I'm disappointed to report that the Oregon Supreme Court today ruled against many of the PERS reforms established by the legislature during a special session in October 2013.
The Court's ruling will have a devastating impact on schools, municipalities, fire districts, and state agencies that participate in PERS.
The decision this morning is a major blow to our schools, colleges and universities. Oregon was back on track with smaller class sizes and more days back on the school calendar due to the vision of the 2013 legislature and governor. The Supreme Court brings us back to Oregon circa 2011 with the shortest school year in the nation and reduced services across the board.
"Oregon made a generational mistake in public policy, and the Court has essentially ruled that we have to live with it," said John Tapogna, President of ECONorthwest. "That puts Oregon in a challenging economic position for the next couple of decades. Families and businesses can choose Washington, with similar amenities, but without the legacy costs of an ill-devised pension system. Washington will be able to offer better public services at all levels of government."
We will provide additional analysis of the decision in the days ahead.
Read the decision HERE.
Go HERE to read the Legislative Fiscal Office (LFO) analysis of state budget ramifications prepared in advance of the Oregon Supreme Court decision.