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Wyden’s idea for stimulus bonds: loved by states, but under attack
Dugan faces 1st contest in years
Program to pay for Hwy. 97 widening
Onetime deputy DA takes on former boss
By Keith Chu
By Erin Golden
The Bulletin
The Bulletin
WASHINGTON — In the dark economic days of early 2009, as lawmakers scrambled to assemble a bill to stimulate the U.S. economy, attention focused on unemployment benefits, infrastructure spending and tax cuts. But a little-known bond program designed to make it easier for state and local governments to borrow money has led to nearly as much spending to date as every contract, grant and loan funded through the stimulus. Municipal bond markets are the furthest thing from a cable-news talker, but with more than $90 billion in Build America Bonds issued over the past year, the program has quickly become a major way for states to pay for new roads, bridges and other infrastructure projects. Unlike traditional bonds issued by states and local governments, which provide tax-free interest payments to investors, Build America Bonds are taxable. Instead, the federal government pays 35 percent of interest costs to the government that issues the bonds. The program was championed in the U.S. Senate as far back as 2004 by Sen. Ron Wyden, D-Ore., and former Sen. Jim Talent, R-Mo. Now, when Wyden calls the bonds “the hottest thing in municipal finance,” as he’s wont to do, he’s right. In just a year, they’ve come to make up about 20 percent of state and local bond issues, according to the U.S. Treasury Department. The bonds are the answer to a long-standing question, Wyden said: “The country is acutely aware that you cannot have big-league economy with little-league transportation growth. The question is, how do you find new revenue in a way that is politically acceptable?” But critics have pointed out a number of problems stemming from the bond program. See Bonds / A8
The first contested race for Deschutes County district attorney in more than 15 years is heating up, with both candidates touting their experience in and out of the courtroom — and questioning each other’s ability to manage the county’s prosecutors. Patrick Flaherty, an attorney with the Bend law firm of Wright, Van Handel & Flaherty who once served as chief deputy district attorney, is challenging his former • Meet the candidates, boss, District AtPage A9 torney Mike Dugan, in the May election. Dugan says he’s looking for another term because he believes he’s done a good job, and has earned the respect of his staff, law enforcement officials and the community. Flaherty says he thinks Dugan, who was first elected in 1986, has been in office too long and has placed too much of his focus on politics and getting convictions. Both men have worked as prosecutors and defense attorneys, and say they know what it takes to have success in the courtroom and run an efficient office. See DA / A9
TOP NEWS INSIDE IRAN: In secret memo, Gates says U.S. lacks policy to prevent nukes, Page A2 VOLCANO: Another day of canceled flights; any wider impact? Pages A2, A4
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By Cindy Powers The Bulletin
ust more than 2 weeks old, Jaxon Mersereau already belongs to a group that has grown smaller in recent years — people born in Central Oregon. The number of births decreased at every hospital in the region from 2008 to 2009, when both St. Charles Redmond and Mountain View Hospital in Madras saw 20 percent fewer newborns. That number is more than four times Oregon’s statewide decline of nearly 4.5 percent in 2009, according to preliminary numbers. And the regional trend appears to be continuing during the first three months of this year, when the number of births at area hospitals again dropped compared with January through March 2009. The decrease is consistent with a nationwide drop in the birth rate in recent years for nearly all women of child-bearing age, according to numbers released this month by the Centers for Disease Control and Prevention. The national decline has been linked to the recession, with the Pew Research Center finding birth rates in 2008 dropped at a greater rate in states with the biggest decreases in per capita income. But local health officials and an Oregon demographer who studies population trends believe other factors have played a significant role in lowering birth rates. Three major influences: long-term birth control methods, more women seeking higher education and generational birth trends. See Births / A6
J
A N A LY S I S Travis and Carly Mersereau spend time with their 1-day-old son, Jaxon, at the Family Birthing Center at St. Charles Bend on March 30. “It is an economic strain, but we have made certain cuts to our budget to make it work,” Carly said in an e-mail.
Hospital births in Central Oregon St. Charles Bend St. Charles Redmond
Oregon
The Bulletin An Independent Newspaper
SUNDAY
Vol. 107, No. 108, 56 pages, 7 sections
U|xaIICGHy02330rzu
Mountain View Hospital, Madras
Pioneer Memorial Hospital, Prineville
Note: Pioneer closed its family birthing center at the end of 2009.
2005
2006
2007
2008
2009
45,905
48,684
49,373
48,190*
46,083*
2,000
1,942
2,042
1,698
Comparing January-March 2009 and 2010
2009 2010 1,832
1,824
444
1,500 1,000 500
325 202 112
267 240 139
265 228 173
318 250 137
255 199 128
73 55
406
67 43
0 * State numbers for 2008 and 2009 are preliminary Sources: Mountain View Hospital, St. Charles Health System, Oregon Department of Human Services
Greg Cross / The Bulletin
Supreme imbalance: Court leans heavy on Yale, Harvard By Margaret Talev McClatchy-Tribune News Service
We use recycled newsprint
ELECTION
Photos by Pete Erickson / The Bulletin
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Perspective
Milestones
We’re well past the boom years for babies — locally, birth rates have dropped dramatically. Why? Factors like education level, effective birth control and even the recession are at play.
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Community C1-10
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‘Baby bust’
An empty infant ICU at St. Charles Bend last month.
There are about 1.2 million lawyers in the U.S. They learned their craft at 200 American Bar Association-approved law schools, of which the top 20 or so are the most competitive, all with top-notch professors and students. When Justice John Paul Stevens retires this summer, however, the eight remaining members of the Supreme Court — the top arbiter of U.S. law and check on the White House and Congress — will be composed
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• ‘No more Souters’: Why do newer appointees offer fewer surprises? • Foes could target one court contender’s military recruitment views, Page A3 entirely of minds trained at two law schools, Harvard and Yale. (Ruth Bader Ginsburg earned her law degree from another Ivy League, Columbia — but only because she left Harvard Law to follow her husband to New York for her final year of study.)
This Harvard-Yale predominance at the pinnacle of justice gives Barack Obama yet another wrinkle to consider when seeking the best replacement for liberal anchor Stevens, in addition to experience, intellect, age, record, confirmability, gender, race, religion and geographic diversity. (And consider this: Obama, who promised to change how Washington works and to bring a greater diversity of Americans into the power structure, is a Harvard Law graduate.) See Law school / A6
Goldman’s woes just the beginning for Wall Street’s By Louise Story and Gretchen Morgenson New York Times News Service
For Goldman Sachs, it was a relatively small transaction. But for the bank — and the rest of Wall Street — the stakes couldn’t be higher. Accusations that Goldman defrauded customers who bought investments tied to risky subprime mortgages have only just begun to reverberate through the financial world. The civil lawsuit filed against Goldman on Friday by the Securities and Exchange Commission seemed to confirm many Americans’ worst suspicions about Wall Street: that the game is rigged, the odds stacked in the banks’ favor. It is the first big case — but probably not the last, legal experts said — to delve into a Wall Street firm’s role in the mortgage fiasco. It is a particularly sensitive time for Wall Street. Washington policymakers are hotly debating a sweeping overhaul of the nation’s financial regulations, and the news could embolden those seeking to rein in the banks. President Barack Obama on Saturday stepped up pressure for financial reform by accusing Republicans of “cynical and deceptive” attacks on the measure. See Goldman / A5