2008.08.05: August 5, 2008: Headlines: Directors - Tschetter: Figures: Directors: Budget: Appropriations: Headquarters: Congress: Minneapolis Star Tribune: Peace Corps faces Budget Loss of $8.7 million for FY2008, may have to reduce Peace Corps volunteers in the field by 400 in 2009

Peace Corps Online: Peace Corps News: Peace Corps Library: Budget for the Peace Corps: 2008.08.05: August 5, 2008: Headlines: Directors - Tschetter: Figures: Directors: Budget: Appropriations: Headquarters: Congress: Minneapolis Star Tribune: Peace Corps faces Budget Loss of $8.7 million for FY2008, may have to reduce Peace Corps volunteers in the field by 400 in 2009

By Admin1 (admin) (75.40.135.121) on Tuesday, August 05, 2008 - 3:56 pm: Edit Post

Peace Corps faces Budget Loss of $8.7 million for FY2008, may have to reduce Peace Corps volunteers in the field by 400 in 2009

Peace Corps faces Budget Loss of $8.7 million for FY2008, may have to reduce Peace Corps volunteers in the field by 400 in 2009

[Minneopolis Star Tribune] "In a letter Tuesday, Tschetter said the Peace Corps doesn't anticipate that its funding bill will pass during this session, so the agency is trying to work within its current budget. It is also facing an estimated $8.7 million loss in fiscal year 2008 from the weakening dollar, and the tight budget could decrease the number of volunteers worldwide by up to 5 percent, or 400 people."

[Letter from Director Tschetter to Representative McCollum] "Under a continuing resolution, the budgetary realities confronting the agency in FY 2009 appear especially daunting. Without full funding in FY 2009, we anticipate a significant impact on our capability to place more Volunteers overseas and to increase country programs. Furthermore, as the agency shared with Chairwoman Lowey's staff before the Subcommittee's consideration of the bill, the weakening of the dollar overseas in tandem with spiraling costs of basic commodities, both domestically and internationally, have materially reduced our available resources and spending power. We currently estimate foreign currency losses of almost $8.7 million for FY 2008. Tough budgetary decisions must be made now in order to ensure a financially healthy agency next fiscal year."

[Excerpt from the statement on the Peace Corps 2009 budget that the Director sent to senior domestic and overseas staff in June.] "As we prepare for FY 2009, it is important for us to remember that our core business is supporting the work of our Volunteers. The office budget marks will be lower than the FY2008 approved budgets, so we are all going to have to ask ourselves whether or not our financial decisions are in the best interest of our Volunteers. All of you should begin to streamline your operations in the last quarter of FY 2008 in preparation for FY 2009."


Peace Corps faces Budget Loss of $8.7 million for FY2008, may have to reduce Peace Corps volunteers in the field by 400 in 2009

Peace Corps faces Budget Loss of $8.7 million for FY2008, may have to reduce Peace Corps volunteers in the field by 400 in 2009

Caption: Money on Green Photo: Darren Hester Flickr Creative Commons

[Excerpt from the Minneapolis Star Tribune]

In a letter Tuesday, Tschetter said the Peace Corps doesn't anticipate that its funding bill will pass during this session, so the agency is trying to work within its current budget. It is also facing an estimated $8.7 million loss in fiscal year 2008 from the weakening dollar, and the tight budget could decrease the number of volunteers worldwide by up to 5 percent, or 400 people.




[Excerpt from the statement on the Peace Corps 2009 budget that the Director sent to senior domestic and overseas staff in June.]

BUDGET STATEMENT June 13, 2008

Thank you for the analysis and review that each of you put into your budgets and performance indicators for the FY 2008 mid-year review. As I have mentioned previously, resources at the agency are tight, and our mid-year decisions were influenced in large part by foreign currency losses (estimated at $8.5M) and rising inflationary pressures overseas and at home.

Next year is going to be challenging financially, as well, and we have kept the FY 2009 budget in mind and taken steps to reduce Peace Corps' base operating budget in order to strengthen our position moving forward. We need to assume we will be operating under an extended continuing resolution at the level of our current appropriation well into the next fiscal year. This environment shapes the financial decisions I will be making as FY 2009 budget marks are determined in the next few weeks.

As we prepare for FY 2009, it is important for us to remember that our core business is supporting the work of our Volunteers. The office budget marks will be lower than the FY2008 approved budgets, so we are all going to have to ask ourselves whether or not our financial decisions are in the best interest of our Volunteers.

All of you should begin to streamline your operations in the last quarter of FY 2008 in preparation for FY 2009. I have dealt with many tight budgets in my career, and I know this is not easy. Each of you will have to work within a lower budget mark while maintaining mission-critical activities, such as postponing the filling of vacant positions, curbing travel for both you and your staff, and/or holding off on large expenditures.

I want to encourage you to be creative in looking at ways to save money. Discuss ideas within your offices and talk with Peace Corps colleagues whom you support to determine how you can best meet their needs in a more cost-effective manner.

We are all fortunate to be a part of a remarkable organization that has seen solid growth over the past six years. We continue to play an important role in spreading world peace and friendship around the world. And just as we ask our Volunteers to be flexible and creative in carrying out their work, now it is time for us to do the same.

I believe the Peace Corps is one of the best values the American taxpayers receives, and we owe it to them to continue our operations with sound fiscal management and a firm commitment to supporting our Volunteers, so that the agency remains in a healthy financial position not only in FY 2009, but beyond.




[Excerpt from the July 22, 2008 letter to U.S. Representative McCollum from Director Tschetter:]

I would also like to take this opportunity to thank you again for your continuing support of the Peace Corps, particularly during the FY 2009 budget appropriations process. While I was certainly pleased to see the House Appropriations Subcommittee on State, Foreign Operations, and Related Programs provided the Peace Corps with the President's request ($343.5 million), it seems unlikely that many, if any, of the FY 2009 appropriations bills will be sent to the President before the end of this Congress. As such, the Peace Corps must prepare for a continuing resolution, which means the agency will likely be operating under its current FY 2008 budget of $330.8 million.

Under a continuing resolution, the budgetary realities confronting the agency in FY 2009 appear especially daunting. Without full funding in FY 2009, we anticipate a significant impact on our capability to place more Volunteers overseas and to increase country programs. Furthermore, as the agency shared with Chairwoman Lowey's staff before the Subcommittee's consideration of the bill, the weakening of the dollar overseas in tandem with spiraling costs of basic commodities, both domestically and internationally, have materially reduced our available resources and spending power. We currently estimate foreign currency losses of almost $8.7 million for FY 2008. Tough budgetary decisions must be made now in order to ensure a financially healthy agency next fiscal year.

Again, thank you for your letter. As you know, I share your passion for the Peace Corps, its mission, staff, and Volunteers. I also believe in increasing Volunteer numbers with highly qualified and diverse Americans of all ages while ensuring there is appropriate infrastructure to support them. I am confident our changes will enhance our efforts to recruit the best and the brightest, and I look forward to working with you to ensure our success







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Headlines: August, 2008; Ron Tschetter; Ron Tschetter (Director 2006 - ); Figures; Peace Corps Directors; Budget; Appropriations; Peace Corps Headquarters; Congress; Congress





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Story Source: Minneapolis Star Tribune

This story has been posted in the following forums: : Headlines; Directors - Tschetter; Figures; Directors; Budget; Appropriations; Headquarters; Congress

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