Neil Goldschmidt
Encyclopedia
Neil Edward Goldschmidt (born June 16, 1940) is an American businessman and former Democratic
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

 politician from Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...

 who held local, state, and federal offices over three decades. After serving as the governor of Oregon
Governor of Oregon
The Governor of Oregon is the top executive of the government of the U.S. state of Oregon. The title of governor was also applied to the office of Oregon's chief executive during the provisional and U.S. territorial governments....

, Goldschmidt is widely considered the most influential figure in the state's politics, both as an elected public official and as a lobbyist and policy consultant. His legacy and career were severely damaged by revelations that he had a sexual relationship with a minor during his first term as Mayor of Portland.

Goldschmidt was elected to the Portland City Council
Government of Portland, Oregon
The Government of Portland, Oregon, a city in the U.S. state of Oregon, is based on a city commission government system. Elected officials include a Mayor, a City Council, and a City Auditor. The mayor and commissioners are responsible legislative policy and oversee the various bureaus that...

 in 1970, and then as mayor of Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...

 in 1972, becoming the youngest mayor of any major American city. He promoted the revitalization of Downtown Portland
Downtown Portland
Downtown Portland, the city center of Portland, Oregon, United States, is located on the west bank of the Willamette River. It is in the northeastern corner of the southwest section of the city and is where most of the city's high-rise buildings are found....

, and was influential on Portland-area transportation policy, particularly with the abandonment of the Mount Hood Freeway and the establishment of the MAX Light Rail. He was appointed U.S. Secretary of Transportation
United States Secretary of Transportation
The United States Secretary of Transportation is the head of the United States Department of Transportation, a member of the President's Cabinet, and fourteenth in the Presidential line of succession. The post was created with the formation of the Department of Transportation on October 15, 1966,...

 by President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

 Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...

 in 1979; where he worked to revive the ailing automobile industry, and to deregulate
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...

 several industries. He served until the end of Carter's presidency in 1980, and then served as a senior executive with Nike
Nike, Inc.
Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area...

 for several years.

He was elected the 33rd governor of Oregon in 1986, serving a single term. He faced significant challenges, particularly a rising anti-tax movement
Oregon tax revolt
The Oregon tax revolt is a political movement in Oregon which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States...

 (leading to 1990's Measure 5
Oregon Ballot Measure 5 (1990)
Ballot Measure 5 was a landmark piece of direct legislation in the U.S. state of Oregon in 1990. Measure 5, an amendment to the Oregon Constitution , established limits on Oregon's property taxes on real estate....

) and a doubling of the state's prison population. He worked across party lines to reduce regulation and to repair the state's infrastructure. During his term, Oregon emerged from nearly eight years of recession. His reforms to the State Accident Insurance Fund
State Accident Insurance Fund
The State Accident Insurance Fund Corporation is a not-for-profit, state-chartered workers’ compensation insurance company in the U.S. state of Oregon...

 (SAIF), a state-chartered worker's compensation insurance company were heralded at the time, but drew strong criticism in later years.

Despite his popularity, Goldschmidt left office after only one term, becoming an influential and controversial lobbyist
Lobbying
Lobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...

. Over the next dozen years or so, he was criticized by editorial boards and Oregonians for several of the causes he supported, including backing the forestry corporation, Weyerhaeuser
Weyerhaeuser
Weyerhaeuser is one of the largest pulp and paper companies in the world. It is the world's largest private sector owner of softwood timberland; and the second largest owner of United States timberland, behind Plum Creek Timber...

 in its hostile takeover of Oregon's Willamette Industries
Willamette Industries, Inc.
Willamette Industries, Inc. was a Fortune 500 forest products company based in Portland, Oregon, United States. In 2002 the lumber and paper company was purchased by competitor Weyerhaeuser of Federal Way, Washington in a hostile buyout and merged into Weyerhaeuser's existing...

 and his advocacy for a private investment firm in its attempt to take over Portland General Electric
Portland General Electric
Portland General Electric is an electrical utility based in Portland in the U.S. state of Oregon. It distributes electricity to customers in parts of Multnomah, Clackamas, Marion, Yamhill, Washington, and Polk counties - half of the inhabitants of Oregon...

, a local utility company. In 2003, governor Ted Kulongoski
Ted Kulongoski
Theodore R. "Ted" Kulongoski is an American politician, who served as the 36th Governor of Oregon. A Democrat, he has served in both houses of the Oregon Legislative Assembly, as the state Insurance Commissioner, the Attorney General, and an Associate Justice on the Oregon Supreme Court.-Early...

 appointed him to the Oregon Board of Higher Education, a position he resigned after admitting he had a sexual relationship with a minor girl 30 years earlier.

Early life

Goldschmidt was born in Eugene
Eugene, Oregon
Eugene is the second largest city in the U.S. state of Oregon and the seat of Lane County. It is located at the south end of the Willamette Valley, at the confluence of the McKenzie and Willamette rivers, about east of the Oregon Coast.As of the 2010 U.S...

, in Oregon's Willamette Valley
Willamette Valley
The Willamette Valley is the most populated region in the state of Oregon of the United States. Located in the state's northwest, the region is surrounded by tall mountain ranges to the east, west and south and the valley's floor is broad, flat and fertile because of Ice Age conditions...

, on June 16, 1940, to Lester H. Goldschmidt and Annette Levin. He graduated from South Eugene High School
South Eugene High School
South Eugene High School is a public high school located in Eugene, Oregon, United States.-History:It was founded as Eugene High School around 1900, and was located at Willamette Street and West 11th Avenue in a brick building that later served as Eugene's city hall. In 1915, Eugene High moved to a...

. He later attended the University of Oregon
University of Oregon
-Colleges and schools:The University of Oregon is organized into eight schools and colleges—six professional schools and colleges, an Arts and Sciences College and an Honors College.- School of Architecture and Allied Arts :...

, also in Eugene. He served as student body president at the school before graduating in 1963 with a Bachelor's degree
Bachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...

 in political science.

He served as an intern for U.S. Senator
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...

 Maurine Neuberger
Maurine Brown Neuberger
Maurine Brown Neuberger was an United States senator for the State of Oregon from November 1960 to January 1967. She was the fourth woman elected to the United States Senate and the tenth woman to serve in the body. She and her husband, Richard L. Neuberger, are regarded as the Senate's first...

 in 1964 in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

 While there, he was recruited by New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

 Congressman
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 Allard K. Lowenstein
Allard K. Lowenstein
Allard Kenneth Lowenstein, , was a liberal Democratic politician, a one-term congressman representing the 5th District in Nassau County, New York from 1969 until 1971. His work on civil rights and the antiwar movement has been cited as an inspiration by public figures including Congressmen, John...

 to do voter registration in Mississippi
Mississippi
Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...

's 1964 Freedom Summer
Freedom Summer
Freedom Summer was a campaign in the United States launched in June 1964 to attempt to register as many African American voters as possible in Mississippi which had historically excluded most blacks from voting...

 civil rights
Civil rights
Civil and political rights are a class of rights that protect individuals' freedom from unwarranted infringement by governments and private organizations, and ensure one's ability to participate in the civil and political life of the state without discrimination or repression.Civil rights include...

 campaign. Goldschmidt married Margaret Wood in 1965. They had two children, Joshua and Rebecca, and divorced in 1990. Goldschmidt earned a law degree from the University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...

 in 1967. From 1967 to 1970 he worked as a legal aid
Legal aid
Legal aid is the provision of assistance to people otherwise unable to afford legal representation and access to the court system. Legal aid is regarded as central in providing access to justice by ensuring equality before the law, the right to counsel and the right to a fair trial.A number of...

 lawyer in Portland, Oregon
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...

.

Political career

In 1970, Neil Goldschmidt entered politics in Oregon. This began three decades of being in the public eye in the state, serving as mayor of Oregon's most populous city and as the state's governor. In between he served in the Cabinet of President Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...

.

Portland City Commissioner and Mayor

Goldschmidt won a seat on the Portland City Council
Government of Portland, Oregon
The Government of Portland, Oregon, a city in the U.S. state of Oregon, is based on a city commission government system. Elected officials include a Mayor, a City Council, and a City Auditor. The mayor and commissioners are responsible legislative policy and oversee the various bureaus that...

 in 1970. 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
Freeway and expressway revolts
Many freeway revolts took place in developed countries during the 1960s and 1970s, in response to plans for the construction of new freeways, a significant number of which were abandoned or significantly scaled back due to widespread public opposition; especially of those whose neighborhoods would...

 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
Portland Transit Mall
The Portland Transit Mall is a set of public transit corridors through the center of downtown Portland, Oregon, United States. More specifically, it is a pair of one-way streets—one for northbound traffic, the other for southbound—along which two of the three lanes are restricted to...

. 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." During his mayoral campaign, he questioned the benefit of expanding the city's police force
Portland Police Bureau
The Portland Police Bureau is the law enforcement agency of the City of Portland, the largest city in the U.S. state of Oregon. While oversight of Portland's bureaus shifts among the five City Commissioners, the Mayor has historically been assigned to the Police Bureau as the police...

, preferring to direct resources to crime prevention. According to Nigel Jaquiss
Nigel Jaquiss
Nigel Jaquiss is an American journalist who won the 2005 Pulitzer Prize for investigative reporting, for his work exposing former Governor of Oregon Neil Goldschmidt's sexual abuse of a 14-year-old girl while he was mayor of Portland, Oregon...

, a reporter for Willamette Week
Willamette Week
Willamette Week is an alternative weekly newspaper published in Portland, Oregon, United States. It features reports on local news, politics, sports, business and culture....

, for thirty years he was "Oregon's most successful and charismatic leader."

In 1973, Governor Tom McCall
Tom McCall
Thomas Lawson McCall was an American politician and journalist in the state of Oregon. A Republican, he was the 30th Governor of Oregon from 1967 to 1975. A native of Massachusetts, he grew up there and in Central Oregon before attending the University of Oregon...

 appointed Goldschmidt to what would be known as the Governor's Task Force, which was tasked with exploring regional transportation solutions. Goldschmidt served alongside notable leaders: Glenn Jackson
Glenn Jackson
Glenn L. Jackson was a businessman in the U.S. state of Oregon, and an influential transportation planner in the state. He made a strong mark on the state as a 20-year member, and later chair, of the Oregon State Highway Commission, later known as the Oregon Transportation Commission...

, 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. The task force considered an unpopular deal that would have funded the construction of the Mount Hood Freeway, which would have bisected southeast Portland. The deal, which would have been 90% funded by the Federal Highway Administration
Federal Highway Administration
The Federal Highway Administration is a division of the United States Department of Transportation that specializes in highway transportation. The agency's major activities are grouped into two "programs," the Federal-aid Highway Program and the Federal Lands Highway Program...

, 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
Light rail
Light rail or light rail transit is a form of urban rail public transportation that generally has a lower capacity and lower speed than heavy rail and metro systems, but higher capacity and higher speed than traditional street-running tram systems...

, 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.

U.S. Secretary of Transportation

Goldschmidt was appointed U.S. Secretary of Transportation
United States Secretary of Transportation
The United States Secretary of Transportation is the head of the United States Department of Transportation, a member of the President's Cabinet, and fourteenth in the Presidential line of succession. The post was created with the formation of the Department of Transportation on October 15, 1966,...

 by President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

 Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...

 in 1979 as a recess appointment
Recess appointment
A recess appointment is the appointment, by the President of the United States, of a senior federal official while the U.S. Senate is in recess. The U.S. Constitution requires that the most senior federal officers must be confirmed by the Senate before assuming office, but while the Senate is in...

. On September 21, 1979, the United States Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...

 confirmed him as the sixth secretary of the Department of Transportation
United States Department of Transportation
The United States Department of Transportation is a federal Cabinet department of the United States government concerned with transportation. It was established by an act of Congress on October 15, 1966, and began operation on April 1, 1967...

, with him sworn in on September 24. In this position, Goldschmidt was known for his work to revive the auto industry, and efforts to deregulate the airline, trucking and railroad industries.

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, Goldschmidt expressed doubts about the Democratic Party's future if it couldn't learn to cultivate political allies more effectively. Goldschmidt's time in Washington, DC, informed his own understanding of politics, as well. He remained in office through the remainder of the Carter administration. In late 1979, Republican presidential hopeful John B. Anderson
John B. Anderson
John Bayard Anderson is a former United States Congressman and Presidential candidate from Illinois. He was a U.S. Representative from the 16th Congressional District of Illinois for ten terms from 1961 through 1981 and an Independent candidate in the 1980 presidential election. He was previously...

 called for Goldschmidt's resignation, and the United States Senate Banking Committee later chastised him, for having suggested that he would withhold transportation funds from municipalities, such as Chicago and Philadelphia, whose mayors supported Ted Kennedy
Ted Kennedy
Edward Moore "Ted" Kennedy was a United States Senator from Massachusetts and a member of the Democratic Party. Serving almost 47 years, he was the second most senior member of the Senate when he died and is the fourth-longest-serving senator in United States history...

 in his primary election bid against Carter. Goldschmidt resigned at the conclusion of Carter's term on January 20, 1981.

Between positions in public office, Goldschmidt was a Nike
Nike, Inc.
Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area...

 executive during the 1980s, serving as international Vice President and then as president of Nike Canada. He was considered as a potential chair of the Democratic National Committee
Democratic National Committee
The Democratic National Committee is the principal organization governing the United States Democratic Party on a day to day basis. While it is responsible for overseeing the process of writing a platform every four years, the DNC's central focus is on campaign and political activity in support...

 in 1984.

Governor of Oregon

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
Oregon State Senate
The Oregon State Senate is the upper house of the state-wide legislature for the U.S. state of Oregon. Along with the lower chamber Oregon House of Representatives it makes up the Oregon Legislative Assembly. There are 30 members of the State Senate, representing 30 districts across the state,...

 Edward N. Fadeley
Edward N. Fadeley
Edward Norman Fadeley is an attorney and former politician in the state of Oregon, United States. He was the 88th Associate Justice of the Oregon Supreme Court. Previously he served in both the Oregon House of Representatives and the Oregon State Senate, serving one session as President of the...

 in the May 1986 Democratic primary. Goldschmidt defeated Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...

 Secretary of State
Oregon Secretary of State
The Secretary of State of Oregon, an elected constitutional officer within the executive branch of government of the U.S. state of Oregon, is first in line of succession to the Governor. The duties of office are: auditor of public accounts, chief elections officer, and administrator of public...

 Norma Paulus
Norma Paulus
Norma Paulus is an American attorney and former politician in the state of Oregon. A native of Nebraska, she was raised in Eastern Oregon before becoming a lawyer...

 in the 1986 general election 52% to 48%, succeeding two-term Republican Governor of Oregon
Governor of Oregon
The Governor of Oregon is the top executive of the government of the U.S. state of Oregon. The title of governor was also applied to the office of Oregon's chief executive during the provisional and U.S. territorial governments....

 Vic Atiyeh
Victor G. Atiyeh
Victor George Atiyeh is an American politician, elected the 32nd Governor of Oregon in 1978. A member of the Republican Party, Atiyeh was the first elected governor of Arab descent in the United States, serving eight years from 1979 through 1987...

, 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
Oregon tax revolt
The Oregon tax revolt is a political movement in Oregon which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States...

 took hold during his term, passing the landmark Measure 5
Oregon Ballot Measure 5 (1990)
Ballot Measure 5 was a landmark piece of direct legislation in the U.S. state of Oregon in 1990. Measure 5, an amendment to the Oregon Constitution , established limits on Oregon's property taxes on real estate....

 in 1990, which restricted the generation of revenue by property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...

. He was credited with leading "The Oregon Comeback," bringing the state out of nearly eight years of recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...

, through regulatory reform and repair of the state's infrastructure.

Goldschmidt oversaw a major expansion of the state's prison system. In May 1987 he hired Michael Francke
Michael Francke
James Michael Francke was the Director of the Oregon Department of Corrections, the governmental bureau which manages prisons, inmates and parolees in the state of Oregon. He was appointed by then-governor Neil Goldschmidt to oversee Goldschmidt's plan to double the state's inmate capacity...

 to modernize the state's prisons, which an investigator had described as overcrowded and operated as "independent fiefdoms." Francke was charged with supervising a plan to add over 1000 new beds to the prison system. Francke was murdered in the Department of Corrections
Oregon Department of Corrections
The Oregon Department of Corrections is the agency of the U.S. state of Oregon charged with managing a system of 14 state prisons since its creation by the state legislature in 1987...

 parking lot in 1989.

In 1990, Goldschmidt brokered agreements between business, labor, and insurance interests that changed the state's workers' compensation
Workers' compensation
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence...

 regulations. Workers' compensation has been a contentious issue in Oregon for some time, as the state-run State Accident Insurance Fund
State Accident Insurance Fund
The State Accident Insurance Fund Corporation is a not-for-profit, state-chartered workers’ compensation insurance company in the U.S. state of Oregon...

 (SAIF) insures approximately 35% of the workforce. The legislature
Oregon Legislative Assembly
The Oregon Legislative Assembly is the state legislature for the U.S. state of Oregon. The Legislative Assembly is bicameral, consisting of an upper and lower house: the Senate, whose 30 members are elected to serve four-year terms; and the House of Representatives, with 60 members elected to...

 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. In 2000, Governor John Kitzhaber
John Kitzhaber
John Albert Kitzhaber is the 37th Governor of Oregon. He served as the 35th Governor of Oregon from 1995 to 2003 and became the first person to be elected to the office three times when he was re-elected to a non-consecutive third term in 2010...

 attempted to reform the system again. This led to a new law in the 2001 Legislature, which was complicated by an Oregon Supreme Court
Oregon Supreme Court
The Oregon Supreme Court is the highest state court in the U.S. state of Oregon. The only court that may reverse or modify a decision of the Oregon Supreme Court is the Supreme Court of the United States. The OSC holds court at the Oregon Supreme Court Building in Salem, Oregon, near the capitol...

 ruling that occurred during deliberations.

Goldschmidt's Children's Agenda was important in Oregon with its community initiatives. In 1991, he helped create the Oregon Children's Foundation, as well as the Start Making A Reader Today
Start Making A Reader Today
Start Making A Reader Today is a non-profit volunteer-driven tutoring program local to Oregon for at-risk K-3 readers. SMART was developed by Neil Goldschmidt in 1992...

 (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. Bernie Giusto, who was Goldschmidt's driver at the start of his term and later became Multnomah County Sheriff
Multnomah County Sheriff's Office
Multnomah County Sheriff's Office serves the close to 700,000 residents of Multomah County, Oregon, United States. Multnomah County Sheriff's Office is a County Law Enforcement agency that handles 9-1-1 calls and assists other city agencies such as Portland Police Bureau. The current Sheriff is...

, was widely rumored to be romantically involved with Goldschmidt's wife Margie (and would later date her openly after they divorced).

Goldschmidt had hoped at one time to serve two terms, noting that most of predecessor Tom McCall
Tom McCall
Thomas Lawson McCall was an American politician and journalist in the state of Oregon. A Republican, he was the 30th Governor of Oregon from 1967 to 1975. A native of Massachusetts, he grew up there and in Central Oregon before attending the University of Oregon...

's accomplishments came during his second term. In his farewell address to the City Club of Portland
City Club of Portland
The City Club of Portland is a nonprofit, nonpartisan civic organization based in Portland in the U.S. state of Oregon. It was organized in 1916 by a small group of men who began meeting in a downtown Portland restaurant to discuss the city's public institutions and government...

, he stated: "After only four years, everything is left undone. Nothing is finished."

After leaving elected office

Goldschmidt founded a law and consulting firm, Neil Goldschmidt, Inc., in Portland in 1991, four days after leaving office as Governor. His clients have included Schnitzer Investment, Nike, PacifiCorp
PacifiCorp
PacifiCorp is an electric power company in the northwestern United States.PacifiCorp has three primary subsidiaries:# Pacific Power is a regulated electric utility with service territory throughout Oregon, northern California, and southeastern Washington.# Rocky Mountain Power is a regulated...

, Paul Allen
Paul Allen
Paul Gardner Allen is an American business magnate, investor, and philanthropist. Allen co-founded Microsoft with Bill Gates...

, 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
Oregon Health & Science University
Oregon Health & Science University is a public university in Oregon with a main campus, including two hospitals, in Portland and a smaller campus in Hillsboro...

 board, Goldschmidt was an early advocate of the controversial Portland Aerial Tram
Portland Aerial Tram
The Portland Aerial Tram is an aerial tramway in Portland, Oregon, carrying commuters between the city's South Waterfront district and the main Oregon Health & Science University campus, located in the Marquam Hill neighborhood. It is the second commuter aerial tramway in the United States...

. He stayed active in Portland as well, advocating an expansion of the Park Blocks (a strip of open park space cutting through downtown Portland.) Goldschmidt assisted in the deal that led to the construction of TriMet's MAX Red Line
MAX Red Line
The MAX Red Line is a route in the Metropolitan Area Express light rail system in the Portland, Oregon metropolitan area. It is 25.5 miles long...

 to Portland International Airport
Portland International Airport
Portland International Airport is a joint civil-military airport and the largest airport in the U.S. state of Oregon, accounting for 90% of passenger travel and more than 95% of air cargo of the state. It is located within Portland's city limits just south of the Columbia River in Multnomah...

 that opened in 2001. He also started the Start Making a Reader Today (SMART) volunteer program in Oregon schools.

Goldschmidt drew criticism in recent years for some of his business activities. In 2002, he lobbied
Lobbying
Lobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...

 business and political leaders to support Weyerhaeuser
Weyerhaeuser
Weyerhaeuser is one of the largest pulp and paper companies in the world. It is the world's largest private sector owner of softwood timberland; and the second largest owner of United States timberland, behind Plum Creek Timber...

 in its hostile takeover of Willamette Industries, Inc.
Willamette Industries, Inc.
Willamette Industries, Inc. was a Fortune 500 forest products company based in Portland, Oregon, United States. In 2002 the lumber and paper company was purchased by competitor Weyerhaeuser of Federal Way, Washington in a hostile buyout and merged into Weyerhaeuser's existing...

, then the only Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...

 company headquartered in Portland. In early 2004, he backed a purchase of Portland General Electric
Portland General Electric
Portland General Electric is an electrical utility based in Portland in the U.S. state of Oregon. It distributes electricity to customers in parts of Multnomah, Clackamas, Marion, Yamhill, Washington, and Polk counties - half of the inhabitants of Oregon...

 (PGE) by Texas Pacific Group which, though never consummated, put on hold city and county studies to acquire PGE by condemnation
Eminent domain
Eminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...

. Criticism of Goldschmidt's business activities peaked when, on November 13, 2003, Governor Ted Kulongoski
Ted Kulongoski
Theodore R. "Ted" Kulongoski is an American politician, who served as the 36th Governor of Oregon. A Democrat, he has served in both houses of the Oregon Legislative Assembly, as the state Insurance Commissioner, the Attorney General, and an Associate Justice on the Oregon Supreme Court.-Early...

 nominated him to the Oregon State Board of Higher Education
Oregon State Board of Higher Education
The Oregon State Board of Higher Education is the statutory governing board for the Oregon University System. The board is composed of eleven members appointed by the Governor of Oregon and confirmed by the Oregon State Senate...

.

Goldschmidt's appointment was initially expected to meet with little opposition. Several state senators
Oregon State Senate
The Oregon State Senate is the upper house of the state-wide legislature for the U.S. state of Oregon. Along with the lower chamber Oregon House of Representatives it makes up the Oregon Legislative Assembly. There are 30 members of the State Senate, representing 30 districts across the state,...

, however, voiced concerns about Goldschmidt's involvement with SAIF, and possible improprieties in the dealings he and his wife had with Texas Pacific. Senator Vicki Walker
Vicki Walker
Vicki Lynn Walker is an American politician and administrator from Oregon. She is the Oregon State Director for Rural Development with the U.S. Department of Agriculture. A member of the Democratic Party, Walker previously served in both houses of the Oregon Legislature and briefly served as chair...

, in particular, emerged as an outspoken critic of Goldschmidt. The increased scrutiny on Goldschmidt's career, including reporters' difficulties accessing records from his time as Governor, ultimately led to the revelation of an illegal sexual relationship with a 14-year-old 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.

Revelation of sexual abuse

In May 2004, a rapid series of events resulted in Goldschmidt's confession to a sexual relationship with a 14-year-old girl in the 1970s, the quick demise of his political career, including resignations from several prominent organizations, and the transfer of his many documents from the privately-run Oregon Historical Society
Oregon Historical Society
The Oregon Historical Society is an organization that encourages and promotes the study and understanding of the history of the Oregon Country, within the broader context of U.S. history. Incorporated in 1898, the Society collects, preserves, and makes available materials of historical character...

 to the state-run Oregon State Archives
Oregon State Archives
The Archives Division of the Office of the Secretary of State of Oregon, or Oregon State Archives, is an agency of the Office of the Oregon Secretary of State charged with preserving and providing access to government records. It also publishes the Oregon Blue Book and Oregon Administrative Rules...

.

On May 6, under pressure from Willamette Week
Willamette Week
Willamette Week is an alternative weekly newspaper published in Portland, Oregon, United States. It features reports on local news, politics, sports, business and culture....

, Goldschmidt publicly announced that he had engaged in a sexual relationship with a 14-year-old girl for an extended period during his first term as Mayor of Portland. Sex with a person under 16 years of age constitutes third degree rape
Statutory rape
The phrase statutory rape is a term used in some legal jurisdictions to describe sexual activities where one participant is below the age required to legally consent to the behavior...

 under Oregon law, a felony
Felony
A felony is a serious crime in the common law countries. The term originates from English common law where felonies were originally crimes which involved the confiscation of a convicted person's land and goods; other crimes were called misdemeanors...

 punishable by up to five years in prison. By the time the relationship had become public, however, the statute of limitations
Statute of limitations
A statute of limitations is an enactment in a common law legal system that sets the maximum time after an event that legal proceedings based on that event may be initiated...

 had expired, making Goldschmidt immune from any prosecution over the matter.

Under Oregon law, Goldschmidt would have been required to register as a sex offender
Sex offender
A sex offender is a person who has committed a sex crime. What constitutes a sex crime differs by culture and by legal jurisdiction. Most jurisdictions compile their laws into sections such as traffic, assault, sexual, etc. The majority of convicted sex offenders have convictions for crimes of a...

, had he been convicted of the crime of third degree rape. The fact that the registration law didn't pass until 1997, after the illicit sexual relationship ended, would not have exempted him from registration. Oregon case law has determined that the registration of offenders whose acts were committed prior to the passage of the law does not violate either Oregon’s Constitution or the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...

’s prohibition on ex post facto law
Ex post facto law
An ex post facto law or retroactive law is a law that retroactively changes the legal consequences of actions committed or relationships that existed prior to the enactment of the law...

s.

Goldschmidt's confessional letter was published on the front page of The Oregonian
The Oregonian
The Oregonian is the major daily newspaper in Portland, Oregon, owned by Advance Publications. It is the oldest continuously published newspaper on the U.S. west coast, founded as a weekly by Thomas J. Dryer on December 4, 1850...

. It differed from the Willamette Week's account, most notably in the length of the relationship ("nearly a year" according to Goldschmidt, but three years according to Willamette Week) and in Goldschmidt's use of the term "affair" to characterize it. The Oregonian was criticized for its coverage and use the term "affair." Writers and editors at The Oregonian acknowledged mistakes in their handling of the story, but denied that a desire to protect Goldschmidt motivated the mistakes. The WW article, written by Nigel Jaquiss
Nigel Jaquiss
Nigel Jaquiss is an American journalist who won the 2005 Pulitzer Prize for investigative reporting, for his work exposing former Governor of Oregon Neil Goldschmidt's sexual abuse of a 14-year-old girl while he was mayor of Portland, Oregon...

, was awarded the 2005 Pulitzer Prize
2005 Pulitzer Prize
The Pulitzer Prizes for 2005 were announced on 2005-04-04.-Journalism:*Beat reporting: Amy Dockser Marcus of The Wall Street Journal for her "stories about patients, families and physicians [of the] world of cancer survivors"....

 for investigative reporting
Pulitzer Prize for Investigative Reporting
The Pulitzer Prize for Investigative Reporting has been awarded since 1953, under one name or another, for a distinguished example of investigative reporting by an individual or team, presented as a single article or series in print journalism...

.

In his initial negotiations with Willamette Week, Goldschmidt agreed to resign his positions with the Texas Pacific Group and the Board of Higher Education, which he did. His decision in 1990 not to run for a second term as governor, long the subject of speculation, was finally explained. Further developments revealed that Goldschmidt was assisted by businessman Robert K. Burtchaell in keeping his molestation
Child sexual abuse
Child sexual abuse is a form of child abuse in which an adult or older adolescent uses a child for sexual stimulation. Forms of child sexual abuse include asking or pressuring a child to engage in sexual activities , indecent exposure with intent to gratify their own sexual desires or to...

 of the girl a secret. In return, Goldschmidt gave his support to Burtchaell's (unsuccessful) bid to extend a lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...

 for a houseboat moorage on the Willamette River
Willamette River
The Willamette River is a major tributary of the Columbia River, accounting for 12 to 15 percent of the Columbia's flow. The Willamette's main stem is long, lying entirely in northwestern Oregon in the United States...

.

Goldschmidt's rabbi
Rabbi
In Judaism, a rabbi is a teacher of Torah. This title derives from the Hebrew word רבי , meaning "My Master" , which is the way a student would address a master of Torah...

 made an appeal in The Oregonian for forgiveness. Although Goldschmidt could no longer be prosecuted for the offense, the Oregon State Bar
Oregon State Bar
The Oregon State Bar is a government agency in the U.S. state of Oregon. Founded in 1890 as the private Oregon Bar Association, it became a public entity in 1935 that regulates the legal profession. The public corporation is part of the Oregon Judicial Department...

 began an investigation into the matter. Goldschmidt submitted a Form B resignation, which was received by the bar on May 13, where he says that he is aware that he would not be eligible for readmission.

Following complaints from local media over limited access to Goldschmidt's public papers stored at the Oregon Historical Society
Oregon Historical Society
The Oregon Historical Society is an organization that encourages and promotes the study and understanding of the history of the Oregon Country, within the broader context of U.S. history. Incorporated in 1898, the Society collects, preserves, and makes available materials of historical character...

 (OHS), the state archivist announced May 29 that Goldschmidt would seize the 256 boxes of documents to guarantee public access
Public Access
Public Access is a 1993 American drama film directed by Bryan Singer in his feature film debut. Singer also wrote the screenplay with Christopher McQuarrie and Michael Feit Dougan. The film was shot in 18 days for US$250,000. It was screened at the 1993 Sundance Film Festival, where it was...

 as defined in a state law passed in 1973. That law required that public access to such records be maintained, but did not specify where the records be kept. Following Goldschmidt's decision to put the documents in the care of the OHS, the state legislature
Oregon Legislative Assembly
The Oregon Legislative Assembly is the state legislature for the U.S. state of Oregon. The Legislative Assembly is bicameral, consisting of an upper and lower house: the Senate, whose 30 members are elected to serve four-year terms; and the House of Representatives, with 60 members elected to...

 passed a law requiring future governors to leave their documents in the state archives. Many records were published on the state archives' web site in early 2005.

The scandal has affected numerous people and organizations associated with Goldschmidt. Many people have been accused of knowing of the crime, but failing to act accordingly. Debby Kennedy, who worked for Goldschmidt while he was governor, recalled, "I just can't tell you how many rumors there were about him then." Multnomah County Sheriff
Multnomah County Sheriff's Office
Multnomah County Sheriff's Office serves the close to 700,000 residents of Multomah County, Oregon, United States. Multnomah County Sheriff's Office is a County Law Enforcement agency that handles 9-1-1 calls and assists other city agencies such as Portland Police Bureau. The current Sheriff is...

 Bernie Giusto, who admitted knowing about the abuse
Abuse
Abuse is the improper usage or treatment for a bad purpose, often to unfairly or improperly gain benefit. Abuse can come in many forms, such as: physical or verbal maltreatment, injury, sexual assault, violation, rape, unjust practices; wrongful practice or custom; offense; crime, or otherwise...

, announced his early retirement in February 2008.

On March 7, 2011, the Oregon Senate President and Speaker of the House released a statement that Goldschmidt's Governor's portrait had been removed from the walls of the State Capital building in Salem, Oregon, and into storage, out of respect for his victim.

Articles by Goldschmidt


External links

  • President Carter greets Secretary Goldschmidt, a photo published November 4, 1980, in The Oregonian
    The Oregonian
    The Oregonian is the major daily newspaper in Portland, Oregon, owned by Advance Publications. It is the oldest continuously published newspaper on the U.S. west coast, founded as a weekly by Thomas J. Dryer on December 4, 1850...

    , from that newspaper's flickr
    Flickr
    Flickr is an image hosting and video hosting website, web services suite, and online community that was created by Ludicorp in 2004 and acquired by Yahoo! in 2005. In addition to being a popular website for users to share and embed personal photographs, the service is widely used by bloggers to...

     account.
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