State of Oregon’s EconomyState of Oregon’s Economy

• Oregon does not have a sales tax– Our schools and general fund agencies

receive the majority of their revenue from property and income taxes.

– When economic downturns occur, Oregon, without a consistent revenue stream is generally hit harder than other states.

State of Oregon’s EconomyState of Oregon’s Economy

• All state agencies have been in a required pay freeze since March, 2009.

• Top salary step for all positions (5% reduction) were removed and furlough days for management service employees was instituted on a tier system of 2-4 days between March and July 1, 2009 (average 4% reduction).

State of Oregon’s EconomyState of Oregon’s Economy

• Some general fund agencies cut budgets with some minor layoffs and office closures.

• More furlough days were instituted from September, 2009 through June, 2011 on a tier system of 10-14 days for all state employees (continuation of approximately 4% decrease in salary).

• Salary step increases and top step remain frozen indefinitely for management service employees (5% reduction).

State of Oregon’s EconomyState of Oregon’s Economy

• In June of 2010 general fund agencies were required to cut budgets by an additional 9%.

• Layoff notices have been issued along with service reductions.

• As of June, 2010, Oregon’s seasonally adjusted unemployment rate is 11.6% while the national average is at 9.5% and talks of reduced health benefits, and an additional tier in the retirement system for state employees. There are also high level discussions of a future state sales tax being put to voters.

Transportation System Transportation System FundingFunding• ODOT is funded by a state gas/diesel

tax of .24 cents per gallon and federal highway funds.

• We are seeing a reduction in gas tax revenues due to lower VMT and fuel efficient vehicles, however, ODOT as an agency remains in reasonably good health.

ODOT BudgetODOT Budget

• ODOT’s fleet allocation budgets have remained steady with modest increases, but have in no way kept up with equipment inflation caused by steel prices, new federal emission requirements and technology.

• It is expected that ODOT’s fleet allocation budget to remain steady for the foreseeable future

ODOT BudgetODOT Budget

• ODOT’s overall budget is approved by the Oregon Legislature, however, Fleet’s equipment priorities and funding comes from leadership teams within ODOT.

RoundtableRoundtable

• Unemployment rates?• Budget reductions?• Salary reductions?• Furloughs?• Fleet allocation budgets?