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Government Consolidation: Potential Response to the Fiscal Crisis in Oregon’s Timber Counties

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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  1. Government Consolidation:Potential Response to the Fiscal Crisis in Oregon’s Timber Counties

  2. 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

  3. Source: Oregon Department of Forestry

  4. Oregon Timber Harvests by Land Type (millions of board feet)

  5. Payments Replace Timber Harvests Secure Rural Schools Payments NW Forest Plan Payments Payments in Lieu Taxes (PILT) Federal Revenue Sharing

  6. Why Consolidation? Obtain “Economies-of-Scale” by spreading overhead: • Bricks and mortar • Technology & Equipment • Administrative personnel

  7. Empirical Evidence Financial data from FY11CAFRs on “General Government” expense Ex. Administration, finance, clerk, assessor, planning Grant $352 Grant $352 Deschutes $142 Deschutes $142 Multnomah $79 Multnomah $79

  8. Empirical Evidence Financial data from FY11CAFRs on “General Government” expense Ex. Administration, finance, clerk, assessor, planning Grant $352 Deschutes $142 Adj. R20.41 P-Value ~0.00 Multnomah $79

  9. Estimating the Benefit of Consolidation Curry $282 Coos $124

  10. Estimating the Benefit of Consolidation

  11. Estimating the Benefit of Consolidation

  12. Estimating the Benefit of Consolidation Curry/Coos Separate $14.1m Consolidated 11.4m Savings $2.7m Coos/Curry $134

  13. Quantifying the Benefit

  14. Quantifying the Benefit Federal Gen, Fund Payment FY2008 ($45.0m) Lost Federal Payment Est. Benefit of Consolidation Calculated Benefit of Consolidation $38.2m

  15. Government Consolidation:Potential Response to the Fiscal Crisis in Oregon’s Timber Counties

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