PROC SURVEYREG does not support the PARAM=REF option on the CLASS statement, so I suggest you check your SAS log for as error message that says
15 class region14 ... / param=ref; ----- 22 202 NOTE: The previous statement has been deleted. ERROR 22-322: Syntax error, expecting one of the following: ;, REF, REFERENCE.
Notice that the error log says that the CLASS statement is being deleted. Therefore the variables are treated as continuous variables.
Get rid of the PARAM= option and that should fix the issue.
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