Fiscal analyst outlines $2.2 billion base budget and legacy fund totals for environment portfolio

A fiscal overview presented to the Minnesota Senate Environment, Climate and Legacy Committee detailed base budget totals for agencies in the committee’s jurisdiction and projected amounts available from the state’s legacy funds for the fiscal 2026–27 biennium.

Dan Mueller, the committee’s fiscal analyst, told members the committee’s base budget for agencies under its jurisdiction is roughly $2.2 billion across all funds and that general fund support in the committee’s base is about $423.4 million. He warned that the handout did not include any governor’s recommendations.

Mueller gave line‑by‑line highlights for major agencies: he said the Department of Natural Resources’ base budget across funds for FY26‑27 is about $1.2 billion and that the Pollution Control Agency’s total base budget across funds is roughly $811.5 million. He also noted a pattern in the current biennium (FY24‑25) of one‑time general‑fund increases that reduce to a lower base in FY26‑27.

Mueller reviewed the constitutionally established legacy funds that the committee appropriates: he estimated available amounts for the FY26‑27 biennium of about $327 million for the Outdoor Heritage Fund, about $310.7 million for the Clean Water Fund, about $133 million for the Parks and Trails Fund, and about $185 million for the Arts and Cultural Heritage Fund. He also said the Environment and Natural Resources Trust Fund recommendation from the LCCMR totals about $206.6 million (a two‑year figure) and that newly authorized DNR community grants equal 1.5% of the trust fund (about $56.3 million for the biennium under current statute).

Mueller emphasized that several agencies received substantial one‑time general fund appropriations in FY24‑25 and that those increases largely do not carry as base funding into FY26‑27. He also pointed to a $200,000 ongoing transfer to the Metropolitan Landfill Contingency Action Trust account and noted that funding for the committee’s portfolio represents roughly 0.6% of total state general fund spending.

Why it matters: The overview frames the committee’s upcoming budget work, highlights the scale of legacy funds available for conservation and water projects, and notes where one‑time funding may not be sustainable in future budgets.

Mueller and committee staff said they will provide more detailed budget documents as agencies come forward with requests and presentations.