The U.S. Forest Service estimates spending on fires could reach $1.6 billion this year, and so has begun diverting funds, expected to reach a total of $400 million, from other areas through the fiscal year, which ends Sept. 30, reports the Associated Press. Fire prevention and safety is among the programs seeing cuts, along with roads, trails, recreational improvements, restoration projects, building maintenance, land acquisition plans and research. The Forest Service also has closed a visitor center in South Dakota's Black Hills National Forest early to save money. The memo announcing these actions does not mention of layoffs as a source of funds, but asks officials to "use prudent cost-saving judgment" in hiring and in approving overtime.

"All of you are aware of the serious nature of this year's fire season and the issues faced by the agency in paying for fire suppression costs," U.S. Forest Service Chief Abigail Kimbell wrote in the memo. "At this time the only option for financing the shortfall is to use the agency's transfer authority. I recognize that this direction will have a significant effect on agency operations, however, we must be in a position to protect life and property from wildfire, and do so within the funds available to the agency."

U.S. Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, expressed his disappointment in these actions to AP, saying, "The fire season in Montana and across the country is far from over. Not to mention we have good-paying jobs to fund and projects around the state that need to be completed. Funding should not be pulled from our state's resources to help pay for fighting fires in California."

Although Forest Service funds for fighting fires have increased 10% from 2006 to 2007, they have not been able to meet the needs of this year's large fires. The Wilderness Society predicts that fighting fires alone could account for more than half of the Forest Service budget.