The state task force assigned to find ways to pare down the $25 billion deficit in Oregon's public pension fund met for the final time Friday and will deliver their ideas by Nov. 1. 

Gov. Kate Brown effectively assigned the seven-member panel to shake the sofa cushions of state government and see if they could make a $5 billion dent in the Oregon Public Employees Retirement System's massive unfunded liability. 

Though they've developed a laundry list of ideas, it's unclear how many of them are legally or politically feasible or how much money they would actually raise. 

"There's not one silver bullet," said Bob Livingston, a Salem firefighter and union lobbyist on the panel. " It's a series of things that can account for a significant amount of money over time." 

Even a $5 billion reduction in the unfunded liability would have limited impact on employers' costs, as they are still absorbing a series of projected contribution increases designed to pay off the unfunded liability over the next 20 years.  The reduction might head off some future rate increases, in other words, but would be unlikely to cut current costs. 

One possibility – the task force is officially not offering the governor recommendations, only ideas – is for the state to leverage its own efforts by developing an incentive program that will motivate the roughly 900 public employers who participate in PERS to develop their own financial plans to address their individual pension shortfalls. 

"If you don't have a plan to get to the end, it's a bridge to nowhere," said Donald Blair, a former Nike executive who chairs the task force. 

The panel's money-making ideas (and a rough estimate of the financial opportunity, when noted) for Brown include:

New severance taxes on extractive industries

A fee when granting new water rights ($52.5 million a year)

A Cadillac tax on PERS beneficiaries whose annual benefits exceed $60,000

The sale of unused or underutilized buildings and property

Sweeping part of the State Accident and Insurance Fund's $1.6 billion surplus (up to $1 billion) or the state's Rainy Day Fund ($200 million). 

Sweeping agency reserve funds ($100 million)

Restructuring the Common School Fund and transfering unclaimed property to the state after 10 years ($200 million)

Increased collection of state debt ($220 million over 10 years)

A 5 percent surcharge on licenses permits and other fees ($47.5 million/year)

Sweeping windfall revenues from capital gains taxes ($175 million), estate taxes ($50 million), or legal settlements

Liquor surcharges ($60 million/year). 

Blair outlined a carrot and stick approach that might persuade local governments to fully embrace the effort to pay down the unfunded liability faster than the system's 20-year amortization schedule, which effectively passes the problem to successive generations. 

Individual agencies and school districts might be required to develop a plan to address their own unfunded liabilities, probably drawing on a similar list of opportunities identified at the state level.  Those who were able to generate extra dollars to pay down their liability could be provided with matching dollars from the state, while those who chose not to participate could potentially be penalized with higher regular contributions to the system. 

Some members of the panel were uncomfortable with the idea of a penalty.  Rick Miller, a health care executive on the panel, said he was reluctant to see agencies or schools that are already financially strapped take a new hit because they were unable to come up with money to make extra payments on their pension debt. 

The next task for the panel is to develop a detailed outline of their proposals, get some feedback from members then deliver a report to the governor on Nov. 1.  Blair said he had no idea yet whether that list would total up to $5 billion in potential savings, but the intent is to give the governor options. 

"We'll be able to give her some things that make a substantive difference" he said, adding that the governor would then have the hard job of implementing them. 

- Ted Sickinger

503-221-8505; @tedsickinger