A national report released last week made clear that Oregon is in far worse condition economically than most states.
The Pew Center on the States, a non-profit organization that works to serve the public interest through policy, released its findings on Nov. 11 looking at the nine states that are particularly affected by the recession in addition to California.
“While California often takes the spotlight, other states are facing hardships just as daunting,” Susan Urahn, managing director of the Pew Center on the States, said in a press release.
“Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers.”
The report, titled “Beyond California: States in Fiscal Peril,” compared the states’ economies to California’s current fiscal peril, noting similarities between the states’ problems. Using data from July 31, Oregon was ranked the fifth most troubled state, tied with Nevada, out of the ten states faced with fiscal difficulties. According to the report, “the national recession … in many ways has hit Oregon as hard as California.”
To measure these results, PCS looked at six components: change in revenue, budget gaps, change in unemployment, foreclosure rates, state requirements to raise revenue and the PCS grade given to the state earlier in the year regarding fiscal management. Oregon received a C+ in the latter category.
Between 2008 and 2009, Oregon’s unemployment rates more than doubled, reaching 12.2 percent and beating even the most fiscally endangered state, California.
The report based this skyrocketing rate on Oregon’s dependence on a few major manufactures that Oregon relies on: timber and computer chip manufacturing.
Last year, memory chip manufacturer Hynix Semiconductor shut down its Eugene facility, eliminating 1,400 jobs, and the state timber industry has lost 6,000 jobs in the last two years.
Gov. Ted Kulongoski has said he sees hope in Oregon’s progressive clean energy initiatives, while other state programs are suffering.
Lane County Commissioner Pete Sorenson also based this overall fiscal depression on the loss of Oregon’s recreational vehicle corporations, such as Lane County’s Monaco RV and Country Coach.
Sorenson, a former state senator, sees the recession affecting the state and county in
different ways.
“This report shows our states’ long dependence on income tax and, on a local level, our huge reliance on property taxes,” Sorenson said. “Both of these issues put us at risk.”
However, Sorenson sees a positive aspect amid the bleak facts. In April, the Lane County Budget Committee was awarded for its accuracy in presenting the budget. In the words of Sorenson, the award generally “told us that we’re doing a very good job of understanding the situation that we’re in,” which he sees as a step in the direction of recovery.
In January 2010, Oregon voters will have the option to vote for or against a $733 million income tax hike. Historically, Oregon voters have repeatedly rejected tax hikes in past elections.
The other troubled states ranked after California are Michigan, Arizona, Rhode Island,
Nevada, Florida, Wisconsin, Illinois, and New Jersey.
Top 10 states in fiscal peril:

• California
• Arizona
• Rhode Island
• Michigan
• Oregon
• Nevada
• Florida
• New Jersey
• Illinois
• Wisconsin

Source: The Pew Center on the States
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