Ways and Means subcommittee backs LFO recommendation for DEQ budget, raises questions about fee-funded programs

The Ways and Means Natural Resources Subcommittee voted to adopt the Legislative Fiscal Office (LFO) recommendation on Senate Bill 5,520, advancing the Department of Environmental Quality’s biennial budget to the full Ways and Means committee.

The LFO presented a recommended budget totaling $966,406,946, including $85,307,531 in general fund, $7,038,076 in lottery funds, $346,894,304 in other funds expenditure limitation, $164,535,060 in federal funds expenditure limitation, and authority for 894 positions equal to 885.36 FTE; the committee adopted a dash-1 amendment reflecting those totals and voted to move the bill forward.

Why it matters: the package contains large federal and bond-supported programs — including more than $340 million in other funds nonlimited for the Clean Water State Revolving Fund loan program and roughly $231 million in policy packages — that finance statewide water, air and cleanup activities. Committee members questioned whether fee increases and added staffing are producing timely permit decisions and expressed concern about impacts on businesses and small wastewater providers.

Key facts and committee discussion

- The LFO outlined the full package, saying the recommended budget “totals $966,406,946” and represents a 23.8% increase over the current budget and a 31.5% increase over current service level, primarily driven by increases in federal funds expenditure limitation related to…