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<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009>Private Forests News list members:</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009></SPAN></FONT> </DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009>The Executive Team for the Oregon Department of
Forestry shared this budget planning message with ODF staff on
Tuesday.</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009></SPAN></FONT> </DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009>Kevin Weeks</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009>Public Information Officer / Private Forests
Division </SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009>Oregon Department of Forestry
</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009><A
href="mailto:kweeks@odf.state.or.us">kweeks@odf.state.or.us</A>
</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff size=2><SPAN
class=540072715-18032009>(503) 945-7427</SPAN></FONT></DIV><BR>
<DIV class=OutlookMessageHeader lang=en-us dir=ltr align=left>
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<DIV><FONT face=Arial size=2>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Hi everyone<SPAN class=114565823-17032009>...w</SPAN></FONT><FONT
face="Times New Roman" size=3>e wanted to take a moment to update you again on
our budget situation, particularly as we begin a new set of reduction plans in
response to direction we received from the Legislature’s fiscal office last
Friday.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As we’ve discussed in previous messages, the Governor’s Recommended
Budget for the 2009-2011 budget period, beginning July 1, includes a 10 percent
reduction in General Funds (primarily income tax dollars). In addition, to help
legislators in their planning, the Legislative Fiscal Office (LFO) asked
agencies <SPAN class=114565823-17032009>in December </SPAN>to map out
scenarios for a further 10 percent General Fund cut. </FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As we have mentioned, these two actions, cutting General Fund by a total
of 20 percent, would involve substantial reductions in the <st1:place
w:st="on"><st1:PlaceName w:st="on">Private</st1:PlaceName> <st1:PlaceType
w:st="on">Forests</st1:PlaceType></st1:place> and Fire programs during
2009-2011.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>On Friday, LFO directed agencies to plan a new set of reductions, this
time totaling 30 percent of General Fund, for 2009-2011.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The new direction in based on continued economic deterioration and on two
recent developments that may have changed agencies’ earlier reduction plans for
2009-2011 –<SPAN style="mso-spacerun: yes"> </SPAN>the availability of
federal stimulus dollars, and actions by the Legislature to balance the current,
2007-2009, budget. Responses to the new direction are due back to LFO by the end
of next week.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>This effort will involve a new set of difficult choices about the
services ODF would be able to provide with budget reductions of this size. But
we’ll continue to apply the principles we’ve used to this point, including
identifying the services of highest priority for continuation, doing the best
job we can with the resources available, and seeking to provide options wherever
possible for employees whose current positions would no longer be
funded.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As we’ve done in the past few months, we’ll continue to share information
– with the department as a whole and with employees on an individual basis.
We’ll also continue to involve stakeholders and the Board of Forestry in these
discussions and decisions.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><FONT size=3><FONT
face="Times New Roman">An update about State
Forests<o:p></o:p></FONT></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Although the State Forests Division does not depend on General Funds, its
revenue – from timber sales – is also declining sharply,<B
style="mso-bidi-font-weight: normal"> </B>due to lack of demand for wood
products.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The division has instituted substantial savings during the current fiscal
year, ending this June 30. Even with that, the division will need to further
reduce spending to 65 percent to 70 percent of recent levels for the coming
biennium and beyond, at least until wood products demand recovers.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The division has identified a base budget that meets our most fundamental
responsibilities for implementing forest management plans and revenue
generation. With those plans as a guide, decisions are now being made about
resources that can be added to the base, consistent with available revenues. As
is the case on the General Fund side in the Fire and <st1:place
w:st="on"><st1:PlaceName w:st="on">Private</st1:PlaceName> <st1:PlaceType
w:st="on">Forest</st1:PlaceType></st1:place> programs, this involves difficult
choices. We will have more information soon about specific reduction plans for
the division.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT
face="Times New Roman"><FONT size=3><B
style="mso-bidi-font-weight: normal">Looking to the future<BR></B>Adjusting to
the new budget realities will also require changes in administrative support
services across the Department, and we are also developing those plans<SPAN
class=114565823-17032009> at this time</SPAN>.</FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As we have discussed, uncertainty is our constant companion in all this.
We won’t know the specifics of our 2009-2011 budget until the Legislature ends
its current session, at about mid-year.<SPAN style="mso-spacerun: yes">
</SPAN>Periodic state government revenue forecasts – the next one is scheduled
for mid-May – will continue to provide new information, and perhaps require
further changes in plans.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Such uncertainty can bring distraction and worry, and maintaining a
healthy frame of mind can be a challenge. But as Marvin noted in his recent
message, focusing on our daily work, and striving for a positive, constructive
approach, can help. We hope that receiving information as the situation changes
is also of use to you. </FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As always, thank you for everything you do, and please don’t hesitate to
talk to your supervisor or any of us if you have questions.</FONT></P>
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size=3> </FONT></o:p></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT
face="Times New Roman"><FONT size=3><st1:place w:st="on">Clark</st1:place>
Seely<SPAN
style="mso-spacerun: yes"> <SPAN
class=114565823-17032009> </SPAN></SPAN>Paul Bell</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in -0.25in 0pt"><FONT size=3><FONT
face="Times New Roman"><SPAN
style="mso-spacerun: yes"> </SPAN><st1:place
w:st="on"><st1:PlaceName w:st="on">Associate</st1:PlaceName> <st1:PlaceType
w:st="on">State</st1:PlaceType></st1:place> Forester<SPAN
style="mso-spacerun: yes">
</SPAN>Fire Protection Division Chief</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in -0.25in 0pt"><o:p><FONT
face="Times New Roman" size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in -0.25in 0pt 0in"><FONT size=3><FONT
face="Times New Roman"><st1:City w:st="on"><st1:place
w:st="on">Nancy</st1:place></st1:City> Hirsch<SPAN
style="mso-tab-count: 5"> </SPAN>Jim
Paul</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in -0.25in 0pt 0in"><FONT
face="Times New Roman" size=3>State Forests Division Chief<SPAN
style="mso-tab-count: 3">
</SPAN>Private Forests Division Chief</FONT></P>
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size=3> </FONT></o:p></P>
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