Unions and environmentalists aren't natural allies, but they've usually coexisted pretty well underneath the big tent. There have been occasional rifts, such as when several unions chose to support drilling in ANWR. But the Democratic Party can usually depend upon the support of both groups...if for no other reason than their mistrust of Republicans. The growing budgetary problems here in Oregon are helping to highlight a twitch in that dynamic.
It was a pleasant surprise earlier this month with the SEIU offered to forego cost-of-living increases and to take eight unpaid furlough days. But with the size of the budget hole, the Governor thinks there needs to be more sacrifice.
The governor wants workers to take two furlough days during this budget year, which ends June 30, and 24 furlough days during the 2009-11 budget cycle, said SEIU executive director Leslie Frane. State negotiators laid out this new demand during contract talks Monday with SEIU.
The concession amounts to one furlough day per month for two years. It equals a 5 percent pay cut for workers, Frane said.
If all state workers, both union and nonunion, take 24 furlough days during the next budget cycle, it could save the state $105 million, Kulongoski spokesman Rem Niven said. The state is facing a shortfall of as much as $3 billion in 2009-11 because of lower-than-expected state tax collections and lottery proceeds.
Meanwhile, he's desperate to spend more in battling climate change. For instance earlier this month...
Oregon would have one of the toughest limits on greenhouse gas emissions--affecting everything from industry smokestacks to car tailpipes--under a new program pushed hard Thursday by Gov. Ted Kulongoski.
The governor, making a rare appearance before a legislative committee, argued the state should take a leading role in combating climate change and that his "cap and trade" proposal would put it on the cutting edge.
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According to testimony give today, it would cost the state an additional $750,000 over the next two years to develop the cap-and-trade program.
$750,000 isn't a huge amount, but bear in mind that it's in preparation to institute a regional cap-and-trade program. Switching links...
Detractors, who range from Oregon business leaders to U.S. Rep. Peter DeFazio, D-Ore., say there are better, less risky ways to ramp down the pollution that adds to global warming.
"What the governor has to do is convince manufacturers that pushing up their costs is going to make them more healthy," said John Ledger, lobbyist for Associated Oregon Industries. "Everyone is worried about job losses and moving companies overseas."
It's not impossible that a regional cap & trade system could "create tens of thousands of new jobs," but it would be at the expense of an even greater number of jobs. Guess we're supposed to ignore the fact that Europe has been learning this the hard way...though advocates are loathe to admit it. Oregon AFL-CIO is amongst the unions that are concerned the system "could potentially put Oregonians out of work." Kulongoski says opponents of his plan are "in denial."
The Governor is also trying to further boost the use of expensive solar power. Here's some info on a couple of the bills he introduced this session.
Oregon already has some of the strongest tax credit and loan programs in the nation to encourage solar energy, but the average Oregon building owner still can expect to wait 25 years or more to recover the initial capital costs of a solar energy system through savings on electricity bills.
HB 2121 would establish a feed-in tariff pilot program for up to 17 megawatts (MW) of new solar energy. A feed-in tariff requires utilities to purchase solar energy according to a pre-established rate or set of rates. If the price for the solar power exceeds the price at which the building owner purchases electricity back from the utility, solar panels become an income source for the homeowner. The greater the difference between the "buy" and "sell" rates, the greater the incentive for building owners to install solar panels.
This would drive up the cost of power for everyone, including state and local government. Bear in mind though that most solar panels only last 20-25 years. In other words, Kulongoski is hoping that building owners will choose to make an investment in renewable energy that probably won't pay off.
HB 2181 approaches the problem of high initial costs for solar power from a different angle. It enables local governments to finance solar installations using their authority to create local improvement districts (LIDs). Participation in a solar LID would be wholly voluntary by owners of residential property of any size, or of any commercial building of 20,000 square feet or less.
The local government would make loans to participating property owners to help pay to install a solar energy facility. The loans would be repaid over time in the form of a special tax assessment on the LID. In turn, HB 2181 would enable the local government to obtain a loan from the state to help defray the carrying costs of the property owner loans.
In a sense with both HB 2121 & 2181, the Governor is trying to ensure that the already well-subsidized solar industry here in Oregon isn't at a loss for business. That's nice, but really expensive...wind is far more affordable, and it's still not cheap. Kulongoski evidently thinks there's enough money in the budget to further promote the Cadillac of renewable energies, but not to keep paying our government employees--union or otherwise--to work full-time.
Now switching to an example from the ever-contentious subject of timber harvests. Oregon's O&C counties have been sternly warned that the most recent extension of timber funding will be the last. The residents in these counties have shown little willingness (at best) to pay higher property taxes in response to the federal government reneging on its obligations under the O&C Act. That wouldn't be an issue if it weren't for the endless environmental roadblocks to the logging of the former O&C lands, most of which now belong to the BLM.
The loss of funding means that the O&C counties--especially those in Southern Oregon plus Lane County--will have less money to spend. This will lead to an increase in the already high unemployment rates, because many government workers will lose their jobs. Rural politicians get this. Many of their urban peers sneer that it's so 20th century to log federal lands and resist higher taxes. That split was plain to see a couple of weeks ago...
Oregon lawmakers, including some Democrats, are aligning in support of the Bureau of Land Management's latest logging plan for federal forests in Western Oregon.
Two resolutions are being drafted showing Oregon lawmakers support the plan and urging congressional and executive branch support. The resolutions are in opposition to the position of Democratic Gov. Ted Kulongoski.
In December, the Governor published a press release and lengthy memo explaining his reasons for opposing the WOPR (Western Oregon Plan Revision). The folks who wrote this editorial clearly saw through the charade.
Kulongoski said he is concerned the BLM failed to go through formal consultation with federal scientists over the potential harm to salmon and the spotted owl. He also expressed concern over water quality issues. And he still isn’t sure if the WOPR will help fight global warming.
Presumably his representatives have made his interests known during the four years they have been part of the plan development. Ten state agencies have been very involved in the planning since a judge ruled the BLM needed a plan by the end of 2008 to increase logging on O&C lands in Western Oregon. As a result of the participation of the state, and extensive public comments, the draft WOPR proposal was substantially modified.
Federal scientists representing agencies known as formal cooperators, including the National Marine Fisheries Service, the Environmental Protection Agency, the Forest Service, and the U.S. Fish and Wildlife Service have been very active in the discussions. The governor knows that, or should know it, but he works a legal distinction, currently under consideration by the courts, when he questions “formal consultation.” That question considers when formal consultation is necessary—during planning or after a site is chosen.
The BLM responds that the Endangered Species Act requires timber sales to be reviewed by the U.S. Fish and Wildlife Service and the National Marine Fisheries Service before proceeding under the plan.
Though considerations of climate change were not required under the court order, the BLM, with the formal cooperators, researched and addressed climate change and carbon sequestration. The governor’s representatives participated. Presumably he doesn’t like the answers.
Governor Kulongoski has made it increasingly clear that nothing is more important to him than the environment, especially when it comes to climate change. Unfortunately, he's become a catastrophist on the subject, which has him trying to address climate change with an exaggerated and sometimes destructive sense of urgency.
Kulongoski's focus on green jobs hasn't kept Oregon from seeing its economy plunge faster than the nation's in this recession (previous blog here). His latest environmental initiatives won't change that. Environmentalism doesn't have to hurt economic prosperity, but it certainly tends to here in Oregon.
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