Joint Committee Committee on Joint Local Government (01/18/2011)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT LOCAL GOVERNMENT

Date:	01/18/2011	ATTENDANCE

Time:	07:36 AM to 08:18 AM	Aguilar	X
		Balmer	E
Place:	HCR 0112	Cadman	*
		Casso	E
This Meeting was called to order by		Conti	X
	Senator Foster	Fields	X
		Gardner B.	X
This Report was prepared by		Lee	X
	Raegan Robb	McCann	*
		Nicholson	X
		Roberts	X
		Soper	E
		Swerdfeger	X
		Szabo	X
		Bradford	X
		Foster	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
JBC Presenting DOLA Budget		Discussion Only

07:36 AM

Senator Foster, Chairman, called the meeting to order and made opening comments to the committee.

07:40 AM - JBC Presentation of Department of Local Affairs Budget

Senator Hodge, Chairman, Joint Budget Committee (JBC), presented the budget request for the Department of Local Affairs (DOLA) and referred to the summary report on the JBC budget briefings for FY 2011-12 (Attachment A). Senator Hodge talked about the budget discussion between JBC and DOLA, and explained the requirements of the JBC to present the budget overview for DOLA to the Joint Local Government Committee.

07:41 AM

Senator Hodge provided an overview of the DOLA's budget request to the Joint Local Government Committee. She explained that the department represents 0.2 percent of the State General Fund, and that General Fund appropriations account for 3.3 percent of the department's budget. The remainder of the department's budget is comprised of 63.9 percent cash funds, 30.5 percent federal funds, and 2.3 percent reappropriated funds. Senator Hodge discussed the history of the department's funding, and explained different funding sources received by the department, including: severance tax, federal mineral lease dollars, federal housing and urban development funds, limited gaming dollars, and lottery dollars. She discussed the Governor's budget balancing plan, which includes cash fund transfers of $85.4 million for FY 2010-11 and $42 million for FY 2011-12 from DOLA to address budget shortfalls for each fiscal year. Senator Hodge explained that the General Assembly transferred $10 million from the department in severance tax revenues for FY 2010-11, and the Governor is now recommending another $85.4 million from other DOLA cash funds for FY 2010-11, including: $60 million in grant funds from state severance taxes, $15 million in grant funds from federal mineral lease revenues, and $10.4 million from the local government federal mineral lease permanent fund.

Senator Hodge also discussed the department's responses to questions raised by the Joint Budget Committee during the Department of Local Affairs budget briefing. During these hearings, the JBC asked departments to identified the most and least effective programs of each department (Attachment B). Senator Hodge discussed the programs that were identified by DOLA as the most and least effective programs overseen by the department.

07:44 AM

Representative Gerou, Joint Budget Committee, addressed questions concerning unfunded mandates passed onto local governments from the state. Discussion ensued between the joint committee and the JBC concerning unfunded mandates, the least effective programs overseen by DOLA, and the department's recommendation to eliminate programs that are not effective.

07:52 AM

Representative Ferrandino, Joint Budget Committee, responded to questions concerning the Moffat County Tunnel program, which is overseen by the department and was identified as a least effective program.

07:56 AM

Senator Hodge and Representative Ferrandino addressed questions from the committee concerning direct distributions from the Local Government Severance Tax Fund and the Local Government Mineral and Energy Impact Fund and discussed the cash fund transfers from the department for FY 2010-11 and FY 2011-12 that were intended to be used as grants from the Local Government Mineral and Energy Impact Fund, but will instead be used to help backfill the state budget. Representative Ferrandino discussed the importance of direct distribution dollars from the Local Government Mineral and Energy Impact Fund to support local government operations and the state policy to only transfer funds from the Local Government Mineral and Energy Impact Grant Program to help support the state General Fund.

08:04 AM

Senator Hodge and Representative Ferrandino addressed questions from the joint committee concerning the use of limited gaming funds being used to balance the state budget.

08:05 AM

Senator Steadman discussed the least effective programs that were identified by DOLA and encouraged the joint committee to continue conversations with the department concerning programs that were identified as least effective.

08:08 AM

Senator Lambert, Joint Budget Committee, discussed the FY 2011-12 budget of the Governor's Energy Office (Attachment C).

08:11 AM

Senator Steadman, Senator Lambert, and Representative Gerou addressed procedural questions from the committee concerning issue briefs and hearing documents concerning DOLA that are available on the Joint Budget Committee's website.

08:18 AM

The chair adjourned the committee.