An Economic Analysis of Locating Oregon’s Custodial Institutions in                          Marion County and the City of...
Table of ContentsMAP OF OREGON AND MARION COUNTY ............................................................................
ACKNOWLEDGEMENTSThe authors would like to thank the following agencies for their assistance in answering researchquestions...
MAP OF OREGON & MARION COUNTY                         iii
INTRODUCTION    Willamette University’s Center for Governance and Public Policy Research was requested toconduct an analys...
(MSA), Willamette University, Salem-Keizer School District and with the Salem Hospital, thecounty’s largest private employ...
2002 article published in FedGazette arrived at a similar conclusion. It assessed the results oflocating a federal prison ...
Table 1: Population Estimate for Marion County and its incorporated citiesTable 1: Population Estimate for Marion County a...
Prisons    Why is Salem home to the state’s prison and Eugene the state university? According to locallegend, Salem had fi...
29 percent or 3,903 were in the four Marion County institutions.11 That is a 16 percent drop from1997 when the four instit...
180 youth inmates. The MacLaren Youth Correctional Facility is located in Woodburn and housesabout 295 youth inmates. The ...
Table 4: SITE EVALUATION RANKINGSTable 4: Site Evaluation Rankings                 NORTHERN SITES                         ...
RESEARCH ANALYSISWages    As we analyzed the 2007 wage data for Oregon and the Salem MSA, we found that the average(mean) ...
Figure 3: 2003-2007 Annual Wage Trend of Salem Metropolitan Service Area and Oregon             Figure 3: 2003-2007 Annual...
Table 5: Top occupations by number of employees in Salem in Salem MetropolitanTable 5: Top occupations by number of employ...
Table 8: Annual 8: Annual meanin 2007 for Salem Hospital           Table mean wages wages in 2007 for Salem Hospital      ...
Figure 5:5: Comparison ofof 2007 annualwages in wages in Marion County   Figure Comparison 2007 annual mean mean Marion Co...
Figure 7:7: Distribution Curve ofof Annual Wages at Salem Hospital   Figure Distribution Curve Annual Wages at Salem Hospi...
raise the community’s average real wage. Offsetting that benefit somewhat, Salem Hospital andWillamette University also ha...
Figure 9: Per Capita Personal Income (Ranked by 2006 Income)                      Per Capita Personal Income (ranked by 20...
Figure 10: Per Capita Personal Income 2002-2006 (with growth percentages)         $45,000                                 ...
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem
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An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem

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The hypothesis for the research analysis, which I led, was to consider whether the custodial institutions, and the attendant population connected to those institutions, placed an undue burden on the budgets, infrastructure and services of local governments and public agencies. Our findings did not support the hypothesis.

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An Economic Analysis Of Locating Oregon\'s Custodial Institutions In Marion County and The City Of Salem

  1. 1. An Economic Analysis of Locating Oregon’s Custodial Institutions in Marion County and the City of Salem Nathan Isaacs Thanh Tran Fred Thompson Willamette University’s Center for Governance and Public Policy ResearchABSTRACTThe Center for Governance and Public Policy Research was asked to conduct an economic analysisof locating Oregon’s custodial institutions within Marion County and the city of Salem.The hypothesis considered was that these custodial institutions, and the attendant populationconnected to those institutions, place an undue burden on the budgets, infrastructure and servicesof local governments and public agencies. Our findings do not support the hypothesis.KEY WORDS: Prisons; state mental hospital; economic spillovers; wages; employment; income;property taxes; economic development.BIONathan Isaacs is a 2009 MBA candidate at the Atkinson Graduate School of Management withan emphasis in management consulting and finance. He is a former award-winning newspaperjournalist and distinguished Navy submarine veteran.Thanh Tran is a 2009 MBA candidate Atkinson Graduate School of Management with anemphasis in quantitative analysis and the financial markets of Southeast Asia.Fred Thompson is the Director of the Center for Governance and Public Policy Research. Healso is the Grace and Elmer Goudy Professor of Public Management and Policy Analysis atWillamette University’s Atkinson Graduate School of Management.
  2. 2. Table of ContentsMAP OF OREGON AND MARION COUNTY .......................................................................... iiiINTRODUCTION ..........................................................................................................................1LITERATURE REVIEW ................................................................................................................2BACKGROUND ............................................................................................................................3 Community ...............................................................................................................................3 Prisons .......................................................................................................................................5 Federal Prison ...........................................................................................................................6 Juvenile Correction Facilities ...................................................................................................6 Marion County Sheriff’s Office Parole and Probation Division ...............................................7 State Hospital ............................................................................................................................7RESEARCH ANALYSIS ...............................................................................................................9 Wages ........................................................................................................................................9 Income.....................................................................................................................................15 Employment ............................................................................................................................15 Property Taxes.........................................................................................................................19 Income Taxes ..........................................................................................................................19 Services ...................................................................................................................................20 Schools ..............................................................................................................................20 Prison Families..................................................................................................................24 Law Enforcement & Crime ...............................................................................................25 Census ...............................................................................................................................29 Prison Industries................................................................................................................30 Alternatives .............................................................................................................................31CONCLUSION .............................................................................................................................31BIBLIOGRAPHY .........................................................................................................................33LIST OF GRAPHICS ...................................................................................................................34APPENDIX A ...............................................................................................................................35 i
  3. 3. ACKNOWLEDGEMENTSThe authors would like to thank the following agencies for their assistance in answering researchquestions and gathering requested information: Oregon Employment Department; OregonDepartment of Corrections; Oregon Youth Authority; Oregon Department of Revenue; OregonState Hospital; Salem Hospital; SEDCOR; Willamette University; Oregon State Hospital; MarionCounty Sheriff’s Office; Salem-Keizer School District. ii
  4. 4. MAP OF OREGON & MARION COUNTY iii
  5. 5. INTRODUCTION Willamette University’s Center for Governance and Public Policy Research was requested toconduct an analysis of the economic effect of Oregon’s state custodial institutions on the MarionCounty and Salem economies. The hypothesis which we were asked to consider is that thesecustodial institutions, and the attendant populations associated with those institutions, place anundue burden on the budgets, infrastructure and services of the local governments and publicagencies within the county. For the purposes of this research, those institutions that were evaluated included the OregonState Correctional Institution; Oregon State Penitentiary; Santiam Correctional Institution; MillCreek Correctional Facility; the Hillcrest and MacLaren Youth Correctional Facilities; and theOregon State Hospital. These seven custodial institutions currently have about 2,300 employees;more than $100 million combined annual payroll; and about 3,900 adult inmates, 475 juvenileinmates, more than 600 mental health patients/inmates. We also studied the effect of an estimated4,400 people who are paroled and/or under post-prison community supervision in Marion Countyand administered by the Parole and Probation Division of the Marion County Sheriff’s Office. This analysis is expected to serve as a benchmark of empirical research for policy makers at thestate and local levels. Up to now, without such information being collected and analyzed into onedocument, perceptions may have served as reality in these, often vibrant, political and communitydiscussions about the community’s custodial populations. This analysis does not attempt to quantifythe social costs and/or benefits associated with incarcerating convicted juvenile and adult criminalsin Marion County-area correctional facilities, or evaluating/treating the mental health problems ofthose being held or committed to the Oregon State Hospital. This study was performed in the four-month period between May and August 2008. Thepurpose of this project is to provide information through reliable primary and secondary data thatwill show the effects these custodial institutions have on the Marion County and Salem economies.The study also exposes a need for more research on this subject. We have tested our hypothesis through several research methods, including an examination ofwages, income, employment, property taxes, and delivered services. The focus of the study wasto be on the quantitative economic effects these custodial institutions had in the local economy.However, we also have identified the qualitative effects and spillovers associated with custodialinstitutions and compared those with spillovers associated with Willamette University and SalemHospital. It is axiomatic that economic development is not generally associated with job creation, butwith substituting more productive jobs for less productive jobs. As a first approximation, wages area reasonable proxy for productivity. Consequently, we collected wage data for identified custodialinstitutions, which we compared with the State of Oregon, the Salem Metropolitan Statistical AreaWillamette University’s Center For GovernanCe and PUbliC PoliCy researCh 1An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  6. 6. (MSA), Willamette University, Salem-Keizer School District and with the Salem Hospital, thecounty’s largest private employer. We evaluated the differences in those wages and considered anyeffects they may have on the local economy. Effects can arise directly, indirectly through business-to-business transactions, primarily through an entity’s supply chain, or induced, as the result ofpayroll spending. When added, the direct, indirect, and induced effect equals the total economiceffect that the subject custodial institutions have in Marion County. We also attempted to quantify the expense of providing public services to those institutions.This could include hiring more police officers, sheriff’s deputies and other first responders; requireproviding healthcare to an increasing number of indigent people; or have a disproportionatenumber of students who require extraordinary care (realized in free and reduced lunches, specialeducation, social supervision or other services). We then subtracted these service costs fromthe total economic effect to arrive at the net economic effect of having about 9,400 people, orabout 3 percent of the county’s population, either in custody or under some type of court-orderedcommunity supervision.LITERATURE REVIEW The business of prisons and their effect on Oregon communities was examined in the April2008 issue of Oregon Business magazine. The article created a stir throughout the state when itsuggested that, while prisons may bring jobs to a rural community, they did not bring prosperity.Much of the empirical research done on the subject of the economic effects of prisons has dealt withrural communities. This is hardly surprising, as Besser and Hanson (2003) report in “Developmentof Last Resort: The Impact of New State Prisons on Small Town Economies,” prisons are movingfrom metropolitan locations to non-metropolitan areas. Only ten percent of prisoners housed instate prisons built in the 1990s are located in metropolitan locations; sixty-nine percent are locatedin smaller communities that have relatively high poverty levels, unemployment rates and lowhousehold wages.1 As Oregon Business suggests, the benefits to these communities of hosting prisons are somewhatcontroversial. In 2001, Christopher Setti et al. (2001) carried out an analysis of the economiceffects of the six prisons constructed in Eastern Colorado’s rural plains since 1985. They show thatper capita income in the six prison counties increased significantly relative to non-prison counties,primarily because prison jobs pay better than agricultural and service jobs. However, the authorsinsist that building a prison does not guarantee future prosperity. While counties hosting prisonsdid better than other rural counties, they continued to lag behind the state as a whole. A January1 From an analytic standpoint, locating prisons in rural areas is convenient because one can expect their effects to beboth identifiable and uncontaminated by other factors.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 2An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  7. 7. 2002 article published in FedGazette arrived at a similar conclusion. It assessed the results oflocating a federal prison in Stanley, Wisconsin, a small town (1,898 inhabitants) with a decliningpopulation in a high unemployment high wage region. They concluded that the facility created400 jobs directly and indirectly another 319, but did not significantly increase average wages. Incontrast, “Big Prisons, Small Towns: Prison Economics in Rural America” (King, Mauer & Huling2003), claims that rural counties in New York, where prisons have been sited after 1982 have notgrown significantly faster in either in terms of employment or in terms of per capital income thanother similar counties. The conclusion that might be drawn from these studies is that prisons are likely to have apositive economic effect only where wages are relatively low and that this effect will be significantonly where unemployment is high.BACKGROUNDCommunity Marion County is one of 36 counties in Oregon. The county encompasses nearly 1,200 squaremiles, stretching from the Willamette River in the west and to the Cascade Mountains in theeast. The county is bordered by seven others (clockwise): Clackamas, Wasco, Jefferson, Linn,Benton, Polk, and Yamhill.2 Marion County includes 20 incorporated cities and 37 unincorporatedcommunities (see Table 1). The county had an estimated July 1, 2007 population of 311,070.3 Thecounty had an estimated 140,203 employed in the labor force and a 5.4 percent unemployment ratein 2007.4 The county is the state’s largest producer of agriculture, producing more than 150 cash cropsand food processing is among the county’s largest industries.5 The county is also home to 38 of thelargest state agencies employing 18,143 people in 2007.6 The county also is home to WillametteUniversity, Chemeketa Community College and Corban College. Salem stretches over 47 square miles. It is the state’s capital as well as the county seat andlargest city in Marion County with a population of 152,290.7 It is also the second largest city in thestate. The Salem MSA is one of six in the state and includes both Marion and Polk counties. TheSalem MSA had a 2005 GDP of $10.4 billion (see table 2).82 Oregon Blue Book. http://bluebook.state.or.us/local/counties/counties24.htm3 Population Research Center, Portland State University4 Oregon Employment Department5 Oregon Blue Book. http://bluebook.state.or.us/local/counties/counties24.htm6 Oregon Employment Department7 Population Research Center, Portland State University8 Bureau of Economic Analysis, U.S. Department of CommerceWillamette University’s Center For GovernanCe and PUbliC PoliCy researCh 3An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  8. 8. Table 1: Population Estimate for Marion County and its incorporated citiesTable 1: Population Estimate for Marion County and its Incorporated CitiesPopulation Estimates for Oregon and Marion County and Incorporated Cities: April 1, 1990 - July 1, 2007Prepared by Population Research Center, PSU, March 2008. Census Population,County and July 1 Population Estimates April 1Cities 2007 2006 2005 2004 2003 2002 2001 2000 2000 1990OREGON 3,745,455 3,690,505 3,631,440 3,582,600 3,541,500 3,504,700 3,471,700 3,436,750 3,421,399 2,842,321MARION 311,070 306,665 302,135 298,450 295,900 291,000 288,450 286,300 284,838 228,483Aumsville 3,300 3,205 3,130 3,080 3,050 2,980 3,000 3,050 3,003 1,650Aurora 955 920 785 660 660 660 660 660 655 567Detroit 265 260 255 250 250 250 260 260 262 331Donald 995 895 750 660 640 630 610 620 625 316Gates (part)* 460 455 450 445 445 435 435 430 429 458Gervais* 2,250 2,250 2,240 2,130 2,110 2,070 2,080 2,045 2,009 992Hubbard 3,095 2,960 2,855 2,750 2,700 2,560 2,510 2,500 2,483 1,881Idanha (part)* 145 145 145 145 145 145 145 145 147 177Jefferson 2,590 2,590 2,515 2,490 2,480 2,470 2,540 2,505 2,487 1,805Keizer 35,435 34,880 34,735 34,380 34,010 33,100 32,950 32,515 32,203 21,884Mill City (part)* 328 325 315 310 310 295 305 305 312 308Mt. Angel 3,755 3,665 3,630 3,600 3,700 3,660 3,400 3,130 3,121 2,778St. Paul 410 420 415 400 390 380 350 355 354 322Salem (part)* 129,830 127,720 126,525 123,890 123,410 122,290 120,920 119,790 119,040 94,990Scotts Mills 300 300 300 300 300 300 310 315 312 283Silverton 9,205 8,915 8,230 8,060 7,980 7,680 7,420 7,470 7,414 5,635Stayton 7,765 7,700 7,505 7,360 7,300 7,200 6,960 6,870 6,816 5,011Sublimity 2,255 2,225 2,225 2,160 2,160 2,120 2,150 2,170 2,148 1,491Turner 1,690 1,645 1,570 1,480 1,480 1,400 1,340 1,200 1,199 1,281Woodburn 22,875 22,615 22,110 21,790 21,560 20,860 20,410 20,310 20,100 13,404Unincorporated 83,168 82,575 81,450 82,110 80,820 79,515 79,695 79,655 79,719 72,919Please use caution when comparing the population estimates of the unincorporated county areas over time, and note that population estimates for theunincorporated areas represent revised estimates rather than estimates resulting from direct change during the year.Table 2: Total GDP (in millions)Table 2: Total Gross Domestic Product (in millions) Total GDP (in millions)Metropolitan Area 2001 2002 20 03 200 4 2005Bend, OR (MSA) 3 ,830 4,127 4,520 5,063 5,666Corvallis, OR (MSA) 2,409 2,764 2,956 3,426 3,473Eugene-Springfield, OR (MSA) 7 ,978 8,610 9,017 9,848 10,425Medford, OR (MSA) 4,404 4,729 5,072 5,604 5,988Portland-Vancouver-Beaverton, OR-WA (MSA) 77,181 79,407 81,556 90,839 95,573Salem, OR (MSA) 8,464 9,145 9,768 10,448 11,147Source: Bureau of Economic Analysis, U.S. Department of Commerce Among the largest employers in the Salem MSA, as of December 31, 2007, include state andlocal government, 19,100 employees and 17,800 employees, respectively; Salem Hospital, 3,500employees; T-Mobile, 1,100 employees; Norpac Foods, 1,100 employees; Truitt Bros. Inc., 919employees; SAIF Corporation, 711 employees; Kaiser Permanente, 550 employees; Wachovia,510 employees (See Appendix A). In late September 2008, Salem and Marion County proudly announced that Sanyo Solar ofOregon would build an $80 million solar-cell manufacturing plant in southeast Salem. The facilityis expected to employ about 200 people.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 4An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  9. 9. Prisons Why is Salem home to the state’s prison and Eugene the state university? According to locallegend, Salem had first choice. The Oregon Constitution, in fact, once stated (article XIV, Sec. 3,since repealed), “all public institutions of this state, other than public institutions located outsideMarion County prior to November 1, 1958, shall be located in Marion County.” The point is thatthese institutions were once seen as engines of economic growth and development. In 1864, the state purchased 147 acres of land from the Morgan L. “Lute” Savage DonationLand Claim for a penitentiary, at a price of $9,019.17.9 The Oregon State Penitentiary (OSP) wasmoved from Portland to Salem in 1866 to a 26-acre site on the property, where it remains todayand is the state’s only maximum-security prison. Since then, another three state prisons have beenadded to the Marion County and Salem community. The Oregon State Correctional Institution opened in 1959 as a medium-security facility. TheSantiam Correctional Institution was built in 1946 and was used as an annex to the Oregon StateHospital for mental health patients. In 1977, the Department of Corrections began using the facilityas a minimum custody pre-release center and in 1990 became the Santiam Correctional Institution.The Mill Creek Correctional Facility is located on the former Boys’ Training School site, whichwas turned over to the state in 1929 to be run as a prison farm. In 1992, the Mill Creek facility wasmerged with Santiam Correctional Institution for administrative efficiencies. All three institutionsare located on the eastern outskirts of Salem.10 The state Department of Corrections has a total of 14 correctional facilities throughout thestate with a total prison population, as of January 2007, of about 13,291 inmates of which aboutTable 3: State Custodial Institutions in Marion County Custodial Institution Inmates/ Employees Patients Oregon State Penitentiary 2,313 538 Oregon State Correctional Institution 884 250 Santiam Correctional Institution 431 113 Mill Creek Correctional Facility 275 51 Hillcrest Youth Correctional Facility 180 191 MacLaren Youth Correctional Facility 295 300 XXX Oregon State Hospital 600 1201 Parole and Community Supervision 4,400 69 XXX Parole and Post Prison Supervision (Absconded) 1,600 Total 9,433 3,245 Source: Oregon Department of Employment9 Becker, Thomas; et al. Cultural Resources Investigation of the Oregon State Hospital Property, Marion County,Oregon. Architectural Resources Group. January 2008.10 Oregon Department of Corrections, http://egov.oregon.gov/DOC/OPS/index.shtml; and Oregon Secretary of StateArchives, http://arcweb.sos.state.or.us/state/odc/hist/current_org_smci.htm.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 5An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  10. 10. 29 percent or 3,903 were in the four Marion County institutions.11 That is a 16 percent drop from1997 when the four institutions housed 45 percent of the state’s prisoners, or 3,823 of the 8,531inmates. The adopted 2007-2009 biennial budget for the Department of Corrections was $1.3 billion,about 19 percent more than its previous budget. The four prisons located in Marion County have2007-2009 biennial budgets of about $156 million combined with the Oregon State Penitentiarymaking up about 52 percent of that amount. The department also was budgeted about $10 million to begin the initial planning and design ofits next prison, which is not scheduled to be opened until late 2012 or 2013. However, the Departmentof Corrections and the state are readying themselves for the fiscal and operational impact that eitherone of two November ballot measures would have if passed by voters, which is expected. One of the initiatives, sponsored by Republican activist Kevin Mannix, would set mandatorythree-year minimum prison sentences for drug dealers, burglars and identity thieves regardless oftheir criminal history. Its implementation is estimated to cost more than $200 million a year. TheLegislature is giving voters a second, less expensive, option that would beef up property crimeand identity theft sentences, as well as add money for drug treatment. That measure is expectedto cost about $50 million annually. The Mannix measure would add about 4,000-6,000 inmatesto Oregon’s prison system. The countermeasure would add about 1,400 inmates. If both measurespass, the one with the most votes will become law beginning in January 2009. The Department of Corrections, as of August, had not released plans on how it wouldaccommodate the influx of prisoners. Initially, based on prison over-crowding examples elsewherenationally, some of the burden of housing those inmates would be placed on Oregon’s county jails.That, in turn, could force booking restrictions, meaning some suspected criminals, depending ontheir crime, would be booked into the criminal system following their arrest and then released fromjails, pending the outcome of their criminal trials.Federal Prison The state has only one federal prison, the Federal Correctional Institution in Sheridan, which iswithin 30 miles of Salem and located in Yamhill County. It is a medium-security prison that housesabout 1,900 male offenders. The facility also includes a detention center for male offenders and anadjacent minimum-security satellite prison camp that also houses male offenders.12Juvenile Correction Facilities The Oregon Youth Authority operates seven secure correctional facilities in the state housingabout 800 inmates. The Hillcrest Youth Correctional Facility is located in Salem and houses about11 Oregon Department of Corrections, “Quick Facts” and “Biannual Inmate Profiles,” www.oregon.gov/DOC/12 Source: Federal Bureau of PrisonsWillamette University’s Center For GovernanCe and PUbliC PoliCy researCh 6An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  11. 11. 180 youth inmates. The MacLaren Youth Correctional Facility is located in Woodburn and housesabout 295 youth inmates. The Oregon Youth Authority has a biennial budget of $305 million – ofwhich the two Marion County institutions have budgets of $42.2 million for MacLaren and $25.8million for Hillcrest.Marion County Sheriff’s Office Parole and Probation Division The Marion County Sheriff’s Office Parole and Probation Division supervise about 4,400offenders and another 1,600 offenders who have failed to check in with their parole officer andlikely have left the area. The division’s caseload is organized into geographic regions within thecounty. There are also specialized caseloads for sex offenders, drug offenders, gang offenders anddomestic violence cases.State Hospital In 1883, less than a mile to the north of the Oregon State Prison, the state mental hospital,originally called the Oregon State Insane Asylum, was built on what has evolved to a 144-acrecampus that includes 72 buildings which are scattered around several park-like landscaped areas.13Amajority of the buildings were built between 1883 and 1958. Two of the buildings are listed aslocal landmarks by the City of Salem – the Dome Building, which was built in 1912, and theJ Building, which was built in phases between 1883 and 1915.14 Most of the hospital’s patients were committed to the hospital from criminal courts, includingthose “incompetent to stand trial,” those hospitalized for treatment and competency restorationbefore returning to trial, and those found “guilty except for insanity.” The remaining patients werecommitted by civil court.15 In recent years, the state mental hospital has made news headlines, sparked controversies andprompted several state and federal investigations into conditions and care given at the facility. TheOregonian newspaper earned a 2005 Pulitzer Prize for its editorials that focused on the years ofneglect at the hospital, which is the oldest psychiatric hospital still in use on the West Coast.16 Thehospital is also popularly known as the setting for the Academy Award winning1975 film, “OneFlew over the Cuckoo’s Nest.” Following those state and federal investigations, and a consultant’s report that the building’sdisrepair was beyond renovation, the state Legislature in 2007 authorized $458 million to buildtwo new hospitals in the coming years. Among the criteria used in selecting the two sites was13 Becker, Thomas; et al. Executive Summary: Cultural Resources Investigation of the Oregon State Hospital Property,Marion County, Oregon. Architectural Resources Group. January 2008.14 ibid15 Oregon State Psychiatric Hospital Replacement Site Recommendations Document. Published Jointly by theDepartment of Human Services and the Department of Administrative Services. 2007.16 “The Oregonian Captures Pulitzer for ‘Forgotten Hospital’” Dave Hogan. The Oregonian. April 18, 2006.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 7An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  12. 12. Table 4: SITE EVALUATION RANKINGSTable 4: Site Evaluation Rankings NORTHERN SITES RANK TECHNICAL PROGRAM COMBINED Oregon State Hospital grounds – Salem 1 184 172 356 DOC – Turner Rd/Deer Park – Salem 2 165 169 334 Reeds Crossing – Hillsboro 3 146 168 314 Shute Road – Hillsboro 4 150 159 309 SOUTHERN SITES RANK TECHNICAL PROGRAM COMBINED OC – Junction City 1 162 160 322 Coker Butte – Medford 2 185 126 311 KOGAP Orchard – Medford 3 183 119 302 Airport Breeze – Medford 4 131 138 269 Source: Oregon State Psychiatric Hospital Replacement Site Recommendations Documentspelled out in three basic questions: Did the proposed site meet the acreage and location (a northand central location in western Oregon) needs; how well did the proposed site meet technical siteattributes and cost requirements; and how well did the proposed site meet programmatic needs andsupport requirements? (See Table 4). According to the site selection document developed by the Departments of Human Servicesand Administrative Services, the main factor for choosing the two sites was that they were closerto population centers and to those who were most likely to utilize the hospitals’ services. The approved recommendations resulted in an estimated $250 million, 620-bed, 680,000square-foot mental hospital being built on the current campus in Salem beginning in 2009 and isexpected to be opened by 2011. The second hospital, with 360 beds, will be built in Junction City(just north of the Eugene-Springfield MSA) in 2013. The Junction City property, a 242-acre parcel,is owned by the Department of Corrections and was originally planned for a two-stage new prisonproject, including a 1,640-bed minimum- and medium-security lockup.17 Earlier this year, Salem Mayor Janet Taylor spoke out against the proposed new mentalhospital, saying it would add to the city’s reputation as a home for criminals and people withmental illness. “For too long, the Salem area has shouldered a disproportionate share of the state’s burdenfor providing group homes for patients discharged from the hospital’s program for the criminallyinsane,” Taylor was quoted in the Salem Statesman Journal. “I’m not taking a NIMBY (Not In MyBackyard) attitude. I’m talking what is fair for the patients, the employees, and the Salem area. It isonly fair that we do our share of the load for incarcerating people and treating people with mentalillness. But it’s not fair if we’re taking it for the whole state.”18 She has since relented to the hospital’s construction in her city, but still advocates that the sizeof the Salem project be reduced and that a third hospital should be built in the Portland metro area.State officials have said any changes now would be too costly.17 “State officials evaluating sites for new psychiatric hospitals” Register Guard. Jan. 5, 2007.18 “Salem mayor opposes new Oregon state hospital” The Associated Press, Jan. 29, 2008.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 8An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  13. 13. RESEARCH ANALYSISWages As we analyzed the 2007 wage data for Oregon and the Salem MSA, we found that the average(mean) annual wage for the Salem MSA was $40,350, which was about $4,000 less than theOregon state average of $44,437.19 In comparison with Oregon’s five other MSA regions, theSalem MSA’s average annual wage was only higher than that of Medford’s $39,267 (see Figures1-4). The median annual wage for Salem MSA was about $35,400.Figure 1: Mean annual wages for Salem MSA in 2007 Summary for Mean Annual - Salem, Oregon -2007 A nderson-D arling N ormality Test A -S quared 8.89 P -V alue < 0.005 M ean 40350 S tD ev 18285 V ariance 334340697 S kew ness 1.43308 Kurtosis 2.68021 N 323 M inimum 18170 1st Q uartile 27430 M edian 35400 3rd Q uartile 49760 30000 45000 60000 75000 90000 105000 120000 M aximum 124110 95% C onfidence Interv al for M ean 38348 42351 95% C onfidence Interv al for M edian 33424 38201 95% C onfidence Interv al for S tDev 9 5 % C onfidence Inter vals 16975 19815 Mean Median 34000 36000 38000 40000 42000Figure 2: Mean annual wages for Oregon in 2007 Summary for Mean Annual - Oregon -2007 A nderson-Darling N ormality Test A -S quared 17.51 P -V alue < 0.005 M ean 44437 S tD ev 20159 V ariance 406405320 S kew ness 1.58891 Kurtosis 3.86745 N 635 M inimum 18480 1st Q uartile 30220 M edian 38850 3rd Q uartile 53570 20000 40000 60000 80000 100000 120000 140000 M aximum 148790 95% C onfidence Interv al for M ean 42866 46008 95% C onfidence Interv al for M edian 37240 40655 95% C onfidence Interv al for S tDev 9 5 % C onfidence Inter vals 19108 21334 Mean Median 36000 38000 40000 42000 44000 4600019 This data came from the U.S. Department of Labor and excluded: (1) wages for some occupations that do notgenerally work year-round or full-time; (2) wages that were equal to or greater than $70.00 per hour or $145,600 peryear; and (3) industry wage estimates that were not released.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 9An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  14. 14. Figure 3: 2003-2007 Annual Wage Trend of Salem Metropolitan Service Area and Oregon Figure 3: 2003-2007 Annual Wage Trend of Salem MSA & Oregon $46,000 $44,437 $44,000 $42,544 $42,000 $40,433 $40,350 $40,000 $39,462 $38,992 $38,566 $38,000 $38,243 $37,793 $37,436 $36,000 $34,000 $32,000 2003 2004 2005 2006 2007 Oregon State (Average) Salem MSA (Average) Source: U.S. Department of Labor, Bureau of Labor StatisticsFigure Figure 4: Mean Annual WageOregon’s Six Metropolitan Service Areas in in 2007 4: Mean Annual Wage in in Oregons Six Metropolitan Service Areas 2007 $48,000 $46,050 $46,000 $44,000 $41,828 $41,770 $42,000 $41,085 $40,350 $40,000 $39,267 $38,000 $36,000 $34,000 Salem Bend Corvallis Eugene-Springfield Medford Portland- Vancouver- Beaverton Source: U.S. Department of Labor, Bureau of Labor Statistics Among the Salem MSA’s top occupations, ranked by number of workers, were Retail Sales(5,700), Cashiers (4,260), General Office Clerks (4,080), and Food Preparation (including FastFood) (2,780). Among the Salem MSA’s top wage earners are General Dentists (mean annual salary$124,110), Chief Executives ($122,290), Pharmacists ($102,530); and general and operationsmanagers ($99,920). Among the Salem MSA’s top occupations ranked by both annual salaryand number of employments are general and operations managers, registered nurses, all othermanagers, and computer specialists (see Tables 5-7).Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 10An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  15. 15. Table 5: Top occupations by number of employees in Salem in Salem MetropolitanTable 5: Top occupations by number of employees MSA in 2007 Service Area in 2007 Wage Estimates Occupation Employment Median Hourly ($) Mean Hourly ($) Mean Annual ($)Retail Salespersons 5,700 10.34 12.22 25,420Cashiers 4,260 9.02 9.83 20,440Office Clerks, General 4,080 13.13 13.25 27,550Combined Food Preparation And Serving Workers, Including Fast Food 2,780 8.68 8.85 18,400Customer Service Representatives 2,650 12.51 13.89 28,890Laborers And Freight, Stock, And Material Movers, Hand 2,360 11.04 12.4 25,800Registered Nurses 2,330 32.54 31.77 66,080Janitors And Cleaners, Except Maids And Housekeeping Cleaners 2,200 11.65 12.21 25,400Bookkeeping, Accounting, And Auditing Clerks 2,120 15.09 15.84 32,940Truck Drivers, Heavy And Tractor-Trailer 2,110 16.09 16.66 34,650Source: U.S. Department of Labor, Bureau of Labor StatisticsTable 6: Top 6: Top occupationsmean annual wage in Salem MSA in 2007 Table occupations by by mean annual wage in Salem Metropolitan Service Area in 2007 Wage Estimates Occupation Employment Median Hourly ($) Mean Hourly ($) Mean Annual ($) Dentists, General 110 57.81 59.67 124,110 Chief Executives 190 55.99 58.8 122,290 Pharmacists 210 50.01 49.29 102,530 General And Operations Managers 1,860 42.61 48.04 99,920 Judges, Magistrate Judges, And Magistrates 50 45.99 46.02 95,720 Sales Managers 160 41.96 44.96 93,510 Computer And Information Systems Managers 100 43.93 43.87 91,260 Medical And Health Services Managers 170 40.6 42.84 89,110 Lawyers 650 39.58 42.23 87,830 Financial Managers 250 37.7 40.64 84,540 Source: U.S. Department of Labor, Bureau of Labor StatisticsTable 7: Top occupations by both mean annual wage and the number of employees inSalem Metropolitan Service Areamean annual wage and the number of employees in Salem MSA in 2007 Table 7: Top occupations by both in 2007 Wage Estimates Occupation Employment Median Hourly ($) Mean Hourly ($) Mean Annual ($) General And Operations Managers 1,8 60 42.61 48.04 99,920 Registered Nurses 2,3 30 32.54 31.77 66,080 Managers, All Other 1,4 00 31.36 31.27 65,050 Computer Specialists, All Other 1,3 40 28.75 28.52 59,320 Truck Drivers, Heavy And Tractor-Trailer 2,110 16.09 16.66 34,650 Bookkeeping, Accounting, And Auditing Clerks 2,120 15.09 15.84 32,940 Customer Service Representatives 2,6 50 12.51 13.89 28,890 Office Clerks, General 4,0 80 13.13 13.25 27,550 Retail Salespersons 5,7 00 10.34 12.22 25,420 Cashiers 4 ,2 6 0 9.02 9.83 20,440 Source: U.S. Department of Labor, Bureau of Labor Statistics The mean annual wages in 2007 for the combined custodial institutions, Willamette University,Salem-Keizer School District and Salem Hospital were dramatically higher than the Salem andMarion County averages (see Tables 8-10). Salem Hospital has the highest mean annual wage of$60,380. Willamette University has a mean annual wage of $55,617.20 And the custodial institutions(except the state hospital) have a mean annual wage of $51,214. Those averages are in the upper75% quartile for the Salem MSA. The Salem-Keizer School District average wage for teachersof $48,517 was for the 2006-2007 school year and, as such, would be just at the upper 75 percentquartile for the area. The Oregon State Hospital’s $45,372 mean annual wage is slightly higherthan the Oregon state average of $44,437 and significantly higher than the Salem MSA average.20 This excludes adjunct faculty. If all were accounted the average wage would drop to $53,249.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 11An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  16. 16. Table 8: Annual 8: Annual meanin 2007 for Salem Hospital Table mean wages wages in 2007 for Salem Hospital Category Employees Percentage Total Payroll Average Annual ($) Staff Rn 702 29% 52,492,752 74,776 Other Clinical 550 23% 34,308,560 62,379 Clinical Support 317 13% 10,173,925 32,094 Other Professional 97 4% 6,522,901 67,246 Administrative Support 232 10% 8,246,950 35,547 Facilities Support 293 12% 9,153,789 31,242 Physicians 11 0% 2,607,280 226,720 Management 212 9% 22,281,709 105,102 Total 2,414 145,787,866 Average 60,380 Source: Salem HospitalTable 9: Annual 9: Annual meanin 2007 for Willamette University Table mean wages wages in 2007 for Willamette University Average Category Employees Percentage Total Payroll Annual ($) Adjunct Faculty 54 8% 1,374,553 25,502 Administration 170 25% 10,975,414 64,453 Classified 214 31% 6,643,600 31,039 Faculty 209 31% 15,630,548 74,904 Professional 39 6% 1,875,099 48,643 Total 685 100% 36,499,214 53,284 Average (Excluding Adjunct Faculty) 55,617 Source: Willamette UniversityTable 10: Annual10: Annual mean wages in 2007 forcustodial institutions in in MarionCounty and Table mean wages in 2007 for state state custodial institutions Marion County andState Hospital in Salem in Salem State Hospital Average Category Employees Percentage Total Payroll Annual ($) Oregon State Correctional Institution 250 22% 12,996,733 51,987 Oregon State Penitentiary 538 47% 28,185,904 52,390 Santiam Correctional Institution 113 10% 5,520,296 48,852 Mill Creek Correctional Facility 51 4% 3,038,097 59,571 Hillcrest Youth Correctional Facility 191 17% 8,264,166 43,268 MacLaren Youth Correctional Facility Total 1,143 100% 58,005,196 50,748 Oregon State Hospital 1,201 100% 38,657,014 32,187 Source: Oregon Department of Employment To assess further the wage characteristics of these institutions relative to the community inwhich they are located, we constructed a statistic model showing the distribution of jobs in terms ofannual wages characteristic of each (See Figures 5-8). The bottom line is relatively unambiguous.To the extent that wages are a satisfactory proxy for productivity – it should be a pretty good one– the direct economic effect of these institutions is positive. They make a significant contributionto the economic product of the Salem SMA, especially Salem Hospital. Their overall effect is toWillamette University’s Center For GovernanCe and PUbliC PoliCy researCh 12An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  17. 17. Figure 5:5: Comparison ofof 2007 annualwages in wages in Marion County Figure Comparison 2007 annual mean mean Marion County $90,000 $79,388 $80,000 $70,000 $60,000 $55,617 $51,214 $50,000 $48,517 $44,437 $45,372 $40,350 $40,000 $30,000 $20,000 $10,000 $- Salem State of Oregon Oregon State Salem Keizer State Custodial Willamette Salem Hospital Hospital in Salem School District Institutions in University Marion CountyFigure 6: 6: Distribution Curve of Annual Wages at Willamette University Figure Distribution Curve of Annual Wages at Willamette University DISTRIBUTION CURVE OF ANNUAL WAGE AT WU A nderson-D arling N ormality T est A -S quared 9.06 P -V alue < 0.005 M ean 53165 S tD ev 19793 V ariance 391757342 S kew ness -0.21477 Kurtosis -1.74885 N 100 M inimum 25502 1st Q uartile 31039 M edian 64453 3rd Q uartile 74904 30000 45000 60000 75000 90000 105000 M aximum 74904 95% C onfidence Interv al for M ean 49238 57093 95% C onfidence Interv al for M edian 48643 64453 95% C onfidence Interv al for S tD ev 9 5 % C onfide nce Inte r v als 17378 22993 Mean Median 50000 52500 55000 57500 60000 62500 65000Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 13An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  18. 18. Figure 7:7: Distribution Curve ofof Annual Wages at Salem Hospital Figure Distribution Curve Annual Wages at Salem Hospital DISTRIBUTION CURVE OF ANNUAL WAGE AT SALEM HOSPTIAL A nderson-Darling N ormality Test A -S quared 5.54 P -V alue < 0.005 M ean 59657 StD ev 22696 V ariance 515102752 Skew ness 0.228719 Kurtosis -0.721934 N 100 M inimum 31242 1st Q uartile 32957 M edian 62379 3rd Q uartile 74776 30000 45000 60000 75000 90000 105000 M aximum 105102 95% C onfidence Interv al for M ean 55154 64161 95% C onfidence Interv al for M edian 62379 67246 95% C onfidence Interv al for S tD ev 9 5 % C onfidence Inter vals 19927 26365 Mean Median 55000 57500 60000 62500 65000 67500Figure 8:8: Distribution Curve of Annual Wages at StateState Custodial Institutions in Marion County Figure Distribution Curve of Annual Wages at Custodial Institutions in Marion County DISTRIBUTION CURVE OF ANNUAL WAGE AT CORRECTION INSTITUTIONS A nderson-Darling N ormality Test A -S quared 14.03 P -V alue < 0.005 M ean 50684 S tDev 3838 V ariance 14733026 S kew ness -0.711864 Kurtosis 0.711284 N 100 M inimum 43268 1st Q uartile 48852 M edian 52390 3rd Q uartile 52390 24000 36000 48000 60000 72000 84000 96000 108000 M aximum 59571 95% C onfidence Interv al for M ean 49922 51446 95% C onfidence Interv al for M edian 51987 52390 95% C onfidence Interv al for S tD ev 9 5 % C onfidence Inter vals 3370 4459 Mean Median 50000 50500 51000 51500 52000 52500Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 14An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  19. 19. raise the community’s average real wage. Offsetting that benefit somewhat, Salem Hospital andWillamette University also have the effect of increasing its variance. It is not evident that theyinduce very much in the way of additional development, either forward or backward through theirsupply chains. Most of their high value-added inputs are accessed outside of the area, aside fromconstruction of their plants. Next we will turn to indirect effects.Income Personal income is a comprehensive measure of the income of all persons from all sources.In addition to wages and salaries it includes employer-provided health insurance, dividends andinterest income, social security benefits, and other types of income. Personal income also includestransfer payments from the government. Transfer payments include social security income, foodstamps, Medicare and Medicaid, welfare income, and student grants and loans received from thegovernment.21 When examining Marion County’s per capita income of $29,453, the county ranksbelow the state ($33,299) and national averages ($36,714), but is in the top third among the state’s36 counties (See Figure 9). The county’s five-year personal income growth rate of 3.61 percentincrementally beats the state rate of 3.58 percent; both lag behind the national average of 4.47percent (See Figure 10).Employment The Salem MSA, like elsewhere in Oregon, has steadily increased employment since the lasteconomic downtown in 2000-2001 (See Figure 11). For the 2007 year, the Oregon EmploymentDepartment reported the Salem MSA’s employment gained 2,800 jobs, or 1.9 percent, with theprivate sector responsible for 2,300 of those jobs. The fastest growth sector for new jobs was inconstruction employment with about 600 jobs; however, like the rest of the country, the industryhas cooled since fall 2007. Another strong performer, regional economist Pat O’Conner reported in the 2007 employmentsummary, was the professional and business services sector–which includes staffing agencies–grew 33 percent between 2001 and 2007, with the addition of 3,300 jobs. Another growth area has been food manufacturing, which has increased jobs by 20 percent, or 900jobs, between 2003 and 2007. The Salem MSA accounts for 19 percent of the state’s annual averageagriculture employment with about 11,600 of the state’s 59,780 agriculture jobs. Public-sector employment in the Salem MSA increased by 500 in 2007. However, public-sector employment has been fairly flat in recent years, according to the Employment Department.21 Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of CommerceWillamette University’s Center For GovernanCe and PUbliC PoliCy researCh 15An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  20. 20. Figure 9: Per Capita Personal Income (Ranked by 2006 Income) Per Capita Personal Income (ranked by 2006 income) County 2002 2003 2004 2005 2006 1 Clackamas 35,316 35,973 37,631 39,116 41,378 2 Multnomah 34,049 34,362 35,656 36,602 38,529 * United States 30,821 31,504 33,123 34,757 36,714 3 Washington 31,690 32,140 33,069 34,515 36,259 4 Benton 30,811 32,896 34,373 33,814 35,722 5 Deschutes 28,122 28,952 30,421 31,909 33,522 * Oregon 28,931 29,565 30,621 31,599 33,299 6 Jackson 26,459 27,491 28,658 30,133 31,785 7 Yamhill 25,641 26,197 27,516 29,399 31,044 8 Lane 26,471 26,744 27,943 29,209 30,825 9 Lincoln 26,449 26,868 27,847 28,596 30,436 10 Columbia 27,211 27,444 27,967 28,997 30,174 11 Clatsop 26,027 27,167 27,178 28,155 29,571 12 Marion 25,553 26,661 27,462 27,994 29,453 13 Hood River 23,875 24,502 25,895 27,130 29,333 14 Curry 24,057 24,669 25,743 26,975 29,186 15 Tillamook 25,495 25,963 27,043 27,706 29,128 16 Grant 24,741 25,490 26,822 26,744 29,077 17 Douglas 24,751 25,038 26,028 26,824 28,198 18 Wallowa 24,237 24,291 26,413 26,645 28,112 19 Wasco 23,539 24,140 25,393 25,812 27,720 20 Polk 25,655 26,530 26,945 26,429 27,647 21 Morrow 22,062 24,945 27,012 25,278 27,537 22 Union 24,201 25,729 26,804 25,904 27,445 23 Coos 24,488 25,867 25,504 25,848 27,269 24 Linn 24,358 24,499 25,340 25,730 26,916 25 Klamath 23,487 24,501 24,837 25,414 26,908 26 Harney 22,529 23,880 23,833 25,233 26,358 27 Josephine 22,519 22,788 23,825 24,824 26,224 28 Lake 22,291 23,545 24,281 24,638 25,982 29 Wheeler 19,657 22,780 22,518 24,574 25,657 30 Umatilla 23,132 24,064 24,049 23,949 24,900 31 Baker 21,317 21,969 22,794 23,426 24,460 32 Crook 21,661 22,430 22,605 23,289 24,038 33 Gilliam 18,110 22,736 25,064 25,411 23,889 34 Jefferson 20,783 21,582 22,151 22,501 23,812 35 Malheur 18,698 19,830 19,965 19,943 21,137 36 Sherman 18,044 20,266 22,962 20,732 19,550 Source: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of CommerceThe agency reported that between 2001 and 2007 total government employment dropped 200 jobs.It should be noted that Oregon law constrains employee salaries to be no more than X percent ofthe biennial budget. The growth of the gambling industry can be seen in the 11.1 percent increasein Indian tribal employment. The Confederated Tribes of Grand Ronde operate the Spirit MountainCasino in Polk County.Willamette University’s Center For GovernanCe and PUbliC PoliCy researCh 16An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County
  21. 21. Figure 10: Per Capita Personal Income 2002-2006 (with growth percentages) $45,000 $41,378 $40,000 $38,529 4.04% Growth $36,714 Clackamas $35,316 3.14% Growth Multnomah $35,000 United States $34,049 $33,299 Oregon 4.47% Growth Marion Polk $30,821 3.58% Growth $30,000 $29,453 $28,931 3.61% Growth $27,647 1.89% Growth $25,553 $25,000 $25,655 2002 2003 2004 2005 2006Figure 11: Unemployment for Oregon, the Portland MSA and Salem MSA between January 2005and June 2008 Unemployment for Oregon, the Portland MSA and Salem MSA between January 2005 and June 2008 Figure 13: 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Dec-06 Dec-07 Dec-05 Aug-06 Oct-06 Aug-07 Oct-07 Aug-05 Oct-05 Apr-07 Apr-08 Apr-06 Apr-05 Nov-06 Jan-07 Nov-07 Jan-08 Jan-05 Nov-05 Jan-06 Sep-06 Feb-07 May-07 Sep-07 Feb-08 May-08 May-06 Feb-05 May-05 Sep-05 Feb-06 Mar-07 Jul-06 Jun-07 Jul-07 Mar-08 Jun-08 Mar-06 Jun-06 Mar-05 Jun-05 Jul-05 Oregon Portland MSA Salem MSAWillamette University’s Center For GovernanCe and PUbliC PoliCy researCh 17An Economic Analysis Of Locating Oregon’s Custodial Institutions In Marion County

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