JFAC approves $30 million ongoing for water projects; grants and transfer language adopted

The Joint Finance-Appropriations Committee voted to add $30,000,000 ongoing from the general fund for water infrastructure projects to the Department of Water Resources' budget and approved accompanying language to transfer the money into the Water Management Fund.

Janet Jessup, budget and policy analyst, described the governor’s recommendation: "the governor's recommendation included $30,000,000 ongoing for water projects in the state." She explained the money is proposed as an ongoing appropriation and that transfer language would move those dollars to the Water Management Fund, a continuously appropriated account the board uses for projects and grants to local water entities.

Senator Woodward asked for more detail about how the $30 million would function going forward. Ms. Jessup replied that because the governor proposed the funds as ongoing, they would become part of the FY2027 base budget and that transfer language would allow annual transfers to the water management account for infrastructure projects.

Representative Manwaring moved the FY2026 motion that included a transfer of $716,000 from the revolving development fund to the aquifer planning and management fund, ESRI maintenance costs, Laserfiche conversion funds, replacement items and $30,000,000 ongoing from the general fund for water infrastructure projects. The committee approved the motion for $31,097,700 from the general fund and four additional full‑time equivalents; the vote was 15 ayes, 5 nays, 0 absent (Senate 6 aye, 4 nay; House 9 aye, 1 nay).

The committee also adopted language on a subsequent motion that (1) provided the cash‑transfer and direction for the $30,000,000 to the water management account and (2) gave reappropriation authority for ARPA and state fiscal recovery monies to ensure the department may pay project bills as projects are completed. That language was approved on a later roll call and carried to the floor with a due‑pass recommendation (total 18 ayes, 1 nay, 1 absent).

The committee voted separately to adopt filing‑fee language related to adjudications and additional language directing the use of the $30,000,000 in Board Districts 3 and 4 for FY2026; a provision about "incidental recharge" was removed after committee concern and deferred for further study.

Why it matters: The action establishes an ongoing funding source for water infrastructure projects administered through the Water Management Fund and includes reappropriation authority to ensure cash is available when contractor bills come due.

What happens next: Motions carry due‑pass recommendations to the floor; the department and Board of Water Resources will administer the Water Management Fund under the committee’s direction and the adopted language directing use in FY2026.