JLCB approves BA-7 to transfer Capital Area Groundwater Conservation District operations to DENR and front operating funds

The Joint Legislative Committee on the Budget approved BA-7 item 1 to increase budget authority and statutory dedications from the Mineral and Energy Operation Fund by $3,036,254 and add five authorized positions in the executive program to fund operations of the Capital Area Groundwater Conservation District following a transfer to the Department of Energy and Natural Resources (DENR) under Act 458 of the 2025 regular session.

Charles Durr and Alan Bloxberger (Legislative Fiscal Office) explained the BA‑7 is needed because the statute moves the Capital Area Groundwater Conservation District into DENR effective Oct. 1, 2025, but revenue flows to DENR through the treasury only after the Revenue Estimating Conference (REC) recognizes the revenue source. The BA‑7 uses a fund balance in the statutory dedication to front operating expenses until REC recognition and expected replenishment once the district’s revenue stream is formally recognized.

Bloxberger said the BA-7 is an interim financing step: “This is really using a fund balance to front or seed operating expenses through the end of the year until the REC meets.” Both the Office of Planning and Budget and the Legislative Fiscal Office recommended approval; Senator Edmonds moved the motion and the committee approved the BA-7.

Ending: The committee approved the authorization to move operating authority and positions into DENR and to use available statutory-dedication fund balance for short-term operations pending REC recognition of the revenue source.