Skip to main content

TNG228

Page 1

Winter blues?................................................. PAGE 3 Hail to the champions............................... PAGE 12

February 28, 2023

JEREMY C. RUARK County Media, Inc.

A

major snowstorm blanketed Lincoln County, much of the surrounding coast, and inland into the Portland metro area Thursday, Feb. 23. Frigid temperatures into the teens and low twenties continued through much of the weekend. The adverse weather forced closure of the Lincoln and Tillamook School Districts and community colleges in both counties Thursday and

Serving Lincoln County since 1927

$1.50

Snow Day

Friday. Some local businesses were forced to adjust operating hours due to the weather conditions and for the safety of employees and customers. Downed trees closed several roads. The Oregon Department of Transportation and local public works crews worked to remove the trees and other debris. North Lincoln Fire & Rescue and Northwest Natural Gas crews responded to a gas leak and fire along East Devils Lake Road Thursday morning, triggered by heavy snow on a

powerline above the underground gas line. Read the story on Page 2. The National Weather Service (NWS) issued Winter Storm Warnings and Winter Weather Advisories alerting residents and travelers of the storm system from the coast inland. The NWS also issued a Wind Chill Advisory Friday, Feb. 24, alerting of temperatures into the teens. NWS Meteorologist Colby Neuman said one weather spotter in Lincoln City report-

ed five inches of snow in the area Thursday morning. Other areas of the county received a foot of snow at higher elevations. “Temperatures will remain cold, near the teens overnight, through the weekend,” Neuman said. The heavy snow and frigid conditions developed after a low-pressure system stalled along the North Oregon Coast then shifted on shore al-

lowing cold air and moisture to flow into the region, according to Neuman. Clearing developed through the weekend locally, but icy conditions continued to challenge both drivers and pedestrians. Neuman said there is still a chance of more snow this week. “It is not out of the question,” he said.

The five-day NWS forecast listed temperatures into the low forties during the day and mid to upper thirties overnight in Lincoln City, as of Saturday, Feb. 25. For the latest road conditions, call 5-1-1 or see TripCheck.com before you go. Follow developments and the latest weather at thenewsguard.com

Jeremy C. Ruark/Country Media, Inc

The Feb. 23 snowstorm layered the beach and the adjacent hills in Lincoln City at Road’s End. See more photos on Page 11.

State of the City to Oregon taxpayers to see $3.9B kicker review challenges, accomplishments JEREMY C. RUARK Country Media, Inc.

JEREMY C. RUARK County Media, Inc.

I am an optimistic person and I try to see a bright future for our city.

Lincoln City Mayor Susan Wahlke is scheduled to deliver her State of the City address Feb. 28 at the Lincoln City Cultural Center. The News Guard spoke with Wahlke prior to her State of the City address to gain insight into what the city has accomplished and what’s ahead. The News Guard: What have been the top challenges the city has faced over the past year and how has the city navigated through those challenges? Susan Wahlke: Last year the City Council’s biggest challenge was hiring a city manager. After a long process working with department heads, we were able to find a candidate. I believe hiring Daphne Legarza was the City Council’s greatest accomplishment in 2022. We were also fortunate to have long time city employee Lila Bradley to act as city manager during the long search. The News Guard: What do you see as the top challenges facing the city this year, and what do you see as solutions to those challenges? Wahlke: Funding is always a challenge. Our city staff has been busy finding opportunities and obtaining grants from various sources. I thank the voters of Lincoln City for passing the lodging tax increase. It would be

Mayor Susan Wahlke

helpful if the State legislature allowed cities more flexibility in the way we can allocate those funds, but this increase should allow Lincoln City to provide services for our residents and our visitors. I also want to thank Rep Gomberg and Sen Anderson for bringing State funding to our city. The News Guard: What have been the most rewarding events for the city over the past year? Wahlke: In my opinion, housing under construction was the most rewarding event in 2022. Housing remains a concern throughout the State, but we are making progress here in Lincoln City. All types See CITY, Page 11

Oregon’s key economic indicator, the quarterly revenue forecast for March, shows significant revenue growth. The forecast, released Wednesday, Feb. 22, by the Oregon Department of Administrative Services, states that the unexpected revenue growth in the current biennium has left Oregon with unprecedented balances, followed by a record kicker in 2023-’25. The projected personal kicker is $3.9 billion, which will be credited to taxpayers when they file their returns in 2024. The projected corporate kicker is $1.5 billion, which will be retained in the General Fund for K-12 educational spending. “Once the 2023-25 biennium is behind us, Oregon’s major revenue sources are expected to bounce back quickly,” the Forecast Summary reads. “However, growth over the extended horizon will continue to be constrained by demographics, with the baby-boom population cohort earning and spending less.” Executive summary

Either the economic storm clouds have parted, or we are in the eye of the hurricane. Any near-term recession fears are fading with each month of somewhat lower inflation and the continued economic boom. However, the Federal Reserve must still navigate the choppy waters of a tight labor market, fast wage growth,

Courtesy photo The projected personal kicker is $3.9 billion, which will be credited to taxpayers when they file their returns in 2024. The projected corporate kicker is $1.5 billion, which will be retained in the General Fund for K-12 educational spending. easing financial conditions, and strong household finances and consumer spending. All of these are likely to keep the underlying trend in inflation above the Fed’s target for the foreseeable future. Last quarter our office made a late 2023 mild recession the most likely outcome for the Oregon economy, primarily due to the fact there had been zero slowdown in inflation at that time. Today, there have been a few months of somewhat lower inflation. Even as the underlying trend in inflation remains twice as fast as the Federal Reserve’s target, this is a noticeable slowing from much of last year. The Fed is also starting to ease off the brakes and wait for the impact of past interest rate increases to cool the economy in the months ahead. What this means for the forecast is that the potential recession dynamics, while still very real, are likely pushed further out. The current baseline forecast no longer calls for a recession this year, but for the economic soft landing and continued

expansion. While every month of slower inflation increases the probability of a true soft landing, it is likely that the Fed has more work to do. Additional interest rates increases and holding them higher for longer are likely need to cool demand and inflation. However, the clear near-term strength in the economy in terms of jobs, income and spending, along with the uncertainty of the exact timing of any potential recession makes forecasting one so far in advance challenging, if not impossible. As Oregon heads into the upcoming 2023-25 biennium, the inflationary economic boom continues. Personal and corporate tax collections continue to outstrip expectations. When combined with an improved economic outlook, policymakers are expected to have additional General Fund revenues during the current legislative session as they craft the 2023-25 budget. Although the recent news has been good, there remains a significant amount of uncertainty as the biennium

Police Blotter ............ 2 Opinion ...................... 5

Classifieds.............. 7-8 Sports ...................... 12

VOL. 96 NO. 9

Read the full forecast with this story at thenewsguard.com. Governor response Governor Tina Kotek made the following statement in response to the first state revenue forecast of 2023. “As inflation continues to slow, this revenue forecast shows that we can anticipate having more predictability and stability for the coming budget cycle. While this is encouraging news, the legislature still has some tough choices to make. We will See MONEY, Page 11

TheNewsGuard.com

WEATHER

INDEX

winds down. The 2023 tax filing season has yet to truly begin. Much more will be known when the May 2023 forecast is produced, which will determine the Close of Session forecast and be used to set the thresholds for the balanced budget and any potential kicker calculations. Along with uncertainty surrounding the tax season, there is also the heightened risk of recession next biennium. Given the currently elevated levels of taxable business and investment forms of income, an economic downturn would result in large losses of General Fund revenues. While Oregon’s General Fund is volatile over the business cycle, the state’s overall revenue system has become less so in recent years. The increases in consumption- based taxes should help reduce overall volatility in Oregon’s tax system as consumer spending is more stable during downturns than is taxable income.

TUE.

WED.

THU.

FRI.

SAT.

SUN.

MON.

40º/33º

45º/38º

45º/38º

43º/35º

46º/38º

43º/35º

45º/36º


Turn static files into dynamic content formats.

Create a flipbook