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UPDATE</title></head><body>
<blockquote type="cite" cite><br></blockquote>
<blockquote type="cite" cite>Visionaires:</blockquote>
<div><br>
<br>
</div>
<div>Are we head into the 2009 Legislative session, it appears that we
will be</div>
<div>looking at tough economic times. We've heard at best we may
get a maintenance</div>
<div>budget. The Governor is asking agencies to prepare budgets
with a one</div>
<div>percent, 2 percent or 2.5 percent holdback. The declining
revenues on the</div>
<div>taxes coming into the General Fund will continued to be monitored
on a</div>
<div>monthly basis. Most other states are going through the same
process.</div>
<div>We do have several reserve funds. We have about
$113,000,000 in a K-12</div>
<div>public school reserve fund, for example that could be very
helpful in case</div>
<div>the economy goes further south.</div>
<div><br></div>
<div>Rep. Tom Trail</div>
<div><br></div>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>Senator/Representative:</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>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.</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>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.</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>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.</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>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.</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>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.</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b>Thanks.</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#000000"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell"
size="-1"><b> </b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#008000"><b>Wayne L. Hammon,
Administrator</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#008000"><b>Division of Financial
Management</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#008000"><b>Office of Governor C.L. "Butch"
Otter</b></font></blockquote>
<blockquote type="cite" cite><font face="Rockwell" size="-1"
color="#008000"><b
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Communication Privacy Act, 18 USC sections
2510-2521.</b></font></blockquote>
<blockquote type="cite" cite><font
face="Times New Roman"> </font></blockquote>
<div><br></div>
<div><br></div>
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</pre></x-sigsep>
<div>Dr. Tom Trail<br>
International Trails<br>
1375 Mt. View Rd.<br>
Moscow, Id. 83843<br>
Tel: (208) 882-6077<br>
Fax: (208) 882-0896<br>
e mail ttrail@moscow.com</div>
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