Audit: Cash flow issues threaten ODFW’s ‘fiscal health’
The Oregon Department of Fish and Wildlife faces an ongoing cash flow problem that has repeatedly put the agency’s financial health at risk, according to a new audit by the secretary of state’s office.
Inflation, expanding responsibilities and a growing maintenance backlog are driving up costs. Meanwhile, revenue is not keeping pace, the office said Thursday.
“Oregon’s rich variety of fish and wildlife is critical to our state’s heritage and economy,” said Secretary of State Jeanne Atkins. “We must look at revenues, expenditures and management practices so that we can continue to protect habitat and provide recreational opportunities for hunting, angling and wildlife viewing.”
An audit statement is available here .
Hunting, fishing and wildlife-viewing have a significant economic impact in Oregon. The 2006 National Survey of Fishing, Hunting, and Wildlife-Associated Recreation found that hunters, anglers and wildlife viewers contributed an estimated $2 billion to Oregon’s economy using 2013 dollars.
Estimated Economic Impact to Oregon, in 2013 dollars
Hunting $432 million
Angling $574 million
Wildlife viewing $897 million
Oregon’s commercial fishing industry added at least $618 million to the economy in 2013.
The cost of running the agency has grown faster and has led to repeated and ever-larger budget shortfalls, the auditors said
ODFW relies heavily on license fees to fund its broad range of fish, wildlife and habitat activities. Fee increases have in part covered the shortfalls. Yet, fewer Oregonians are buying hunting and fishing licenses, a decline that began in the 1970s. The audit points out that this business model may not be sustainable in the future.
ODFW has multiple proposals under consideration to address the 2015-17 anticipated budget shortfall, including operational efficiencies, program reductions, more fee increases and a request for more general fund support.
“While this report identified a recurring cash flow problem, our work does not end here,” said Gary Blackmer, the Director of the Oregon Audits Division. “We are beginning a second audit to look further into ODFW’s activities and explore strategies for how the agency can manage their breadth of responsibilities and resources.”
Department director Curt Melcher welcomed confirmation of the department’s revenue problems, and noted that there are three bills in the Legislature to deal with the issue, including one raising fees for licenses and tags.
Read the audit here .
