Morphling

PERS, Oregon’s public employee retirement program, is bankrupting the state, and it is a significant economic driver behind planned layoffs and school closures at Portland Public Schools. PERS is now underfunded by $24 billion. PPS is facing a $65 million budget deficit, and over 60% ($40 million) of that shortfall is due its own PERS obligations. Now, due to the budget deficit, PPS officials want to tap into yet another slush fund, the Oregon Education Stability Fund, for $500 million to fund their PERS program. PPS officials say if the state and its taxpayers can’t cover the $65 million deficit, they will have to layoff 450 full time employees and shut down 14 schools in the district. Using one-time reserves to cover ongoing pension obligations is a temporary fix, not a long-term solution. It’s simply kicking the can down the road for a worse problem in the future. As PPS enrollment has declined by 25% in recent years, Oregon’s public schools are confronting the possibility of fewer teachers, fewer staff members, and fewer schools, while an increasing share of education dollars is consumed by retirement obligations, rather than its schools and students. At some point, Oregon must confront the long-term cost of its public employee retirement system rather than repeatedly shifting money around from various slush funds to cover its pension bill, at an increasing cost to both students and taxpayers.