[ODF_Private_Forests] Revenue Forecast and ODF updates

[WEEKS Kevin]

State Forester Doug Decker provided this message to Oregon Department of Forestry staff on Friday.

Kevin Weeks
Oregon Department of Forestry
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From: DECKER Doug S
Sent: Friday, November 18, 2011 1:35 PM

Hello and happy Friday.

It's been a busy and interesting week that has produced some news notes I thought you would be interested in knowing more about....

State revenue growth has slowed slightly, but remains stable and a little above target
Oregon's State Economist released his quarterly economic and revenue forecast yesterday, and while it wasn't the rosiest of pictures, it wasn't as bad as some feared, and it's unlikely to trigger major budget reductions at this point, though we continue to implement prudent spending and savings measures.

The current forecast shows that:

 *   Growth in personal income taxes from both labor and investment income remains stronger than in other states, and is well above what would be consistent with a recession.
 *   Corporate tax collections have come to a screeching halt, and are now falling faster than was forecast.
 *   Lottery revenues remain weak (down about $23 million)

The  forecast projected a General Fund ending balance for the current biennium of $169 million. Last July, recognizing the economy was soft, and as a hedge against triggering major reductions, the Legislature set aside a $446 million General Fund ending balance, just in case. You'll recall from my last note, that as another just-in-case measure, all agencies were recently asked to prepare up to 10.5 percent in General Fund reductions. What yesterday's forecast means is that at least at this point, there is not a need to trigger those reductions. You can be sure the Governor's Office and Oregon's legislative leadership are watching this very closely, and will be focused on the next revenue forecast, scheduled for February 2012. Here's a link to the  State Economist's web page<http://www.oregon.gov/DAS/OEA/docs/economic/press1111.pdf> with the "press packet" version of the report/forecast. If you do download this, have a look at the General Fund Forecast Summary table on page 11, and the General Fund Revenues discussion on pages 4-6. This is good news-or at least not really bad news-for now.

Legislative Ways and Means Hearings Indicate Strong Support for ODF
This week we've appeared before two legislative committees to testify about the 2011 fire season, the Elliott State Forest Management Plan, and our actions to rebuild administration of the Forest Practices Act, including the hiring of 12 additional Stewardship Foresters, the preparation of a compliance audit, and our focus on efficiency/effective measures. Legislators have been interested, receptive and have asked good questions about this work.

In short, the tone and the message back to us from the committees was solid support and appreciation for your good work. Senator Chuck Thomsen from Hood River went out of his way to praise ODF actions during the Dollar Lake Fire in August. Representative McLane from central Oregon praised agency vigilance and response during fire season. Co-Chair Jenson, who along with Senator Edwards was instrumental in supporting Forest Practices Act restoration, was very pleased with that work, and in the agency's performance and responsiveness to the budget notes. It was a proud and satisfying moment that reflects well on everyone's collective good work.

ODF Secures Competitive Federal Grants in Fire, Private Forests
I spent two days this week with State Foresters and USFS Regional Foresters from throughout the West. During the session, we received the results of two major competitive grant processes related to funding for wildland urban interface grants, and State and Private Forestry grants that help fund our Private Forests program. You'll be pleased to know that among the 18 western states and Pacific Islands, Oregon had the most competitive grants and consistently received high marks from the grant committees, which will bring an estimated $2.5 million in federal funds to Oregon. Congratulations to Travis Medema and his team and project originators at the unit level, Norm Miller and the Partnership Development Program, Peter Daugherty and the Private Forests team, and everyone in the field and in Salem who contributed to ODF's grant packages.

I was also pleased and intrigued to note this week that most of my State Forester colleagues from across the West had heard about and taken note of both the recent passage of the Elliott State Forest Plan, and the Governor's recent comments about the role of active forest management. We're on the radar screen.

Time for Thanks
Lastly, an observation and a thanks: as I travel around and hear from you and from our stakeholders, it's evident to me just how much you're doing, and that your work and your attitude makes a difference. In the midst of managing multiple tasks, projects, priorities and needs, you are taking the time to invest in the working relationships that make us successful as an agency. I hear that loud and clear from our stakeholders. Thanks for making that a priority.

Hoping you can slow down during our two days off next week and appreciate some family time during the Thanksgiving holiday.

Doug Decker, Oregon State Forester

Director, Oregon Department of Forestry
Office: 503-945-7211
Oregon Department of Forestry
2600 State Street, Salem OR 97301
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