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Subject — “Oregon Education: Your experience, evaluation & advice”
Length –Very short, under 475 words
Open to — Oregon H.S. students, College & recent graduates (within 4 years)
Deadline: April 25th, 2012
Prize: Winner chooses between  an  iPad2 or a new HP 4GB Laptop.
Student iPad Benefit: Digital textbooks saves $$$, Powerful Video capabilities, WiFi,
Entries to date: As of 3/29/12 — 11 applications requested. 1 application completed

The Taxpayer Foundation of Oregon is seeking the insight of Oregon high school & college students on their opinions & advice on their education experience.
– Is there bias in the curriculum?
– Do students have free speech rights?
– Is your education worth the cost?
– What would you do to make it better?

The best short essay wins an iPad or HP laptop.  For contest details email “Application Request” to media@teleport.com, or call our office at 503-603-9009 if you have questions.

Post office to close offices in Bend, Salem & Eugene.

The U.S. Postal Service is making a few concessions to efficiency and closing four mail sorting centers in Oregon, part of its campaign to slash costs by closing more than 260 mail processing places nationwide. The Oregon facilities—located in Bend, Salem, Eugene, and Pendleton—will be shuttered starting as soon as mid-May, and the mail they formerly processed will be taken to Portland.
This is driven by a 25% drop in the amount of first-class mail being sent. In Oregon alone, the sorting facility closings will save $13 million by eliminating 164 jobs. However, mailing a letter across town in the four cities that had mail centers will now take two days instead of the single day it takes now. Longer-distance letters and packages will still take about three days to arrive at their destination.

Oh, and all those postal facility closures? They are projected to eliminate about 35,000 jobs.
For more, go here

Oregon’s Zoo & Convention Center losing revenue

Taxpayer-funded zoos and convention centers across the country are losing money. The Oregon Zoo and Convention Center are no exception. The Portland Business Journal recently cited an independent review conducted by Tampa-based Crossroads Consulting showing the Zoo and Convention Center contributed to a nearly $19 million loss last year spread collectively among the Zoo, Convention Center, Centers for the Performing Arts, and Portland Expo. The Convention Center was responsible for the bulk of the loss—$10 million. The venues lost roughly $16 million during the prior fiscal year.

Losses associated with the Oregon Convention Center are no surprise. After two decades in which convention centers across the country have been improved, expanded, even completely redone, a predictable pattern has emerged—despite expensive upgrades, convention centers lose money. A December Wall Street Journal article reports that from Boston to Chicago to Phoenix, convention center upgrades have been sold to the public as necessary to attract more business and generate significant economic activity. In most cases, the optimistic projections used to sell new and improved convention centers to taxpayers have failed to materialize. Regardless, city officials keep building bigger, better facilities and related accommodations even though attendance continues to dwindle. For example, convention center attendance in 2010 was down by 40 million compared to 2000. In the same period, exhibit space grew nearly 40 percent to 70 million square feet. As the Washington, DC-based Brookings Institution recently surmised in a comprehensive report on the state of the convention center industry, “While the supply of exhibit space has expanded steadily, the demand for convention and trade show exhibit space has actually plummeted.”

Recent media attention regarding the wisdom of using taxpayer money to fund convention center-related projects comes as Portland officials have revived plans for adding hotel accommodations to attract bigger conferences and trade shows. Previous discussions focused on building a “headquarters” hotel, a type of signature hotel accommodations often publicly financed. At a meeting this month, Portland Metro Council and the Metro Exposition and Recreation Commission signaled a move away from large scale public financing toward a greater focus on private funding. The Oregon Convention Center was built in 1990 and last renovated in 2003.

Like the Oregon Convention Center, the Oregon Zoo lost money despite being one of the most heavily trafficked recreation sites in the state. Zoo attendance has remained strong, consistently attracting more than 1.5 million visitors and setting records each of the last five years. Still, ticket sales and other revenue generators aren’t enough to keep it operating in the black.

Nationwide, zoo attendance has increased over the last few years even as the economy has soured, though bad weather and other factors have depressed turnout at some zoos. Compared to similar venues, like amusement parks, zoos are relatively inexpensive. Record numbers of visitors at the Oregon Zoo, however, haven’t resulted in more money as zoo-goers aren’t spending as much during their visit. That’s true for zoos across the country and may partly explain financial troubles of many zoos. Additionally, experts say that zoos need greater financial oversight than what’s currently offered through the Association of Zoos and Aquariums, a voluntary association that only requires financial reporting every five years.

The question is not so much whether the Oregon Zoo or other zoos are popular, but whether taxpayers should continue funding improvements and new exhibits, particularly during a time of budgetary contraction. Interestingly, reports indicate that zoos relying more on private funding as opposed to public financing are more likely to add new exhibits.

Hundreds of health care related jobs in the Portland Metro area are being cut and more losses could be on the way if state reforms fail to produce savings promised by lawmakers.

In mid-December, KPTV reported that Legacy Health Systems plans to cut as many as 400 administrative jobs across its six hospitals and 36 clinics in Oregon and southwest Washington. A few days later, the Oregonian reported that layoffs and cuts in services to low-income families are being considered by Oregon Health & Science University (OHSU) because expected savings from state reforms are failing to materialize. In both cases, past cuts and the expectation of future reductions to state Medicaid programs have taken a toll.

Legacy, which employs 10,000 area workers, faces a $40 million budget shortfall entering the new year due in large part to a $30 million shortfall in Medicaid reimbursements. The group expects to finalize the layoffs, most of which will occur in Portland, by the middle of January and notify affected employees by February 15. Even with the savings from layoffs, Legacy says more cuts could be forthcoming given the current uncertainty surrounding government-funded health care programs. Rank and file Legacy employees are represented by Local 49 of the Service Employees International Union, which signaled its intention to review the justification for the job cuts.

Layoffs by OHSU are less certain but increasingly anticipated by the institution’s board. The state previously assumed that health care savings worth $240 million could be achieved through greater efficiency during the 2011-2013 budget cycle—a fact that led Governor Kitzhaber to initiate health care reforms to ensure the assumed savings and avoid cuts to core health care services. OHSU recently conducted two pilot projects to gauge the reforms’ success in reducing costs only to learn that they will likely achieve savings of less than 10 percent. The projections are all the more troubling given that $400 million in matching federal health care money could be lost due to the state budget assumption. Deep budget cuts to health care are, therefore, expected by OHSU President Joe Robertson, according to the Oregonian.

In recent years, federal and state budget cuts, the growing number of uninsured, and a lagging economy have all contributed to health care industry layoffs in Oregon. That trend could continue as state revenue projections fail to meet budget expectations. Overall, however, industry analysts say the hospital sector is strong and contributed to 20 percent of all new jobs nationwide over the past year. Hospitals across the country added 9,000 jobs in November. Moreover, economist project further industry growth as hospitals prepare for the expansion associated with the 2014 implementation of the Affordable Care Act.

The Boeing Company has avoided another costly strike after a critical deal was struck between executives and union leaders that both are calling a “win-win.” Under an agreement forged last week and ratified by Machinist union members on Wednesday, Boeing will move ahead with a new, non-union plant in South Carolina to assemble its 787 airplane, while also guaranteeing work on another aircraft—the 737 Max—at union facilities in Renton, WA. In exchange for work guarantees on the 737 Max, union leaders will withdraw the federal lawsuit it filed through the National Labor Relations Board against Boeing.

In its lawsuit, union leaders alleged that Boeing opened the non-union 787 plant in South Carolina as payback for past strikes. While Boeing claims strictly economic reasons for the move, losing the 787 without new work could have jeopardized scores of state jobs and Washington’s leadership in the aerospace industry.

The deal, which was ratified by Machinists Union members as part of a four-year collective bargaining agreement, ends the latest dispute between Boeing and union leaders. Three of the last four agreement negotiations have ended in strikes. In recent months, the dispute had received national attention as debate over unions and collective bargaining rights continue to have implications for the 2012 elections.

Foreclosures continue to flood Oregon’s housing market and accounted for one-third of all home sales this spring. At 33 percent, Oregon’s housing market is in the top 10 in terms of foreclosed homes as a percentage of all home sales. In Oregon, foreclosed homes sell for about 30 percent less on average than non-foreclosed homes. The number of foreclosed homes on the market, therefore, continues to contribute to declining home values in Oregon and elsewhere.

A few other states fared worse. Oregon’s numbers roughly mirror the national average of 31 percent, while foreclosures accounted for 65 percent of all home sales in Nevada and accounted for more than 50 percent in California and Arizona.

Overall, the nationwide numbers reflect a modest decrease in the number foreclosed home sales in recent quarters—a figure that peaked at 37.6 percent two years ago. However, state and federal authorities have been investigating faulty paperwork and other practices at mortgage banks, delaying the foreclosure process in many states. Once related issues are resolved, it’s likely that the pace and number of foreclosures will increase, along with the number of foreclosed home sales.

More than 3,300 foreclosed homes were sold in Oregon last quarter at an average price of $166,550.

Click HERE to read more.

A 2010 GAO report detailed that the U.S. Postal Service is on the brink of an economic meltdown. There have been serious calls to save costs by ending Saturday service and to close nearly 2,000 office. Oregon has over 40 post offices on the national target list.

The U.S. Postmaster General told federal lawmakers that the U.S. Postal Service is about to default on billions of dollars in workers’ compensation and retiree health payments and needs Congress’ help to make payroll. The U.S. Postal Office payroll obligations is above industry standard

Percent of budget to employee benefits
USPS, 80%
UPS, 61%
FedEx, 43%
- Source: Bloomberg Businessweek

The WallStreet Journal reported that Mr. Donahoe urged lawmakers at a Senate hearing to change the law governing how the Postal Service sets aside money for future retiree health benefits. He also urged Congress to help the Postal Service retrieve the billions of dollars it overpaid into retirement and pension systems over the years.

The USPS has not covered its annual budget since 2007. Eighty percent of the USPS annual budget goes to salaries and benefits. However, the USPS still managed to stay afloat by borrowing $12 billion from the U.S. Treasury.

This is not the first time Congress has intervened with the USPS. In 2006, it relieved the postal service of $27 billion in pension liabilities for workers with military service. In return, the USPS agreed to make annual payments of $5.5 billion for the next 10 years to build up a fund for future retirees. Although this bailout worked for a year, over the next three years, the service lost $12 billion.

Currently, the USPS is $15 billion in debt. Federal lawmakers must determine how to address the problem of the imminent decline of the postal industry. As the U.S. Post Office economic woes intensifies so will calls for another multi-billion bailout or borrowing option.

Oregon Tax News recently analyzed the information behind three different worst city ratings which included;”America’s Shrinking Cities List” (by MSNBC), “America’s Most Miserable City List” (Forbes) and “Worst Job Seeker City List” (US & World Report). The four most common factors of being among America’s worst cities were unemployment, high crime, low education levels and a city’s exposure to the housing crisis fall-out. A more narrower data point not highlighted in this article were worst cities that were impacted by disasters like Hurricane Katrina.

The U.S. News & World Report dubbed Riverside, California, the worst city for job seekers in the country. Currently, Riverside’s unemployment rate is 13.9 percent (March 2011). Experts attribute Riverside’s high unemployment to the city’s real estate boom in the past decade which was among the greatest housing fallout areas in the nation. On the counter side, Texas had a more conservative banking-housing climate before the housing crises, suffered less economical damage and their cities have been creating 30-40% of the new jobs for the entire nation.

In addition, Riverside is one of the least-educated metropolitan areas in the country. Experts determined that the recession hits those with less education the hardest. The national unemployment rate for those without a high school diploma and over 25 years of age was 14.6 percent in April. That figure is noticeably higher than the unemployment rate for those of the same age but with a high school degree, 9.7 percent, and those with a college degree, 4.5 percent.
In the past year, the U.S. economy as a whole lost 7 percent of the jobs in the private sector, but cities like Riverside, Las Vegas and Sacramento lost about 15 percent of private sector jobs. This shows some cities suffered a double jobless impact compared to the national average.
Yet Riverside does not have the highest unemployment in California. The city of Merced in northern Calif. has an unemployment rate of 21.4 percent. In the beginning of 2011, California faced massive budget deficits, high unemployment, lowered home prices, violent crime and increasing taxes. These problems lead California to receive eight of the 20 spots on Forbes’ America’s Most Miserable Cities, with Stockton ranking first for the second time in three years
Like Riverside, the housing bust played a role in Stockton’s decline. Median home prices in the city tripled between 1998 and 2005, when they peaked at $431,000. Now experts forecast that as the median price will be $142,000 this year, according to research firm Economy.com, a decline of 67% from 2005. Foreclosure filings affected 6.9% of homes last year in the Stockton area, the seventh-highest rate in the nation, according to online foreclosure marketplace RealtyTrac.

In addition to the housing boom, violent crime and unemployment rates in Stockton also rank among the 10 worst in the country. Although Economy.com expects jobless rates to decline or stay flat in most U.S. metro areas during 2011, it projects Stockton’s unemployment will rise to 18.1% in 2011 after averaging 17.2% in 2010.

Controlling crime and creating a job growing climate appear to be city leader’s best hands on tools to grow a city and avoid the misery ratings attributed to other cities.

The United States has not seen a balanced budget since 2001, leading to increasing national debt.  Although private banks in the U.S. hold the majority of the country’s debt, over 52% according to MSNBC, the Treasury Department and the Federal Reserve Board estimate that foreign governments hold 4.4 trillion of the country’s $14 trillion debt in Treasury securities.  The U.S. Bureau of Economic Analysis estimates that Mainland China owns $891.6 billion of the U.S.’s debt.  Even Russia owns $106.2 billion.<!–more–>

The United States auctions off treasury securities every three months.  This length of time gives the Treasure enough time to figure out how much money it will need to pay off the old debt and cover the cost of increased spending.  Buyers have the option to make a competitive bid at the auction, which allows the buyer to ask for a specific rate, or a non-competitive bid, in which the buyer agrees to accept the average rate of other winning bids.

Although this system currently sustains the United States, many economists worry how long the United States can survive on a so-called “IOU” system.