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Water Department reports $414M in Resources Trust Fund but warns of multibiennium shortfall
Summary
The Department of Water Resources reported a Resources Trust Fund balance of about $414 million and a Water Project Stabilization Fund balance of $157 million, while projecting a $600M–$1.3B shortfall against a 14-year need estimate of $3.4B; staff described carryover, obligations, and a $210M line of credit used to accelerate projects.
The Department of Water Resources told the Water Topics Overview Committee that the Resources Trust Fund balance is approximately $414 million and the Water Project Stabilization Fund about $157 million as of the report. Rhys Haas, DWR director, said these balances feed several priority project buckets (regional water supply, rural water, flood control) and that the State Water Commission has already obligated a large share of recent appropriations to major projects such as the Red River Valley Water Supply and Southwest Pipeline.
Haas explained the difference between legislative appropriation, water-commission obligation, and project reimbursements: the Legislature appropriates dollars to the Water Commission; the commission then obligates funds to projects so sponsors can contract and begin work; reimbursements are made to sponsors as invoices arrive. DWR reported $570.1 million carried into the biennium, with $133 million spent so far and the remainder either obligated or unobligated by bucket.
To accelerate construction and reduce carryover, the Legislature gave DWR an emergency clause last session and a $210 million line of credit. Haas said the line of credit acts like an overdraft to allow obligations before receipts arrive; the commission aims not to draw the line but to use it as needed. Committee members asked that any use of the line of credit be promptly reported to the committee.
On long-term needs, DWR presented a 14-year projection (seven legislative sessions) estimating $3.4 billion in state-share water needs under current cost-share policy, while revenues are forecast to leave a projected shortfall of $600 million to $1.3 billion. The department said these projections underlie the ongoing cost-share and governance studies and will guide prioritization and potential policy changes.
DWR also reviewed carryover detail: of the $570.1 million carried into the biennium, roughly $396.5 million is currently obligated to projects; $40.3 million remains unobligated (largely in the flood-control bucket). Members asked for periodic updates on spending rates and expected carryover at future meetings.
