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A Day in the Life
Measure 28 supports the support system.
By Michele Taylor

John Hitt wakes up at 4 am without an alarm clock. He eats breakfast, packs his lunch, and heads out the door to the bus stop. He catches the 5:30 am bus on Bailey Hill Road. He gets off at Eugene Station and connects to another bus that drops him at Whittier Wood Products by 7 am.

At Whittier, John spends his eight-hour days inspecting No. 5 swivels to make sure they are greased properly. He slides each quality-controlled swivel into a padded envelope, folds the envelope in half and then places the envelope in a box that sits on a pallet. When the boxes pile up and the pallet is full, he tells his supervisor to take the pallet away and asks for an empty one. John meticulously sweeps his area until a forklift driver delivers the new pallet.

John's been packaging hardware at Whittier for 16 years. Dave Cutler, the packaging department manager, says John loves his job and he's good at it. Last week, John won an award for his swivel quality control skills. "He'd be tough to replace," Cutler says. "John's never missed a day."

John is 57 years old. He wears bifocals, a red headband and doesn't shave. He dresses in jeans with suspenders to hold them up, a green-checked flannel shirt and black gym shoes with Velcro.

John is also developmentally disabled. He has a severe speech impediment that prevents most people from understanding him. But John's disabilities have not prevented him from getting on the bus and showing up to work on time for the past 20 years. He says he wants to work because his brother does, and he likes having something to do during the day. He has earned three weeks of vacation, but refuses to take them.

The best part of his job is his co-workers, he says. He knows all of their names, and they ride the bus to together. John wants to work so he can buy his brother a pancake-maker for Christmas.

John's income pays his rent, his utility bills, his medical insurance premiums, his food bills, his bus passes, his clothes and dinner at Shari's restaurant once a week.

He's been able to support himself because he acquired employment training at Pearl Buck Production Services two decades ago. The Eugene-based nonprofit trains and employs developmentally disabled adults to their highest possible skill level. Within the last two years, the Pearl Buck staff has taught 83 adults to perform outsourced work for more than 150 local businesses — everything from labeling, shrink-wrapping, vacuum-sealing, folding, sorting, weighing and assembling various products.

Pearl Buck staff also supports 96 disabled adults in their jobs at places such as Albertson's, T.J. Maxx, DariMart and Whittier Wood Products. Last year, Pearl Buck's workers earned $250,000 in wages and paid $43,000 in income taxes.

Through Measure 28, Oregon voters will decide if their income taxes, and John's, should be temporarily raised so that he can continue to work and support himself. The state Legislature designed the ballot measure to put $313 million back into its budget.

Charles Sheketoff, the executive director of Oregon Center for Public Policy says, "The typical Oregonian will pay less than $6 a month in extra taxes over the three years the temporary tax increase will be in effect." If voters reject Measure 28, the state will slash funds, mostly from education and health care programs.

The Department of Human Services' budget for the developmentally disabled will be hacked by a staggering $26 million. This will eliminate the employment and residential support services that John and 5,000 other adults currently receive. Pearl Buck will take a near lethal budget hit.

As the center begins its 50th year of service to Eugene, it will lose more than $160,000 in funding during the first months of 2003, says Executive Director Stephen Kohn. Several staff positions will be cut, and 46 disabled workers will lose their jobs. John Hitt will be one of them.

Currently, John works three days a week at Pearl Buck and two days a week at Whittier. He receives ongoing training and support from Marlene Radice, a Pearl Buck employment consultant. Radice makes regular visits to Whittier during John's work shifts. She hands him padded envelopes and asks him how he's doing. She asks if he's having problems at work or if everything is going OK. She checks in with Dave Cutler. While Radice reminds John to watch out for the forklifts and how to lift heavy boxes without injuring his back, he hides her car keys so she can't leave. John likes the attention he gets from Radice, but lets her go when he looks at the clock and sees the lunch bell is about to ring.

When John's eight-hour shift ends, he takes the bus home again. His apartment is like any other home. A floral print sofa and matching chair face an old Zenith TV. His bowling trophies sit on the shelf above it. John's bike leans against the kitchen wall next to the back door. His cats act like they own the place: They jump on his lap, then cry to be let out, then pounce on the window to be let back in, then run upstairs and hide.

A few hours per week, Rod A. Vigil visits John at home. Vigil works for Alvord Taylor, a local independent living program for disabled adults. He writes John's checks to pay bills and balances his checkbook. He takes John to Safeway and doctor's appointments, talks to the landlord if the sink's backed up and makes sure John's nighttime respirator is clean and working properly.

When Vigil goes home, John watches "Jeopardy," "The Price is Right" and "Wheel of Fortune." But tonight, Vigil stays longer than usual to talk to John about Measure 28 and what will happen if Oregon voters reject it. John has already heard about Measure 28 from Kohn. The director explained the measure to Pearl Buck workers because they should be aware of what's going on, he says. John simply understands that his jobs are at stake.

He also understands that a balanced budget is just like what Vigil does with his checkbook every month. What is harder to explain, is that if Measure 28 fails, John's entire infrastructure also fails. Funding cuts to Pearl Buck and Alvord Taylor will force these organizations to lay off employees, leaving John with no one to help him at work, no one to help him pay his bills, budget his money or keep his medications in order. Tim Kral, the executive director of the Oregon Rehabilitation Association, predicts people like John "will most likely become homeless fairly quickly."

As Vigil talks about Measure 28 and the future, John becomes angry. "I want to work at Pearl Buck." John's voice gets louder, and his face reddens. "I want to work at Pearl Buck." Vigil tells him there's no reason to be angry, he's just talking.

But John has every reason to be angry. If Measure 28 fails, he will likely lose his jobs, his income, his home, his sense of self worth. He can't fill out a job application. He can't even read the local classified ads to find another job. And Whittier Wood Products can't employ him without the ongoing support of Pearl Buck's community employment program.

Currently, Pearl Buck and Whittier give John the routine and structure he needs to survive. On Feb. 1, the day after Measure 28 is projected to fail and budget cuts take effect, John's routine might change forever. A "no" vote on 28 will be devastating to John, says Vigil. "He'll be totally lost."

Vigil's biggest worry concerns John's respirator, a device John wears when he sleeps so he won't stop breathing. A malfunction due to improper cleaning or maintenance could be lethal. "If he loses services …"

"I want to keep my job," Johns says quietly. Vigil answers, "I want to keep my job, too, buddy."

 

Statewide Squeeze

Among the state programs facing severe cuts if Measure 28 doesn't pass are the Mental Health and Developmental Disabilities Services Division and the Office of Alcohol and Drug Abuse Programs.

These areas are already drastically underfunded — those in need of certain services must wait up to two years for an institutional bed or drug treatment program, by which time they often end up on the street or in prison. Further cuts in services will basically shut this population out of possible recovery.

And who will pick up the people? Certainly not the hundreds of laid-off state and county employees who work at the agencies that used to serve them — they'll have their own burdens to carry.

Overall, the state is looking at the following cuts in those specific services, to name just a few, if Measure 28 does not pass:

 

Fiscal Year 2001-03

  • Mental health: $12,599,444
  • Developmental disabilities: $20,197,298
  • Alcohol and drug treatment programs: $1,718,911

Further budget cuts will be take effect in July 2003, resulting in these long-term projected cuts:

 

Fiscal Year 2003-05

  • Mental health $36,627,990
  • Developmental disabilities $138,935,256
  • Alcohol and drug treatment Programs $6,754,936

Looking only at those with developmental disabilities, a total of 5,512 people may lose services, including 3,885 people currently enrolled and 1,627 people who've been waiting to receive services.

An additional cut that will affect thousands flies in the face of those arguing that Measure 23 (Oregon's attempt to provide universal health care) was unnecessary due to the expansion of the Oregon Health Plan (OHP). If Measure 28 does not pass, 38,417 people could lose their coverage. If the federal government does not approve of that cut, then the state is looking at eliminating OHP coverage of pharmaceutical drugs.

In addition to state alcohol and drug program cuts, the OHP may also eliminate coverage for treatment programs. That move will affect 9,979 people currently enrolled.

What's to be done? Service providers and state leaders say voters must pass Measure 28. Meanwhile, local citizens are being asked to weigh in on what to do about local addiction treatment and prevention plans if 28 doesn't pass. In Lane County, more than 2,911 adults who received outpatient treatment services for chemical addiction in the past year would not be eligible for those publicly funded services after March 1, 2003.

Support for outpatient services to adults could be reduced by more than 75 percent. The impact of this loss may result in all of the ill effects of drug use, including: more ER visits, more arrests, more domestic violence and child abuse, and more fatalities from overdoses.

Those wishing to participate in planning future local drug treatment programs can contact Peg Jennette at Lane County Health and Human Services, 682-3777. —Aria Seligmann


Sources: Oregon Department of Human Services and Lane County Department of Health and Human Services.



Reverse Robin Hood
State cuts social welfare & boosts corporate welfare.
By Alan Pittman

In response to budget shortfalls, the state is implementing massive cuts in social welfare programs, cutting benefits to hundreds of thousands of the Oregon's most vulnerable citizens and laying off thousands of caregivers. State-funded care centers for low-income elderly and mentally ill patients have already started to evict hundreds of residents who need help bathing, eating, dressing and going to the bathroom.

At the same time, the state appears poised to dramatically increase its corporate welfare programs of tax breaks and giveaways to big companies. Gov.-elect Ted Kulongoski has said economic development is his top priority and has tapped Neil Goldschmidt, a lobbyist for corporate tax breaks, to lead his efforts to create a new economic stimulus plan. State business leaders claim corporate welfare will provide much needed new jobs in the down economy.

But critics say it doesn't make sense to eliminate state jobs that help the poor while giving money to corporations in the hope that they will create jobs. "The revenue loss means less spending for state jobs, so it can have a depressing effect and make the economy worse," says Greg LeRoy of Good Jobs First, a national economic development watchdog group.

Corporate welfare has a bad record in Oregon. Over the last decade, the state has given hundreds of millions of dollars of tax breaks and cash to corporations in the name of job creation. The state has little to show for its money. In 1990, Oregon's unemployment rate of 5.6 percent ranked 22nd in the nation. This year, Oregon ranked #1 in the nation with 7.5 percent jobless.

Corporate incentives through the state enterprise zone, strategic investment and other programs have exceeded $100,000 per job. In many cases, money is given even if no new jobs are created. The Eugene and Springfield city councils voted to give millions of dollars to Hynix and Symantec this year while the companies cut their local workforce.

"That's a great example of government inefficiency and waste," says Charles Sheketoff of the Oregon Center for Public Policy. Giving such tax breaks "is crazy in a time of economic shortfall."

When companies given breaks have added jobs, they've mostly gone to people from out of state rather than locals. State economist Art Ayre estimated each new job adds to the state population by 2.3 people as people move here to fill the position. "I don't think job creation is a likely effort to reduce unemployment," Ayre said.

Study after study has shown that corporate welfare doesn't create jobs, but rather pays corporations for location decisions they would have made anyway. Two-time Pulitzer-Prize winning reporters Donald Barlett and James Steele studied corporate welfare in a 1998 Time magazine series. "It has turned politicians into bribery specialists, and smart business people into con artists. And most surprisingly of all, it has rarely created any new jobs."

Even studies commissioned by Associated Oregon Industries (2001) and the state economic development department (1993) have found that companies locate based on labor costs, transportation, skilled workers, city size and other factors rather than tax rates.

 

Welfare for People
Welfare for people is a better economic development strategy than welfare for corporations, evidence shows.

By cutting social welfare programs, the state economy will lose millions of federal matching funds. "It's much smarter to spend the state dollars matched to federal dollars," Sheketoff says.

A recent study by EcoNorthwest economists showed that Oregon could pump millions of dollars into the state economy with a small state investment in helping people apply for food stamps. A state expenditure of $300,000 in food stamp outreach would attract between $0.7 million and $3.8 million in federal funds, according to the study. In addition to providing better nutrition to poor residents, each $1 million in federal spending would add 22 jobs to the state economy, the study found.

Unlike corporate welfare, almost all state welfare spending also stays in state. "You don't get much leakage," says LeRoy.

Whereas corporations often send profits from tax breaks out of state and import out of state workers to fill the best new jobs, 80 percent or more of state money spent on social welfare and other programs goes to fuel the local economy, according to LeRoy.

State jobs, usually at family wages with healthcare benefits, also create spin-off jobs in the private sector as state workers spend their salaries at local businesses, LeRoy says.

Many state jobs also directly or indirectly help the poor or disabled with job placement and training that creates even more jobs (see main story).

Welfare spending also puts money into the hands of people who are likely to immediately spend the money rather than save it, providing a further boost to the local economy.

LeRoy says it's "just plain stupid" for states to hand out corporate welfare while cutting spending on K-12 and higher education. With the coming shortage of skilled labor due to the retiring baby boom, "regions that have the most skilled labor are going to win," he says.

Another dumb economic development strategy for the state would be to cut income and capital gains taxes for the wealthy while creating a sales tax that would hit the poor the hardest, says Sheketoff. State business leaders are pushing for such tax "reform." Kulongoski said during the governor's campaign that he supports a capital gains tax cut but has been noncommittal on a sales tax or other income tax cuts.

The tax cuts for the wealthy would depress the economy by reducing spending by poorer people and the state while giving money to wealthy individuals to sock away in savings accounts or out of state investments, he says. "It would be awful."    

 

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