State agencies slash budgets as fiscal year starts

By MITCH LIES

Capital Press

July 1, 2010

SALEM -- Water right transfers could take longer and seed dealers could be looking at increased license fees sooner rather than later as Oregon state agencies respond to a governor's directive to cut budgets.

Increased backlogs for water use permits and higher licensing fees are two consequences for Oregon farmers, ranchers and agribusinesses as state agencies initiated 9 percent budget cuts beginning July 1.

The across-the-board cuts ordered last month by Gov. Ted Kulongoski cost the state Department of Agriculture $650,000, cost the Water Resources Department $965,000 and cost the Oregon State University statewide public services $4.8 million.

The agencies and the OSU Extension Service, experiment station and the forest research laboratory are freezing some salaries and holding open vacancies to help meet the directive.

"We are in a position where we can't replace people when they leave," said Bill Boggess, OSU College of Agricultural Sciences executive associate dean. "It limits our ability to fill even critical gaps."

At water resources, officials were forced to cancel plans to fill the vacant Klamath Basin water master position.

"We had conducted interviews and were about to extend an offer when we had to cancel that process," said Brenda Bateman, senior policy coordinator for the agency.

That and several other field and administrative positions now remain open, Bateman said.

The Department of Agriculture also is leaving open vacancies. In addition, the department is shifting the burden of funding certain programs from tax-generated general funds to fees.

The fund shift in some cases has moved forward department plans to seek fee increases.

The department anticipates asking lawmakers for five fee increases next year, including increases in its confined animal feeding program, its food-safety license fees and seed-dealer license fees.

The governor distributed the directive in response to a $562 million budget hole that surfaced after the state's May 25 revenue forecast.

A better than expected revenue forecast in September or an influx of federal funds could stave off some of the budget cuts.

Lawmakers could convene a special session, in which case they could pick and choose programs to cut.

Under law, the governor can mandate only across the board cuts.