House Finance hears DEC closeout; spill-prevention funding shifted after Flint Hills settlement

Co-Chair Josephson called the House Finance Committee to order and asked Tim Clark, staff to Representative Hannon, to present the Department of Environmental Conservation closeout report.

Tim Clark said the DEC budget action report totals $122,168,000 across fund sources, including $22,881,600 in unrestricted general funds, $27,505,600 in designated general funds, $26,704,700 in other funds and $45,076,100 in federal funds, and that the recommendation reflects 569 positions (560 permanent full-time, 0 permanent part-time and 9 temporary positions). “This represents a 0% change in funds between the subcommittee recommendation and the governor's amended proposal,” Clark said.

Clark described one material change in the subcommittee report: an item that removes a $1,968,100 UGF appropriation for spill prevention and response and replaces it with monies from the oil and hazardous release prevention and response fund. Clark told the committee that in recent years some UGF had been used for spill prevention out of concern for the sustainability of the prevention fund, but ‘‘the recent settlement of more than $24,000,000 from the Flint Hills Refinery has greatly increased fund holdings, making the UGF appropriation no longer necessary,’’ he said.

Clark also noted the administration requested $319,000 (from UGF, DGF, other and federal funds) for implementing an information-technology employee classification study, saying the increases are intended to bring compensation for those positions into “professional parity.”

Co-Chair Josephson asked Clark where any portion of the Flint Hills settlement that is not used in next year’s budget would go; Clark said his understanding is that ‘‘it will rest in the fund helping to ensure its sustainability many years into the future’’ and that he had not specifically asked whether the funds were sweepable. The chair indicated he was told the funds are not sweepable.

There were no further questions on the DEC report. The committee recessed briefly to set up the next presentation and returned to the record minutes later.