30312 EXTENSIONS OF REMARKS December 9, 1981 EXTENSIONS OF REMARKS JOBLESS RATE STATE AND pay with your savings, and you just to trim the general operations side of the NATIONAL TRAGEDY about sit there and cry because it took budget. That means they probably will fall so much work to put that money in on welfare, higher education, prison budgets and wage increases state employees are ex­ HON. LES AuCOIN the bank in the first place. It's just de­ pecting. OF OREGON pressing as hell." What a 20 percent cut would mean to IN THE HOUSE OF REPRESENTATIVES For those who have doubts about higher education in the state was spelled the impact on the folks back home of out by Roy Lieuallen, chief officer of the Wednesday, December 9, 1981 history's longest wave of high interest Oregon system of higher education, which • Mr. AuCOIN. Mr. Speaker, the Na­ rates, massive budget cuts in social includes University of Oregon and Oregon tion's jobless rate jumped from 8 per­ programs, a military spending spree, State University. cent to 8.4 percent in just 1 month. In and the largest tax cut in history, I am Western, Eastern and Southern Oregon Oregon, 10.6 percent of the work fore~ inserting several recent articles from state colleges would have to be closed, he is unemployed. In some counties, the the New York Times. They describe said, along with schools of law, dentistry, rate is 20 percent. For Oregon, the loss the critical situation we have in pharmacy and veterinary medicine. No political figure seeins ready to blame of tax receipts, estimated now to be Oregon as a result of the collapse of President Reagan's economic policies for a $250 million less than estimates of just the lumber and housing industry, the recession that began two years ago. Rather, last spring, means a disastrous budget tragedy of joblessness on families, and they point to high interest rates that have situation and more cuts in vital human the jobs that won't be back after the virtually halted home construction and welfare programs. These reductions recession. ruined the state's lumber business. will come on the tails of Federal [From the New York Times, Dec. 7, 19811 The most recent figures show that 126,000 budget cuts of $1.7 billion in food JoBLEss RATE Is CuTTING INTO OREGON's people were out of work in October. In 1980 stamps, $1.5 billion in child nutrition, BUDGET about 36,000 people exhausted their 26-week and $1 billion in health care. eligibility for unemployment benefits; <By Wallace Turner> 14,500 of those also ran through the 13- Recently, Senator PAUL LAXALT of EuGENE, OREG. Dec. 6.- A recession that week period of extended benefits. Nevada was in Detroit to address the began with the collapse of the lumber and "As bad as that sounds, the picture really annual meeting of the National new housing markets in early 1980 has is worse," said Donavon Steward, assistant League of Cities. He expressed concern forced Oregon officials into an almost fre­ administrator of the state employment divi­ that too much money may have been netic search for ways to cut back on a dion. "A lot of people are working only part­ cut from Federal social programs budget that has already been pruned. time and are not listed as out of work." With unemployment at 10.6 percent state­ when control over them was shifted to wide, and around 20 percent in several coun­ the States as part of President Rea­ ties, state revenues from personal and cor­ [From the New York Times, Nov. 23, 19811 gan's · economic program. Senator porate income taxes are expected to run FAMILIES TELL OF LIVING WITH AN LAxALT said Republican Governors $250 million behind estimates made last UNWANTED GUEST: JOBLESSNESS have been telling him they have had a spring. <By Iver Peterson> The problem became evident late last big load dumped on them and they're DETROIT, Nov. 22.-The end sometimes not getting adequate money: "It may month when predictions of advisers to Gov. Victor L. Atiyeh and data on recent econom­ comes in a pay envelope with a slip of paper well be the case in a lot of these ic trends were fed into a computer program titled "Notice of Reduction in Force," a eu­ States-and only time will tell-that designed to simulate Oregon's economy. phemism for a layoff. we've given them too much authority, Although some politicians are a bit uneasy The worker fills out an unemployment too much responsibility, and not about accepting the computer's word for the benefit form and heads for the parking lot enough funding." expected shortfall in revenues, none has with the unfamiliar sensation of having no In Oregon, my constituents already challenged the figures. place to go tomorrow and of knowing that LEGISLATIVE SESSION SET the paycheck will be the last one for a know firsthand what it means to be while. out of work for months at a time, with Governor Atiyeh, a Republican, has called As the recession continues, more and more no hope in sight. The lumber indus­ the Legislature into session beginning Jan. people are finding themselves in this predic­ try's seasonally adjusted unemploy­ 11. Mindful that three quarters of Oregon's ament. The national unemployment rate ment rate of 20.3 percent means that financing comes from income taxes, he and stands at 8 percent, the highest level in six in Oregon, of the 31,076 workers nor­ the Democratic leaders of both houses have years, meaning tht 8,520,000 men and said a tax increase is to be avoided. Some women are out of work and looking for jobs, mally employed in the lumber indus­ legislators may try once again to get voters try, 60 percent are either unemployed, and Government economists predict that it to accept a sales tax, though that would not could rise another percentage point. or working curtailed shifts. Of the 210 be popular either. mills usually working, 140 have either "I don't believe a sales tax is politically These are the stories of a handful of shut down or are operating short saleable here now," said Terry Mattock, ex­ them: shifts. Many will never reopen. ecutive director of Oregon Tax Research, a "You remember the American dream?" nonprofit organization dedil'ated to holding Claude W. Williains asked casually. "Work Ron Wymore, his wife, and five chil­ hard, save your money, get an education, dren live in Molalla, Oreg. His grand­ down taxes. It has not been decided which programs get ahead? I'm kind of discouraged in all father was a logger. His father was a will be cut. The Governor, who announced that now." logger. He was a logger, and a good the grim results of the computer analysis on The phone rang, and Mr. Williams was up one, a professional in a very dangerous Nov. 27, has told department heads to show with a bound, moving his large frame quick­ job. But since last July, he's been un­ him by Dec. 15 what it would mean to their ly around the furniture, snatching up the employed. As a veteran and someone departments to cut the budget by 5 percent, receiver before the second ring had died. who's used to long, hard hours at 10 percent, 15 percent and 20 percent. But it was not a job offer, and he returned work, he sees the dreams he had for A 20 percent cut in operating budgets slowly to the task of feeding Justin, his 22- would produce the needed saving, according month-old son. his family falling apart as he adjusts to the computer analysis. Almost half of the Mr. Williains is 33 and unemployed, laid to the shock of not being able to find budget now goes into tax relief for home­ off last August from the Ford Motor Com­ work anywhere. He sums up his situa­ owners and support for public schools, both pany's huge Flat Rock foundry south of tion like this: "The bills you don't pay of which are viewed as sacrosanct. So the here. He is one of the tens of thousands of with your unemployment check you political leadership now seems determined jobless automobile workers in this area. e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. December 9, 1981 EXTENSIONS OF REMARKS 30313 He grew up on 12th Street, the cockpit of income. It's an awful feeling that makes you ranch house is a heavy drain that will have Detroit's old black ghetto and the center of sick in your stomach." to be stopped for a while. the city's deadly riot in 1967, and he Rod Wymore's grandfather was a logger, "You have to decide which bills you're thought he had come a long way from there as was his father. So after a tour of military going to pay first," Mr. Brown reflected. His to the big brick house in northwest Detroit service in Vietnam and a year as an inspec­ wife, Becky, added, "I'm not one of those where he lives with his wife and two young tor for a trucking concern, he pulled on a who takes this too well. I'm just calling up sons. pair of spike-soled "cork boots" in 1969 and and telling them that my husband doesn't "I didn't want to work in a factory," he went to work in the deep forests of north­ have a job and I'll pay as much as I can." said, "but the money was too good to pass west Oregon.