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State Water Resources Control Board cites budget uncertainty, brief loan to maintain SGMA staff
Summary
The State Water Resources Control Board told stakeholders at a virtual water rights fee meeting that timing with the Department of Finance has delayed detailed fee-setting numbers and that a short-term loan will sustain staff who implement the Sustainable Groundwater Management Act (SGMA).
The State Water Resources Control Board told stakeholders at a virtual water rights fee meeting that timing with the Department of Finance has delayed detailed fee-setting numbers and that a short-term loan will sustain staff who implement the Sustainable Groundwater Management Act (SGMA).
Board Deputy Director John Russell said the department received two budget letters requiring vacancy and efficiency reductions and that the Department of Finance is still reviewing the agency’s worksheets. “It’s out of our control. David and Cassandra don't really have any control over it and neither do I, but I did wanna say this right upfront, so you understand where we're coming from. It's not that we're withholding anything from you. It's it's literally that we just don't know at this time,” Russell said.
The lack of final Department of Finance decisions means the numbers staff usually present are incomplete, the board said. The agency listed a fiscal year 2024–25 fee-setting budget of $38,800,000 and the governor’s January proposed fee-setting budget for fiscal year 2025–26 at just over $38,100,000—a net decrease of $698,000, or about 1.8 percent. Primary cost-driver changes noted in the materials include a $229,000 decrease in state operations (largely employee compensation), a $473,000 decrease in pro rata charges, and a $4,000 increase for services by the California Department of Tax and Fee Administration for invoice processing and collections.
Staff also described a budget change proposal (BCP) tied to the SGMA implementation program (referred to in materials as the Sigma BCP). The governor’s proposed budget includes approximately $5.4 million related to that BCP. Because three years of general‑fund support for 22 positions ends June 30, staff said the department plans to use a loan from the Underground Storage Tank Cleanup Fund of roughly $5.5 million across fiscal years 2025–26 through 2027–28 to continue those 22 positions until fee revenue is collected and can reimburse the cleanup fund. Cassandra White, a fee-branch manager, explained that the 22 positions would continue to charge to the water rights fund and that the fund would repay the cleanup fund once fee receipts are deposited.
Staff emphasized the timing effect on future fee proposals. Final reductions approved by the Department of Finance are expected to appear in the May revise; staff said stakeholders should expect updated fee-setting numbers at the board’s June stakeholder meeting, and that the changes will inform fee proposals targeted for adoption in September.
No formal motion or vote occurred at the meeting. Staff offered to meet with stakeholders one-on-one to discuss questions and confirmed the next stakeholder meeting for June 11.
