Oregon Trods The Road To Apocalypse
By Scott R. Cooper, Crook County Judge
Published in the Central Oregonian, Prineville Oregon, February 2007
The story of falling timber harvest in the Northwest is all too familiar now, but it’s definitely one worth repeating.
In 1986, just over 95,446,000 board feet of timber were harvested off U.S. Forest Service land in Crook County. By 2003, the number of board feet had fallen to 332,000 board feet—about three tenths of one percent of the 1986 level.
If one compares the ten years comprising 1983 to 1992 to the ten years comprising 1993 to 2002, the amount of timber harvested off forest service land in Crook County in the second decade was less than 1 percent of the amount harvested in the first decade.
The timber industry traditionally helped Oregon achieve a unique position among the economies of the 50 states: despite the fact that the workforce remained relatively low skilled, the state boasted a relatively high average wage, which in turn helped keep Main Street cash registers ringing around Oregon. In addition, taxes imposed on businesses which cut the timber, became a critical source of revenue to Oregon schools and the state’s local governments.
All that changed, starting about 1990.
Environmental groups, convinced that every tree in the forest was the roost of an endangered spotted owl and further convinced that Oregon’s vast forest tracts were somehow in danger of disappearing began through policy initiatives and litigation to slowly strangle the timber industry in Oregon.
Whether we as a state were too late to wake up to what was happening to us or simply too politically ineffective to stop the inevitable, remains a source of debate. Whatever the reason, in the short space of a decade, the state essentially lost its most important industry, along with thousands of associated jobs and economic security for Oregon’s schools and rural communities.
With the loss of the timber industry, an essential source of revenue for local government also disappeared. Where local governments and schools once survived and thrived on the continuous stream of revenue provided by timber harvest, the tax receipts dwindled after 1990 right along with the timber supply.
Things were nearing the point of crisis in 2000, when along came Congress, in the guise of legislation called the Secure Rural Schools and Community Self Determination Act of 2000, sponsored by Senators Ron Wyden of Oregon and Larry Craig of Idaho.
Under this act of Congress, the federal government accepted some responsibility for the havoc its environmental policies had wreaked on the timber-dependent communities of the rural West. A slightly penitent and cash-flush federal government agreed to try to somewhat makes up for the unintended consequences of its previous decade of policymaking by agreeing to make payments to counties and schools in 39 states, based on the average of timber severance taxes received as a result of harvest from federal lands over a five year period. For Oregonians, this legislation had the added allure of allocating nearly 50 percent of the federal money to our state—something I suspect a number of congressmen voting on the bill didn’t really understand at the time.
“Hallelujah,” shouted local government and school leaders. “It’s about time!” Breathing a sigh of relief, local governments put their money worries behind them, at least for the six years the legislation was initially authorized.
Fast forward to fall of 2006: the first round of “county payments” legislation has now expired. Despite the efforts of Oregon congressmen, it hasn’t yet been reauthorized. The President and his administration, swimming in surplus when the bill was passed, have spent the country into a deficit. Meanwhile, congressmen in 38 states have figured out that the legislation which was so good for Oregon wasn’t as good for their states as anticipated. Thus, when the county payments bill expired on Sept. 30, Congress was in no mood to reauthorize it.
As a result, local governments and schools in Oregon are on the verge of a crisis. Some are on the verge of near collapse, as it is becoming increasingly apparent that $107 million paid annually to Oregon counties to support general services, $91 million paid annually to support county roads and $31 million paid for schools is about to disappear.
Depending on the size of the federal checks being received, the 33 of 36 Oregon counties are impacted in different ways by this impending loss. Clatsop, Gilliam and Multnomah, which receive no payments, are not affected. But Douglas County will lose 69 percent of its General Fund—the monies used to run basic government services, including law enforcement. Grant County will lose 73 percent of its road fund, and even relatively affluent Lane County, is bracing for the loss of 35 percent of its General Fund. In preparation for grim reality, Coos County has pink-slipped 25 percent of its workforce. Jackson County has closed its 14-branch Central library system. Lane County will lay off 200 sheriff’s deputies, close 100 jail beds and stop prosecuting illegal drug possession. Coastal Curry County announced in an email to county commissioner earlier this week that it is examining the possibility of dissolving its county government altogether.
To say the least, things are not good.
In Crook County, the picture is slightly different. Like our fellow counties, we stand to lose if county payments legislation is not reauthorized. The $2.5 million reduction we would face represents about 60 percent of the annual revenue to the Road Fund. Ouch. We truly hope that doesn’t happen.
But Crook County also has unique advantages other counties do not enjoy. For one thing, the county government has building reserves in preparation for this day to help weather a transition. For another, the county’s healthy rate of growth will help generate revenue to partially backfill the loss of county payments dollars. In addition, the county has revenue-generating resources at its disposal which other counties do not.
Cuts will still be required, especially within the Road Department budget. While no cuts in the General Fund budget are anticipated, no growth to meet the demands of a growing population will be possible either in the budget year ahead of us.
Despite this, however, we anticipate that all existing services will be preserved, road department operations will continue as usual and no extraordinary changes to countywide staffing levels are anticipated.
We at Crook County are still hoping for a Hail-Mary-Pass, a last-minute miracle or a rabbit-pulled-out-of-a hat. If it can be done, we’re convinced the team of Senators Wyden and Smith and Congressmen Walden, DeFazio and Hooley will get the job done.
But just in case they don’t, we’re ready with a Plan B to craft a budget that works within the resources we have. None of us think it will be fun, but in the end, we recognize that with teamwork and creativity, we can manage within the means we have.
We don’t think you would have it any other way.
Published in the Central Oregonian, Prineville Oregon, February 2007
Continued Inaction On Timber Payment Threatens Reduction In Vital Services
The story of falling timber harvest in the Northwest is all too familiar now, but it’s definitely one worth repeating.
In 1986, just over 95,446,000 board feet of timber were harvested off U.S. Forest Service land in Crook County. By 2003, the number of board feet had fallen to 332,000 board feet—about three tenths of one percent of the 1986 level.
If one compares the ten years comprising 1983 to 1992 to the ten years comprising 1993 to 2002, the amount of timber harvested off forest service land in Crook County in the second decade was less than 1 percent of the amount harvested in the first decade.
The timber industry traditionally helped Oregon achieve a unique position among the economies of the 50 states: despite the fact that the workforce remained relatively low skilled, the state boasted a relatively high average wage, which in turn helped keep Main Street cash registers ringing around Oregon. In addition, taxes imposed on businesses which cut the timber, became a critical source of revenue to Oregon schools and the state’s local governments.
All that changed, starting about 1990.
Environmental groups, convinced that every tree in the forest was the roost of an endangered spotted owl and further convinced that Oregon’s vast forest tracts were somehow in danger of disappearing began through policy initiatives and litigation to slowly strangle the timber industry in Oregon.
Whether we as a state were too late to wake up to what was happening to us or simply too politically ineffective to stop the inevitable, remains a source of debate. Whatever the reason, in the short space of a decade, the state essentially lost its most important industry, along with thousands of associated jobs and economic security for Oregon’s schools and rural communities.
With the loss of the timber industry, an essential source of revenue for local government also disappeared. Where local governments and schools once survived and thrived on the continuous stream of revenue provided by timber harvest, the tax receipts dwindled after 1990 right along with the timber supply.
Things were nearing the point of crisis in 2000, when along came Congress, in the guise of legislation called the Secure Rural Schools and Community Self Determination Act of 2000, sponsored by Senators Ron Wyden of Oregon and Larry Craig of Idaho.
Under this act of Congress, the federal government accepted some responsibility for the havoc its environmental policies had wreaked on the timber-dependent communities of the rural West. A slightly penitent and cash-flush federal government agreed to try to somewhat makes up for the unintended consequences of its previous decade of policymaking by agreeing to make payments to counties and schools in 39 states, based on the average of timber severance taxes received as a result of harvest from federal lands over a five year period. For Oregonians, this legislation had the added allure of allocating nearly 50 percent of the federal money to our state—something I suspect a number of congressmen voting on the bill didn’t really understand at the time.
“Hallelujah,” shouted local government and school leaders. “It’s about time!” Breathing a sigh of relief, local governments put their money worries behind them, at least for the six years the legislation was initially authorized.
Fast forward to fall of 2006: the first round of “county payments” legislation has now expired. Despite the efforts of Oregon congressmen, it hasn’t yet been reauthorized. The President and his administration, swimming in surplus when the bill was passed, have spent the country into a deficit. Meanwhile, congressmen in 38 states have figured out that the legislation which was so good for Oregon wasn’t as good for their states as anticipated. Thus, when the county payments bill expired on Sept. 30, Congress was in no mood to reauthorize it.
As a result, local governments and schools in Oregon are on the verge of a crisis. Some are on the verge of near collapse, as it is becoming increasingly apparent that $107 million paid annually to Oregon counties to support general services, $91 million paid annually to support county roads and $31 million paid for schools is about to disappear.
Depending on the size of the federal checks being received, the 33 of 36 Oregon counties are impacted in different ways by this impending loss. Clatsop, Gilliam and Multnomah, which receive no payments, are not affected. But Douglas County will lose 69 percent of its General Fund—the monies used to run basic government services, including law enforcement. Grant County will lose 73 percent of its road fund, and even relatively affluent Lane County, is bracing for the loss of 35 percent of its General Fund. In preparation for grim reality, Coos County has pink-slipped 25 percent of its workforce. Jackson County has closed its 14-branch Central library system. Lane County will lay off 200 sheriff’s deputies, close 100 jail beds and stop prosecuting illegal drug possession. Coastal Curry County announced in an email to county commissioner earlier this week that it is examining the possibility of dissolving its county government altogether.
To say the least, things are not good.
In Crook County, the picture is slightly different. Like our fellow counties, we stand to lose if county payments legislation is not reauthorized. The $2.5 million reduction we would face represents about 60 percent of the annual revenue to the Road Fund. Ouch. We truly hope that doesn’t happen.
But Crook County also has unique advantages other counties do not enjoy. For one thing, the county government has building reserves in preparation for this day to help weather a transition. For another, the county’s healthy rate of growth will help generate revenue to partially backfill the loss of county payments dollars. In addition, the county has revenue-generating resources at its disposal which other counties do not.
Cuts will still be required, especially within the Road Department budget. While no cuts in the General Fund budget are anticipated, no growth to meet the demands of a growing population will be possible either in the budget year ahead of us.
Despite this, however, we anticipate that all existing services will be preserved, road department operations will continue as usual and no extraordinary changes to countywide staffing levels are anticipated.
We at Crook County are still hoping for a Hail-Mary-Pass, a last-minute miracle or a rabbit-pulled-out-of-a hat. If it can be done, we’re convinced the team of Senators Wyden and Smith and Congressmen Walden, DeFazio and Hooley will get the job done.
But just in case they don’t, we’re ready with a Plan B to craft a budget that works within the resources we have. None of us think it will be fun, but in the end, we recognize that with teamwork and creativity, we can manage within the means we have.
We don’t think you would have it any other way.
Labels: Continued Inaction On Timber Payment Threatens Reduction In Vital Services
posted by Scott Cooper | 8:03 AM
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