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<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>ODF Private Forests News list
members:</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008></SPAN></FONT> </DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>An updated message regarding the development of the
2009-2011 Budget for the Oregon Department of Forestry - and revisions to the
current 2007-2009 ODF Budget - was issued today by Associate State Forester
Clark Seely and the Division Chiefs of ODF Private Forests and ODF Fire
Protection, Jim Paul and Paul Bell.</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008></SPAN></FONT> </DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>Questions about the Private Forests News
service?</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>Contact:</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008></SPAN></FONT> </DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>Kevin Weeks</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>ODF Agency Affairs / Private Forests
Division</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=709451022-20112008>(503) 945-7427</SPAN></FONT></DIV><BR>
<DIV class=OutlookMessageHeader lang=en-us dir=ltr align=left>
<HR tabIndex=-1>
<FONT face=Tahoma size=2><B>From:</B> PAUL Jim T <BR><B>Sent:</B> Thursday,
November 20, 2008 2:09 PM<BR><B>To:</B> ALL FORESTRY<BR><B>Subject:</B> Update
on ODF 2009-11 Budget Planning Outlook<BR></FONT><BR></DIV>
<DIV></DIV>
<DIV><FONT face=Arial>
<DIV><FONT face=Arial>
<P class=MsoNormal
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face="Times New Roman">Hello everyone - </FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><o:p><FONT
face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">We reached another important milestone in our budget
planning on Wednesday with the announcement of the latest quarterly state
government revenue forecast.<SPAN style="mso-spacerun: yes"> </SPAN>The
news was not positive. The trouble throughout the economy directly affects the
amount of tax revenue available to state government. At the same time, economic
downturns increase the need for many of the social services that state
government provides.</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><SPAN
style="mso-spacerun: yes"><FONT face="Times New Roman"></FONT></SPAN> </P>
<P class=MsoNormal
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face="Times New Roman">The new forecast indicates the state will be more than $1
billion short of the funds needed to continue current services into the 2009-11
biennium, which begins next July 1. Additionally, as you may have seen in the
news, the forecast showed an ending deficit of about $140 million for the
current two-year budget period<SPAN class=591374521-20112008> ending June
30</SPAN>.</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><o:p><FONT
face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><FONT
face="Times New Roman">To address the current deficit, the Governor has directed
state agencies to reduce General Fund spending by about 1.2 percent for the
remainder of the 2007-09 biennium. It appears that we can make the necessary
reductions at ODF through savings already achieved during the biennium, and
through other spending restrictions, including keeping some positions vacant.
Additional information will be coming out on our plans for implementing the
Governor’s direction.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p><o:p><FONT
face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><B><FONT
face="Times New Roman">For 2009-11, reduction planning work is
broadening<o:p></o:p></FONT></B></P>
<P class=MsoNormal
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face="Times New Roman">The situation is more serious for 2009-11. In earlier
messages, we have discussed a 10 percent reduction scenario for 2009-11,
developed for the Governor<st1:PersonName w:st="on">'</st1:PersonName>s
consideration in crafting his recommended budget, which he will release on
December 1. The Legislature recently asked agencies to develop scenarios for an
additional 10 percent reduction, in five percent increments. We are working on
details of this new scenario.</FONT></P>
<P class=MsoNormal
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style="mso-spacerun: yes"><FONT face="Times New Roman"></FONT></SPAN> </P>
<P class=MsoNormal
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face="Times New Roman">General Fund exists primarily in our <st1:place
w:st="on"><st1:PlaceName w:st="on"><st1:PlaceName
w:st="on">Private</st1:PlaceName> <st1:PlaceType
w:st="on">Forests</st1:PlaceType></st1:PlaceName></st1:place> and Protection
programs. In planning the initial 10 percent reduction scenario, we focused on
Private Forests because of the risks involved in reducing initial attack
capacity. </FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">We now face more difficult choices in producing a
scenario for an additional 10 percent reduction. Regardless of how we go about
determining what this higher level of reduction would look like, both the
<st1:place w:st="on"><st1:PlaceName w:st="on"><st1:PlaceName
w:st="on">Private</st1:PlaceName> <st1:PlaceType
w:st="on">Forests</st1:PlaceType></st1:PlaceName></st1:place> and Fire
Protection programs would be unavoidably impacted at both the headquarters and
field level. At this point, our approach is to plan the first half of this
additional reduction in Private Forests, and the second half in Fire Protection.
</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">We<st1:PersonName w:st="on">'</st1:PersonName>re still
working to provide a more detailed picture of how such an approach would affect
the agency. As we’ve done up to this point, we will continue to plan reduction
scenarios that maintain public services and staff resources to the greatest
extent possible, given the resources we have. However, General Fund reductions
as large as 20 percent would clearly have major effects on the
agency.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">In Private Forests, under a 15 percent reduction – the
initial 10 percent plus half of a second potential 10 percent – our <st1:place
w:st="on"><st1:City w:st="on">Salem</st1:City></st1:place> staff would be
reduced to about a dozen or so positions, and program-specific field staff would
be reduced by about 50%. <SPAN style="mso-spacerun: yes"> </SPAN>In
<st1:place w:st="on"><st1:City w:st="on">Salem</st1:City></st1:place> we would
retain limited capacity for civil penalty administration, forest practices field
support, and compliance auditing, along with a number of federally funded
positions. In the field we would retain about half of our current Stewardship
Forester positions.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">In Protection, a five percent reduction would mean the
loss of <SPAN class=591374521-20112008>some </SPAN><st1:place
w:st="on"><st1:City w:st="on">Salem</st1:City></st1:place> staff positions, as
well as about two million dollars in General Fund reductions for District
offices that we are still working to define.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><B><FONT
face="Times New Roman">Uncertainty about reductions
remains<o:p></o:p></FONT></B></P>
<P class=MsoNormal
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face="Times New Roman">Although at this point the various reduction plans are
just that – plans – the economic situation suggests that we will have to
implement reductions at some level for 2009-11. </FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><FONT
face="Times New Roman">We will know considerably more when the Governor releases
his recommended budget on December 1. This budget will indicate agencies’
proposed General Fund and other allocations, and will reflect the Governor’s
public policy priorities and his plan for reducing expenditures to match
available resources.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">The Governor’s recommendation will go to the 2009
Legislature, which will work during the first half of next year to adopt a
2009-2011 budget. Quarterly revenue forecasts, typically released in March and
May, will provide better information about the outlook as the Legislature does
its work.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">The process requires us to wait some months before we are
certain of the resources we will have in 2009-11. But this interval also gives
us time to prepare for reductions – so we can maintain staff resources to the
greatest extent possible, and so we and our stakeholders understand what
services we can provide to Oregonians with the funds we have
available.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt; mso-pagination: none; tab-stops: 28.0pt 56.0pt 84.0pt 112.0pt 140.0pt 168.0pt 196.0pt 224.0pt 3.5in 280.0pt 308.0pt 336.0pt; mso-layout-grid-align: none"><B><FONT
face="Times New Roman">We must create a vision, articulate values and set
expectations <o:p></o:p></FONT></B></P>
<P class=MsoNormal
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face="Times New Roman">As we move through the reduction phases ahead, we must
determine what our Private Forests Program can accomplish with its reduced
capacity, and how we will achieve this vision. It’s also important that we seek
to maintain core values and goals, even as we experience a period of reduced
resources.</FONT></P>
<P class=MsoNormal
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style="mso-spacerun: yes"><FONT face="Times New Roman"></FONT></SPAN> </P>
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face="Times New Roman">For instance, our 10 percent General Fund reduction
scenario would eliminate dedicated funding to support the Oregon Plan and other
recovery efforts. However, our program goals and objectives will continue to
support these efforts, through continued enforcement of the Forest Practices Act
and other activities at levels consistent with our resources.<SPAN
class=591374521-20112008> </SPAN>In the next few months there will be
further discussion about program vision, internally and externally, as we move
forward.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">Perhaps the only certainty at this point is that the
budget outlook, and our plans, will continue to change in the coming months.
However, we will continue to follow our guiding principles, including retaining
as many of our employees as we can, providing support to those whose current
positions are affected by reductions, and striving to maintain for the public a
core set of priority services.</FONT></P>
<P class=MsoNormal
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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face="Times New Roman">We appreciate your continued commitment to service and
dedication to ODF<st1:PersonName w:st="on">'</st1:PersonName>s mission during
these difficult and uncertain times. We will continue to share information with
you as the situation changes, and as we fill in more details about the reduction
scenarios. If you have any questions or concerns, please feel free to contact
any Executive Team member.</FONT></P>
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face="Times New Roman"> </FONT></o:p></P>
<P class=MsoNormal
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT
face="Times New Roman"><st1:place w:st="on">Jim Paul<SPAN
class=164014121-20112008> </SPAN><SPAN
class=164014121-20112008> </SPAN><SPAN
class=164014121-20112008> </SPAN></st1:place><SPAN
style="mso-tab-count: 3"><SPAN class=591374521-20112008>Paul
Bell
Clark Seely<SPAN
style="mso-tab-count: 3"> </SPAN></SPAN></SPAN></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-tab-count: 3"></SPAN><FONT face="Times New Roman">Private Forests
Division Chief<SPAN
class=164014121-20112008> <SPAN
class=591374521-20112008>Fire Protection Division Chief</SPAN></SPAN><SPAN
class=591374521-20112008> </SPAN><SPAN
class=591374521-20112008> </SPAN>Associate State Forester<SPAN
style="mso-tab-count: 1"> </SPAN></FONT></P></FONT></DIV></FONT></DIV></BODY></HTML>