Tough Times For Ted

But today, Wheeler, a Democrat, finds himself being whisked out of office sooner than he planned. His legislative agenda is stuck in limbo. And his chief political rival, Kate Brown, now holds the Oregon governorship he covets, after ex-Gov. John Kitzhaber resigned Feb. 18.

"Wheeler has been talked about for a long time as the logical successor to Kitzhaber," says Pacific University political science professor Jim Moore. "Now, Kate Brown has the power of incumbency."

Wheeler is nearing a decision point on his political future. Does he take on Brown next year in what would be a bruising 2016 Democratic primary? Or does he accept a business community invitation to challenge Portland Mayor Charlie Hales instead?

Wheeler, 52, must soon decide his path. He says he hears groups are planning polls for the governor's and mayor's races and acknowledges he is considering both races. 

"I don't have any timeline for making a decision," he says.

Wheeler left a career in finance to enter politics in 2006. He won a landslide victory over Multnomah County Chairwoman Diane Linn. In 2010, then-Gov. Ted Kulongoski appointed him state treasurer after incumbent Ben Westlund died. 

The treasurer's post offered Wheeler, a triathlete and heir to a timber fortune, the platform for what seemed an inevitable run for governor.

Things started to go sideways for him last August, when Attorney General Ellen Rosenblum ruled the state's term limits made him ineligible to seek re-election in 2016. (Disclosure: Rosenblum is married to WW publisher Richard Meeker.)

During the fall, Wheeler campaigned tepidly for a ballot measure he had proposed to generate millions for college scholarships. Voters nixed the plan.

Wheeler has struggled to move legislation in Salem. As the state's de facto banker, Wheeler manages the state's credit, and as a member of the Oregon Investment Council, he helps oversee nearly $90 billion in public funds. 

He has pushed legislation that would revamp the treasury. Currently, the treasury contracts extensively for investment services. "It's a very inefficient approach,” he says. 

Wheeler wants to bring that work in house, make the treasury more autonomous and keep its budget out of the hands of lawmakers. The Democratic-controlled Legislature rejected that idea last year, and his Senate Bill 134 this year hasn't even received a hearing.

Wheeler says that without reform, the treasury will struggle to oversee an increasingly complex investment portfolio. He says returns could suffer, forcing school districts and local governments to increase their public pension contributions.

That warning isn't getting  traction. Last month, Senate President Peter Courtney rejected Wheeler's plan. "I cannot support the governance change at the core of this proposal," Courtney wrote to Wheeler on March 11. "SB 134 would eliminate much of the oversight relationship between the Legislative Assembly and the Investment Division of the State Treasurer’s office.” 

Wheeler says he's frustrated: "It's disappointing that one legislator can block changes that have bipartisan support and are in alignment with best practices in other states."

Meanwhile, he says his political choices for a future campaign could also include none of the above.

"The question is whether I can add real value through further elected leadership," he says. "I didn't enter politics with the intention of becoming a career politician.” 

WWeek 2015