The Oregon economy is rebounding from the recession.  But in his state of the state address Governor Kitzhaber says more is needed. 

The governor began by saying the legislature is an example for the country.  "This legislative assembly lives up to the ideal of being representative of all Oregonians."

And - he says - while a budget deficit has been erased the hard work is yet to come.  "Our great challenge is to ensure that the next phase of Oregon's economic recovery reaches all Oregonians and

ends the income stagnation that threatens a generation of Oregonians with the prospect of falling standard of living."

The governor's most controversial way to do that is by capping contributions to the public employee retirement system and getting the money into classrooms.

A better educated public - he says - will mean better paying jobs.