oregon business plan

PHOTO BY FRANK MILLER

FLASHBACK: MAY 1989. Gov. Neil Goldschmidt unveils a set of policies under the lofty title Oregon Shines: An Economic Strategy for the Pacific Century . Its mission was an overhaul of the state’s economy, one that would involve social and environmental factors as contributors to a healthy situation.

“We are clear about what we want: well-paying, productive jobs for Oregonians, providing an economic base that enriches all aspects of Oregon life,” wrote Goldschmidt. It’s a rallying cry that sounds like the ones still heard today.

To execute the Oregon Shines plan, the state Legislature formed the Oregon Progress Board. The board was charged with establishing and tracking a set of benchmarks that would measure its progress toward the goal of better: better jobs, better quality of life.

Over the years, Oregon Shines and its benchmarks gained an air of celebrity in the wonkish ranks of public policy schools. It’s a case study. Harvard University’s John F. Kennedy School of Government recognized the policy with an award in 1994.

One could argue that Oregon Shines is better known outside the state than inside, where its ’70s-sounding name is all but forgotten.

That’s because, other than an enthusiastic overhaul in 1997 under Gov. John Kitzhaber, Oregon Shines has been pushed aside as the state’s lawmakers have dealt with more urgent matters, such as billion-dollar budget shortfalls. (Remember the first half of this decade?)

In 2002, the Oregon Business Plan was established with the stated goal of working together to build a stronger, more competitive state economy. Each year, the Business Plan publishes its Competitiveness Index, a booklet of benchmarks that puts the state’s economic performance in perspective. Is any of this starting to sound familiar?

It’s no coincidence. The first executive director of the Oregon Progress Board was Duncan Wyse, who now heads up the Oregon Business Council and is champion of the Oregon Business Plan. “We did the original Oregon Business Plan with the Progress Board,” Wyse says. “They’re highly integrated.”

Last year at its leadership summit, the Oregon Business Plan leaders embraced sustainability as its organizing principle, as in: Oregon should stake its leadership claim in sustainability. There was much talk about woody biomass, wave energy and why green is good for business.

This year, the summit’s theme is “moving forward,” and on the agenda is the launch of initiatives “aimed at leveraging Oregon’s reputation as a ‘green’ leader to build sustainable environmental, economic and social vitality.”

FLASH FORWARD: 2008.  There’s an opportunity this year for the Oregon Business Plan to join forces with the Oregon Progress Board and get focused on Oregon Shines 3 (name change optional).

Many agree that sustainability is good for Oregon and its businesses. But is Oregon ready to evolve beyond green practices and talk about an all-encompassing approach to sustainability? Sustainability, holistically defined, includes a healthy economy, a thriving population and a rescued environment in a rising-tide-lifts-all-boats continuum.

And, frankly, the Oregon that’s attracting all the young creatives to move here and look for scarce jobs, the Oregon that’s home to Silicon Forest and acres of actual forests and 36 counties each with a unique set of assets, skills and economic realities, needs a rising tide.

“A good plan is not enough,” says Rita Conrad, executive director of the Oregon Progress Board, who is spending the majority of her waking hours developing a plan for the next round of updates to Oregon Shines. “What we need is implementation.”

“There’s a buzz going on in Portland right now. It’s becoming known for all of its work on sustainability,” Conrad says. “But there are plenty of things Portland is weak on: homelessness, hunger, education. Based on our own grading system, when we compare the data, we’re not making our targets.”

Like the original version of Oregon Shines, the Oregon Business Plan has a sharp focus on jobs, and both Conrad and Wyse see it as a part of whatever the new larger policy will be.

“There are a series of issues we’re not going to take on,” Wyse says. “We’re one voice. This is the business perspective. There’s a chance for Oregon Shines 3 to bring a lot more folks in the room.”

Wyse admits that the Oregon Business Plan’s focus on sustainability, the holistic version, has been overshadowed by the state’s advantage in green business.

Gail Achterman, director of the Institute for Natural Resources at Oregon State University, agrees. “If we’re serious about sustainability, about the triple bottom line, then we need to have a framework, a plan. We won’t address the links without looking at the system.”

Achterman, who was Goldschmidt’s natural resources policy adviser when Oregon Shines was first introduced, spoke to the Oregon Progress Board’s directors in October and confessed to them that after reading over the first and second Oregon Shines, she was depressed.

“We haven’t made progress on some pretty key goals,” she said. “The report in 1989 was very silo-ed. That’s not the way the world works. Nobody has a forestry problem; it’s more complex than that. The historic silo approach isn’t working. Water and land-use planning: They’re completely disassociated now. It makes no sense.”

Is Oregon Shines a powerful enough framework to forge the links necessary to solve the state’s cross-silo problems and make true sustainability possible? As Achterman puts it: “It’s the only framework we’ve got.”

James Sager, Gov. Ted Kulongoski’s policy adviser for workforce and education, says the governor, who has so far been uninvolved in planning for Oregon Shines 3, plans to use his time at the Oregon Business Plan summit to talk up the plan.

“We will do what is necessary to promote the effort,” Sager says. “He sees this as being very important.”

But count Russell Dondero, adjunct professor at Portland State University and august expert on Oregon politics, among the skeptics. “I’m not convinced it’s a benchmark that legislators or the governor really pore over,” Dondero says. “I think it’s primarily something that policy wonks pay attention to in the academic community.”

“Given the data in front of us, it’s expensive to live in Oregon. There are haves and have-nots; 14% of the state lives below the poverty line,” Dondero says. “[Oregon Shines] will only be useful if the Legislature and the governor are willing to look at the data without preconceptions. In this state we’re so polarized. There’s no capacity for rational discussion.”

Conrad gets the challenge. “A good plan is not enough” has become her mantra. She’s working on a business plan for Oregon Shines 3 and talking to potential funding partners including the Meyer Memorial Trust, Oregon Community Foundation and the Ford Family Foundation.

She’s worried about launching the formal process for updating the state’s strategic plan too quickly. She wants it to bigger, and better, than previous versions of the initiative.

Perched at the edge of the next century, there may still be time for Oregon to get serious about a broader definition of sustainability — one for the haves and the have-nots — but it’s not going to be easy. It will require consensus on a common set of goals and a clear, widely broadcasted strategy for getting there.

“We need to include all voices, all business organizations,” Conrad says. “How do you include everyone? That’s an important question, and we’re working on that.”

Have an opinion? E-mail [email protected]

Oregon Business Team

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OEDA News and Events

Business oregon releases 5-year strategic plan.

The Plan Maps Out Priorities, Strategies, and Actions for the State’s Economic Development Agency

The new strategic plan identifies most pressing economic development challenges facing the state of Oregon, from both quantitative analysis and qualitative perspectives of stakeholders. The resulting priorities and strategies specifically address the shifting economic landscape, changing demographics, and unique strengths of Oregon’s industries, businesses, and entrepreneurs.

“While Oregon’s economy has one of the best GDP growth in the nation, low unemployment levels, and record export growth, I’m focused on ensuring economic growth reaches all corners of the state, particularly in our rural communities,” Governor Brown said. “That’s why Business Oregon’s new direction lays out clear priorities focused on innovation, growing our small businesses, stabilizing our rural economies, and promoting shared prosperity throughout Oregon.”

“This plan is targeted and outcome-focused,” said Business Oregon director Chris Harder. “Our strategic plan will inform our initiatives, work plans, program implementation, and budget decisions. And we know outcomes of our work will not be achieved alone, our partnerships throughout the state will determine our shared success.”

Business Oregon communicated with hundreds of stakeholders, including many OEDA members. Participants included state legislators and elected officials, local governments, tribal leaders, heads of regional business development organizations, business CEOs, representatives of academic institutions, entrepreneurs, and Business Oregon staff.

Priorities identified in the plan are:

• Innovate Oregon’s Economy
• Grow Small and Middle-market Companies
• Cultivate Rural Economic Stability
• Advance Economic Opportunity for Underrepresented People
• Ensure an Inclusive, Transparent, and Fiscally Healthy Agency

The full plan and supporting analysis is available on Business Oregon’s  website .

Leadership Summit, Building Opportunity , Returned In Person with Fresh Policy Proposals

The Oregon Leadership Summit returned to the Oregon Convention Center on December 6 for its 19th session since 2002. In keeping with the year’s theme, Building Opportunity , the forum advocated policy and investment proposals in manufacturing, workforce education, and other opportunities to benefit more Oregonians, in particular those historically excluded and hit hardest by the pandemic.

This Summit reflected the uniqueness of the moment. The pandemic and trends long evident are changing the nature and demands of work. Too many Oregonians have been excluded from the benefits of prosperity. Our natural systems are under stress. Historic changes in global supply chains and markets have created a pivotal opportunity to grow manufacturing and jobs. That, in turn, calls for upgraded workforce education and support that’s accessible to more Oregonians.

At the same time, Oregon’s coffers are flush with unprecedented federal funding and state revenues that could be well used to promote manufacturing, invest in upgraded workforce systems, and address a wider range of infrastructure and human needs.

This Year’s Policy and Investment Proposals

Here’s a summary of policy and investment proposals favored in this year’s Summit for initiation in 2022. To read the full policy papers, click the title.

• Summary of the Shared Prosperity Strategy for the 2020s with Priorities for 2022 and 2023.
• Shared Prosperity Strategy for the 2020s.
• Manufacturing Reset; Semiconductor Expansion. Oregon has an extraordinary opportunity to grow its manufacturing base across many sectors. Our policy recommendations highlight specific changes needed in land use (more land, more infrastructure), workforce (significant need for investment in training), regulatory environment, research, and more. The most urgent opportunity is semiconductor expansion.
• Adult Workforce Investment . Tens of thousands of Oregonians lost jobs during the pandemic. With ARPA dollars, we have the opportunity to retrain them for high-wage, high demand positions in manufacturing, health care, and construction. As we do so, we can reinvent the way we provide services to dislocated adults.
• Broadband. During the pandemic, broadband has become a critical resource for work, education, health care, and personnel connection, yet many Oregonians do not have access to it. Three components of a broadband strategy include access, affordability, and adoption. Of the three, adoption is the most challenging. It will require provision of community-based technical assistance, equipment, and software, as well as promotion of internet benefits and literacy for those not now connected. Our strategy recommends redirecting dollars to this important component.
• Housing .  Oregon is stuck in a housing affordability crisis that has extended more than a decade. Overpriced housing is leaving thousands of Oregonians without shelter, stressing family incomes, and making the state a difficult place to live, work, and attract talent. The crisis stems from producing too few housing units relative to population and job growth. We need to support accelerated housing production – 30,000 units per year – envisioned by the 2019 Legislature through HB 2003.
• EITC and Child Tax Credit. The tax code has become an important tool for providing supports and encouraging upward mobility for low-income Oregonians. Unfortunately, too few Oregonians take advantage of the opportunity.  Investment in tax preparation services and outreach through community-based organizations could make a big difference. The Legislature should act to fund these services.
• Interstate Bridge Replacement. Replacement of the I-5 Columbia River bridge is back on the table. In 2014 replacement of the bridge was a top priority of the Oregon Business Plan. All of the reasons to replace the aging Columbia spans are still in place: transportation safety and efficiency, West Coast commerce, regional economic opportunity, and construction jobs. By April 2022 the Interstate Bridge Replacement Program intends to finalize design plans for a new bridge. With an infusion of federal dollars likely, Oregon and Washington stakeholders must rally to this effort. At the same time, Oregon must find a solution on the I-5 Rose Quarter Improvement Project, which seeks to alleviate congestion just south of the Columbia crossing and redress historic disruptions to the Albina community.

Supporting Documents

• Oregon State and Local Tax Burdens , State Tax Research Institute, prepared for Oregon Business and Industry
• The Connection of Oregon’s Manufacturing Sector , ECONorthwest, prepared for Oregon Business and Industry Education and Research Foundation and the Oregon Business Council

Media Coverage

Here’s a sampling of media coverage immediately following the event. We’ll add other stories to this list as they are published.

Leaders to discuss economy at Oregon Business Plan Leadership Summit – Portland Tribune

Intel’s CEO: Oregon has more at stake than any other state in chip industry’s revival – Oregon Live

Oregon Gov. Kate Brown floats $200M legislative package aimed at diversifying state’s workforce – Oregon Public Broadcasting

Oregon Business Plan: Inflation in the spotlight as manufacturers talk challenges – Portland Business Journal

Oregon Business Plan: Leaders on learning Covid’s lessons   – Portland Business Journal

Oregon task force aims to renew growth in state’s chip industry – Oregon Live

Investment needed in higher ed, job training to recover from pandemic, Oregon leaders say – Salem Reporter

Key Speakers and Participants

Summit Photos and Videos

View videos of the speaker and panel discussions from the December 6 Leadership Summit here .

View videos on Oregon’s manufacturing here .

View photos of the December 6 Leadership Summit here.