ENVIRONMENTAL QUALITY
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1 Background Briefing ENVIRONMENTAL QUALITY Viola Bay Wild, Senior Fiscal Analyst December 2012 The fiscal information in this background briefing is based on data through December 31, 2012.
2 DEQ Program Areas Major DEQ programs do the following: Administer cleanup and reuse of contaminated properties Protect water quality of surface waters and local water supplies Administer environmental protection programs and regulate disposal of hazardous and non-hazardous wastes and products Monitor air pollution emissions and regulate through air quality permits House Fiscal Agency: December
3 DEQ: Gross Appropriations $449.4 $399.8 $456.7 $448.1 $371.5 $340.0 $396.9 $467.7 $439.5 $432.3 Gross Millions GF/GP FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Notes: (1) FY 2009 amount does not include $248.6 million in one-time American Reinvestment and Recovery Act (ARRA) funding. (2) FY 2010 and FY 2011 both include $50.0 million new federal funding for the Great Lakes Restoration Initiative; FY 2012 and FY 2013 include $25.0 million. (3) FY 2011 includes $70.0 million new SWQIF funding. (4) FY 2012 includes $6.0 million GF/GP one-time boilerplate appropriation. (5) FY 2013 includes $300,000 CMI boilerplate appropriation. House Fiscal Agency: December
4 DEQ Share of State GF/GP DEQ makes up 0.3% of the total state GF/GP budget FY GF/GP Total = $9,022,149,700 Other $1,297,074, % Higher Education / Community Colleges $1,198,144, % Corrections $1,941,485, % Human Services $1,028,769, % Debt Service / SBA Rent $391,911, % State Police $317,513, % Community Health $2,817,437, % Environmental Quality $29,812, % House Fiscal Agency: December
5 SOURCES OF FUNDING
6 DEQ Budget State restricted funds and federal revenue represent 91% of funding in the DEQ budget. FY Gross = $431,729,900* Federal $161,687, % GF/GP $29,812, % State Restricted $230,675, % *Gross Appropriation includes $300,000 CMI restricted funding appropriation by boilerplate. House Fiscal Agency: December 2012 Private $533, % IDG $9,021, % 6
7 STATE SPENDING
8 DEQ Appropriations The DEQ budget is allocated into the following major spending areas: Administration/ Law Enforcement/ IT Office of the Great Lakes Water Resource Air Quality Remediation (Environmental Cleanups) Environmental Protection Programs Great Lakes Restoration Initiative House Fiscal Agency: December
9 DEQ Appropriations FY Gross = $431,729,900* Remediation* $122,775, % Water Resource $55,646, % Administration, Law Enforcement, & IT $34,399, % Air Quality $25,046, % Great Lakes Restoration Initiative $25,000, % Environmental Protection Programs $158,757, % *Gross Appropriation includes $300,000 CMI funding appropriation by boilerplate. House Fiscal Agency: December 2012 Office of the Great Lakes $4,556, % One-Time Appropriations $5,549, % 9
10 DEQ GF/GP Appropriations by Category FY GF/GP = $29,812,400 Administration, Law Enforcement, & IT $4,911, % Air Quality $4,404, % One-Time Appropriations $4,160, % Water Resource $12,219, % Environmental Protection Programs $3,740, % Office of the Great Lakes $375, % House Fiscal Agency: December
11 MAJOR BUDGET ISSUES
12 DEQ Major Programs The DEQ budget supports the following major programs: Office of the Great Lakes lead state agency for the policies and programs to protect and guide the management of the Great Lakes. Surface Water protects the water quality of the state s surface waters, issues permits for the discharge of industrial and municipal waste waters, inspects wastewater treatment facilities, and monitors large scale water withdrawals. Air Quality protects the state s air quality through monitoring air pollution emissions, inspecting emission sources, and issuing air quality permits. Environmental Protection Programs regulates the disposal of hazardous and non-hazardous solid and liquid wastes, scrap tires, radioactive materials, and the land application of processed solid waste. Environmental Cleanups promotes the cleanup and reuse of contaminated properties through response activities at contamination sites and funds the cleanup of leaking underground storage tanks. House Fiscal Agency: December
13 DEQ Grants and Loan Programs The DEQ awards grants, administers loan programs and distributes payments to local units of government and nonprofit organizations. In FY 2013, these grant and loan programs have been moved in the appropriation bill to the specific DEQ division which administers that program area. 25.8% of total department funding is distributed to communities and nonprofit organizations through these programs ($111.4 million). There are 14 environmental grant/loan programs. 77% of the funding is for the Water Pollution Control and Drinking Water Revolving Fund which fund water pollution and drinking water capital project loans. Environmental grants also fund pollution prevention programs, Great Lakes research, radon detection programs, septage waste transportation programs, and scrap tire removal. House Fiscal Agency: December
14 DEQ Grant Programs FY Gross = $111,448,000 Noncommunity Water Grants $2,000, % Other $625, % Coastal Management Grants $1,750, % Water Pollution Control and Drinking Water Revolving Funds $85,443, % Federal - Nonpoint Source Water Pollution Grants $6,500, % Federal - Great Lakes Remedial Action Plan Grants $700, % Drinking Water Program Grants $1,330, % Strategic Water Quality Initiative Loans $9,600, % Scrap Tire Grants $3,500, % House Fiscal Agency: December
15 DEQ Revenue For FY , the DEQ budget totals $431.7 million. Of that amount, only 6.9% is GF/GP funding ($29.8 million). From FY to FY , GF/GP funding has decreased by 69.1%: from $96.3 million to $29.8 million. 53.4% of funding is from state restricted revenue (mainly license and permit fees). The largest restricted fund appropriation is from the Refined Petroleum Fund (RFP) $49.0 million. The RPF receives a fee of 7/8 th of one cent for each gallon of refined petroleum sold in the state. House Fiscal Agency: December
16 For more information about the Environmental Quality budget, contact: Viola Bay Wild (517)
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