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Appropriations debate centers on federal-authority bill and proposal to sweep ARPA interest into capital projects
Summary
The Appropriations Committee spent extended time on House Bill 4, the federal-authority/budget amendment bill, debating a proposal to move existing ARPA interest and remaining balances into specific infrastructure bills and then to sweep any remaining balance into the capital development fund.
House Bill 4, the biennial budget amendment and federal-authority bill, dominated a lengthy Appropriations Committee discussion about federal awards, agency authority and a proposed plan to move American Rescue Plan Act (ARPA) interest into infrastructure spending and then into the capital development fund.
Budget staff and the Office of Budget and Program Planning (OBPP) described the bill as a regular vehicle to grant agencies authority to accept and spend federal awards received while the Legislature is in session. OBPP's Evelyn Davis told the committee those awards "have been received by our office since you guys have been in session" and that the bill lists separate awards by dashed entries in the draft language.
Representative Fitzpatrick and others proposed an amendment (sponsored in the hearing) that would reallocate ARPA interest and balances to specific infrastructure bills: roughly $1.7 million to projects in House Bill 7, $25 million for water and wastewater projects in House Bill 6, about $224,000 for irrigation projects and $4.5 million for nonpoint-source pollution work in the Department of Environmental Quality. Chair Jones and staff discussed the logistics of timing the transfers so that the accounting would use a date-certain balance.
Members expressed several concerns: Representative Falk asked whether the sweep could be implemented retroactively to capture interest already earned; staff said they would need time to confirm statutory authority and drafting. Representative Mercer and others pressed for clarification on why particular federal awards were listed and whether some listings had moved location in the draft. Representatives sought assurance that the transfers would not remove funds already obligated for projects and asked staff to verify remaining balances.
Budget staff and legislative fiscal staff said they would refine the amendment language and return on Monday with precise drafting. The committee did not finalize a do-pass motion for House Bill 4 in the excerpt; Vice Chair Mercer withdrew a due-pass motion on the bill so staff could rework the language and the committee could revisit it at the next meeting.
