Neil Goldschmidt

Goldschmidt won a seat on the Portland City Council in 1970.[4] As City Commissioner (1971–1973) and later as Mayor of Portland (1973–1979), Goldschmidt participated in the revitalization of the downtown section of that city. He led a freeway revolt against the unpopular Mount Hood Freeway, building consensus among labor unions and other powerful entities to divert Federal funds initially earmarked for the freeway to other projects, ultimately expanding the federal funds brought to the region to include the MAX Light Rail line and the Portland Transit Mall.[7] He is widely credited with opening up the city's government to neighborhood activists and minorities, appointing women and African-Americans in a City Hall that had been dominated by an "old-boy network".[8] During his mayoral campaign, he questioned the benefit of expanding the city's police force, preferring to direct resources to crime prevention.[9] According to Nigel Jaquiss, a reporter for Willamette Week, for thirty years he was "Oregon's most successful and charismatic leader".[10]

In 1973, Governor Tom McCall appointed Goldschmidt to what would be known as the Governor's Task Force, which was tasked with exploring regional transportation solutions.[11] Goldschmidt served alongside notable leaders: Glenn Jackson, chair of the board of Portland Power and Light and chair of the Oregon Transportation Commission, was considered the state's leading power broker on transportation issues; and Gerard Drummond, a prominent lawyer and lobbyist, was president of Tri-Met's board of directors.[11] The task force considered an unpopular deal that would have funded the construction of the Mount Hood Freeway, which would have bisected southeast Portland.[11] The deal, which would have been 90% funded by the Federal Highway Administration, was rescinded, with first the Multnomah County Commission and, later, Portland City Council reversing their positions and advising against it. Goldschmidt was initially opposed to diverting funds to light rail, instead favoring busways and more suitable local road projects; as the 1981 deadline to reallocate the funds approached, however, light rail became a more attractive prospect. By a process not clearly documented, light rail was included in the final plan. All federal money initially intended for the Mount Hood Freeway ultimately went to other road projects, but the total amount was doubled and the first leg of MAX light rail was approved and ultimately completed in 1986.[11]

Goldschmidt became the sixth U.S. Secretary of Transportation in 1979. His recess appointment by President Jimmy Carter came on July 27 of that year, as part of a midterm restructuring of the Carter administration's cabinet positions.[12] The United States Senate confirmed his appointment on September 21, and he was sworn in on September 24.[13] In this position, Goldschmidt was known for his work to revive the financially ailing auto industry,[14] and efforts to deregulate the airline, trucking and railroad industries.[4]

A newcomer to the Carter administration and to national politics, Goldschmidt traded not only on his experience in transportation planning, but on his political acumen as well; following Carter's unsuccessful bid for re-election in 1980, Goldschmidt expressed doubts about the future of the Democratic Party if it couldn't learn to cultivate political allies more effectively.[15] Goldschmidt's time in Washington, DC, informed his own understanding of politics, as well.[16] He remained in office through the remainder of the Carter administration. In late 1979, Republican presidential hopeful John B. Anderson called for Goldschmidt's resignation,[17] and members of the United States Senate Banking Committee later chastised him,[18] for having suggested that he would withhold transportation funds from municipalities, such as Chicago and Philadelphia, whose mayors supported Ted Kennedy in his primary election bid against Carter.[12] Goldschmidt resigned at the conclusion of Carter's term on January 20, 1981.[19]

Between positions in public office, Goldschmidt was a Nike executive during the 1980s,[20] serving as international Vice President and then as president of Nike Canada.[4] He was considered as a potential chair of the Democratic National Committee in 1984.[21]

In June 1985 Goldschmidt announced his candidacy for Oregon Governor. His name familiarity and access to large donations through his business and political ties made him the Democratic front runner. He easily defeated Oregon State Senator Edward N. Fadeley in the May 1986 Democratic primary. Goldschmidt defeated Republican Secretary of State Norma Paulus in the 1986 general election 52% to 48%, succeeding two-term Republican Governor Vic Atiyeh,[22] becoming the state's 33rd governor.

Goldschmidt's policy for economic development brought together Democratic liberals and Republican business leaders. His personal focus was on children's rights, poverty and crime, but the challenge of meeting increasing needs with a decreasing budget overshadowed his tenure. An anti-tax movement took hold during his term, passing the landmark Measure 5 in 1990, which restricted the generation of revenue by property tax.[23] He was credited with leading "The Oregon Comeback", bringing the state out of nearly eight years of recession, through regulatory reform and repair of the state's infrastructure.[4]

Goldschmidt oversaw a major expansion of the state's prison system. In May 1987, he hired Michael Francke to modernize the state's prisons, which an investigator had described as overcrowded and operated as "independent fiefdoms".[24] Francke was charged with supervising a plan to add over 1000 new beds to the prison system.[25] Francke was murdered in the Department of Corrections parking lot in 1989.[25]

In 1990, Goldschmidt brokered agreements between business, labor and insurance interests that changed the state's workers' compensation regulations. Workers' compensation has been a contentious issue in Oregon for some time, as the state-run State Accident Insurance Fund (SAIF) insures approximately 35% of the workforce. The legislature passed a law as a result. The changes were considered to benefit the insurance industry and business interests, at the expense of claimants, who were required to establish more extensively that their employers were responsible for injuries. The issue was contentious for some time, involving lawsuits and various efforts to modify the law.[26] In 2000, Governor John Kitzhaber attempted to reform the system again. This led to a new law in the 2001 Legislature, which was complicated by an Oregon Supreme Court ruling that occurred during deliberations.[27][28]

Goldschmidt's Children's Agenda was important in Oregon with its community initiatives.[23] In 1991, he helped create the Oregon Children's Foundation, as well as the Start Making A Reader Today (SMART) literacy program, which puts 10,000 volunteers into Oregon schools to read to children.

Goldschmidt declined to run for re-election in 1990, despite the widely held perception that he could have been easily re-elected; at the time, he cited marital difficulties.[29] Bernie Giusto, who was Goldschmidt's driver at the start of his term and later became Multnomah County Sheriff, was widely rumored to be romantically involved with Goldschmidt's wife Margie (and would later date her openly after the Goldschmidts' divorce).[30]

Goldschmidt had hoped at one time to serve two terms, noting that most of predecessor Tom McCall's accomplishments came during his second term.[23] In his farewell address to the City Club of Portland, he stated: "After only four years, everything is left undone. Nothing is finished."[23]

Goldschmidt founded a law and consulting firm, Neil Goldschmidt, Inc., in Portland in 1991, four days after leaving office as governor.[31] His clients have included Schnitzer Investment, Nike, PacifiCorp, Paul Allen, Bechtel Enterprises (a subsidiary of Bechtel Corporation), and SAIF.

Even out of elected office, he was widely considered the most powerful political figure in the state for many years. His influence extended all over the state and the nation. As a member of the Oregon Health & Science University board, Goldschmidt was an early advocate of the controversial Portland Aerial Tram, which connected the research hospital to real estate projects by his longtime associates Homer Williams and Irving Levin near land whose owners Goldschmidt later represented.[32][33] He stayed active in Portland as well, advocating an expansion of the Park Blocks (a strip of open park space cutting through downtown Portland.)[34] Goldschmidt assisted in the deal that led to the construction of TriMet's MAX Red Line to Portland International Airport that opened in 2001.[35] He also started the Start Making a Reader Today (SMART) volunteer program in Oregon schools.[35]

Goldschmidt drew criticism in recent years for some of his business activities. In 2002, he lobbied business and political leaders to support Weyerhaeuser in its hostile takeover of Willamette Industries, Inc., then the only Fortune 500 company headquartered in Portland.[35] In early 2004, he backed a purchase of Portland General Electric (PGE) by Texas Pacific Group which, though never consummated, put on hold city and county studies to acquire PGE by condemnation. Criticism of Goldschmidt's business activities peaked when, on November 13, 2003, Governor Ted Kulongoski nominated him to the Oregon State Board of Higher Education.

Goldschmidt's appointment was initially expected to meet with little opposition. Several state senators, however, voiced concerns about Goldschmidt's involvement with SAIF and possible improprieties in the dealings he and his wife had with Texas Pacific.[36][37] Senator Vicki Walker, in particular, emerged as an outspoken critic of Goldschmidt.[38][39] The increased scrutiny on Goldschmidt's career, including reporters' difficulties accessing records from his time as governor,[40] ultimately led to the revelation of an illegal sexual relationship with a minor girl, which had occurred decades before, during his time as Mayor of Portland. These revelations ended Goldschmidt's extensive career at the center of Oregon politics and policymaking.