Salem, Ore. – Liquidated and delinquent debts owed to the State of Oregon have almost doubled since 2008, to nearly $3.2 billion. A new audit released by Secretary of State Jeanne Atkins found that the state needs a sustained focus to improve collections performance over time.
Collection rates on delinquent receivables have dropped since 2008, according to data agencies report to the Legislative Fiscal Office. The audit found that the recession, a lack of sustained focus on improvement, and Oregon’s highly decentralized approach to collections likely contributed to debt growth and reduced performance.
“This is our sixth collections-related audit since 1997. Significant improvements identified in those audits have not been implemented, some dating back 18 years,” said Secretary of State Jeanne Atkins “Our state government needs to make delinquent debt collection a consistently high priority.”
The Secretary of State also says Oregon has not implemented some productive collection tools used by other states, has not resolved lingering legal issues that hinder collections, and has allowed inadequate performance measurement to persist.
Some agencies have made collections improvements. However, the audit identified four tools the state has considered for years, but not implemented: vendor offset, expanded levies on debtor bank accounts, a state lien registry, and internet posting of debtors. The audit work on vendor offset identified over 9,000 state debtors on the state vendor list who had received payments from the state or were authorized to receive payments.
“Collections will not improve overnight, but improvements over time could bring in significant dollars,” said Audits Division Director Gary Blackmer. If Oregon had collected delinquent debt at a 13.5% rate in 2014 – last achieved in 2008 – the state would have brought in nearly $90 million more in collections.
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