DEQ seeks level funding, 17 staff and funds for paperless records; signals major watershed rulemaking

Chris Wells, director of the Mississippi Department of Environmental Quality, told the Appropriations Subcommittee that DEQ is seeking essentially level funding for FY2026 while requesting modest additions: 17 additional full‑time positions, roughly $390,304 for career‑ladder and educational benchmarks, and $250,000 to continue a multi‑year move to electronic document management.

Wells said the department’s headcount was appropriated at 377 in the prior year but that turnover, time‑limited positions and unusual personnel-board changes left DEQ operating with about 350 employees. “We currently have 8 people in escalated pins,” he said; the presentation asked that appropriated headcount account for conversions so the agency can hire to intended levels. He described heavy use of engineering‑services contracts to augment staffing, and said contractual engineering expenditures have increased more than 50% in each of the last two fiscal years as DEQ relied on contractors to meet workload.

Wells described three add‑ons to the base request: the career‑ladder benchmarks ($390,304), $250,000 for the electronic document management project, and $1.1 million to fund the 17 requested positions — which includes a mix of technical and nontechnical roles itemized in a staff handout. He said the department advertised 243 job openings since May 2023, hired 73 people and lost 75 through December 2024.

On permitting, Wells said DEQ has implemented a contractor‑assisted permitting option. He said template contract language and a uniform rate sheet are in place and contracts with qualified contractors are being finalized; the program is intended to allow applicants to pay contractors for review work rather than drawing DEQ staff time. He acknowledged some permitting work will continue to require DEQ contractual support and that permitting‑related contractual expenditures are a driver of overall contractual growth.

Wells also previewed draft regulations that would broadly define waters of the state under the state air and water pollution control law and would include exemptions and conditional exemptions to reduce permitting burdens where appropriate. The agency published the draft on Jan. 3 and set a public comment period through mid‑April with a public hearing on April 17; Wells said staff would consider extending the comment period on request. “This is a watershed — pun intended — moment for us,” he said, characterizing the work as one of the most significant water‑regulatory efforts in decades.

Committee members asked for division‑level detail on contractual expenditures, a breakdown of the 17 requested positions by division, and forecasting on permitting workload after ARPA‑funded projects wind down. Wells said he expects the ARPA workload handled mostly by contractors to taper, leaving a small management team to absorb remaining tasks.

The agency also requested that a state match for the Clean Water State Revolving Fund (SRF) be continued so the state can draw down federal capitalization grants. Wells described the SRF match as a high‑leverage item: “For every $1 in state match we put, we get $5 in federal grant money,” he said. The department noted strong demand for low‑interest wastewater loans and that the SRF helps municipalities and utility authorities finance infrastructure projects.

The hearing closed with appropriators asking for a breakdown by division of contractual expenditures, and for DEQ to submit the detailed list of 17 positions requested.