Oregon Counties Face Financial Insolvency

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Several Oregon counties are asking the state for more flexibility in spending, as they try to stave off financial insolvency.

Curry County is likely to run out of operating money this summer. Several other counties aren't far behind.

Mike McArthur of the Association of Oregon Counties told a joint legislative task force Wednesday the counties are facing cuts to core services.

He says at least three counties -- possibly more -- need permission to spend millions of dollars in designated road money to shore up their general funds.

"This isn't a solution. this is a desperate measure. By June you'll see several counties will cease to function like a normal county," McArthur said.

McArthur says the counties are making plans to pay the road money back. For example, Curry County will likely consider a package of reforms that may include sales and property tax increases.

The Task Force is preparing recommendations that the full Oregon Legislature would still have to approve. It's not clear if all that can be done by summer.

The affected counties have reached the end of federal payments that compensated them for decreased logging on federal land.

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