Finally, a Budget, For Now...

FINALLY, A BUDGET-FOR NOW...

After months of preparation, priority-setting, and perspiration, the Oregon State Legislature adjourned with a biennial budget, including one for the OSU Extension Service that is 11.6 percent lower than the calculated EBL-"Essential Budget Level", an amount intended to be what it would take to move the organization forward with the same spending power. In nominal dollars, our EBL for 2009-2011 was higher than the last biennium's legislatively approved budget by about $ 1.7 million dollars, or 3.8 percent. While this may be somewhat comforting, it doesn't disguise the reality of greatly reduced budgets for the coming two years.

And it could get worse-which is the basis for a planned special session of the State Legislature in February 2010.  Additional budget adjustments as we enter the new biennium are possible. Among them are any shortfalls in revenues and the possibility of a 2010 referendum reversing about $733 million in planned tax increases. If that happens, the state may experience as much as another $1.5 billion shortfall that represents an additional approximately 15% reduction. Thus, we're being very watchful and conservative in allocating state dollars.

As of now, the Provost has asked that we plan for a recurring 15% reduction. Extension program leaders are building their approach for this scenario. Extension has some modest fund balances remaining from careful management of last biennium's funds that will buffer reductions. We'll be setting final budgets in the near future as the Chancellor's Office distributes budgetary authority.

Questions or comments are welcomed. You can also communicate via the Extension Administration blog--  http://blogs.oregonstate.edu/osuextbudget/

Stay tuned.

Scott