JFAC backs $30 million ongoing for water projects, adds reappropriation authority for ARPA/state recovery funds

The Joint Finance-Appropriations Committee on March 14 approved the governor’s recommendation to appropriate $30,000,000 ongoing from the General Fund to the Department of Water Resources’ Water Management Fund for water infrastructure projects and approved associated language to allow reappropriation of ARPA and state fiscal recovery monies.

Janet Jessup, budget and policy analyst with Legislative Services, explained the governor’s recommendation and the effect of designating the $30 million as ongoing: the amount would become part of the fiscal 2027 base and be transferred annually into the Water Management Fund, a continuously appropriated account the Board of Water Resources uses for water infrastructure projects and grants to local water entities. Senator Woodward asked for clarity on how the $30 million operates; Jessup said the appropriation is ongoing and transfer language would move it from the General Fund to the Water Management Fund for expenditure by the department and board.

Committee members then moved a FY2026 motion that included $716,000 from the revolving development fund to the aquifer planning and management fund, ESRI maintenance, Laserfiche conversion funding, replacement items and the $30,000,000 ongoing General Fund for water projects. Representative Manwaring moved the motion; a member seconded. The motion was recorded: total committee tally 15 ayes, 5 nays, 0 absent (Senate 6 ayes, 4 nays; House 9 ayes, 1 nay). The motion passed and will be sent to the floor with a due-pass recommendation.

The committee also adopted screen language connected to the appropriation that (1) specifies the cash-transfer to the Water Management Fund and (2) grants reappropriation authority for ARPA and state fiscal recovery monies so the agency may spend on projects as invoices come due. Members discussed the purpose of the reappropriation authority and the agency’s request to ensure it has cash on hand to pay bills for projects in progress.

Additional language adopted by motion directs the use of the $30,000,000 for water management account projects and sets expectations for those monies; committee members noted a section directing funds to be used in fiscal year 2026 in Board Districts 3 and 4. The committee also approved related language on filing fees for adjudication and condition/limitation language by unanimous consent.

The motion package includes several programmatic enhancements and transfers intended to fund aquifer monitoring and modeling, technical conversion work, and to provide project funds to the board for water infrastructure work.