PART 2
By Toni Webb
February 14, 2015
NewsWithViews.com
Whom Should We Believe, Cherryl-1 or Cherryl-2?
For those of you who read the February issue of the Sneak Preview (p.8), you know that Cherryl Walker was quoted as saying that Toni Webb’s accusations about the mismanagement of the Lottery Economic Development funds were “blatantly false.” But last year, at an July 2014 Business Meeting, Commissioner Walker publicly declared that the Lottery Economic Development funds were mismanaged, calling it a system of “patronage.” See the video clip below, “Cherryl Walker patronage.”
In her two years as Commissioner, why hasn’t Walker ordered an audit and released the results? As a public official, Walker is required to investigate and report wrongdoing to authorities and, hopefully, to her constituents. That’s what public trust is all about.
Having no plan is also mismanagement.
In 1999, the Oregon State Legislature approved a portion of the Lottery proceeds to be given to each county for economic development. Money that should have been used to diversify our economy and create jobs was wasted, along with a lot of other County money that we now know was mismanaged. Commissioner Keith Heck, who has been in office for two years, was on the County Budget Committee prior to being elected in 2012. Commissioner Simon Hare, when he’s not busy texting as you can see him doing in the video referenced above, has been overseeing the County Budget for over four years. Not only has Hare not questioned the disbursement of the Economic Development funds, he did not bring up the idea of creating a strategic plan and hiring an Economic Development Manager until I made it an issue last year. Once I started bringing up the issue publicly, Hare pointed his finger at Commissioner Walker and said “It’s her job,” in an effort to absolve himself of any responsibility. Economic development is the job of all three Commissioners—“The Buck Stops Here” as President Truman said.
All three of the current Commissioners have had the opportunity to disclose the mismanagement to the voters and make people accountable. This accountability would include recently-retired Chief Financial Officer Rosemary Padgett, who was given the responsibility of overseeing the economic development money. Padgett retired last year at 138% of her salary.
The economic development money, amounting to about $4.5 million dollars, is especially important to Josephine County, where the once-thriving timber industry declined and we needed to diversify the economy years ago. Economic development, especially traded-sector, provides jobs and builds the commercial tax base, which in turn helps fund high-quality public services. The citizens, and especially our young people, have a vested interest in seeing that the money is strategically spent and results in job creation. The Daily Courier, whom I have kept apprised of this situation, has declined to investigate or question the use of funds. To flourish, corruption depends on a closely-knit group of self-interested people, who are shielded from exposure. We have also experienced resistance from the BCC; they do not want any negative information to come out. All information on County business, including emails, is public information, although there is often an administrative fee. If you support transparency and would like to contribute to this effort, please see note at the end of this article.
Two of the arguments that I have heard against bringing corruption to public attention are: 1) these unpleasant things should be kept private and worked out in the back room, and 2) let’s not dwell on the past, let’s just do things differently now. In other words, let’s put our heads in the sand and hope somebody fixes it in the future. As Dr. Phil says: How’s that working for you?
Who doesn’t want economic development?
Employers who pay low wages and no benefits—high unemployment means that they can pay low wages or hire part-timers and let the State pick up the health insurance costs. Slum landlords—they don’t want affordable housing built, maintained, and managed by responsible people. Josephine County has not had any new affordable housing projects built in almost 20 years. Unemployment brings more drug use, alcoholism, and domestic violence—so the social service agencies have to add more staff at the taxpayer’s expense. Law enforcement needs more money to build jails and hire more police. There are strong forces at work in Josephine County who benefit from the lack of a prosperous economy.
Even the employed are affected by unemployment because the ripple effects affect the overall economy and the communities where they live. Persistent joblessness is linked to breakdowns in traditional family arrangements, increased use of public assistance, and high crime. As long-term unemployment becomes more concentrated, the city becomes a source of continuous poverty. As buildings and shops sit vacant and neighborhoods become rundown, it becomes more difficult to attract new businesses and professional workers. Many areas in Grants Pass, which used to be desirable neighborhoods, are now blighted with overgrown yards, abandoned houses, and trash. As you drive around the county, the poverty is striking; it is evident that we are in a downward spiral. The county will continue to deteriorate unless the elected officials and community leaders pull together to create economic development. Josephine County has the potential to have a thriving, successful economy, but the biggest impediments are the very people who could turn around the situation.
Richard Michelon, the well-respected former City Councilman and CPA by training, has gone through the County’s records. I have a team of people who are involved in this investigation. I have spoken to the Chairperson of the Lottery Commission, who in turn has contacted Kate Brown, the Oregon Secretary of State. Brown responded that, in 2011, the Legislature passed a bill authorizing the State Auditor the power to conduct audits of funds given to counties from the Lottery. ORS 297.210(1)(c) We have requested that Secretary of State Kate Brown launch an audit. Like to see an audit?
Email Kate Brown at: Oregon.sos@state.or.us
We also need to make the Legislature aware of the ongoing lack of accountability of Lottery funds given to the Counties for economic development. After the State disperses the money to the Counties, there has been no follow-up report required or accountability of any kind. This, in turn, makes it easy for Commissioners to hand out the money based on cronyism and patronage. The majority of citizens are very appreciative that people are finally stepping up, being public about the corruption, and trying to level the playing field so that more people have the opportunity to prosper—instead of just a handful of insiders.
Distrust in government has brought “canaries” out of the woodwork in the County. Early coal mines lacked ventilation systems, so miners would bring in a caged canary. Canaries are very sensitive to methane and carbon monoxide, both dangerous gases that can build up in the mine. A dead canary alerted the miners to get out of the mine immediately. There is a group of people who come regularly to BCC meetings to shine a light on problems. While they may not always have solutions, they are providing a valuable service in letting people know that there is a problem.
I have twice presented the BCC with a plan for economic development. Hare initially was very enthusiastic about my plan; he told me that he had asked the Human Resources manager to prepare a job description for an Econ Dev Coordinator. Enthusiastic, that is, until I ran against him as a write-in candidate last November. He then said that he would never work with me on anything again. The voters weighed in on Hare by giving him only 39% of the vote.
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My second proposal last month was predicated on forming a nonprofit economic development corporation (EDC). The EDC would primarily be funded by County economic development funds and then transitioned to more private and grant funding. Legislator Carl Wilson was impressed with the plan; he offered to donate to the nonprofit and help with fundraising. Hare recused himself from voting on the presentation, citing his inability to be impartial towards me. Not the response we needed from an elected official. A few months ago, Hare and Heck were in favor of paying a fellow from Jackson County to manage economic development for Josephine County. Commissioner Heck appears to be just laying low, alternating between irritation and making silly remarks, and collecting his paycheck. Commissioner Walker has said that she will present her strategic economic development plan this month, complete with action items and benchmark dates for accomplishments.
[NOTE: To review my economic development plan, please visit: www.toniwebb.com. If you are interested in helping to fund a private economic development initiative, please contact me. Help defray our research costs, please support the cause of transparency and accountability in your government—information on the website. Thank you, Toni Webb] For part one click below.
Click here for part -----> 1, 2,
© 2015 Toni Webb - All Rights Reserve
Share This ArticleToni Webb is a native of Grants Pass, OR. She has an internet marketing business. After studying international relations at the International Peoples College in Denmark, she returned to Oregon to get her BA at Marylhurst University. She then went on to get her MBA and a Masters equilvalent in Healthcare Management. She has founded three nonprofits and served on the Boards of five nonprofits.
Toni was formerly on the City of Grants Pass Historic Buildings and Sites Commission. She is currently on the Josephine County Historical Society Board and Josephine County Spay and Neuter Fund Board. She ran for County Commissioner in 2012, coming in second in the General Election with 46% of the vote. Running as a write-in candidate in 2014, Toni received nearly 5,500 votes. She continues to promote business development and job creation.
E-Mail: toniwebb3@yahoo.com
