1. State 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.

2. State 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).

3. State 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).

4. State 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.

5. Transportation System Funding 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.

6. ODOT 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

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

8. Roundtable Unemployment rates? Budget reductions? Salary reductions? Furloughs? Fleet allocation budgets?