GOLD BEACH – Gov. John Kitzhaber has told Curry County commissioners that the county must consider a property tax increase even if Congress reauthorizes the Secure Rural Schools Act, granting county payments a continuation at the same rate they receive this year.

That came in his reply to the commissioners’ letter giving the governor advance warning that the county could go broke and asking that the state be prepared to help resolve the impending economic crisis.

“However, as you pointed out in your letter, the low tax rates that some counties have enjoyed during times of federal payments will need to be raised if those payments are terminated,” he wrote in a letter dated Oct. 20. 

“In particular, Curry County has a tax rate that is much lower than other counties that receive county payments. In any scenario, providing an adequate level of service to the public in Curry County will require re-examination of this tax rate going forward,” the governor wrote.

County commissioners last Friday approved an order forming The Curry County Citizens’ Committee to help the county find ways to head off the financial crisis that will occur after Secure Rural Schools funding ends in November.

“The purpose of the committee is to identify and explore all viable revenue and expenditure opportunities to achieve fiscal solvency and stability for Curry County government now and in the future,” the order says.

One of the actions that may come from the committee is placing a tax increase on the ballot next May.

Kitzhaber wrote that he appreciates the failure of Congress to reauthorize the SRS would place Curry County and a number of other Oregon counties in a dire fiscal position. 

“The ramp-down in federal payments over the past several years already has put a number of Oregon counties under severe fiscal stress,” he wrote.

Kitzhaber said he is committed to the ongoing effort to obtain reauthorization of the Secure Rural Schools Act, which is designed to compensate counties for the loss of revenue resulting from the retention of large areas in federal ownership in certain parts of the country. 

“We are working with the Oregon delegation both to support reauthorization and to find a long-term solution for management of the O&C lands,” he wrote. “I am working with the delegation toward a unified position on the management of O&C lands that will provide more revenue from those lands while maintaining important environmental values.”

The governor said he traveled to Washington D.C. recently to meet with Oregon’s delegation and believes that, while a very difficult situation remains, important progress is being made. 

“Senator (Ron) Wyden has secured an agreement on the Senate side that would continue the Secure Rural Schools program at the 2011 level, with a 5 percent per year reduction over five years. We must all continue to work together to ensure the program is extended,” Kitzhaber wrote.

Curry County is to receive approximately $1,079,053 in the November payment, which County Accountant Gary Short estimates would require the county to have to cut $2 million out of next year’s budget.

“While we work for reauthorization and other congressional action, we also need to prepare for the very real possibility that Congress will fail to act on this matter,” Kitzhaber wrote. 

“As you know, the state budget has taken a major blow from the great recession. Our most recent forecast indicates we may have even less revenue than we had anticipated for this biennium,” he continued.

“Therefore, as we work to maintain basic services in Oregon, we must also change our systems to operate more effectively and efficiently. The bottom line is Oregon’s financial condition is very constrained, and we must change the way we do business to deal with the shortfall in revenue.”

He said that Curry County must begin to inform citizens of the possibility that certain essential public services will no longer be provided at even minimally adequate levels.

“The Oregon legislature also is aware of these issues, and has appointed a legislative task force to work with my staff and local government to improve our preparedness,” the governor wrote. 

“I am convening a team immediately to work with the legislative task force to do three things:

“-1. Update the 2009 County Payments Task Force report, particularly with regard to the fiscal impacts to particular counties that are most at risk.

“-2. Provide technical assistance to counties in fiscal jeopardy and where necessary to identify what key services are required and/or feasible to continue.

“-3. Develop proposed legislation for the 2012 Legislative Session to improve the tools counties have to mitigate significant fiscal stress.”

The governor said he has reviewed Curry County’s request for an Oregon Solutions project designation. 

“I am directing my Intergovernmental/Regional Solutions Director to develop a recommendation on how this or a related program, Oregon Consensus, could be of assistance,” Kitzhaber wrote.

Oregon Consensus at Portland State University last week agreed to help manage the citizens’ committee which is being formed by the county. That committee will be made up of at least 12 members to be made up of a cross-section of interested people from various geographical parts of the county representing different economic backgrounds.