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Oregon counties nearing budget crisis

The loss of federal funding has timber economies struggling.

THE NATION

January 28, 2007|Lynn Marshall, Times Staff Writer

EUGENE, ORE. — Lane County has a $47-million hole in its budget.

With $20 million gone from the general fund, $20 million from the road fund and $7 million from the schools budget, county Budget Manager David Garnick is trying to figure out how to provide the services people expect.

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"The things that give you quality of life -- health, safety, elections, prosecution of crime -- you name it and we have to cut it," he says.

The county is projecting 260 to 285 layoffs. "We're not sure yet who's going to go out the door," Garnick says.

Runaway spending? No.

This west-central Oregon county, population 335,180, is one of 34 counties in the state that had received payments under the Secure Rural Schools and Community Self-Determination Act. Congress passed the act in 2000 as a safety net for timber-dependent counties, whose revenues were in steady decline because of changes in federal forest policies and the rise of environmentalism. When Congress failed to renew the act last year, the stage was set for layoffs in Oregon -- and for budget cuts in rural counties nationwide.

The last payments from the program went out at the end of December.

Forty states had been receiving money that, in most cases, was directed to schools and road-building. The program doled out more than $2.9 billion. Oregon got the largest share, $250 million a year; California was receiving $60 million, Washington about $40 million.

In California, as many as 100 school districts in 39 counties may face budget cuts. Bob Douglas, superintendent of the Tehama County schools in Northern California and president of the National Forest Counties and Schools Coalition -- which has members in 37 states -- says the funding loss will affect 18,000 schools and more than 9 million students.

"The prospect of dismantling all these rural schools -- it is a true emergency, and Congress should treat it as one," Douglas said. "They like to talk about 'no child left behind.' These kids are going to be left behind."

Gene Evans, communications director for the Oregon Department of Education, says state schools will lose about $33 million this year. "Oregon isn't a big state, and that money has an impact. Every dollar makes a difference," Evans said.

In addition to the funds for schools and roads, the act provided money that flowed directly to the general budgets of 18 Oregon counties, used for essential government functions such as police, search and rescue, mental health programs and running elections.

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