Candidate plans to jump-start economy differ sharply

SALEM, Ore. - Both candidates in the race for Oregon governor say they want to create jobs and jump-start the state’s economy, but their plans to do that are significantly different.

Republican Chris Dudley wants to save money and wants a smaller government. Democrat John Kitzhaber believes government should play an active role to create a good climate for business.

“Oregon’s driving off a budgetary cliff, and we have to reset the size of government, and that’s what I’m focused on in this 26-point plan,” said Dudley.

Dudley’s plan calls for cutting spending and reducing the government’s role.
 
He wants the state rainy day fund to save 3 percent of incoming revenue.

For state worker health-care premiums, those who contribute nothing would pay 16.5 percent like teachers do now.

Dudley also wants some state services privatized or eliminated, like the Oregon Liquor Control Commission.

“It’s the whole idea that we really have to prioritize what our state government is spending dollars on,” Dudley said about eliminating the commission. “Should the government still be in the liquor business?”

He says he doesn’t want new state programs being created without eliminating an existing program or demonstrating that the new program saves money.

Kitzhaber’s economic plan relies largely on government borrowing to create jobs.

“There’s no question that the private sector can be a partner in creating the kind of environment that fosters job creation and economic development,” he said.

His plan would free up capital, about $90 million in loans through the state treasury for small and medium businesses.

He’s also promoting energy efficiency. He wants to bond to weatherize schools, and he says for every $100 million invested, a thousand jobs would be created.

Kitzhaber’s plan calls for investing in transportation by using federal stimulus money, and he wants to create jobs in rural Oregon by forest thinning and using woody biomass to create energy.

Kitzhaber said Dudley’s economic plan lacks specifics and he says his own economic philosophy of involving government creates a healthy business climate.

“It’s worked before,” Kitzhaber said. “As far as I know Chris has never created a job and to my knowledge he’s never managed a large enterprise. We created 120,000 jobs during my eight years as governor.”

But, “It will be hard for both of them to automatically do what they promise,” said Portland State University political scientist Richard Clucas.

He says Oregon’s economy is affected by so many factors that voters shouldn’t pin too much hope on either candidate.

“Despite all their talk, whichever one gets elected to office will find their hands tied in a lot of ways,” he said.

Some of the factors that are out of the governor’s control include the state of the national and international economy and working with the Legislature.