Colorado Legislative Council Staff

STATE

FISCAL IMPACT

Drafting Number:

Prime Sponsor(s):

LLS 99-0075

Rep. Smith

Sen. Dennis

Date:

Bill Status:

Fiscal Analyst:

January 16, 1999

House Agriculture

Will Meyer (866-4976)

 

TITLE:            CONCERNING THE CREATION OF A PROCESS FOR THE DEVELOPMENT OF WATER PROJECTS TO INCREASE THE WATER RESOURCES AVAILABLE TO THE CITIZENS OF COLORADO, AND, IN CONNECTION THEREWITH, PROVIDING FOR MITIGATION OF THE IMPACT OF SAID PROJECTS, ESTABLISHING A WATER PROJECT ASSISTANCE FUND, AND MAKING AN APPROPRIATION.




Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

Cash Fund Exempt


 


 

State Expenditures

Cash Fund Exempt - Transfer

CWCB - Allocation for projects*


$228,294


$445,468

FTE Position Change

2.0 FTE

2.0 FTE

Other State Impact: None identified

Effective Date: Upon signature of the Governor

Appropriation Summary for FY 1999-2000:

Department of Natural Resources: $228,294 cash fund exempt transfer from the Severance Tax Trust Fund and 2.0 FTE

Local Government Impact: None identified

            *Yet-to-be determined



Summary of Legislation


            This bill requires the State Engineer, Division of Water Resources (DWR) and the Colorado Water Conservation Board (CWCB), Department of Natural Resources, to provide technical and financial assistance to local river basin planning groups, and to:

 

               assist in the organization of local, voluntary water basin planning groups to identify present and future water needs and submit them to the CWCB by March 1, 2002;

               review the work of the local planning groups and evaluate the basin water studies submitted by such local planning groups and develop a list of prospective water projects; and

               identify mitigation opportunities and solutions. It

            The bill requires them the State Engineer and the water board to provide such technical assistance from the "water needs assistance" account and from existing staff resources.


            The bill creates a water needs assistance account within the CWCB construction fund to assist in the development of storage facilities or the implementation of other mitigation measures. It requires the DWR and CWCB to make a report to the General Assembly by March 1, 2003 on the results of the basin studies and the state's evaluation of alternatives that could be utillized to meet Colorado's water needs.


            The bill requires the CWCB to make annual recommendations to the General Assembly on the use of this account. The bill provides for an allocation from the CWCB construction fund to the water needs assistance account of a yet-to-be specified amount, and a transfer from the operational account of the severance tax trust fund to the water needs assistance account for the administrative costs of the basin planning efforts and the preparation of required reports. The bill would become effective upon signature of the Governor.



State Expenditures


            The department has indicated that additional staff resources will be required to assist each of the estimated twelve planning groups in six river basins. The department will convene at least six meetings of these groups and will require additional staff and consultants to facilitate these meetings, review each of the 12 group reports, and prepare draft reports for presentation to the CWCB. In the second year, the department will analyze the reports, integrate them into a comprehensive report, and prepare recommendations. The department will require an estimated 2,000 hours of consultant time to assist them in the analysis of the basin reports and to help them draft the report to be submitted to the General Assembly. The required expenditures are provided in Table 1.


Table 1 - Department of Natural Resources Expenditures - HB 99-1050

 

FY 1999-2000

FY 2000/2001

Personal Services:

Phase I - Identification: PE III - 2.0 FTE

Phase II - Analysis: PE III - 2.0 FTE

$177,332

$177,332

Operating Expenses

10,800

10,600

Meeting and Travel Expenses

26,208

7,536

Non-recurring Expenses

13,954

0

Consultants -2000 hrs @ $125/hr

0

250,000

Total Expenses

2.0 FTE - $228,294

2.0 FTE - $445,468



            The department has indicated that any recommendations to expend moneys from the account to assist in the development of storage facilities or the implementation of other mitigation measures are conditional on the outcome of the basin reports and the recommendations of the CWCB. These expenditures cannot be estimated at this time.



Expenditures Not Included


            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

 

               health and life insurance costs;

               short-term disability costs;

               inflationary cost factors;

               leased space; and

               indirect costs.



State Appropriations            This fiscal note implies that the Department of Natural Resources should be appropriated $228,294 cash fund exempt and 2.0 FTE out of the Severance Tax Trust Fund in FY 1999/00.


            This fiscal note would imply the Department of Natural Resources would require a transfer of $228,294 from the Severance Tax Trust Fund to the Water Needs Assistance Account within the Colorado Water Conservation Board Construction Fund for FY 1999-2000. Of this amount, the Department of Natural Resources will require a cash fund exempt spending authority of $228,294 and 2.0 FTE.



Departments Contacted


            Natural Resources                  Local Affairs