Government Consolidation: Potential Response to the Fiscal Crisis in Oregon’s Timber Counties
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Government Consolidation : Potential Response to the Fiscal Crisis in Oregon’s Timber Counties
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Government Consolidation:Potential Response to the
Fiscal Crisis in Oregon’s Timber Counties
GRANTS PASS, Ore. -- Dozens of inmates ran whooping from a small town jail into the sunshine Wednesday after a cash-strapped county in Oregon's timber region was forced to release them amid budget cuts.
The sheriff's office released 39 inmates, dropping the population at the jail in Grants Pass to 60
Source: Oregon Department of Forestry
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12,000Federal All Others Types
Oregon Timber Harvests by Land Type(millions of board feet)
Federal Revenue Sharing
NW Forest Plan Payments
Payments in Lieu Taxes (PILT) Secure Rural Schools Payments
Payments Replace Timber Harvests
Why Consolidation?
Obtain “Economies-of-Scale” by spreading overhead:
–Bricks and mortar –Technology & Equipment–Administrative personnel
Empirical EvidenceFinancial data from FY11 CAFRs on “General Government” expenseEx. Administration, finance, clerk, assessor, planning
Multnomah$79
Deschutes$142
Grant$352
- 200,000 400,000 600,000 800,000 $-
$100
$200
$300
$400
$500
Expenditures per Capita
County Population (000’s)
Grant$352
Deschutes$142
Multnomah$79
Empirical EvidenceFinancial data from FY11 CAFRs on “General Government” expenseEx. Administration, finance, clerk, assessor, planning
Multnomah$79
Deschutes$142
Grant$352
- 200,000 400,000 600,000 800,000 $-
$100
$200
$300
$400
Expenditures per Capita
Trend Line
County Population (000’s)
Adj. R2 0.41
P-Value ~0.00
- 20,000 40,000 60,000 80,000 100,000 120,000 50
100
150
200
250
300
350
400
County Actual Trend Line
County Population
Exp
endi
ture
s pe
r Cap
ita
Estimating the Benefit of Consolidation
Curry$282
Coos$124
Estimating the Benefit of Consolidation
- 20,000 40,000 60,000 80,000 100,000 120,000 50
100
150
200
250
300
350
400
County Actual Trend Line Curry Trend Line Coos Trend Line
County Population
Exp
endi
ture
s pe
r Cap
ita
Estimating the Benefit of Consolidation
- 20,000 40,000 60,000 80,000 100,000 120,000 50
100
150
200
250
300
350
400
County Actual Coos / Curry Trend Line Trend Line
County Population
Exp
endi
ture
s pe
r Cap
ita
- 20,000 40,000 60,000 80,000 100,000 120,000 50
100
150
200
250
300
350
400
County Actual Coos / Curry Trendline
County Population
Exp
endi
ture
s pe
r Cap
ita
Estimating the Benefit of Consolidation
Coos/Curry$134
Curry/CoosSeparate $14.1mConsolidated 11.4mSavings $2.7m
Quantifying the BenefitPop. Total Savings
% Per Capita Total
Curry-Coos 85,295 19% $ 32 $2.7m
Josephine-Jackson 285,770 33% $ 19 $5.6m
Lake-Klamath 74,465 12% $ 14 $1.1m
Baker-Wallowa-Union 49,190 25% $ 29 $1.4mCrook-Deschutes-Jefferson 201,575 30% $ 40 $8.2m
Douglas-Lane 469,950 42% $ 42 $19.3m
Quantifying the Benefit
Lost Federal Payment
Federal Gen, Fund Payment FY2008
($45.0m)
Est. Benefit of Consolidation
Calculated Benefit of Consolidation
$38.2m
Government Consolidation:Potential Response to the
Fiscal Crisis in Oregon’s Timber Counties
