effect for that year and for 1956, then ended. In 1982, Republican Gov. Vic Atiyeh and the Legislature's Democratic majority collaborated on a one-year income tax surcharge rising from 5 percent to almost 9 percent depending on ability to pay. It was extended for two more years by the 1983 Legislature and then died.

Two instances in how many "millions"? Billions of $$s????

[JudgemAll]

The Unemployment Insurance Fund may be used only to provide jobless benefits. Similarly, other laws covering fiduciary responsibilities prohibit accessing or using the moneys for other purposes.

??? So they can tax us but they cannot refund the money?

[JudgemAll]

The authors, for instance, were shocked that Saif Corp., the workers' compensation insurer, has piled up $3 billion of reserves over 67 years -- more than enough to fund Oregon's current services shortfall.

This money is not available for General Fund uses. Most of it has been set aside to cover already-filed claims, the rest to pay for injuries for which claims have not yet been filed. Experience enables the company to estimate these future claims quite accurately.

Mutuals regularly reimburse their surpluses, why can't this insurance do it?

[Grampa Dave]

You guys did great!

Once the back of the left wing mediot beast is broken, it becomes easier.

You guys have a few backs to break, the Oregonian Pravda, and the commie rags published in your college towns. Those college town rags have zero impact on the rest of Oregon with their bravo sierra. The Oregonian Pravada is the beast to expose as irrelevant.