Curry County Commissioner George Rhodes, right, speaks to Gov. John Kitzhaber about Curry County’s financial situation. The Pilot/Submitted photo.

GOLD BEACH – Curry County Commissioner George Rhodes said he was pleasantly surprised when he and commissioners from nine other counties met with Gov. Kitzhaber and his staff in Salem on Monday to discuss the plight of their counties with the loss of federal forest payments.

“The governor is very aware and very supportive of what we’re doing,” Rhodes said. “He made his staff available to assist us in any way we felt they could help.” 

Rhodes said the governor made it clear that he would help the counties in any way he can, except money.

“It was clear that any services by the state would have to be paid for,” Rhodes said.

Rhodes said the governor made it clear the state has no money, either.

“It’s not a get out of jail card, it’s the warden is willing to work with you,” Rhodes said.

“We made it quite clear that while Curry County would be the first to be declared insolvent, it wouldn’t be the last,” Rhodes said. “It’s sort of like a horse race. It’s not clear who would be the next loser.”

Rhodes said the governor has a keen awareness that the counties’ situation would affect the state.

He said the commissioners and the governor discussed what could happen as counties become insolvent.

“A county could merge with another county, but that’s not likely,” Rhodes said.

“The thing that resounded with me the most is the complete awareness of the governor,” Rhodes said.

He said that as many as 26 counties could fail.

“We are in very much the same boat. If we don’t work together, it could consume the whole state,” Rhodes said.

Rhodes said the commissioners and the governor were talking about gap funding.

“We have issues long term and short term. The short term we need some type of gap funding. How do we continue to provide services at a reasonable level,” Rhodes said.

He said the Curry County commissioners must make tough decisions in January.

Rhodes said Curry County has deferred liabilities of $7.8 million, including potential unemployment payments that could reach $3.6 million if the county became insolvent and had to let all employees go.

“We do not currently have a projected revenue to cover those liabilities,” he said.

Rhodes said the commissioners must begin work as soon as Jan. 4, their next scheduled general meeting, to find solutions.

“We have to hear from the Citizens’ Committee as soon as possible,” he said.

The Citizens’ Committee, which is exploring options to address the county’s pending financial crisis, has met twice, with its next meeting scheduled for Jan. 12. They have been asked to report to the commissioners by Feb. 1.

“We don’t have the luxury of extending the time for a month or two,” Rhodes said.

He said the commissioners must begin doing something at their Jan. 4 meeting.

“There are some counties that are down to a four-day work week,” he said.

Rhodes said those counties are facing lawsuits from unions that are not happy with a short work week, saying it violates their contracts.

But he said that’s one way to go.

“We need to see we are all on the same page. We need to be hitting the ground running in January,” Rhodes said.

“It made me feel really good that we have the support of the governor’s office, the support of the governor’s staff,” he said.