[Vision2020] Fwd: General Fund shortfall - UPDATE

[Tom Trail]

>
>Visionaires:


Are we head into the 2009 Legislative session, it appears that we will be
looking at tough economic times.  We've heard at best we may get a maintenance
budget.  The Governor is asking agencies to prepare budgets with a one
percent, 2 percent or 2.5 percent holdback.  The declining revenues on the
taxes coming into the General Fund will continued to be monitored on a
monthly basis.  Most other states are going through the same process.
We do have several reserve funds.  We have about $113,000,000 in a K-12
public school reserve fund, for example that could be very helpful in case
the economy goes further south.

Rep. Tom Trail

>Senator/Representative:
>
>The Governor asked that I provide each of you an update on our 
>efforts to address the projected revenue shortfall in the General 
>Fund for the current fiscal year.  As you are aware, the Governor 
>requested that each part of the executive branch that receives 
>support from the General Fund develop three plans to implement a 
>possible holdback.  The plans were to address what actions should be 
>taken in response to a 1-percent, 2-percent or 2.5-percent holdback.
>
>All executive branch agencies and institutions impacted completed 
>their proposed plans by the September 24 deadline.  DFM staff is 
>reviewing each plan to ensure its compliance with the Governor's 
>direction, as well as for consistency and appropriateness.  I 
>anticipate this work to be completed in the very near future. 
>Copies of the proposed plans will be forwarded to the LSO budget 
>office today.
>
>While monthly revenues continue to track with the revised DFM 
>revenue forecast, it continues to appear that a holdback will be 
>necessary.  While the Governor has not made any formal decision on 
>the matter, I believe it now is only a matter of time until such 
>action is taken.
>
>As with previous holdbacks - should one be issued - the Governor 
>will invite both the Legislative and Judicial branches to 
>participate in the cost-saving effort.
>
>I will continue to keep you updated as this issue develops.  Please 
>feel free to contact me at any time should you have any questions on 
>this matter or if there is anything DFM can do to be of assistance 
>to your work.
>
>Thanks.
>
>
>
>Wayne L. Hammon, Administrator
>Division of Financial Management
>Office of Governor C.L. "Butch" Otter
>------------------------------------------------------------------------
>This transmission is covered by the Electronic Communication Privacy 
>Act, 18 USC sections 2510-2521.
>


-- 
Dr. Tom Trail
International Trails
1375 Mt. View Rd.
Moscow, Id. 83843
Tel:  (208) 882-6077
Fax:  (208) 882-0896
e mail ttrail at moscow.com
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