Will we circle into a drain? Low investments in education and
high income tax rates threaten further erosion of personal income
levels The U.S. and Oregon economies appear poised for a slow,
jobless recovery. Aging of the Baby Boom generation will increase
the age 65+ population by 46% during 2010-2020, putting upward
pressure on Medicaid spending. High health inflation will continue,
which will drive up the costs of Medicaid and public employee
compensation. Legacy costs of a poorly managed/conceived public
employee pension system have come due.
Slide 3
Slow Economic Recovery 1980 1990 No change 2007 State forecast
2001
Slide 4
The number of Oregonians aged 65+ will increase 46% during
2010-2020. Or about 60 per day. And, as they retire, theyll take
their diplomas and experience with them.
Slide 5
Fewer workers to pay for an aging population
Slide 6
The incoming workforce is less educated
Slide 7
Legacy costs of a poorly designed and managed public pension
system have come due
Slide 8
Costs of an Aging Population will Hit Soon Source: ECONorthwest
calculations using data from Mercer, Kaiser Family Foundation, and
Health Affairs
Slide 9
Decade of Deficits Revenues (bns.)Expenditures (bns.)
Slide 10
With no sales tax and recent income tax increases, Oregon
income and capital gains taxes are among the highest in the nation
M 66