Water resources manager pegged for top PERS spot

A longtime state natural resources manager is expected to be chosen as the new PERS executive director when the pension system's board meets next week.

Paul Cleary has headed the Oregon Water Resources Department for four years and previously led the Division of State Lands for five years.

Mike Pittman, chairman of the Public Employees Retirement System board, said Cleary's experience as an administrator will help steer the system through a substantial list of problems. He said he has recommended Cleary to the board and discussed his appointment individually with the other four members.

"I think there's unanimous agreement that his skill set and everything else that Paul brings is what the agency needs at this point," Pittman said.

If Cleary receives their approval, he would move from one controversial arena to another. The water agency, for example, is in the middle of a battle over water use in the arid Klamath Basin.

At PERS, Cleary would take over day-to-day operations of an agency trying to deal with a sweeping legislative overhaul last year and the crush of processing a record number of retirements. The agency also has a new board, and its director and deputy director have resigned in the past six months.

Climbing costs

The 300,000-member system's costs have climbed in recent years while its average pension benefits have increased, leading to larger bills for the state, local governments and school districts.

The Legislature and Gov. Ted Kulongoski made a number of changes last year in an effort to reduce costs, but the changes are being challenged in a lawsuit that's before the Oregon Supreme Court.

Cleary, 51, has a natural resources background, not a financial one. He has degrees in biology and water resources, and he was a natural resources adviser in the Wyoming governor's office before coming to Oregon.

Pittman said financial expertise was not the biggest concern. The board put more importance on strong management and budgeting skills, legislative experience, and "assessing and prioritizing the issues the agency needs to be working on," he said.

"Detailed knowledge of pensions fell toward the lower end of the list," Pittman said.

Cleary, who was on a list of candidates forwarded by the governor's office, has headed the 165-employee water agency since mid-2000. It has a $29 million, two-year budget.

He would replace Jim Voytko, who resigned as PERS executive director in October 2003, citing differences with the new board that had taken office in September.

Philip C. Ward, Cleary's deputy director, would become the acting director of the water agency June 1 if Cleary gets the PERS job.

Experience with issues

Cleary said he does have experience that could help PERS. For example, the agency must replace its aging computer system. Under his watch, the water agency staff dropped by 15 percent while the number of water rights it administered increased by one-third, which was accomplished partly by computer system improvements, he said.

The water agency has been embroiled in the Klamath dispute, in which farmers and other users have pushed for more access to water while tribes and conservation groups have pressed for leaving more water for fish and birds.

Conservation groups said Cleary and his agency have tried to avoid saying no to users.

"Our great frustration with him at Water Resources is that he hasn't taken a greater interest in dealing with these controversies," said Steve Pedery, outreach director for WaterWatch.

Dan Keppen, executive director of the Klamath Water Users Association, called Cleary a great choice for PERS, saying he is a level-headed problem-solver.

"I think he'll be well-suited to jump into another area that's contentious," Keppen said.

Pittman said his review satisfied him that Cleary will be able to make the hard calls at PERS.

"My sense is that Paul's not afraid to deal with conflict and make the tough decisions," he said.

Dave Hogan: 503-221-8531, davehogan@news.oregonian.com