The management of Keren Kayemet LeIsrael KKL has decided yesterday on immediate measures for improvement meant to decrease the organizations expenditure by as much as 45 million sheqel
In the second phase due to start within a few months the management hopes to reduce expenditures by an additional 105 million compared with 2003 by firing 300 of the 1380 employees and cutting 16 percent of top executives salaries
In all KKLs expenditure budget will be reduced by 150 million sheqels in 2004 to 450 million sheqels compared with a budget of 600 million in 2003 and 730 million sheqels in 2002
Among the improvement measures in KKL decided upon by the management 
canceling overtime in the organization 
uniting offices to save on rent 
reducing electric expenditure lights out at 1700 total lights out on weekends 
setting a limit for calls made from each phone line 
reducing the number of employees entitled to company cellphones 
reducing the number of vehicles 
expropriating the activities of the employees loan fund
The negotiations over the second phase which as mentioned includes the dismissal of 300 employees has meanwhile met with some difficulties after the workers union lead by Gil Fener demanded that KKL management put up a 250 million sheqels as collateral to insure the payment of pensions as a condition to its discussing the dismissal
KKL directorate chairman Yehiel Leket refuses this demand claiming the employees pensions are in no danger and that the unions demand is a negotiation tactic
The improvement measures were decided upon by KKL management after a decrease in the organizations revenue as a result of a low in the revenue of the Israeli Lands Administration due to the recession in the real estate sector 
The Administration manages KKL lands and gives it 75 of its revenue
Sources in KKL said that The Administration is only going to give KKL 300 million sheqel this year instead of the 450 million originally planned
Another reason for the reduction in revenue is the decrease in donations from Jews abroad
Due to all this said the sources KKL is now forced to update its budget to 450 million sheqel instead of the original budget 600 million sheqels
