Date: 02/02/2012
Final
JBC Presentation of DOLA Budget
COMMITTEE ON JOINT LOCAL GOVERNMENT
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07:34 AM -- Joint Budget Committee Presentation of Department of Local Affairs Budget
Representative Becker, representing the Joint Budget Committee (JBC), introduced himself, introduced the other members of the JBC who were present, and also introduced the JBC staff. Representative Becker presented the budget request for the Department of Local Affairs (DOLA) and referred to the summary report on the JBC budget briefings for FY 2012-13 (Attachment A). He 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
Representative Becker addressed questions from the committee concerning state funding for affordable housing programs provided by the Division of Housing, under DOLA. Committee members discussed the need to continue leveraging federal dollars for affordable housing programs offered by the division. Committee discussion ensued between the committee and the JBC members concerning the status of affordable housing, the rental market, and foreclosures in the state.
07:48 AM
Representative Becker addressed questions from the committee concerning funding for volunteer firefighter pension plans. Senator Steadman explained a proposal from the Governor to decrease $1.5 million in General Fund dollars to the Division of Local Government to fund volunteer firefighter pension plans that were determined to be actuarially sound for the next 20 years. Committee discussion ensued concerning volunteer firefighter pension plans and Senate Bill 11-221, which deferred the state's obligation to fund the Old-hire Pension Plan, under the Fire and Police Pension Association (FPPA), until FY 2018-19. The committee continued to discuss the payments scheduled for the FPPA pension plan.
07:52 AM
Representative Becker discussed the plan to transfer $30 million in cash funds from the department's Local Government Severance Tax Fund to help balance the General Fund for FY 2012-13. Between FY 2008-09 and FY 2011-12 the General Assembly transferred approximately $270.2 million in cash funds from the Local Government Severance Tax Fund and federal mineral lease revenue from the Local Government Mineral Impact Fund to help balance the state budget. Committee members discussed the need to restore severance tax dollars to the department for the Local Government Mineral Impact Grant Program, which is used to fund projects in local communities that have been socially or economically impacted by gas and mineral development. Committee discussion ensued concerning the importance of state severance tax dollars to fund local infrastructure projects and the possibility of funding wildfire mitigation through state severance tax dollars.
07:52 AM
The committee adjourned.