OAR 123-024-0031: Methodology for Determining Distressed Areas

The department will consider a county, City, or other geographic area to be a distressed area under one of the following methods: (1) Using the most recent data available on the date of calculation, a county is considered distressed when, an index is calculated as the product of the values calculated using four composite factors. It is distressed if its index is less than 1.0. If the index is more than 1.0 the county is considered non-distressed. The following are the four factors used to determine a distressed county: (a) The state's unemployment rate divided by the county's unemployment rate; (b) The county's per capita personal income divided by the state's per capita personal income; (c) The change in the county’s average covered payroll per worker over a two year period; (d) The sum of the change in the county’s employment over a two year period; or (2) A city outside of a county identified as a distressed area under subsection (1) of this section may be designated as distressed when its variable values are below the designated threshold value as determined by at least three of the four indicators listed below. The threshold values for each of the four indicators shall be determined by using reliable data from each of the distressed counties based on a demonstrated methodology, as approved by the director of the department. Threshold values are calculated using the most recent 5 year American Community Survey data from the U.S. Census Bureau. (a) Percentage of city population 25 years old and over with a bachelor’s degree or higher. The threshold value for variable A is the percentage of Oregon population 25 years old and over with a bachelor’s degree or higher. If the percentage of city population 25 years old and over with a bachelor’s degree or higher is higher than the percentage of Oregon population 25 years old and over with a bachelor’s degree or higher, this value is above the threshold and not distressed. (b) The city’s unemployment rate. The threshold value for variable B is Oregon’s unemployment rate. If the city’s unemployment rate is lower than Oregon’s unemployment rate, this value is below the threshold and not distressed. (c) Percentage of the city population 3 years of age and over, excluding those enrolled in college undergraduate and graduate or professional school, below the poverty level. The threshold value for variable C is the percentage of Oregon population 3 years of age and over, excluding those enrolled in college undergraduate and graduate or professional school, below the poverty level. If the percentage of the city’s population 3 years of age and over, excluding those enrolled in college undergraduate and graduate or professional school, below the poverty level is lower than the percentage of Oregon population below the poverty level, this value is below the threshold and not distressed. (d) The city’s per capita personal income. The threshold value for variable D is Oregon’s per capita personal income. If the city’s per capita personal income is higher than Oregon per capita personal income, this value is higher than the threshold and not distressed. (3) A county, City, or other geographic area that has demonstrated in writing, through a Temporary Distressed Petition, to the satisfaction of the director of the department, that it is suffering or is likely to suffer economic distress equal to or greater than those counties and cities qualifying as distressed areas under subsections (1) and (2) of this section. The director shall have the authority to declare counties, cities, and other geographic areas distressed as allowed under the Temporary Methodology for Determining Distressed Areas, OAR 123-024-0046.