JBC overview of budget for DOLA
COMMITTEE ON JOINT LOCAL GOVERNMENT
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Senator Schwartz, chairman, called the meeting to order and made opening comments.
02:05 PM -- JBC presentation of DOLA budget
Senator Tapia, Joint Budget Committee, introduced the members of the JBC, including Representative Pommer, Representative Ferrandino, Representative Marostica, Senator White, and Senator Keller, JBC chairman. Senator Tapia talked about the briefings between JBC and state departments and explained the requirements of the JBC to present the budget oversight of the Department of Local Affairs (DOLA) to the Joint Local Government Committee. Senator Tapia presented the budget request for the Department of Local Affairs DOLA and referred to the summary report on the JBC budget briefings for FY 2009-10 (see Attachment A). Senator Tapia discussed the latest economic forecasts, which predict a significant short fall for the state budget. He discussed the process of supplemental bills and re-appropriated funds, which are funds that are initially appropriated to a department, but transferred away from the department for other uses by the state. Conversation ensued between the JBC members and the committee regarding the need for budget cuts and the state budget for FY 2009-10.
Senator Tapia provided an overview of the DOLA's budget request to the Joint Local Government Committee. Senator Tapia explained that the department uses .2 percent of the State General Fund, which makes up 4.8 percent of the department's budget. The remainder of the department's budget is comprised of 72.3 percent cash funds, and 20.8 percent from federal funds, and 2 percent from reappropriated funds. Senator Tapia discussed different funding sources received by the department, including severance tax, federal mineral lease dollars, waste tire funds, and gaming and lottery dollars. He addressed the department's budget history and discussed the actual number of full time employees (FTEs) in the department. He explained that the department had been appropriated funds for 180.5 FTEs for FY 2008-09 and the department is requesting 6.1 additional FTEs for FY 2009-10.
Senator Tapia continued with his description of the department's FY 2009-10 budget request and addressed a question about how the budget requests are being considered in light of the economic downturn. He discussed Senate Bill 08-218 and the changes made by the bill to the allocation of the state's portion of federal mineral lease revenue that is available to local governments through the Energy and Mineral Impact Assistance Program.
He also talked about $53.1 million in Federal Funding to Colorado from the U.S. Housing and Urban Development (HUD) for neighborhood stabilization plan (Attachment B). Funds were distributed to state and local governments throughout the country to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. Five grants were allocated in Colorado with $34 million going to DOLA with the remainder divided to among Denver, Colorado Springs, Aurora, and Adams County. Members of the JBC addressed questions from the committee concerning the distribution of federal funding for housing assistance for local areas significantly impacted by home foreclosures. Representative Marostica addressed questions from the committee concerning the federal HUD funding and state fleet reconciliation listed in the department's budget.