Governor Ted Kulongoski took his 2008 State of the State Address as a chance to distinguish Oregon from a country teetering on the brink of recession, and broadly outlined his plans to keep the state’s economy on track.
But just how steady is our economy? According to Oregon’s Office of Economic Analysis, it varies depending on what figures you take into account.
Take the top two concerns facing our national economy right now: rising foreclosures, and rising energy prices. Despite increasing in 2007, Oregon’s rate of subprime loans and housing foreclosures is still low compared with the national average. Yet the high cost of gasoline is affecting everything from milk and bread prices to public transportation rates.
And at the present moment, the national economic picture is bleak. Economic cycles are recorded quarterly, meaning that every three months, states are required to issue reports on their net job growth over that time. Reports issued to the OEA in the fourth quarter of 2007 indicate job growth increased by 2.5 percent over the third quarter. But net gain for the entirety of 2007 was a sluggish 1.4 percent over 2006, and early estimates have that figure slowing even more in 2008, as more homeowners file for foreclosure, and more peoples’ jobs are affected by the high costs of fuel.
Yet Kulongoski sees reasons for optimism.
“…To those who say Oregon’s fate is boom and bust. I say you’re wrong,” he said in his address. That’s probably what you would expect a governor to say in that situation; but nonetheless, Kulongoski does deserve some credit for keeping our economy afloat. Most laudable among his efforts was the creation of a multi-million dollar rainy day fund last year, which he pledged to maintain. During times of economic instability, having reserve funds on hand is an invaluable asset. Plus, he could not have picked a better time to establish one. Should Oregon’s economy continue to slow – as some analysts have suggested – that money will be necessary for the state legislature to implement job-creation programs.
In his speech, Kulongoski stressed the importance of education and health care reform, improving transportation and fighting climate change. But our financial security is the day’s most pressing matter. Without a healthy economy we cannot hope to make good on any pledge for better schools, accessible medical coverage or clean skies. So, Gov. Kulongoski, you’ve got your work cut out for you.
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Bleak economy tests resolve of Kulongoski
Daily Emerald
April 3, 2008
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