[ODF_Private_Forests] ODF Budget Planning Update

[WEEKS Kevin]

________________________________________
From: SEELY Clark W
Sent: Thursday, December 18, 2008 3:57 PM
To:   ALL FORESTRY
Subject: Budget Planning Update

Hi everyone...on behalf of the Executive Team, Deputy Chiefs and Program Directors, I wanted to update you on our response to the budget reductions that we’re facing at ODF. We’re continuing to address ODF’s share of the budget shortfall affecting state government during the current biennium, while adding detail to our plans for the reductions we may need to make during 2009-11.

2007-09 Outlook: Using savings, reducing spending

It still appears that we will be able to manage the projected shortfall for the rest of this biennium, which ends June 30, through accumulated savings and restrictions on spending, including holding vacant positions open.

The next statewide revenue forecast, in March 2009, may well show that this budget gap has widened. As we’ve mentioned in our earlier messages, uncertainty may be the only thing we can count on during this period. However, based on the information we have now, we believe that our current approach will carry us through to the end of this biennium, even assuming some growth in the shortfall.

Preparing for 2009-11: Planning to protect staff resources

As you may recall, the Governor’s Recommended Budget for the 2009-11 biennium, beginning next July 1, adopts the 10 percent state General Fund reduction plan that we were asked to prepare earlier this year.

Other than debt repayment and charges required of all agencies to support central statewide administrative services across state government, General Fund dollars in ODF occur in two operating programs: Private Forests and Fire. As an agency, we don’t have the option of reducing debt repayment or central service charges, so we have to look to the two General Fund programs for reductions. Just to be clear, there is no General Fund in any other agency program other than Fire and Private Forests, including Agency Administration, State Forests, Equipment Pool, or Urban Forestry.  Given the risks involved in reducing initial attack resources, we decided to focus the reductions in Private Forests.

We’ve convened a planning team, including division chiefs, deputy division chiefs and area directors, to guide the implementation of reductions. The team has begun a detailed look at current and expected vacancies, and will work with district foresters and other managers to determine how vacancies may best be used to provide opportunities for employees whose positions will have to be eliminated.

The team will soon finalize and distribute to the Leadership Team an action plan, detailing how we will manage vacancies to best position the agency for potential future budget reductions. This will include a freeze on filling vacancies for permanent positions, with a review process that will allow for exceptions when they are in the agency’s best interest.

Supervisors have already begun conversations with employees who would be affected if the Legislature chooses to implement reductions along the lines of those in the Governor’s Recommended Budget. These conversations will continue, and will become more specific, in early 2009.

Some employees may face difficult choices, such as moving into a different or lower-paying position, or relocating to another part of the state. But as we've committed to you, we’ll do all we can to make options available that work for our employees and for the department, given the funds available. Implementing reductions in a way that aligns with our agency mission, and making every effort to minimize the impact on employees, are guiding principles for us.

Going forward: Watching the economy, working with the legislature

The environment of uncertainty around the budget will continue for some months.  The March revenue forecast, based on continued monitoring of economic trends in the state and nationally, will provide new information about the budget outlook, both for the current biennium and for 2009-11.

The 2009 Legislature, which convenes January 12, may have to make adjustments to agencies’ current budgets, and will develop and approve a new statewide budget for the 2009-11 biennium. The new budget, developed during the first half of the new year, will likely include elements of the Governor’s recommendation, but will also reflect legislative priorities and interests, input from many stakeholders, and the latest available information about the state’s revenue outlook.

The Legislative Fiscal Office has asked agencies to prepare scenarios for another 10 percent reduction above that included in the Governor’s budget, but we don’t know if those scenarios will be implemented.  In short, we are a long way from knowing what our final budget for 2009-11 will be, but it’s important that we continue our reduction planning now.

Other notes: Taking the long view of agency needs

Maintaining key training opportunities. As Marvin noted in a recent message, there’s never a good time to be “penny wise and pound foolish.” Even in times of reduced resources, we can’t lose sight of the agency’s long-term needs. For example, training and development remain important, to help people do their jobs today and to meet our long-term leadership needs.

Accordingly, our budget team decided this week to proceed with planning for the next session of our Agency Leadership Program (ALP), to begin late next year. We’ll also continue to provide resources for orientation of recently hired employees, and for Covey 7 Habits training. And we’ll continue to look at the most efficient ways to carry out other necessary training, and to also appropriately and prudently manage other expenses.

A new vision for Private Forests. 

Independent of the budget outlook, we’ve needed for some time to re-shape the Private Forests program to most effectively address the needs and trends facing Oregon’s private forests. Among other things, this involves looking to the future, and assessing what services would best assist landowners and improve outcomes in keeping forestlands as forestlands.

What innovative funding sources, policies and other changes are necessary to support a program that helps to maintain the private forest land base, ensures resource protection under the Forest Practices Act, and delivers the best value to Oregonians? At its January 7 meeting, the Board of Forestry will consider a draft work plan that addresses such questions, with input from the public and stakeholders, in the coming months.

A closing note

It’s very unfortunate that we face these budget challenges as we head into the holiday season - I know that and mightily wish it were different, as I know you do. But as you also know, it’s important that we continue to plan for the future, and that we keep you updated on that planning and remain open to your input.

Although these are uncertain times for many families, businesses, public agencies and other organizations, on behalf of the Executive Team, I sincerely hope the holidays bring you some rest, relaxation and quality family time.

As always, if you have questions, please don’t hesitate to contact me or any member of the Executive Team.

My best,

Clark

_____________________________

Clark W. Seely, CF
Associate State Forester
Oregon Department of Forestry
2600 State Street
Salem, OR  97310-0340
Phone:   503-945-7203
Cell:       503-559-5807
FAX:      503-945-7212
email:    cseely at odf.state.or.us<mailto:cseely at odf.state.or.us>
WEB:    www.odf.state.or.us<http://www.odf.state.or.us/>