Oregon State Seal

REPRESENTATIVE MATT WINGARD

OREGON HOUSE OF REPRESENTATIVES

HOUSE DISTRICT 26

FOR IMMEDIATE RELEASE	CONTACT: Michelle Miller
February 9, 2009	503-986-1426

REP. WINGARD: ‘MAIN STREET’ PLAN WILL CREATE MORE JOBS,

COST LESS THAN STATE STIMULUS PLAN

Plan Empowers Communities to Create Jobs

SALEM— Rep. Matt Wingard (R-Wilsonville) said today the Main Street Incentive Program will create more jobs and cost less than the stimulus package passed last week. Rep. Wingard released a comparison of both plans to highlight the advantages of the Main Street program.

“The Main Street program creates jobs and enables homeowners and businesses to invest in their communities without increasing state debt,” Rep. Wingard said. “In addition to providing lasting value in our communities, the Main Street costs less than the state plan that spends hundreds of millions of dollars on public works projects.

Rep. Wingard added that the Main Street program will have a positive impact on revenues for state and local governments. By putting people back to work, the state’s General Fund will immediately receive additional revenue from increased payroll taxes. Local governments will benefit from additional permits and system development fees.

“The Main Street programs puts Oregonians back to work immediately,” Rep. Wingard said. “Growing the economy and creating jobs is the best way to generate the revenue the Legislature needs to balance the budget and prevent painful cuts. The Main Street program will also generate revenue for our cities and counties, providing resources for transportation, public safety and other important services.”

State Stimulus Plan v. Main Street Plan

	SB 338 & SB 5562 "Stimulus Package"	Main Street Incentive Plan
Who decides what projects?	state agencies & state legislators	Oregon homeowners and business owners
What kind of projects?	deferred maintenance on state property	improvements to homes and businesses throughout Oregon
How long to complete?	on average 1 - 3 months	projects of various lengths
When would they start?	some as soon as February	no later than September
Who will do the work?	whomever chosen by the bidding process -- can't by law require them to be Oregon-based companies.	contractors hired by Oregonians would more than likely be based in Oregon.
Will government workers be involved in the bidding and hiring process?	yes -- taking time that could be used doing their actual jobs.	no
Will government workers be involved in overseeing the project?	yes -- again, taking time that could be used doing their actual jobs.	no
Will completed projects add to the local tax revenues?	no - all buildings to be renovated are off the tax rolls	yes - improving the value of residential and business properties will add to the tax rolls
What will the plan cost the state?	$117 million - however, the debt is to be spread over the next 20 years, making the full cost more like $315 million	Oregonians will receive a tax credit for 50% of the cost of the improvements, but this will be spread out over 5 years. There’s no direct cost to the state until April 2010, when Oregonians are first eligible to claim the credit.
Are there any projects that are "green"?	Two solar energy systems and the refurbishing of some lighting & heating systems.	The tax credit will increase to 100% for "green" projects -- but still spread out over 5 years.
Will this help local banks?	no - Oregon State Government will be adding to its current bonded indebtedness and creating more interest obligations for future budgets.	Yes - property owners will borrow from regional and national banks to finance these projects, thereby stimulating the financial sector.
Will this help local government?	no	yes - with additional fees from permits and SDC's & tax receipts, struggling local governments will benefit from this economic stimulus

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