By MEGGIE. I. FOSTER
Assistant Editor

INDIANAPOLIS, Ind. — While taking strategic measures to slash the state budget, Gov. Mitch Daniels turned his attention to the Indiana State Board of Animal Health (BOAH) Meat and Poultry Inspection Program (MPIP) to cut its already fragile budget by 50 percent.

Since MPIP is funded in part with a 50 percent match from the federal government, BOAH will also lose 50 percent of its federal money for the MPIP, amounting to a total reduction of nearly $2 million, according to State Veterinarian Bret Marsh.

“Beginning immediately, the MPIP must significantly reduce expenditures to respond to this reduction in funding starting in the new fiscal year on July 1,” added Marsh. “Without substantial changes, there is a real risk that the program will be terminated.”
During BOAH’s recent quarterly meeting on Jan. 21, Marsh and Dr. James Scott, division director for the MPIP explained that BOAH will be forced to reduce its inspection and support staff as a result of this substantial budget cut. To what extent is still unknown at this point. Final considerations must be submitted by Feb. 15 as to how this budget cut will be accomplished, Scott said.

“We plan to host tabletop exercises to see exactly how this will work,” he said. “There are more questions than answers at this point, which presents some real issues.”

Scott added that BOAH has already had discussions with the Indiana Meat Packers Board and with multiple commodity groups. And while many groups are working up an uproar, the Indiana State Department of Agriculture (ISDA) is remaining neutral on the governor’s recent decision.

“The Indiana State Department of Agriculture cares deeply about this issue,” said ISDA Director Joe Kelsay. “Our administration’s goal is that this funding reduction to the Board of Animal Health will not adversely affect our producers and processors, and their ability to provide meat for sale to individual consumers, at retail outlets and farmers markets, or donations to feed the hungry.”

In his comment, Kelsay also hoped to remind plant owners, operators and livestock producers “that these are the type of budget cuts that many state-funded programs are facing as a result of our tough economic times. Such cuts are necessary to help keep Indiana in the black through the 18 months remaining in this budget cycle.”

However, Marsh and Scott are unsure that MPIP will even survive and remain viable after such a drastic budget cut.

“With changes in MPIP staffing, BOAH will not be able to maintain the current level of inspection service,” said Marsh. “MPIP will no longer be able to provide inspection service for custom or other work that does not require official state inspection. Inspection will be provided only when required. Each plant must consolidate work requiring inspection to the fewest number of days and hours possible.”

“This will in no doubt have a huge impact on packers who count on our inspections to sell their product,” said Scott, who added that small-scale, independent processors will take the biggest hit from this budget cut.

According to Marsh, the MPIP area supervisors have contacted all meat processing plants in Indiana to make them aware of the new circumstances. In a letter to meat and poultry plant owners dated Jan. 6, Marsh explained that MPIP must implement the changes effective immediately and MPIP expects all plants to have implemented the changes no later than Feb. 15.

“We’ve begun consulting with each plant to establish the new inspection schedule,” he said. “BOAH will accelerate its use of inspection staff at more than one plant to efficiently utilize resources, and therefore will have to change the dates and times inspection is offered to each plant. The MPIP will likely not be able to accommodate every request for service.”

As a result, livestock producers who use the services of state-inspected slaughter and/or processing plants may also notice some changes, locally, Marsh explained. Basically, some plants may soon be adjusting their schedules, shifting the type of services they offer, which may have an impact on the way products are sold or used by the customer.

“We need to see what needs to be done to accomplish all of this and see if its even possible,” said Scott. “Honestly, we’re not sure how to get down 50 percent and still maintain a viable program.”
“We are confident that BOAH will make every effort to identify efficiencies that allow this important industry to thrive under the current state inspection system,” added Kelsay.

And if the MPIP cut wasn’t already enough, the governor also demanded that BOAH slash its Animal Health program budget by 10 percent during the fiscal year 2011, with significant cost-cutting measures to begin in the current fiscal year, ending June 30.
“This will impact our animal health and dairy inspection programs, where unfortunately jobs will be lost here as well,” said Marsh. “In the 25 years I’ve worked here, this is the toughest I’ve ever seen it and we’ve dealt with some budget cuts in the past, but this is a whole different ball game. We want to go about this where we won’t be compromising food safety, but the fact is we won’t be in the plants as often.”

Also as part of those cost-cutting measures, the BOAH central office will also relocate to another, currently undetermined, location to capture the savings associated with the current leased office space. For questions regarding this issue, contact BOAH at 317-227-0308 or the governor’s office at 317-232-4567.