Governor Mark O. Hatfield's Administration

Second Inaugural Message, 1963


Mr. President, Mr. Speaker, Members of the Fifty-second Legislative Assembly:

My appearance before you today is which I welcome. The reasons are not all personal in nature. IN the past 16 years, changes in executive leadership have been numerous. There were seven governors in a period of less than twelve years. Even when the transfer of authority is within the same political party there is an interplay of personalities, philosophies, objectives and goals which cannot help but affect the navigation of the Ship of State.

A Responsibility

Oregon’s electorate has again chosen a Republican Governor and a Democratic Legislature. In this circumstance, a word concerning party responsibilities is in order as we set the tone for our endeavors. President Herbert Hoover’s Inaugural Address contained this thesis:

“In our form of democracy the expression of the popular will can be effected only through the instrumentality of political parties. We maintain party government not to promote intolerant partisanship, but because opportunity must be given for expression of the popular will, and organization provided for the execution of its mandates and for accountability of government to the people. It follows that government both in the executive and legislative branches must carry out in good faith the platforms upon which the party was entrusted with power. But the government is that of the whole people; the party is the instrument through which policies are determined and men chosen to bring them into being. The animosities of elections should have no place in our government, for government must coven itself alone with the common weal.”

This thesis retains its validity today. It is in this spirit that I urge we undertake the task before us.

A Guiding Philosophy

In my first Inaugural Address I discussed at some length a guiding philosophy for both the Executive and Legislative branches of government as we entered Oregon’s second century of statehood.

You will recall that I made recommendations which would lead to a more manageable and more efficient government. I would hope the thoughts contained in that first address and those which I voice today may be reflected by actions in this Legislative Session.

A Challenge

Today, Oregon is at a crossroads. Either we progress through continued maintenance of high standards or we assume the mantle of mediocrity through failure to grasp the opportunities which are ours. As a result of you preliminary meetings and review of the budget, again presented more than a month in advance of the Legislative Session, you have now come together forewarned and, I trust, forearmed with full realization of the magnitude of our responsibilities.

The emerging nations of the world, many founded in the same spirit of freedom-seeking which motivated the early settlers of this country, are measuring the steps which are taken in our sovereign states toward meeting the challenges we face while maintaining our capitalistic society and our fiscal integrity.

An Opportunity

This is a day in which there is genuine concern now only in international relations but in matters at our very front door --- the purity of the air we breathe, the cleanliness of our water for consumption and recreation, the traffic congestion contributing to both disorder and death, the deterioration of the core of some of our cities, the crowding of our schools, the broadened intellectual horizons, the care of our unfortunate, the burden of the property tax, the survival of small business, the effects of work stoppages which disrupt the economy both individually and collectively, the optimum productivity of the farm and the distribution of its produce, the apprehensions of automation, the alarming crime rates among our youth. Amid all this there is the psychological myth that we can do nothing about such concerns. The next phase is that of the individual’s overdependence on the state which coincides with the state’s dependence upon federal programs. While it has become commonplace to turn our backs on the problems and our palms to the federal government, we can do much in our day to swing the pendulum back to recognize not so much states’ rights as states’ obligations. We can make Oregon a probing ground for a new spirit of self-sufficiency if we but have the will.


Much has been said about the budget. In its final form, this document is the result of long and conscientious study. Its recommendations represent a total reduction of some $90,000,000 from original requests of the agencies of state government. These original requests may be justified, defended, and advocated before you. The reductions which have been made in no way depreciate the usefulness of the requests which might be met were revenues available.

In you consideration of this budget, I would hope that increases to one program will not be proposed at the sacrifice of another, and that you will make evident the revenue effect of any revisions.


Net Receipts Tax

Previous Legislatures have had before them recommendations from outside tax authorities as well as their own interim committees which are similar to those which I now present. The erosion of our income tax base has been recognized and commented on by these expert observers. They have been in agreement that we must broaden the base of this tax --- increasing the number of taxpayers and reducing the rates. This is the basic reason I have twice before urged the adoption of the net receipts amendment to our income tax law, and now do so for the third time.

In connection with this amendment I offer some basic statistics. Ninety per cent of our citizens have annual incomes of $10,000 or less. A comparison between a net receipts tax plan which I have previously urged you to adopt and the State of Washington with its sales tax reveals the following figures for a family of four.

With an income of $4250, this family’s tax bill in Washington would be $131; in Oregon $43.

With an income of $5250, Washington tax would be $154; Oregon’s $57.

With and income of $7250, Washington --- $201; Oregon --- $137.

With an income of $9250, Washington --- $240; Oregon --- $235.

It is in the spirit of the greatest good for the greatest number that I call these factors to you attention and urge your favorable action on the net receipts income tax amendment.

Cigarette Tax

Oregon is the only state in the Union in which revenue is not derived from the sale of cigarettes. In tow other states the sale of cigarettes is taxed, but not through a special state tax on cigarette sales. In one case it is a city tax; in the other it is a part of the general sales tax. In the light of the state’s fiscal requirements, the adoption of this that seems appropriate and timely.

Taxation of Financial Institutions

Six years ago, the taxation of financial institutions (under ORS Chapter 317) was significantly revised. That law has been challenged in the courts and the process of judicial review is nearing completion. Amendments to the 1957 Act were before the 1961 Legislative Assembly at the recommendation of the Tax Commission, but failed of enactment. The adoption of these amendments, even now, would clarify legislative intent and strengthen the position of the state in collecting the taxes due under the 1957 legislation. Since the amount involved in the present litigation is more than $6 million, I urge you early review of and prompt action on the recommended legislation.

Homestead Exemption

I have previously urged a homestead retention provision whereby the aged, with modest housing and income, could qualify for property tax relief to assist them in retaining the independence and security of their homes. I renew my request today.

Timber Tax

The 1961 Legislature adopted far-sighted, conservation-oriented timber tax laws. They should be retained, but some adjustment may be desirable in the so-called “Small-Tract” law to avoid unnecessary restrictions.


Directly related to income and expenditure is economy in government

A month prior to the convening of the Fifty-first Legislative Assembly, I made available a series of studied recommendations for reorganization of the Executive Branch. Instead of reducing the number of semi-independent board and commissions --- one of the goals of these proposals --- that session of the Legislature added seven.

We can no longer afford a system based upon the theory that limited special interests require special policy-making groups which can operate to the exclusion of the total public interest or the program of a Chief Executive elected by all the people.

My 1961 reorganization proposals, invited by law, are as valid today as when first presented. I recommend that you give priority to establishment of a Department of Natural Resources and a Department of Commerce. The former will be the subject of a special message.

Department of Commerce

You will have before you proposals to afford greater protection for the consuming public. If such protection is to be meaningful the public should have a central point in state government to which it may turn. IN order to coordinate agency activity a Department of commerce should be established to include the functions now performed by the following agencies: Planning and Development, Banking Department, Insurance Department, real Estate Department, and the Corporation Department. In addition, the boards licensing and regulating the following professions and occupations should be included: architects, auctioneers, engineers, pilots, real estate brokers and salesmen, and watchmakers.

There are obviously other areas in which you can reduce the number of boards and commissions, improve coordination, and eliminate wasteful duplication.


A reorganization step of even greater proportions was envisioned by your predecessors when a Constitution Revision commission was established.

Over a half century ago our state adopted the “Oregon System”, a pattern of progressive action which others have followed. Our Constitution lives as an example of the genius of its framers, but many sections are now obsolete. The tools of government have become dulled with passage of time and thus inhibit real progress.

The Constitution Revision Commission has produced a notable document. This Legislature’s greatest legacy can be the referral of a realistic, modern Constitution.


I suggest your approval of the state employee salary recommendations included in the budget, and reiterate that the public interest would be better served through replacement of the statutory method of setting salaries for key administrators to permit their establishment in essentially the same manner as for the classified civil service.

Office of the Governor

State Capitol, Salem

Departure form printed tax in Second Inaugural Address

In this comparison, part of the difference reflects the fact that Washington relies less on the property tax for the support of local government and more on the state subsidy of local government. Although per capita taxes fro both state and local government in Oregon are lower than those in Washington, we need in Oregon a major overhaul in the management and finance of the activities of local government. The reliance of local government on the property tax, with all of its inequities, imposes a discouraging burden on home ownership and on industry and commercial development.

The costs of government --- federal, state, and local --- ultimately can be financed only by taxes. But taxes must be so designed and so administered as to free rather than better our economy. This lesion has resulted in the present chorus demanding revision of the federal income tax. We seem to be approaching a similar consensus about the property tax in Oregon.

I would urge this legislature to such action as will assure that the 53rd Legislative Assembly will have before it a program which will ultimately result in reform of the property tax and reduction of reliance by local government on this unreliable index of ability to pay. We have begun doing so, piecemeal, with state support of local schools, by sharing of liquor and highway revenues, and by state assistance to a wide variety of local function.

We need a fresh approach to the whole complex problem of the financing of local government and the providing relief for the property taxpayers. Shared revenues, state collection of revenue for the benefit of local government, state grants, reservation of present or proposed taxes for local use, and other options, all must be reviewed in the process of production a long-term answer to a problem that has too long defied solution.

This will be no easy assignment and the chants must take place over a period of time that will preclude windfall benefits. But change we must, if we are to preserve a dynamic local government, capable of meeting its challenges. We can point the way toward a fiscal system in which the responsibility for collection of revenues is in the same government that spends our money.

Such a program of reform and reduction of the property tax would be a landmark and a beacon on the path toward more effective local government and a more prosperous state.


A solid foundation exists for consideration of the Capital Construction Program which I have recommended. IN accordance with the law, this program contains plans designed to meet the needs of state government during the next six years. I urge that you give priority to the following:

Capitol Addition

The absence of adequate Legislative quarters is obvious. At the direction of the 1961 Assembly, preliminary plans for a Capitol addition have been prepared for you consideration. A consultant in this planning has been prepared for you consideration. A consultant in this planning has been Francis Keally, the original designer of this nationally-renowned building. I recommend that you select from you membership a special committee to direct preparation of final plans for this addition.

Natural Resources Complex

To house the Salem-based natural resource agencies, I recommend construction of a group of buildings on the Capitol Mall. The first unit should be building to house the Department of Agriculture.

Supreme Court Building

Twice I have recommended that you authorize plans for more adequate quarters for the Supreme Court. I now repeat that recommendation.

Transportation Building

I have recommended previously that first steps be taken toward providing a building to facilitate the coordination of agencies whose primary responsibilities relate to Oregon’s transportation needs. I again urge you to eliminate the inefficient circumstances which find the Motor Vehicle Department located miles from the Public Utility Commissioner, the Highway Department, and the State Police.


Repeatedly I have urged increased attention to our great wealth of natural resources, scenic beauty, and outdoor recreation opportunities. These assets are vital to all our citizens, and our economy depends in large part on their wise use.

Public Lands

As provided in the budget, the public should assume a greater share of fire protection costs because of its growing use of forest and range lands for recreational purposes.

I hope for you unqualified approval of a measure to redesigned Oregon’s publicly-owned beaches as a State Recreation Area.

The management of state lands has been studies by a Legislative interim committee, with particular attention to lands from which income accrues to the Commons School Fund. Constitutional limitations must be recognized. Further, any action program must be preceded by a period off research and planning. Funds should be provided for this purpose. Use of motor vehicles on certain public lands. Passage of law to permit state courts to take jurisdiction over violators of federal regulation would be of material assistance.

Water Resources

Legislation will be proposed to provide a means of overcoming some of the deficiencies of single of limited-purpose water districts. Inherent in this proposal is the multiple-purpose water use concept as enunciated by the 1955 Legislature. With effective state coordination, the proposed Water Conservancy District Law can be of great benefit to the conservation of our most important natural resource.

I hope you will approve the revised Columbia Basin Interstate Compact so the Oregon will retain a voice in this aspect of Columbia Basin water resource planning and development, even though the compact presently envisions only an advisory function.

It would appear that state funds for planning of small watershed projects are of greater importance now than two years ago. Presently there are four such projects in operation or under construction. Thirty-seven applications have been received for which planning must be carried out. There is clear evidence of the need for continued state financial participation in this planning program.

Boating Faculties

Unclaimed taxes on marine fuels should be made available for further development of water-oriented recreation opportunities.

Milk Stabilization

The 1961 Milk Stabilization Law, which was of assistance to the dairy industry, has now expired. As you consider proposals for similar legislation, I hope you will recognize the advisability of price regulation at the producer level only.



The plight of the lumber market, work stoppages in the construction industry, and the Columbus Day storm have adversely affected the revenue estimates which you and I made two years ago. We must continue the quest for realistic forecasts and the effort to improve the opportunities for economic growth.


Our Department of planning and Development reports that during the past two years a total of 196 new or expanded industrial organizations have come into being, with a total investment of $124,851,000 and providing new job opportunities for 21,000 citizens. These and other figures indicate our attempts to diversify the economy and lessen dependence upon seasonally and geographically concentrated industry are producing results. This program continues to demand the cooperation, talent and enthusiasm of local as well as state-wide organizations.

Resisting Temptation

Our state government has thus far withstood the temptation to seek new industry through use of such lure as t ax waivers, land gifts, public bonding for private industrial development. I am proud of industry which seeks full citizenship and is willing to meet its equitable obligations. I believe it to be a perversion of public credit and to be a weakening of the free enterprise system when public capital is used to offset legitimate industrial costs. I trust you will continue to share this view.

Labor-Management Relations

We have recognized that profits and payrolls are inseparable, that labor cannot make gains except as business advances, that management cannot function without labor’s productivity. There is, accordingly, a legitimate public concern that the legislative framework be such as to encourage continues friendly and productive labor-management relationships. This matter will be the subject of a special message.

Port Legislation

We owe much of our growth to development of ports, waterways and related transportation facilities. I believe a comprehensive study of the present and potential contributions f these facilities should be conducted. I am hopeful that the State of “Washington may join in such a study as it relates to the Columbia River.

I recommend that you create an Oregon Port Authorities Commission for the purpose of conducting this study. The enabling legislation should clearly indicate that the tenure of this commission will expire upon completing of its assigned task and presentation of appropriate recommendations to the Fifty-fourth Legislative Assembly. I am not proposing another permanent agency of state government.

Subdivision Law

During the past 18 months, land speculation has significantly increased. This activity can affect the economy either favorable or adversely. Certainly, legitimate real estate development should be encouraged. At the same time, we must assure that prospective purchasers, whether resident or nonresident, are adequately protected from the unscrupulous. In order to maintain Oregon’s reputation for fair dealing and make certain that misleading of fraudulent business practices do not occur here, authority to regulate real estate subdivisions should be given the Real Estate Department.

Inmate Labor

There is general agreement among most citizens that rehabilitation programs are essential to prepare inmates of penal institutions for their eventual return to society. Yet the point at which their activities conflict with private enterprise and free labor has been the subject of disagreement. While the courts may decide a specific case or two, clarification of legislative intent is needed. I would reject the thesis that a new building on the Capitol Mall or a highway or a building for our state system of higher education should be constructed with inmate labor. But between that possibility on some future date and the intra-institution construction which now exists there is a line of demarcation which should and must be drawn.


The principal goal of publicly-financed social services should be the elimination or reduction of dependency. We should work constantly to this end thought rehabilitation, counseling and assistance programs whose purpose and goal is the restoration of self-sufficiency wherever possible, with the attendant increase of self-respect and reduction of public expenditures. Public programs which become end in themselves are not worthy of support. Public programs should be instrument though which individual initiative, talents, and skills can be directed toward independence and self-sufficiency.

Public Welfare

You will recall that there were objections to mobbing the headquarters of the Public Welfare Commission to the state capital. In the 18 months since the move, its purposes have been largely accomplished. There is improved coordination between the Commission and related agencies. There have been substantial savings in space and equipment rentals. These are estimated to be in excess of $80,000 annually as compared to a onetime mobbing cost of less than $60,000.

Many problems remain unsolved. As indicated in my budget message, we intend to attack the root of these problems, and that is why the budget recommends additional caseworkers, investigators, and funds for increased rehabilitation measures.

Our work relief programs have restored self-respect. I hope we may adopts similar public works and natural, resource improvement programs in those areas where they are not presently in effect.


Prior to my 1961 Legislative Message I was advised by some leaders of the Assembly that the Social Security method of providing for the medical needs of the aged would receive immediate favorable action in the Congress and that a recommendation for state-provided aid for the aged would be superfluous. There was doubt in my mind, however, that Congress would act so swiftly, and the Legislature shared this view though passage of a modest medicate program. As a result, more than 6000 Oregonians in need have benefited. Today, the situation is similar to that in 1961. We have no real assurance of federal action.

The special report of the Medicare Advisory Committee outlining suggested improvements in our present program has been made available to you. These recommendations, like those in other areas of social concern, are directed toward reducing dependency and making it unnecessary for many of our citizens to seek full public support when temporary and partial measures can meet the need.

Health Insurance

Continuing growth and improvement in the nature of private health insurance is desirable. The adequacy of voluntary health insurance programs governs the need for public programs. Ground rules governing individual policy issuance and conversion of group policies should be set forth to improve the quality and reduce the cost of health insurance to the retired worker.

Retirement Homes

The tremendous surge in the establishment of retirement housing has been the subject of study by the Small Business Interim Committee. This committee’s report provides a good base for further legislative action to assure adequate protection of retired persons.

Welfare Recovery

The Welfare Recovery program, which is self-sustaining, now operates in only 12 counties of the state. Results indicate that it should be enlarged, and the budget s provides.

Workmen’s Compensation

At the conclusion of the 51st Legislative Assembly I appointed a committee composed of representatives of labor, management and the public to study problems of workmen’s compensation. That committee has recommended improvements which will provide for greater flexibility in securing workmen’s compensation coverage and will, at the same time provide the needed protection for the injured workman. Draft legislation based upon these recommendations will be presented for you consideration. Here once again, our focus must be on restoration of the individual whenever and wherever possible.

Unemployment Compensation

The unemployment insurance trust fund has increased 18.6 % in the past two-year period, but it still does not permit reactivation of the experience rating program. We can work toward this desired goal through insisting upon greater adherence to the basic and original concept of unemployment compensation. I urge that you consider stricter eligibility requirements, particularly in those instance share individuals have voluntarily resigned or been discharged for cause. Individuals who have retired and are not in the labor market should be made ineligible. The unemployment compensation program should be realistically redesigned to provide insurance only for those who are actually in the labor market but unable to acquire employment thought no fault of their own.


This year marks the 100th anniversary of the singing of the Emancipation Proclamation. Oregon has pioneered excellent laws in the field of civil and human rights as they apply to employment, housing, and personal services. But it remains for us to implement these in our hearts and in our actions, with particular emphasis on job opportunities for minority youth.

Congress has referred to the states for ratification a constitutional amendment to abolish post tax requirements: This encumbrance to free exercise of the right to vote should be eliminated, and Oregon’s action should be taken with dispatch. I am submitting Senate Joint Resolution Number 29 of the 87th United States Congress that question and recommend its immediate ratification.


Highway Financing

WE have reached the point at which a critical and objective blew must be taken of bonding for construction of highway projects. By its very nature this method of financing gives preference to a few favored areas of the state. Additionally, because of the interest charges involved, bond financed projects are disproportionately expensive. Principal and interest payments must be met from current revenues, with the result that normal construction programs suffer.

Additional bonding would deplete the flow of highway funds for regular federal and state aid programs. About 45% of the total cost of the Astoria Bridge, Highway 42 and Highway 197 projects authorized for construction through bonding will be in interest payments.

I recommend that no further highway bonding programs be authorized by this Legislative Session. If it is indeed the judgment of this body that our highway construction program should be accelerated beyond present levels, you should consider financing such an increased tempo through an increase in gasoline taxes.

Traffic Safety

Two years ago I strongly recommended adopting of laws providing for maximum speed limits, implied consent for chemical tests for intoxication, and authority for arrest on probable cause at the scene of accidents. I reiterate these recommendations with the prayerful hope that such enforcement measures can be combined with our engineering improvements and our educational campaigns to mitigate one of our civilization’s most pressing and deplorable problems.

As the result of extensive studies and deliberations a Driver’s License Compact and a Vehicle Equipment Compact have been developed and are being submitted to the states for adoption. These Compacts have the approval of numerous organizations including the council of State Governments and the Governors’ Conference. Their adoption is important as a progressive step in traffic safety and as a deterrent to federal intervention in these matters, which should be reserved to the states.

In addition, I request that you establish standards for seat bets, make seat belts mandatory in new cars, and provide strict penalties for those who attempt to elude police vehicles.

Evidence presented by the Oregon Traffic Safety Commission and the National Safety Council indicates that the tragic toll of traffic deaths and injuries can be sharply reduced though application of the measures which I request.

It is within your power to contribute to this reduction though forthright and aggressive action.

Liquor Control

The Seaside disturbance underscored the need for additional alcoholic beverage control. The Liquor Control Commission should clearly have the power upon order of the governor, to immediately suspend licenses in emergency situations. Penalties should also be provided for persons who permit use of their identification cards by other individuals in the purchase of alcoholic beverages.

Juvenile Code

The increase in the rate of juvenile crime is several times that of the population growth rate.

Oregon’s Juvenile Code should be reviewed and amended so as to demonstrate to youthful offenders that they will be held responsible for their acts. Such amendments should permit more efficient handling of juvenile matters by enforcement officials and the courts. A necessary revision should also include permissive court action in the area where the juvenile’s offense too place rather than at the site of his residence.

Dangerous Drugs

Present laws are inadequate to control the sale, distribution and possession of dangerous drugs. The recently-adopted Federal Drug Control Act provides many necessary controls, but referral of violators for federal prosecution is cumbersome and ineffective. I recommend adoption of a state dangerous drug act to permit effective control at the local level.

Public Defender

We have public prosecutors in the office of the District Attorney. Those with means can employ legal defense counsel. Others must accept counsel assigned by the court. Yet, unless we wish a different standard of justice as between the wealthy and the poor, we should establish a realistic public defender system.

We can obtain equal justice under the law though a public defender system, and I strongly urge that you take steps to determine the best type of program for Oregon.


The initiative and Referendum guarantee to our people the final decision in government. Local government provides further assurance that government will truly serve the people’s will. Local government must however, be as effective and responsive as we can make it.

Budget Law

The interim Committee on Local Government has given considerable study to the present local budget laws. These statutes have been amended only on a piecemeal basis since their adoption in 1913. A thorough overhauling is in order.

County Licensing of Business

The spread of commercial activities into non-urban areas has created need to provide public protection against unsanitary, unsightly and other wise detrimental business practices. Such protection is presently available within city limits, and I recommend that county government be afforded similar authority.

County Service Districts

Existing statutes which authorize county construction and maintenance of sewer district should be amended to permit these bodies to provide water supply and distribution facilities where necessary and desirable, as a means of minimizing the numbers of overlapping, independent and relatively uneconomical special service districts.

Similar authority should be given to permit formation of metropolitan sewage treatment and disposal systems where such systems cross over political boundaries. Financing should be permitted through metropolitan area revenue bonds.

Air and Water Pollution Control

To augment local efforts to eliminate air and water pollution, the State Sanitary Authority should be given summary abatement power.

Subdivision laws should be amended to provide for state approval of domestic water supply and swage disposal facilities before any proposed subdivision is platted or filed.

County government should be given authority to establish community air pollution control programs in unincorporated areas and to contract with cities and/or other counties.

Office of the Governor

State Capitol, Salem

Departure from printed text

In second Inaugural Address

Within recent days the report of the interim committee on social problems has reached my desk. I should like to direct you special attention to it as it relates to the care, treatment and rehabilitation of sex offenders as well as recommended legislation concerning marriage and divorce. The bizarre and sordid histories of sex deviates make it imperative we concentrate on what we can do to confront this problem.


The problems of education have obviously not lessened nor has this solution become easier. Our basic educational programs have been discussed in detail in the Budget Message. We have provided for continuation of educational opportunity for the children of migratory laborers. We anticipate the expansion of enrollments in the community colleges and the institutions under the board of Higher Education. We have provided for increased support of local schools and for the education of the mentally retarded both within and outside of our state institutions. We have provided for significant expansion of our vocational rehabilitation program.

School Financing

In my first Inaugural Message, I called for a comprehensive study of school financing. An interim committee a start, but there remains an need for simplification of the basis of school support and a further equalization of the property tax burden as the foundation for elementary and secondary education. In that earlier message I asked that the Legislature give direction pointing toward year-round use of our costly physical plants. Generally they are idle more days than they are occupied. For most communities, we can no longer afford to be bound by schedules which were derived from an agrarian economy.

Coordinated Administration

Educational planning and administration have become increasingly complex. As a result, it is imperative that there be legislative review of the division of the responsibilities between the Board of Education and the Board of Higher Education. In several respects they overlap. In others they duplicate. IN relation to still other responsibilities the assignments are unclear. I have in mind educational television, community colleges, teach certification to name only three. I am also concerned about the competitiveness between the two constituencies which these boards represent. A single board of education, enlarged to perhaps 15 members with a single executive would give more integrated educational leadership and provide the Governor and the Legislature with a better basis for budgetary decision, and with clearer solutions to the education dilemmas which confront us.

In the meanwhile, on an informal basis, I have founded a council of two board members form each board, the two executive officers of those boards, and a member of my staff, as a means of providing a minimum degree of coordination. But, in my judgment, this does not and cannot meet our need.

School Prayer

When the Supreme Court of the United States interpreted the Constitution so the privilege of prayer in schools was challenged, citizens expressed their concern to me in rather full fashion. There has been no Congressional action to clarify this point. Foreseeing no such action in the immediate future, I call to your attention the fact the states can initiate a constitutional amendment. This Legislature can made a start if it shares my view about the privilege of prayer in our schools.

Graduate Research Center

A development of the biennium outside the legal and fiscal framework of state government but requiring the leadership and cooperation of the Executive Branch is that of the proposed Graduate Research Center. To be financed initially form non-state sources, such a Center can provide opportunities for those in industry to keep abreast of scientific developments, earn advanced degrees, and do original research.

Not only can the Center assist existing industry, but also it can attract new job opportunities to our state. The intellectual capacities developed by the high quality of our educational system will have increased opportunity for full utilization in Oregon --- to the benefit of the graduate students, our economy, and our whole society. The loss to other states of brain power educated there is an investment lost.

The Graduate Center can augment our state-supported educational institutions, and I would hope for you warm support of this concept.


One year ago, I asked the heads of the 39 agencies who meet with me in regular session to give explicit attention to the needs of this state, as related to their particular responsibilities during the decade 1963-1973. Their responses have been summarized in four reports under the title, “Decade of Development”. They identify the major issues with which we must be concerned and suggest a basic framework of action. I commend these reports to you and trust they will be of assistance in you deliberations.


It has been said that the problems we meet are never as large as those we dodge. IN recent years, Oregon has approached the threshold of greatness --- of realizing its maximum potential. But sometimes there has been hesitation, sometimes evasion, sometimes a delay in facing up to the decisions which could take us into our greatest era.

During this session of the Legislature we have massive responsibilities, yet we have almost unlimited opportunity. Should we defer needed action, move only timidly instead of bravely, or permit partisanship and personalities to dominate our decisions, we will reject the possibility for progress. May we find and use the resources of courage, wisdom and cordial cooperation in true service to our people.

May it be our goal to take action which will prove that government can be dependable without increasing dependency; that government can recognize opportunity without yielding to importunity; that while government must prepare for tomorrow, it must act in keeping with it capability today, and that decisions taken in the light of current political reality can square with the test of eternal morality. If the discharge of our respective obligations brings us closer to these goals, we will have been faithful to those who have trusted us, and faithful as well to Him in whom we trust our destiny.

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