Committee approves $30 million ongoing for water projects, adds transfer and reappropriation language

The Joint Finance-Appropriations Committee on Friday approved an ongoing $30,000,000 appropriation from the General Fund to the Water Management Fund to support water infrastructure projects and added statutory language directing the transfer and outlining spending priorities.

Janet Jessup, a Legislative Services budget analyst, told members the governor proposed the $30 million as an ongoing appropriation that would become part of the fiscal 2027 base budget. "As it was proposed by the governor, the $30,000,000 is ongoing," Jessup said, explaining the funds would be available annually to support board-directed projects and grants for local water entities.

Representative Manwaring moved the appropriation and related maintenance and replacement items, and the committee approved the package on a combined 15-5 vote (15 ayes, 5 nays). The motion the committee approved included $30,000,000 ongoing from the General Fund for water infrastructure projects plus several smaller line items and four full-time equivalents.

The committee also adopted transfer language that would convey the $30 million into the Water Management Fund, a continuously appropriated account the state uses for water projects. In addition, legislators approved language granting the department reappropriation authority for ARPA and state fiscal recovery monies so the department can ensure cash is available when projects incur costs.

A separate section of language that would have addressed incidental recharge was removed from this year’s bill after members raised concerns about potential unintended consequences; Representative Miller said the topic would be revisited at a summer meeting.

Discussion vs. decision - Discussion: Committee members asked for clarification about where the $30,000,000 would live in future budgets, how the Water Management Fund operates, and the reason reappropriation authority was being requested for ARPA/SRF dollars. Representative Woodward asked that staff provide more detail on the proposal. Representative Miller raised concerns about incidental recharge language and supported removing it for further study. - Formal action: The committee approved the appropriation and maintenance items (total appropriation action described in the motion: $31,097,700 from the general fund and other fund transfers and 4 FTEs) and adopted the transfer and reappropriation language. The motion carries a due-pass recommendation to the floor.

What happens next The motions will be forwarded as due-pass recommendations to the full Legislature for floor consideration. Committee staff said the transfer and reappropriation language will direct the board and department on how to prioritize and spend the dollars in fiscal 2026.

Public-record notes All funding amounts, roll-call tallies and the final language approving transfer and reappropriation authority were placed on the record during the committee session and will accompany the committee’s report.