Dennis Tuuri

Full PEAPAC Analysis

PEAPAC Explanation: This Measure would let parents prepay, years in advance, college tuition costs, and guarantee a certain rate of return on these prepaid dollars. We oppose this Measure, and recommend a No vote.

PEAPAC Commentary and Recommendation: This measure would guarantee a certain rate of return to those who prepay tuition costs. These moneys would then be invested by the State of Oregon. Should the interest rate on these investments not attain to that guarantee, tax dollars would pick up the difference.

We have several concerns with this Measure. First, it potentially increases government funding of higher education. We believe tax rates should drop, and that many budget items should be reduced. It makes no sense to us, then, to increase taxes to help pay for tuition costs. Second, state financing of higher education seems clearly out of keeping with the proper, biblical role of government.

Third, there are a number of unanswered questions about the implementation of this Measure. What about parents whose children end up not wanting to go to college? What about those whose children end up in universities in other states, or in private colleges? The list goes on.

Fourth, we are generally opposed to the State of Oregon competing with private financial institutions for investment dollars. This Measure would increase State involvement in this area which belongs properly to the private economic sphere.