Published: Sunday, January 09, 2011, 4:50 PM     Updated: Sunday, January 09, 2011, 5:00 PM

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The Oregonian Editorial Board

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Oregon carries all of its old problems into this new year. Its economy is stagnant, its state budget unsustainable.

Schools are yet again on the brink, universities are suffocating. Oregon is among the nation’s leaders in one educational category: the per-employee costs of its health and pension benefits.  

There’s more: Oregon’s tax system invites investors to take their business elsewhere. Public forests are locked down, and rural poverty is rampant. The interstate highway link to Washington is blocked, and no one is moving decisively to open it. And too many homeless and mentally ill people wander city streets.

That’s enough. Oregon has let these problems fester too long. It’s time for action. On Monday, a new slate of citizen-lawmakers and a new governor, John Kitzhaber, will take office. Kitzhaber campaigned on bold reforms and promised the skilled, experienced leadership to make them happen.

So let’s go. Today we offer The Oregonian’s agenda, a list of policy goals and expectations for 2011. There are few surprises. The key economic, budget and education issues facing Oregon are hardly new.

And that’s the problem.

That’s why this state enters another year with double-digit unemployment and a multibillion-dollar budget gap. That’s why we offer “due dates” for our policy goals below and plan to check back on progress throughout the year. This state simply cannot go another 12 months without action on every one of these issues.

Here is The Oregonian’s 2011 agenda:

Focus on Oregon job growth

As we have watched our communities suffer through depression-level economic difficulties and watched our public institutions stagger under the heavy load of too many needs and too few resources, it’s hard to argue the state has developed a well-rounded, vibrant economy. Yes, the entire nation has been staggered by the economic downturn, but Oregon has suffered more than most and has failed to thrive even as other states and regions have begun digging themselves out.

Oregon must do better in rebuilding its manufacturing base. Whether it’s timber or technology, our state cannot escape the ups and downs of the national and international economies. But we can try to protect ourselves better through broader, more diverse economic activity. A number of the goals we listed here aim to address specific needs, but we also need to be highly active in recruiting new business, building and expanding our existing business base and staying alert to new opportunities.

Yes, that means more attention to traditional economic development efforts, through government and community organizations. But it also means adopting attitudes and policies that encourage economic growth and diversity. Due by year’s end.

In addition, Oregon leaders must:

* Work with Congress and the Obama administration to pry open public lands for more logging, forest health and biomass projects. New federal policies are needed to spur the rural economy, fund schools and local services and reduce persistent unemployment. Due by Sept. 1.

* Secure a broad local agreement on the Columbia River Crossing project and send a unified message to members of Congress and federal funders that the region finally is ready to pursue construction of Oregon’s largest and most critical transportation project. Due by April 30.

* Reduce Oregon’s highest-in-the-nation tax rate on capital gains. Chris Dudley, the Republican candidate for governor, was right when he argued that Oregon’s sky-high capital gains tax deters investment in this state. A capital gains tax cut would signal that Oregon is eager to strengthen its business climate and economy. Due by June 30.

Education and government reform

Oregon’s leaders must get the state’s house in order in the areas of education and government operations. In order to do that we must:

* Restructure the Oregon University System. The State Board of Higher Education, a legislative task force and the University of Oregon all have proposed reform plans to free the universities to better manage their limited resources. After years of talk, lawmakers must loosen their grip on the universities and their tuition revenue. Due by June 30.

* Reform and consolidate K-12 schools. Oregon’s system of more than 200 separate school districts and educational service districts is rife with redundancies and unnecessary costs. Moreover, it is led by an ineffectual Oregon Department of Education. Oregon should abolish its elected superintendent of education and bring the post and the agency under the governor’s purview. Due by June 30.

* Restrain the growing costs of public employee pension and health benefits. Require state employees to share in the cost of their health care and further reform public pensions. The total compensation for state, local, school and transit employees must be brought in line with that of the private sector. Legislative action due by June 30. Local jurisdictions as contracts come up during the year.

* Reach bipartisan agreement on reforming the tax kicker and requiring mandatory budget savings to build a reserve account large and robust enough to shield Oregon’s schools and other essential services the next time the state falls into recession. Twice in the past decade Oregon has found itself without nearly enough money in reserve, even after it has just kicked back hundreds of millions of dollars in taxes. That should never happen again. Due by June 30.

* A key step in an Oregon recovery will be to bring the costs of government and schools in line with public revenues. Lawmakers must craft a balanced, sustainable budget, without relying on gimmicks and one-time revenue. Due by June 30.

Confront homelessness and mental illness

While these are issues virtually everywhere, they are particularly acute on the streets of the Portland area. At a time when government budgets are under enormous strain, there’s little hope for major increases in spending on the homeless. But people are suffering and dying of everything from exposure to police shootings. The homeless crisis calls for a stronger, more creative and more concerted response from every level of government in 2011. Due by Dec. 31.

 Yes, these are difficult challenges. If they were easily solved, Oregon would have dealt with them by now. They require brave and bipartisan leadership not only in Salem and Washington, D.C., but in every Oregon community and school district.

They also require the support and engagement of Oregonians, who must keep the pressure on their elected officials in 2011. We’ll do our part by revisiting these issues over and over again in this space, assessing the progress and reporting on what — or who — stands in the way of needed reforms.

You need to speak up, too. We encourage you to send us letters in response to this and other editorials and join the discussions on our opinion website, The Stump. Oregon will solve these old problems in this new year only if you and many others make it clear that you, too, are ready for action.