[ODF_Private_Forests] Update on 2009-2011 ODF Budget

[WEEKS Kevin]

ODF Private Forests News members:

This message regarding development of the 2009-11 ODF Budget was issued by Associate State Forester Clark Seely on Tuesday afternoon. The message includes new information regarding spending in the current biennium and a revised proposed reduction level for the budget beginning in July 2009.

Questions regarding the ODF Private Forests News service?
Contact:
Kevin Weeks
Public Information Officer
ODF Agency Affairs / Private Forests Division
(503) 945-7427

________________________________
From: SEELY Clark W
Sent: Tuesday, November 11, 2008 4:44 PM
To: ALL FORESTRY
Subject: FYI - Biennial Budget Reduction Planning Update - Legislative Request

Hi everyone...as you know from previous messages, part of the process for the preparation of the Department's next budget includes the development of a General Fund reduction plan to address falling state revenues due to the declining economic situation.  We've recently completed this effort and shared information about the current plan with you, the Board of Forestry, and stakeholders.  This effort, thus far, has been on the executive branch side of state government, in preparation of the Governor's recommended budget that will be released on December 1.

Due to worsening of the Oregon and national economies and passage of ballot measures that have a financial impact on state funds, the legislative side of state government is now requesting agency reduction plans in preparation for the 2009 legislative session which begins on January 12th.  This request came to us late last week, and includes two reduction plan efforts - the first is a reduction plan of 5% of the Department's General Fund for this current 2007-09 biennium and the second is a General Fund reduction plan of 20% total for the next (2009-11) biennium, in 5% increments.  Our plans are due back to the legislative fiscal office by December 1.

For the first, current budget effort, we'll look to include as much General Fund savings as we can in all agency programs that have General Fund, and try to achieve the 5% requirement in this manner.  This will include savings through position vacancies, reductions in expenditures in services and supplies, and some savings anticipated in debt service on bonds.  In order to achieve the needed savings, we'll likely be implementing some vacant position holds and some restrictions on other expenditures.  We'll develop the plan for this over the next two weeks, and send out further information and direction at that time.

For the second, next budget effort, we have already prepared a 10% reduction plan for the Governor's budget development for 2009-11 as mentioned above, and so the 20% request by the legislative leadership represents an additional 10% above what we've already prepared.  This is the same type of request we responded to during the 2001-03 and 2003-05 budget situations.  We'll prepare several options over the next week in both the Fire Protection and Private Forests Programs where our General Fund exists, and make decisions on the proposed plan by the December 1 due date.

Given the economic situation, this new request from the legislative leadership is not unexpected, and the planning must begin early to be effective.  As we have said before, the pathway to the next biennium will include many decision points along the way, and will likely take twists and turns that we don't yet know about.  So, as we prepare plans now, please remember that there will likely be many more changes along the way.  However, we will continue to be guided by the planning principles we put into place for the first reduction plan that we shared with you last month - and our highest priority will continue to be a focus on employees - our principle here is stated as, "To the greatest extent possible, ODF will seek to retain current employees through reassignment, relocation, transfer or promotion to other positions".  That, and our other principles, will continue to guide our thinking and planning efforts.

We will share information about these new legislative reductions plans as soon as we can, with information likely coming out in the next seven to ten days.  In the meantime, if you have any questions or thoughts, please feel free to contact me or any other Executive Team member.

Thanks...and once again, thank you for your hard work for our stakeholders and your dedication to the Department's mission.

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/>

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