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--> --> May 3: They know who butters their bread Henry Kissinger once said that 90 percent of the politicians give the other 10 percent a bad name. While it may not be that bad, it's close. Statewide polling has consistently shown that Oregonians believe those elected to state government serve at the pleasure of special interests, and for the most part they're right. By way of illustration, early in this session House Bill 2680 was introduced to protect the cable television and data services industry from the growing trend of municipal competition. For example, Portland wants to connect government offices with high-speed city-owned telecom services, Cascade Locks provides cable television, Ashland provides data services and cable television, and Eugene is working on a public telecom system. Out of concern that any regulating body "in the business" has an unfair advantage, HB 2680 purports to be a leveling of the playing field between government and corporate monopolies. One of the leveling techniques is to prohibit government subsidization in telecommunications. However, by broadly defining subsidization, it's really about driving up the rate paid by consumers of a government-run telecom system. Consider this. Because cities do not pay property tax on publicly held land, under HB 2680 any building or power pole carrying a government-owned telecom service becomes a form of subsidization. HB 2680 would require a calculation of a property tax where none exists and then the inclusion of that phantom cost on a customer's bill. By driving up the rate charged, private corporations could price their service well below that of the local government, protect profits, and discourage public competition more easily. Since there have been no complaints filed with the PUC against any of the cities offering telecom services, the industry knows that the only way to stop local government involvement is through the back door of the Oregon Legislature. And it's a big back door. Ignoring Oregon Home Rule, HB 2680 was slammed through committee by Bill Witt (R-Cedar Mills), the committee chair and sponsor of the bill. Rep Witt has a whole host of bills before the House this session with a cumulative impact on the state budget that makes Bill Sizemore look like a piker. However, it's important to note that the authors of 2680 do not believe what's good for the public sector is good for the private. For example, there's no interest in leveling the playing field by requiring the industry to pay prevailing wage or to provide health insurance to workers and their families as government does. Further, Witt and a handful of state representatives who claim government has an unfair advantage in this field, look the other way when government subsidization works on behalf of business. The most obvious is the State Accident Insurance Fund (SAIF). SAIF is a public corporation, governed by a board of directors appointed by and serving at the pleasure of the governor. It was established to help business by providing worker's compensation at a lower rate. And it does just that. Over the last decade SAIF rates have consistently come down by as much as 10-15% each year. Lower SAIF rates may be due in part to better State and Federal safety codes or the amount at which the disabled worker is compensated. However, the greatest factor for SAIF's low rates is that it's publicly owned and pays no income tax. Unsuccessful attempts to level this playing field have been made over the years by large insurance companies who compete directly with SAIF and have concern that the regulating body is "in the business." However, the difference between SAIF and municipally run telecommunications is that SAIF is now worth over $1 billion and, like any large corporation, it has a strong lobby to protect its interests. Last year, when the legislature was not in session, Government Standards reported that, in addition to the staff lobbyist, SAIF paid nearly $14,000 to the Victory Group (Republican Party PAC) for lobbying efforts. From November of 1996 to October 1998 SAIF paid the Victory Group $4,000 each month. Under a separate contract it paid former Governor Neil Goldschmidt $48,000 for six months of political advice. SAIF's largest clients give heavily to Republican campaigns and during session it hosts dinners for the Republican Caucus. SAIF knows who butters its bread. Although voters have resigned themselves to their representatives advancing the interests of big corporations, it seems disingenuous to wrap such maneuvering in a cloak of leveling one playing field while ignoring the tilt of another. It would be far more honest if these representatives just said that they're protecting the interests of large campaign contributors, irrespective of any issues of private or public backing of services or programs. At least we would then know whose interests they were serving and why. Cathy Shaw is chief of staff for Rep. Alan Bates, D-Eagle Point; author; and the former three-term mayor of Ashland. Email your... Technical questions & comments to: WebMaster Daily Tidings editorial comments & questions to: Editor Visit our other Oregon Newspapers... | Albany Democrat-Herald | Ashland Daily Tidings | Corvallis Gazette-Times | | Lebanon Express | Newport News-Times | Springfield News | Cottage Grove Sentinel | Ashland Daily Tidings 1661 Siskiyou Blvd. Ashland, OR 97520 Telephone 541-482-3456 © Copyright 2001 Lee Northwest Publishing