Neil Edward Goldschmidt (June 16, 1940 – June 12, 2024) was an American businessman and Democratic politician from the state of Oregon who held local, state, and federal offices over three decades, including mayor of Portland, Oregon, the United States Secretary of Transportation under President Jimmy Carter and the 33rd governor of Oregon. At one time, Goldschmidt was considered the most powerful and influential figure in Oregon's politics; in 2004, Goldschmidt's career and legacy were irreparably damaged by revelations of the ongoing sexual abuse of a young teenage girl which began in 1973, during his first term as mayor of Portland.
Goldschmidt was elected to the Portland City Council in 1970 and then as mayor of Portland in 1972, becoming, at the age of 32, the youngest mayor of any major American city. He promoted the revitalization of Downtown Portland and was influential on Portland-area transportation policy, particularly with the scrapping of the controversial Mount Hood Freeway and the establishment of the MAX Light Rail system. In 1979, Goldschmidt was appointed by President Jimmy Carter as U.S. Secretary of Transportation; in that capacity he worked to revive the then-ailing automobile industry and to deregulate several industries. He served until the end of Carter's presidency in 1981 and then served as a senior executive with Nike for several years.
In 1986, Goldschmidt was elected the 33rd governor of Oregon, serving a single term. He faced significant challenges, particularly a rising anti-tax movement (leading to Measure 5 in 1990) and a doubling of the state's prison population. He worked across party lines to reduce regulation and to repair the state's infrastructure. His reforms to the State Accident Insurance Fund (SAIF), a state-chartered worker's compensation insurance company were heralded at the time, but drew strong criticism in later years.
Despite an almost certain re-election as governor, Goldschmidt did not seek a second term, becoming an influential and controversial lobbyist. 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 in its hostile takeover of Oregon's Willamette Industries and his advocacy for a private investment firm in its attempt to take over utility company Portland General Electric. In 2003, Governor Ted Kulongoski appointed Goldschmidt to the Oregon Board of Higher Education, a position he resigned after admitting he had sexually abused a minor girl 30 years earlier.
Goldschmidt was born in Eugene, in Oregon's Willamette Valley, on June 16, 1940, into a Jewish family to Lester H. Goldschmidt and Annette Levin. He graduated from South Eugene High School. He later attended the University of Oregon, also in Eugene. He served as student body president at the school before graduating in 1963 with a bachelor's degree in political science.
Goldschmidt served as an intern for U.S. Senator Maurine Neuberger in 1964 in Washington, D.C. While there, he was recruited by New York Congressman Allard K. Lowenstein to register voters in Mississippi's 1964 Freedom Summer civil rights campaign.
Goldschmidt earned a Juris Doctor from the University of California, Berkeley in 1967. From 1967 to 1970, he worked as a legal aid lawyer in Portland, Oregon.
Portland City Commissioner and Mayor
Goldschmidt won a seat on the Portland City Council 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 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. He is widely credited with having opened 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, preferring to direct resources to crime prevention. According to Nigel Jaquiss, a reporter for Willamette Week, for thirty years he was "Oregon's most successful and charismatic leader".
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. 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. 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, 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.
U.S. Secretary of Transportation
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. The United States Senate confirmed his appointment on September 21, and he was sworn in on September 24. In this position, Goldschmidt was known for his work to revive the financially ailing U.S. 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 in 1980, Goldschmidt expressed doubts about the future of the Democratic Party 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 called for Goldschmidt's resignation, and members of 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 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 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 in 1984.
In June 1985, Goldschmidt announced his candidacy for Governor of Oregon. His name familiarity and access to large donations through his business and political ties made him the Democratic front runner. He defeated Oregon State Senator Edward 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 Victor Atiyeh, becoming the state's 33rd governor.