Oregon Tackles Wildfire Payment Backlog with Emergency Funds

Salem, OR – Oregon has made significant strides in addressing a substantial backlog of payments owed to contractors who assisted during the state’s record-breaking wildfire season earlier this year. The Oregon Department of Forestry (ODF) announced Thursday that the state has begun processing payments to vendors after lawmakers approved emergency funding during a special legislative session earlier this month.

This year’s wildfire season was one of the most severe in Oregon’s history, with fires burning a staggering 1.9 million acres and destroying at least 42 homes. The total cost of fighting these wildfires was approximately $350 million. While the federal government is expected to reimburse the state for around half of those costs, immediate payments to vendors were necessary to keep operations running smoothly.

In response to the mounting financial pressures, Oregon Governor Tina Kotek called lawmakers into a special session to approve funds to ensure timely payments to the state’s contractors. Before the December 12 session, ODF still owed hundreds of vendors around $98 million. With the approval of $191.5 million in emergency funds, ODF has now processed $88 million of that amount, providing much-needed relief to those who contributed to the wildfire response.

State Forester Cal Mukumoto praised the vendors for their vital role in wildfire suppression efforts. “Without these vendors, we could not have provided Oregonians with the wildfire protection we did this year,” Mukumoto said in a statement. “It was critically important to take care of those who served right alongside us all summer.”

The cost of combating wildfires in Oregon has escalated sharply in recent years, with average expenditures climbing from $11 million per year to an average of $79 million annually over the past decade. ODF officials noted that the state’s funding model has not kept pace with these rising costs, leading to a growing reliance on emergency measures like this one.

The funds approved by lawmakers not only cover the immediate payments but also help ODF remain financially solvent through the end of the fiscal year in June 2024. Deborah Miley, executive director of the National Wildfire Suppression Association, which represents many of the vendors, emphasized the financial strain on contractors. “Our members provide a significant amount of response to assist our agency partners during fire season, and we are proud to provide quality, cost-effective resources in Oregon’s time of need,” Miley said.

As ODF continues to review its remaining wildfire-related expenses, lawmakers are expected to address long-term wildfire funding issues in the upcoming legislative session. Governor Kotek’s proposed budget for the next two years includes a request for $130 million in new revenue to fund wildfire readiness and mitigation programs. Additionally, she has called for $150 million to be allocated to agencies for firefighting efforts, ensuring that those funds are used for immediate needs rather than being diverted to state reserves.

The state’s ongoing efforts to address the financial fallout from this year’s wildfire season highlight the increasing challenge of managing wildfire response in a changing climate. With more severe fires expected in the future, Oregon will need to continue developing sustainable funding models to ensure that it can effectively respond to these disasters while supporting the contractors who play a critical role in protecting communities across the state.

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