Merkley unveils his proposals for rural towns ahead of visit

Smith says he will stand on his record

Bend Bulletin
By Keith Chu
July 24. 2008

WASHINGTON — Rural Oregon towns and industries would see a slew of investment in roads and infrastructure, tax credits for farmers, ranchers and loggers, and less free trade, under an economic plan released by U.S. Senate candidate Jeff Merkley on Wednesday.

Merkley, speaker of the Oregon House of Representatives, is challenging two-term Republican Sen. Gordon Smith in the fall election. He released his plan ahead of a swing through Central Oregon this weekend, beginning with a trip to Sisters on Friday.

“Smith, while coming from Pendleton, hasn’t really delivered for rural Oregon,” Merkley said, pointing to the failure to extend county timber payments as an example.

His five-page plan includes a grab-bag of proposals, ranging from a national renewable energy standard modeled after an Oregon law passed last year, to exempting some farms, ranches and forests from federal estate taxes.

In response, Smith spokeswoman Lindsay Gilbride said Merkley didn’t do enough for rural Oregon while in the Oregon Legislature.

Jeff Merkley has a 10-year record of trying to beat rural Oregon into submission,” Gilbride said. “His lackluster and disingenuous proposal is merely fruit from a poisoned tree. It is not credible for Merkley to propose things he spent a career opposing.”

Smith doesn’t plan to release a similar plan, but Gilbride said voters can look to his Senate record to determine his priorities.

“You can see where Gordon Smith is going by looking at where he has been,” Gilbride said. “Sen. Smith has a solid record of accomplishments for rural Oregon, not just election-year conversions, and among his current priorities are increased funding for federal forest management, better quality and access for rural health care, and lower taxes for family farms and small businesses.”

Gilbride said Smith wrote and passed several bills to aid Central Oregon irrigation districts and conservation groups, including a measure reauthorizing the Deschutes River Conservancy, aiding the North Unit Irrigation District and authorizing the construction of the Bend Feed Canal.

Smith also helped secure disaster aid for Oregon fishermen in 2006, Gilbride said.

However, Smith has failed to get the federal government to provide similar aid this year, Merkley said, adding that he would make that a priority if elected.

“It’s not only important what position you take, but what passion you bring,” Merkley said, of Smith’s efforts on emergency aid and securing an extension of the county timber payments program. “I not only had the vision of what would be very helpful, but I went to bat and made it happen.”

Gilbride criticized Merkley’s record on rural issues, including the Legislature’s decision to cut funding to the state Office of Rural Policy. The office closed in April after legislators said it had few accomplishments to justify the $400,000 annual budget.

She also pointed to Merkley’s vote in 2003 against a bill that called for increased logging on state lands and a 2005 bill asking the U.S. government to increase logging on federal lands.

Although Merkley lives in Portland, he said his upbringing as the son of a millworker in Myrtle Creek has given him an understanding of rural issues.

He said his family had to move to Portland as logging and mill jobs became more scarce.

“My family was driven to the big city because of the failure of the rural economy,” Merkley said.

Jeff Merkley’s plan

• Exempt small farms, ranches and forests from the federal estate tax. Last year, the Oregon House enacted a Merkley-endorsed plan that exempted those natural resource properties worth up to $7.5 million from the estate tax.
• Endorsing Sen. Ron Wyden’s forest plan, which calls for more thinning of forests at risk for major wildfires and puts old-growth timber off-limits.
• Pulling out of the North American Free Trade Agreement and Central American Free Trade Agreement. Merkley said these agreements have encouraged companies to move Oregon manufacturing jobs to foreign countries. University of Oregon economist Tim Duy said pulling out of those deals likely would hurt Oregon exports, which make up about 10 percent of the state economy.
• Pushing for an extension of the county timber payments program, which provides millions in support for rural Oregon schools and county governments. Merkley blamed Smith for failing to attract more Republican support to extend the program, which expired this year.
• Calling for more investment in rural infrastructure, including roads, bridges and municipal water systems. Merkley pointed to the need for a $5 million upgrade to the Brookings water treatment facility and millions in new roads and bridges in Deschutes and Crook counties. Merkley endorsed Wyden’s plan to sell $50 billion in bonds to fund new transportation work. Smith has not signed on to that proposal.
• Providing a 20 percent tax credit on up to $50,000 of investment in owner-operated businesses.
• Doubling federal funding for community colleges.
• Requiring 25 percent of electricity come from renewable sources, modeled on the Oregon law passed last year.
• Providing tax credits and loan forgiveness to doctors and nurses who serve rural areas. He also endorsed Wyden’s universal heath care plan.

Posted July 24, 2008
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