Cullen StephensonDirector, Office of Budget & Economics

Clay SpragueDeputy Supervisor of Uplands

A year of transitionand opportunity

2009 Challenges

• Legislative cuts totaled $58 million

• Additional revenue loss of $9 million

• Lost 114 staff “out-the-door”

• RMCA (Uplands) going into the red

• Timber problem as well as GF-S

2009Program Highlights

DNR Fire Program

DNR Fire Program

1,044 fires fought

17% more than 5-yr avg.

17,203 acres burned

40% fewer than 5-yr avg.

94.8% of fires kept to

>10 acres in size

Geology & Earth Resources

Mapping geologic hazards

Southern Whidbey Island fault

Geology & Earth Resources

Nile landslide

Aquatic Lands

• Assessment of State-owned aquatic lands

• ASARCO cleanup

• Removal of navigation hazards

• Record geoduck sales

Uplands: TransactionsForestlands at risk of conversion

• 8000 acres in King County (Raging River) for $22.5 million which include $3.7 million from King County

• 2628 acres in Lewis County for about $8 million

• 290 acres in Snohomish County for $3.45 million

Uplands: TransactionsForestlands at risk of conversion

• Blanchard Forest

• Land Exchanges

Uplands: Heritage

Trust Land Transfer

Uplands: Heritage

Forest Legacy

Uplands: Heritage

New and expanded Natural Areas

Uplands: Recreation

Ahtanum State Forest Recreation Plan

Uplands: Recreation

Reiter Foothills Forest

Uplands: Forest Management

Forest Biomass Initiative

• Income for forest landowners

• Create rural jobs

• Reduce wildfires and green house gas emissions

• Production of renewable energy

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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fLog Prices

Douglas-fir Composite DNR Log Price Hemlock

April 2009$186/mbf

Mar. 2010$405/mbf

$220/mbf

$331/mbf

04 05 06 07 08 09 10 11 12 13 14 15

Inventory at end of Period 696 599 475 552 652 691 710 720 722 719 719 680

Months worth of Inventory 12.7 10.6 10.2 13.7 15.5 13.5 12.4 13.2 13.0 12.9 13.0 12.3

Sales - Previous Forecast 660 545 744 657 667 667 667 616

Sales - Current Forecast 548 599 528 565 660 545 744 657 667 667 667 616

Removals Prev. Forecast 504 506 635 665 670 705 685 655

Removals - Current Forcast 616 696 658 466 504 506 725 647 665 670 667 655

Change 0 90 -18 -4 -35 -17 0

Percent Change 0% 14% -3% -1% -5% -3% 0%

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Fund Balance

3 Month FundBalance

RMCA (Uplands) Fund BalanceAssumes 30% RMCA Split