To the people of Harney County,

Harney County government is experiencing a financial crisis. Beginning in 2018, the county judge and treasurer discovered that for many years —five years at a minimum, but possibly longer — the budget process each year had proceeded based on a significantly over-stated beginning fund balance. That meant that the county passed budgets that exceeded yearly revenue. The county has used all of the $2.3 million dollar beginning fund balance over the last five years. This $2.3 million went to providing services to our community. Our revenues have seen modest increases over these years, but actual expenditures for the cost of doing business have outpaced revenue. The Harney County Court is taking immediate action to make it through this fiscal year without going into debt, but we must find a way to budget and operate on approximately $1 million less than we usually budget, not just for a few years, but as the new normal.

We will only be able to provide services that can be paid for with revenues that are received in the budget year. All of the services that the county has been providing are important, and all of the county employees that have been providing these services are excellent people. The fact is that we cannot continue offering the same amount of services that we have been providing. This reduction of services should have started five years ago, but it did not and we will take the appropriate action to become fiscally responsible.

The county court and budget board share in the anger and frustration of the county employees and residents, and are distressed about how this could have happened and continued for so many years. Everyone wants to know what happened and when. The county court is continuing to verify and determine the origin and reasons for the continuation of the beginning fund balance errors. We will report this information once it has been fully determined. At this time our beginning fund balance has been confirmed by our auditors and we are able to proceed.

Despite the fact that it took many years for this situation to occur, we do not have years to correct our finances. It is truly a crisis. The only positive aspects are that 1) the situation is being addressed now rather than next year, and 2) Harney County is a community that comes together to find solutions to our challenges. The county must move forward to live within its means immediately.

While no specific decisions have been made yet, and the budget process is ongoing, the county court needs everyone in the community to understand the situation and come together to help find ways to keep providing services while removing them from the county general fund. Which services are legally mandated and which are not? Which services can be privatized? What are the other considerations we need to take into account? These will be the deliberations of the county court and budget board, and they will be challenging. Several Oregon counties have passed local tax levies in order to be able to continue offering non-mandated services.

Many people are alarmed, concerned, and even fearful of the decisions that will have to be made. Yet we know that Harney County, with our combined knowledge, experience, partnerships and creativity, has always found ways to work together through tough scenarios. You, the people of Harney County, will be key to finding ways to provide the services we want to retain outside of the county budget. We seek your participation in moving forward.

Sincerely yours,
Pete Runnels, Harney County Judge
Mark Owens, Harney County Commissioner
Patty Dorroh, Harney County Commissioner