DeFazio takes on money matters.

Byline: Susan Palmer The Register-Guard

Rep. Peter DeFazio faces three key legislative efforts, all of them about money, as he begins his 10th term and 19th year representing the Fourth District in Washington, D.C.

Social Security privatization, county payments and highway funding top his list of priorities, he said Friday.

The Springfield Democrat expects to help push through legislation that renews the "County Payments" law, set to expire in 2006. Established in 2000, the federal money goes to counties that have federal forests within their boundaries and fills the financial gap created when timber harvests were cut severely.

Oregon is among the top beneficiaries of the county payments legislation, and Lane County will receive $40.8 million this fiscal year. The money is earmarked for a variety of programs. This year, $6.6 million will support rural schools, $19.7 million will be shared with cities to maintain roads and the rest will go into the general fund.

County administrator Bill Van Vactor called the county payments, "essential, critical, fundamental, choose any word you want."

By comparison, the county raised $25 million from property taxes this year.

As the ranking Democrat on the surface transportation subcommittee, DeFazio expects to be able to funnel money to Oregon to deal with a $4 billion backlog in bridge repair and road construction, primarily along Interstates 5 and 84.

Besides improving the roads, the economic ripple effect benefits the state, he said. Federal estimates suggest that every billion spent on roads translates into 46,000 jobs, DeFazio said.

"It's a sure way to put people back to work," he said.

The congressman also expects to mount a stiff battle against the Bush administration's plans to partially privatize Social Security.

President Bush wants younger workers to redirect part of the money that goes into Social Security to IRA-style accounts that could be invested in the stock market.

But that plan will cost trillions of dollars to implement in an effort to fix a system that only needs minor tweaking, DeFazio said.

Estimates differ about how severe the problem is, DeFazio said.

The Congressional Budget Office thinks there's enough money to pay 100 percent of benefits through either 2042 or 2052 and 75 percent of benefits after that without making any changes.

Instead of privatizing, DeFazio would like to discontinue the cap on Social Security contributions.

Those who make more than $90,000 aren't subject to the payroll tax and DeFazio would like those workers to begin contributing.

To keep any surpluses from being spent on other government programs, the money could be invested, he said.

DeFazio has planned several town meetings to describe his plan and get input from constituents.

He's already hearing from many, mostly older concerned Oregonians.

"We've had a tidal wave of calls against privatization," he said.

MEET WITH DEFAZIO

In Eugene: Saturday, Feb. 5, at 10:30 a.m. at the EWEB training center, 500 E. Fourth Ave.

In Springfield: Saturday, Feb. 5, at 12:30 p.m. at the Springfield City Council Chamber, 225 Fifth St.

In Albany: Saturday, Feb. 12, at 11 a.m. at the Willamette Events Center Conference Room 4, 3700 Knox Butte Road.

In Corvallis: Saturday, Feb. 12, at 1:30 p.m. at the Corvallis Public Library, 645 N.W. Monroe Ave.