Oregon PERS Court Case Decision Issued: Huge blow to schools, colleges & universities

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We’re disappointed to report this morning that the Oregon Supreme Court has issued a negative decision in a court case seeking to reverse PERS reforms established by the legislature during a special session in October 2013.

The Court’s ruling will reverse MUCH of the reforms, which will have a devastating impact on schools, municipalities, fire districts, and state agencies that participate in PERS.

The decision this morning is a major blow to our schools, colleges and universities. Oregon was back on track with smaller class sizes and adding days back to the school calendar due to the vision of the 2013 legislature and governor.  The Supreme Court brought us back to Oregon circa 2011 with the shortest school year in the nation and reduces services across the board.

“Oregon made a generational mistake in public policy, and the Court has essentially ruled that we have to live with it,” said John Tapogna, President of ECONorthwest. “That puts Oregon in a challenging economic position for the next couple of decades. Families and businesses can choose Washington, with similar amenities, but without the legacy costs of an ill-devised pension system. Washington will be able to offer better public services at all levels of government.”

We will provide additional analysis of the decision in the days ahead.

Read the decision HERE.

Go HERE to read the Legislative Fiscal Office (LFO) analysis of state budget ramifications prepared in advance of the Oregon Supreme Court decision.