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

3. Source: Oregon Department of Forestry

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

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

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

8. Empirical Evidence Financial data from FY11 CAFRs on “General Government” expense Ex. Administration, finance, clerk, assessor, planning Multnomah $79 Deschutes $142 Grant $352 Grant $352 Deschutes $142 Multnomah $79

9. Empirical Evidence Financial data from FY11 CAFRs on “General Government” expense Ex. Administration, finance, clerk, assessor, planning Multnomah $79 Deschutes $142 Grant $352 Adj. R 2 0.41 P-Value ~0.00

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

11. Estimating the Benefit of Consolidation

13. Coos/Curry $134 Curry/Coos Separate $14.1m Consolidated 11.4m Savings $2.7m

14. Quantifying the Benefit Pop.Total Savings %Per CapitaTotal Curry-Coos 85,29519%$ 32$2.7m Josephine-Jackson 285,77033%$ 19$5.6m Lake-Klamath 74,46512%$ 14$1.1m Baker-Wallowa-Union 49,19025%$ 29$1.4m Crook-Deschutes- Jefferson 201,57530%$ 40$8.2m Douglas-Lane 469,95042%$ 42$19.3m

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

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