Legislature’s grab for money alarms farming activists

By MITCH LIES

Capital Press

Since 2007, Oregon lawmakers have diverted $2.25 million generated by industry fees from the Oregon Department of Agriculture to the state’s general fund.

The fund sweeps, as they are called, amount to an added tax on farmers and agricultural suppliers, according to an industry representative, and jeopardize industry support for future fee increases.

“Our members are extremely concerned about the Legislature’s action of sweeping out (ODA’s) money and putting it into the general fund,” Oregon Farm Bureau lobbyist Katie Fast said.

In addition to the fund sweeps, lawmakers since 2007 have shifted more than $4.3 million in program funding within the agency from general funds to fees.

Fund sweeps and fund shifts aren’t unique to the Department of Agriculture, ODA Director Katy Coba said. In an attempt to balance a state budget that in recent years has been racked with shortfalls, lawmakers have swept ending-fund balances from several state agencies.

“From a percentage basis, we were probably the top agency or one of the top agencies,” Coba said.

The agency likes to keep ending-fund balances in certain programs, such as food safety, to handle emergencies. But keeping funds on hand has proven difficult in today’s economy.

This February, lawmakers moved $400,000 from the department’s food safety division and backfilled the loss with fees. And lawmakers swept $440,000 from the department’s pesticides division to the general fund — money that was generated from a surcharge on pesticide registration fees.

The fund shifts and sweeps, combined with anticipated general fund budget cuts next session, are pushing forward department plans for fee increases.

The agency’s 2011-13 budget will be a topic of discussion at the Oregon State Board of Agriculture’s meeting June 3 in Klamath Falls.

In the budget, the department is looking at increasing fees in its seed and confined animal feeding operation programs. And it could seek fee increases in its pesticide and food safety programs before the end of the next biennium.

Generally, lawmakers like to see industry support when an agency seeks fee increases. Generating that support next session, however, may be difficult.

“We don’t object to paying our fair share,” said Terry Witt, executive director of Oregonians for Food and Shelter. “But so many of the programs within ODA should be general-fund programs, because they go for the general welfare of Oregon citizens.”

“I don’t expect the industry to support significant fund shifts to backfill loss of general funds,” Coba said.

She said there are only two alternatives.

“We either raise fees or get rid of programs, and based on what we’ve heard from the industry, we need all of our programs.”