Gov. Brown weighing moves to reduce school pension costs

PORTLAND, Ore. (AP) – Gov. Kate Brown is reportedly considering selling the state’s workers compensation insurance corporation or tapping its substantial capital surplus to hold down future pension costs for school districts around the state.

The Oregonian/OregonLive reports that according to documents it obtained via a public records request the idea is still tentative, and it’s not clear it would raise enough money to accomplish the goal on its own.

Chris Pair, a spokesman for the governor’s office, said Monday, “Our office will not be providing comment.”

The proposal to tap SAIF, the state’s 100-year-old employer-funded workers compensation agency, was initially floated in 2017 by a task force Brown set up to look for ways to reduce PERS’ huge unfunded liability. That liability now stands at about $26.6 billion.

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News release from Oregon Manufacturers & Commerce:

OMC statement in response to Governor Brown’s SAIF proposal

Salem, Ore. – Oregon Manufacturers and Commerce released the following statement in response to reported details of Governor Brown’s SAIF proposal:

Manufacturers face some of the highest workers compensation costs of any industry. SAIF helps keep Oregon manufacturers competitive in regional and global markets despite the costly obstacles we face in other areas of our state’s regulatory environment. We unequivocally oppose any attempt to weaken SAIF or to fund anything unrelated to SAIF’s original mission.