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DNR financial health briefing flags fund-balance pressure and agency overhead timing
Summary
DNR budget staff reported Q3 financials showing shortfalls in management accounts due to timing of agency overhead charges and lower timber revenues; officials said they adjusted FY27 spending projections for RMCA and FDA to avoid negative balances.
Candace Montoya, state uplands budget manager, briefed the board on Q3 (Jan–Mar 2026) financial health and fund-balance projections and said some management accounts are operating in deficit for the quarter largely because of a timing issue: back payments for agency overhead posted in January that affect fiscal-quarter comparisons.
Montoya explained that resource management cost account (RMCA) and the Forest Development Account (FDA) are on revised trajectories that required spending adjustments for FY27 to avoid projected negative balances. She said the 21QR forest health revolving account (Eastside timber) remains stable and that other asset classes such as irrigated agriculture are performing better than expected. She also noted communications-site program staffing changes would run a small temporary deficit expected to be recouped via updated lease work.
Why it matters: lower timber revenue and the timing of overhead charges interact to stress the small management accounts DNR uses for stewardship and monitoring work; staff said they have implemented cost-savings for FY27 and will continue to monitor projections.
Next steps: staff will continue to refine monthly projections, implement identified savings and report back to the board on fund-balance outcomes.
