Don't ignore election.

Byline: The Register-Guard

As of Friday, fewer than a quarter of Oregon voters had returned their ballots for the special Sept. 16 election. Measure 29, the only issue on the ballot, has clearly not captured the voters' attention. That's peculiar, because Oregon just finished a marathon legislative session that highlighted the importance of every tax dollar. Yet here's a proposal that would save millions, and people aren't interested.

Measure 29 would give the state treasurer the constitutional authority he needs to issue general obligation bonds to refinance the state's unfunded obligation to the Public Employees Retirement System. The obligation must be paid; the only question is whether Oregon should seek the lowest available rate of interest. General obligation bonds can be sold at a lower rate of interest than any other public debt instrument.

Oregon's unfunded PERS liability is so large that even a small reduction in interest rates yields significant savings. The state is currently obliged to pay an average rate of 8 percent on its $2.3 billion unfunded liability. State Treasurer Randall Edwards estimates that refinancing that amount at a lower rate could save up to $1 billion over 25 years. Indeed, $90 million in savings from refinancing has already been built into state and local budgets for the next two years.

Edwards can turn to other forms of borrowing if voters reject Measure 29, but these types of debt carry higher interest rates. The difference amounts to an estimated $44 million - still a substantial amount, even when spread across many years. By denying the treasurer the ability to issue general obligation bonds, Oregonians would be leaving money on the table.

Nothing about PERS is simple, and public finance is equally complicated - Measure 29 combines both, causing many voters' eyes to glaze over. But the essence of the issue is simple: A debt financed at a low rate of interest costs less than a debt of equal size financed at a higher rate. Voters should take the trouble to vote yes and deliver their ballots to a collection point - it's too late to mail them. The savings will be shared by everyone.