Subcommittee backs $661 million recommended budget for Oregon Department of Forestry, with special-purpose funding shifted to end-of-session appropriation

The Ways and Means Natural Resources Subcommittee voted June 25 to advance Senate Bill 5521, the agency budget for the Oregon Department of Forestry, recommending a $661,446,170 biennial package that includes general fund, lottery, other funds and federal funds expenditure limitation and 1,412 positions (1,080.92 FTE).

The Legislative Fiscal Office summary presented to the committee lists $162,654,771 in general fund, $2,558,120 in lottery funds for debt service, $411,190,881 in other funds expenditure limitation and $85,042,398 in federal funds expenditure limitation. The recommended budget excludes a $16 million general-fund special purpose appropriation for severity resources from the agency's bill and accounts for it instead in an end-of-session omnibus or emergency-board appropriation; LFO and members said that is consistent with how special-purpose appropriations have been handled previously.

Committee members pressed several issues during the work session. Representative Owens asked whether the $16 million would allow the department to put helicopters in the air by July 2 for fire response. Kyle Williams, deputy director for fire operations at the Oregon Department of Forestry, answered, "Absolutely," if the severity money is made available through the special-purpose appropriation.

The recommended budget reflects a large decrease from the current budget primarily because about $682 million in one-time investments, federal grants and emergency fire costs are not carried forward. The LFO identified $54 million across six policy packages to preserve core services, support procurement of a multi-mission capable aircraft, continue grant delivery and support the Private Forest Accord and an associated habitat conservation plan. Notable items include a $4.5 million general-fund allocation for the department's adaptive management program (reduced from the higher level in the Private Forest Accord report), $2 million in general fund to deposit into the Small Forest Landowner Investment and Stream Habitat (SFISH) Fund, and $7.7 million in other funds expenditure limitation for SFISH spending.

Representative Owens raised concerns about a proposed reduction to a transfer to the Oregon Watershed Enhancement Board and about whether the budget met the level of funding anticipated by stakeholders in the Private Forest Accord. LFO staff responded that the recommendation continues funding for the adaptive management program but at a reduced level and explained there are appropriation constraints that would prevent the agency from simply reallocating SFISH and adaptive management money between funds without legislative action.

The subcommittee adopted a dash-2 amendment that codified the LFO recommendation and moved SB 5521 as amended to the Ways and Means full committee with a due-pass recommendation. Committee members said they will continue conversations with the governor's office, the department and legislative staff to consider reconciliation options before session ends.

Why it matters: the recommended budget determines staffing, fire response capacity, research and grant programs, and capital procurement for the Department of Forestry. The shift of the $16 million severity appropriation to the omnibus emergency-board vehicle means final availability of those funds depends on end-of-session actions.