NATURAL RESOURCE AGENCIES
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1 NATURAL RESOURCE AGENCIES PRESENTATION TO THE SENATE WAYS AND MEANS COMMITTEE JED HERMAN SENATE COMMITTEE SERVICES January
2 In natural resources represent 0.75% of NGF-S, while total funds are 2.2% overall Total budget of $38.5 billion Other Education 0.9% Special Appropriations 3.6% Legislative 0.2% Judicial 0.4% Governmental Operations 4.9% Higher Education 17.5% Other Human Services 26.7% Natural Resources 2.2% Public Schools 25.3% Dept of Social & Health Services 17.9% Transportation 0.3% 2
3 NGF-S is 16% of natural resource operating budget funding source in the biennium (Dollars in Millions) General Fund - Federal General Fund - State $287 $301 Model Toxics Control Account Parks Renewal and Stewardship Account Resource Management Cost Account State Wildlife Account General Fund - Local Forest Development Account $54 $88 $120 $117 $131 $ Other Accounts include: Water Quality Permit Agricultural Local Contract Harvesting Revolving Access Road Revolving Other Accounts $473 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 3
4 The proportion of NGF-S for natural resources has decreased over time as the needs for NGF-S have changed. 100% 90% Expenditures (as percentage) 80% 70% 60% 50% 40% 30% 20% 10% 0% Other Funds NGF-S 4
5 The same NGF-S as a proportion of funding for natural resources expressed in dollars. Expenditures (in millions) $1,200 $1,000 $800 $600 $400 $200 Peak due to wildfire suppression Other Funds NGF-S $0 5
6 DNR, DFW, and DOE budgets represent three fourths of the total funding for the 12 agencies that are part of natural resources Department of Ecology (DOE) regulates, inspects, and provides technical assistance for the environment; including air, land and water pollution and clean up. ($49 million NGF-S; $468 million total) Department of Natural Resources (DNR) manages 2.6 million acres of aquatic lands and 3 million acres of state trust lands for revenue to trust beneficiaries, such as school construction. NGF-S is used to fight forest fires, administer Forest Practices (regulations), provide geology services, and manage conservation areas. ($79.9 million NGF-S; $451 million total) Department of Fish and Wildlife (WDFW) provides protection to fish and wildlife and their habitats and sustainable fish and wildlife related recreational and commercial opportunities. ($77 million NGF-S; $414 million total) 6
7 Natural resources con t State Parks and Recreation Commission (State Parks) manages 120,000 acres with 117 developed parks, 35 heritage sites, 13 interpretive centers and more than 700 historic structures. ($21.7 million NGF-P; $172 million total) Department of Agriculture (Ag) provides support to the agricultural community and promotes consumer and environmental protection. ($34 million NGF-P; $175 million total) Washington State Conservation Commission (SCC) supports and guides the 45 conservation districts as a non-regulatory resource of information, guidance, and technical services for private landowners in dealing with land, water, and air quality conservation. ($13.6 million NGF-P; $32 million total) 7
8 Natural resources con t Recreation and Conservation Office (RCO) manages grant programs for outdoor recreation, wildlife habitat and farmland, and restoration of salmon habitat. ($1.7 million NGF-S; $10 million total) Puget Sound Partnership (PSP) coordinates the regional effort to clean up Puget Sound. ($4.7 million NGF-S; $17 million total) Environmental and Land Use Hearing Office (ELUHO) hears appeals and decides cases of certain land use and environmental decisions. ($4.3 million NGF-S; no other funds) 8
9 Natural Resources con t Pollution Liability Insurance Program (PLIA) makes pollution liability insurance available and affordable to the owners and operators of regulated petroleum underground storage tanks and heating oil tanks by offering reinsurance services to the insurance industry. (No NGF-S; $1.9 million total) Columbia River Gorge Commission is a bi-state compact agency and funded equally by Oregon and Washington and works in partnership with the U.S. Forest Service, Tribes, and six counties within the National Scenic Area to adopt land use policy for the approximately 115,000 acres in the Scenic Area. (Washington s share is $0.9 million NGF-S; $1.8 million total) Utilities and Transportation Commission protects the public by ensuring that investor-owned utility and transportation services are safe, available, reliable and fairly priced. (No NGF-S; $71 million other) 9
10 Major issues for biennium Model Toxics Control Act funding- projected to have a cash flow problem of $68 million. ALEA has a $2 million projected revenue decline. RMCA has a $5 million shortfall The various wildlife accounts have a $25 million projected shortfall. Oil Spill Prevention Account has a $4 million projected shortfall. Discover Pass revenue is up $2.3 million. 10
11 Key questions for DOE Ideas for solutions to the MTCA issue Overview of other major initiatives for the agency What opportunities for success are there for DOE? How is success measured and recognized? What metrics does the agency use to understand it's accomplishments? 11
12 Key questions for DNR Overview of the opportunities/challenges for the fire program and forest health. What opportunities are there for increasing revenue from Trust lands? What opportunities for success are there for DNR? How is success measured and recognized? What metrics does the agency use to understand it's accomplishments? 12
13 Key questions for WDFW Overview of the agencies recent public outreach --- Wild Future. What recent opportunities for success are there for WDFW? How is success measured and recognized? What metrics does the agency use to understand it's accomplishments? 13
14 Key questions for State Parks The influence of Discover Pass revenue on creating access for the public to recreation Description of the maintenance backlog of the facilities at State Parks What opportunities for success are there for State Parks? How is success measured and recognized? What metrics does the agency use to understand it's accomplishments? 14
15 MTCA Cash Flow Problem MTCA Problem in biennium Expenses Revenue Difference of $68 million $360,000 $380,000 $400,000 $420,000 $440,000 $460,000 $480,000 15
16 Governor s proposal solves the MTCA problem by raising $119 million and spending an additional $49 million Balance Sheet of Governor's Proposal Dollars in Thousands Beginning Fund Balance $ (68,366) New Revenue and Savings Proposed Surcharge to Hazardous Substance Tax $ 51,704 Changed assumption on project timelines $ 27,888 Savings from completed projects $ 14,344 Reduce operating budget to DOE operating $ 12,207 Delay Cleanup Settlement Loan repayment $ 8,000 Other- change global admin $ 5,031 subtotal $ 119,174 Investments New Capital Investments - UW $ (1,000) Working Capital Reserve $ (6,900) New Operating Investments - All Agencies $ (12,490) New Capital Investments - Ecology $ (28,796) subtotal $ (49,186) Ending fund balance $ 1,622 16
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