Economy Affects OR's WCD's Revenue

Portland, OR (CompNewsNetwork) - OR's Department of Consumer and Business Services (DCBS) is being impacted by the economic recession. Because DCBS programs are funded by fees and assessments paid by the
industries the state regulate, Oregon's declining employment and payroll are affecting the revenue the DCBS collect.

The two funds that support the workers' compensation system are directly related to Oregon's employment base - the premium assessment (paid based on payroll) and the Workers' Benefit Fund assessment (paid based on cents per hour
worked). Due to the current economic conditions, the projected revenue decline through 2011 is more than $20 million in the Premium Assessment Operating Account alone.

The department has taken responsible steps to manage the projected revenue shortfall, including using funds from OR's reserves, increasing collections revenue, withdrawing budget proposals, not filling vacant positions, and cutting spending.
Unfortunately, these steps will not be enough to meet the revenue shortfall. In recent weeks, the DCBS have notified 27 department employees that they will be laid off over the next few months. Of these, 14 are in the Workers' Compensation

The positions selected for layoff were based on a number of criteria, including areas where revenue sources are affected more than others, areas where workload has declined, areas where programs have been reduced in scope and no longer
need the current staffing level, or areas where functions can be consolidated.

Economic conditions have been worsening more quickly than expected, and, as a result, the depth and length of the recession is very difficult to forecast. Managing through this period will be challenging. The DCBS believe the steps taken to
address the projected revenue shortfall will not harm their ability to achieve their core regulatory mission and that customer service will not be impacted.

Read More

Request a Demo

To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.