Infrastructure Budget Brief: Environment, Local Government Finance & Homeland Security

Budget Brief: Environment, Local Government Finance & Homeland Security

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Hearing Date: December 13, 2010

Testifying Agencies:

Dept. of Environmental Management

  • Presentation
  • Agency Overview
  • Performance Measures
  • Operating Budget Request
  • Dept. of Natural Resources

  • Transmittal Letter
  • Performance Measure
  • Capital Budget Request
  • Operating Budget Request
  • Dept. of Revenue

  • Presentation
  • Transmittal Letter
  • Performance Measures
  • Operating Budget Request
  • Dept. of Local Government Finance

  • Presentation
  • Transmittal Letter
  • Performance Measures
  • Operating Budget Request
  • Dept. of Homeland Security

  • Performance Measures
  • Indiana Homeland Security District
  • HIRA Synopsis
  • Operating Budget Request
  • Presentation Highlights:

    Indiana Department of Environmental management (IDEM) – IDEM’s annual request of approximately $24.4 million General Fund dollars for FY 2012 and FY 2013 is about $8.9 million or 26.7% less the amount they received in FY 2009. On average, the federal government requires a state match of 46% to receive full federal funding. IDEM’s federal grant funding for FY 2012 and FY 2013 is projected at approximately $23.9 million per year, which means about $11 million dollars of IDEM’s General Fund budget request is to help ensure that Indiana continues to receive federal funding and assistance in various areas. All other funds are derived from Dedicated and/or Federal funds.

    IDEM current and proposed budget comparison chart

    Indiana Department of Natural Resources (DNR) – DNR’s budget request and presentation demonstrated the diversity of programming within DNR and highlighted the agency’s accomplishments, challenges and program performance in the 2009-2011 biennium.

    DNR reported that they have continued to utilize a mixture of state, federal and private contributions to undertake a variety of projects ranging from infrastructure upgrades to the successful implementation of the Young Hoosiers Conservation Corps (YHCC). DNR worked closely with the Department of Workforce Development in FY 2010 to employ nearly 1,900 young adults on several DNR properties. Additional accomplishments are highlighted in the DNR budget transmittal letter.

    DNR’s FY 2012 and 2013 annual budget request of approximately $46.4 is 17% less than the amount of General Funds that they were appropriated in FY 2011. To compensate for the lower amount of General Funds available, DNR requested approximately $4.8 million additional dollars from Dedicated and Federal Funds. If DNR’s budget is passed as requested, they will be operating with a total of $778,139 less than they did in FY 2010. It should be noted, however, that DNR’s total budget (General, Dedicated, and Federal funds) was decreased by 15.11% from FY 2009 to FY 2010.

    Department of Revenue (DOR) – In FY 2009 and FY 2010, the Department of Revenue implemented its technology strategy proposed in its last biennial budget request. That implementation, along with other ongoing efforts regarding compliance, enforcement and electronic filing has enabled the DOR to make the budget reversions that the Governor required in the last biennium.

    Today, the DOR is operating with more than 100 fewer employees than it had in place in 2008 and has continued to keep costs restricted – spending approximately 9 percent less than it was spending in FY 2008, and 14 percent less than it was in FY 2005. DOR’s budget transmittal letter includes additional details about their accomplishments, challenges and strategic initiatives for the future.

    DOR’S  FY 2012 and 2013 annual budget request of approximately $50.3 million is 5.6% less than the amount of General Funds that they were appropriated in FY 2011.

    Department of Local Government Finance (DLGF) – The DLGF is charged with publishing property tax assessment rules and annually reviewing and approving the tax rates and levies of every political subdivision in the state, including all counties, cities, towns and other entities with tax levy authority.

    The DLGF reverted 10.41% of its Fiscal Year 2010 appropriation to the State’s General Fund after the Governor announced that all agencies would be required to make budget cuts in 2010.  The DLGF budget proposal for FY 2012-2013, at approximately $4.46 million annually, is approximately 15% under the agency’s appropriation for the FY 2010-2011 years. DLGF is not eliminating or replacing any existing programs for the upcoming budget cycle; however, the agency dissolved the Operations Division by transferring these duties to other divisions and reorganizing existing personnel. The dissolution of the Operations Division also enabled the agency to eliminate two positions – one director and one administrative – at a cost savings.

    Department of Homeland Security (IDHS) – The Department of Homeland Security requested $121,645 General Fund dollars for FY 2012 and 2013. This amount is $847,607 dollars or 87% less than the FY 10-11 appropriations. Officials explained that this reduction appears large because the cost of funding the Indiana Intelligence Fusion Center was transferred to the Indiana State Police’s budget.

    Still, IDHS warned the State Budget Committee that it is imperative that IDHS is given the resources needed to maintain staffing levels necessary to meet the day-to-day public safety needs for their emergency management and homeland security responsibilities, fire and building safety code regulation processes, as well as the response capabilities needed to provide support to local communities in the event of a disaster or emergency situation. Although IDHS has been able to maintain public safety related services to date, additional budget and/or personnel cuts will require the reduction or elimination of public safety related programs or services, and potentially make the agency unable to handle surge needs during a future disaster.