Date: 01/21/2015
Final
JBC Presentation on FY 2015-16 Budget Request
COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES
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09:34 AM -- Joint Budget Committee presentation on Department of Agriculture, Department of Natural Resources, and Colorado Energy Office FY 2015-16 budget request
Representative Rankin began the presentation for the Joint Budget Committee (JBC) and introduced the other members of the committee and JBC staff.
Representative Rankin explained the budget request process to the committee and summarized the FY 2015-16 budget request for the Department of Agriculture (department) and noted that the department has a new budget request for State Fair maintenance. Representative Rankin explained that a recent report from the Office of the State Auditor (OSA) identified two main problems with the State Fair -- accounting and financial sustainability. Representative Rankin also noted that the department addressed the implementation of industrial hemp cultivation in the state was presented in its briefing with the JBC.
The JBC fielded questions from the committee regarding funding for the state fair, sustainability of the state fair and the fairgrounds, and industrial hemp production. Senator Lambert stated that he believed that the House and Senate Agriculture committees should receive briefings from the Department of Agriculture in light of the recent negative audit of the state fair.
09:57 AM
Representative Rankin summarized the FY 2015-16 budget request from the Department of Natural Resources (DNR) and stated that he would be summarizing each request briefly. Representative Rankin began with DNR's budget increase request to expand the Oil and Gas Conservation Commission's (OGCC) permitting and hearing staff, purchase contract services, and fund additional leased space. Committee discussion ensued regarding the budget request for the OGCC.
Representative Rankin summarized the second major request from DNR, which includes an increase in funds to hire deputy well and water commissioners in response to increasing administration responsibilities in the Arkansas and Yampa River basins. After a short discussion regarding the need for an the increase, Representative Rankin summarized the request from the Colorado Avalanche Information Center to increase funds to support two new forecasters and to provide administrative support for the program. Representative Rankin summarized the final request for the reclamation of forfeited mining sites, which would include a reauthorization of funds from the Severance Tax Operational Fund to continue reclamation work at forfeited mine sites with insufficient bonds.
Representative Rankin continued the presentation and explained the issue of the status of the Severance Tax Operational Fund, noting that, using forecasts from Legislative Council Staff and the Office of State Planning and Budgeting (OSPB), the decrease of oil prices will affect severance tax revenue projections for the current fiscal year. Representative Rankin stated that the JBC was asked to divert severance tax money to the General Fund in order to pay for refunds to taxpayers according to TABOR; however the JBC deferred action on that decision. Representative Rankin stated that the JBC has drafted one bill reassigning the Mining Reclamation Fund as a Tier II program under the use of severance tax dollars. Discussion ensued regarding the reclamation of mining sites and the reassignment as a Tier II program.
Senator Lambert readdressed funding for the State Fair and explained that the losses from the state fairgrounds come from off-season events rather than the state fair itself, and discussion ensued with the committee.
Representative Rankin closed his comments and the committee recessed.