November 11, 2008

THE OREGON ANSWER

It's clear to me that government wasn't built to handle economic development. It is also quite clear that most people in government have a very hard time understanding this fact and insist on taking the rest of us down the same garden path every time there is a less than rosy economic picture.

The Oregon answer to this is to increase taxes and fees so government can provide a truly measly number of jobs for a specialized industry with an end result that will leave most of us poorer for the effort.

The Governor appeared before a legislative committee yesterday to unveil his plan to increase the $27 a year you and I pay to renew a car licence to an incredible $81 a year! He would have the government double title fees and create a whole new title fee for out of state cars brought into Oregon. He says this should raise $500-million a year in the first five years.

What will he do with it? Provide 2100 construction jobs. That's statewide. What will those workers be building? Roads and bridges. Where? he doesn't say but you and I know exactly where that will be going...the proposed new I-5 interstate bridge. So more jobs for the Portland/Vancouver area and maybe a hand-out or two for the rest of Oregon. If it doesn't all go toward that multi-billion dollar project I suppose they could tear up the 5 at Salem again..or perhaps tear up the 5 in Roseburg again. a caller this morning suggested that some of that money might find it's way into the plan to increase pay for legislators and key state officials including the Governor. Then, of course, we'll have legislators pushing for annual sessions. That will be played as an additional justification for the pay raises.

Will you get a raise this year? Will you have a job next year?

It's interesting to note that the Governor opposes the construction of the LNG terminals here and Congressman Baird has stated that those 500 construction jobs over three years really aren't that significant and the long term jobs to run the terminals and storage are not enough.

Really? Do taxpayers have to lay out a single dime for those projects? No. Will local people still be working at those terminals after the construction is done? Yes.

So we are back to my original point. When it comes to the economy, government hasn't a clue.

When it comes right down to it, regardless of where road and bridge improvements may be made this is a bad time to smack Oregonians with more taxes and higher fees when we are already paying high state income tax, property taxes, gas and diesel taxes, cigarette taxes, paying on bond measures and taxing districts who are always asking us to "give up another pizza", and the umpteen other fees we pay. How about all those francise fees you and I pay every month for utilities that go somehere, who knows?

Enough.

5 comments:

g said...

I'm giddy about the prospect of a new interstate bridge. I have to drive over the existing one a couple times a week and all i can say is it is miserable (unless you like being stuck in traffic for an hour).

Democrats are so proud to have elected such a fine governor.

FWIW, you ain't seen nuthin' yet.
Bad economy always equals higher taxes. Historically speaking that is.

Anonymous said...

excellent article, thanks!!

Anonymous said...

Enough, enough? Are you crazy? The progressive democrats have a mandate. You should be supporting our leading Democrat in this great blue state. Maybe you missed the election results. We've swept the nation, be proud, the adults are in charge now. Remember, it's patriotic to pay more taxes and we need to. Quit thinking about yourself and think the of the best ways to support state govt. For if you take care of them, they'll be there to take care of you, like always.

Anonymous said...

Tom: What if I don't eat "pizza?"
This is the start of this new "Obamination" type of government. Check out web site change.org as it will show where President elect Obama proposes to give all our tax funds to. It's scary.
The local governments especially Astoria are continuing to spend and spend. They even acknowledge major shortfalls but proceed ahead anyway. Guess the bank is always open for withdrawals as the economy continues to spiral downwards.
Will our property taxes next year show the real valuation? I suspect no, as they cleverly raised the land value this year while reducing building values.

Anonymous said...

5/16/2001

Alcoa Idles Ferndale, Wash. Smelter As a Result of Agreements with BPA

PITTSBURGH--May 16, 2001-- Alcoa Inc. announced today that it is immediately idling its Ferndale (Intalco), Washington aluminum smelter as a result of agreements with the Bonneville Power Administration (BPA). The planned 2001 operating rate at Intalco had been 115,000 metric tons per year (mtpy); total capacity is 270,000 mtpy. Alcoa owns 61% of Intalco. There are no immediate layoffs among the 900 employees there.

As part of the agreements with the BPA, power contracted for the smelter between now and October 2001 will be sold back to the agency to meet regional demands for electricity.

In addition, Alcoa will return to the BPA approximately 90% of its electricity allocation for the period October 1, 2001 through September 30, 2003. In return, Alcoa will receive revenue to compensate a majority of its employees at Intalco for their wages and benefits. The remainder of Alcoa's electricity allocation will be used at the company's magnesium production facility in Addy, Washington and for lighting, maintenance and security purposes at Intalco.

The net effect of the Pacific Northwest power sales and the corresponding reduced operations will not have a material impact on Alcoa's full year 2001 earnings.

“The critical energy crisis in the Western U.S., the expiration of Alcoa’s existing BPA power contracts, and the growing regional demand for electricity combined to create a difficult situation for Alcoa and the aluminum industry in the state of Washington,” said Al Renken, Alcoa Vice President and President of Alcoa Primary Metals. “Alcoa has forged an agreement with the BPA which is in the best interests of our stakeholders. While this agreement is not our preferred outcome, it is more advantageous to employees, communities and shareholders than the long-term closures we would have experienced under Bonneville’s blended-rate approach. We still find it unacceptable as public policy that the aluminum industry has been asked by BPA to shutter its facilities, thus carrying a disproportional cost, while other customers are being asked only to reduce their usage by 5% to 10%.”

Alcoa's worldwide primary aluminum capacity is 4.1 million mtpy. With this action, Alcoa has 550,000 mtpy of idled capacity.

Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina. It provides customers in the packaging, consumer, automotive, aerospace, construction and other markets with a variety of fabricated and finished products. Alcoa has over 350 operating locations in 37 countries.

(Alcoa NYSE: AA)

Editorial Contact:
Bonita A. Cersosimo
412-553-4462

Investor Relations:
Charles D. McLane, Jr.
212-836-2674

Certain statements relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks, uncertainties and other factors that may cause actual results to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include uncertainties regarding the outcome of the energy crisis in the Western United States and the other risk factors summarized in Alcoa's SEC reports.

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