Published: January 8, 2003

By Ray Linker

Observer Staff Writer

If Ballot Measure 28 passes Jan. 28, residents of Union County will see their state income taxes increase $632,590.

If the measure fails, there will be an "initial projected economic loss of $5,694,500 to Union County."

Those figures were presented by Bob Nelson, manager of the La Grande office of the Oregon Employment Department, during a forum of speakers on the subject Tuesday night.

About 75 people gathered at McKenzie Theatre at Eastern Oregon University to hear various panels on education, police, social services, local and county government discuss the ramifications of the ballot measure, which would raise the state tax for three years.

Nelson said he had contacted various agencies in the county to come up with his figures, adding that they are approximate.

"There may be additional losses," he said.

While other panelists detailed what would be the debilitating results if specific human services have to be cut, Nelson dealt with the financial aspects.

The loss of $5.7 million represents a "loss of spending money in the county, money that will just go away," Nelson said.

"We have a choice. We can cough up the money and see where it goes. Or we can say ‘no' and see what happens."

Among the hardest hit — "money that will leave the county" — Nelson said, was the Department of Human Services. It will lose more than $4.2 million, he said.

This includes $3.2 million plus a potential loss of $450,000 if 10 jobs in the office of Seniors and Persons with Disabilities are cut, Nelson said.

"It appears that SPD will take the biggest hits," Nelson said. He mentioned that loss of state funding also means loss of federal matching dollars.

Among the losses to seniors would be $2,080,000 to nursing homes, $949,000 at assisted living facilities and $147,500 for other residential care.

"This does not include the staff losses at the care facilities, such as foster care, relative care, adult care, in-home assistance, which accounts for $540,000 and 100 jobs. Other DHS cuts in the county will total $60,000," Nelson said.

He said six jobs would be lost at the Center for Human Development, equal to $250,000 in economic losses to the county. Community Connection, which depends a lot on matching funds from various sources, would lose several positions totaling $140,000. The Grande Ronde Child Care Center would lose five positions totaling $150,000.

Nelson said various educational cutbacks would result in an economic loss valued at $828,000. He estimated that the tuition increase at Eastern Oregon University would reduce enrollment to the point that the spending loss to the community would be $150,000 and the staff loss of nine positions would equal $230,000.

The public safety cutbacks, including juvenile programs, would result in an economic loss to the county of $110,000, Nelson said.

If passed, the $725 million measure would raise the state's income tax brackets for three years: 2002, 2003 and 2004. The top 9 percent bracket for personal income taxpayers would climb to 9.5 percent, and the corporate tax rate would climb from 6.6 percent to 6.93 percent.

Ballots are scheduled to be mailed out next week.