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Posted: Wednesday, November 23, 2011 11:00 AM




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Revenue picture takes hit

Coba says department looking to cut empty positions

By MITCH LIES

Capital Press

SALEM -- Oregon's wolf compensation and predator control programs are safe, at least for now.

Under a list submitted to Gov. John Kitzhaber Nov. 14, the Oregon Department of Agriculture proposed cuts to its marketing, animal health and plant divisions as top options if the state cuts department spending.

The wolf compensation and predator control programs, which ranked at the bottom of the department's priority rankings in the last legislative session, are not on the proposed cut list.

Kitzhaber asked all state agencies and Oregon State University's statewide public services to submit the lists in anticipation of declining state revenues.

The possibility of cuts increased Nov. 17, when Oregon State Economist Mark McMullen forecast that state revenues were down $305 million from the prediction lawmakers used to develop the state's 2011-13 budget.

The indications are that revenues will continue to decline, he said.

The forecast extinguished previous hopes, fueled by a rosy May forecast, that Oregon was climbing out of an economic hole.

"Unfortunately, the happy days are beyond us now," McMullen said. "Over the last three quarters, we have seen nothing in the state in terms of employment growth.

"Contingency planning remains a must for the Legislature," he said.

The Nov. 17 forecast means two-thirds of the $460 million lawmakers set aside in reserves are gone.

On its list, the ODA is proposing to refrain from hiring two of three new legislatively authorized marketing positions and not fill a vacant district veterinarian position as part of its preliminary cuts.

Director Katy Coba said it was easier to cut positions that aren't filled than to slice into existing programs.

The cuts to its agricultural marketing division mean long-term gains in agricultural marketing are suffering for short-term needs, she said.

"Marketing is still a priority for this agency," she said. "We are going to do the best we can with the resources we have."

The Oregon Department of Forestry is putting on hold plans to hire seven to 10 new field foresters.

The department already has 12 new field foresters this biennium, increasing its total number from 30 to 42. Some firefighting capacity also could be subject to cuts.

Kitzhaber said in a prepared statement he is working with legislators to produce a budget framework for the one-month February session, which is when cuts are expected to be made.

In his Nov. 17 report to the House and Senate revenue committees, McMullen said that Oregon agriculture has been a bright spot in the state's economic health.

As evidence, he said, counties least impacted by the recession include those with strong agricultural output. Hood River, Wasco, Gilliam, Morrow and Umatilla counties showed significantly less job loss than other counties, he said.

Also, he said, Willamette Valley counties, "where farms were doing well," shouldered the recession better than counties in Central Oregon and Southern Oregon, where a decline in the housing market led to sharp declines in tax revenue.

The benefits of Oregon's agricultural production extend beyond the farm gate to the transportation, distribution, warehousing and manufacturing industries, he said.

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