Overview 

We are pleased to present the TPWD Legislative Appropriations Request (LAR) for fiscal years 2008 and 2009.

Our mission is “To manage and conserve the natural and cultural resources of Texas and to provide hunting, fishing and outdoor recreation opportunities for the use and enjoyment of present and future generations.”  Fulfilling this important mission has been challenging due to funding reductions over the past few years and the need to absorb increases in operating costs.  We have prepared an LAR that would restore some of those funds and appropriately reflects the needs and priorities of the agency.

 Summary of the Legislative Appropriations Request 

Note: Slight differences due to rounding to millions.

Funding Challenges 

The past two biennia have been challenging for many state agencies, and Parks and Wildlife is no exception.  Reductions of 12.5% of general revenue and GR-related funds in the 2004-05 biennium and another 5% reduction in the 2006-07 biennium have resulted in reductions in several areas agency-wide.

TPWD has had the opportunity to offset some of these reductions with fee increases and corresponding increases in appropriation, contingent on the receipt of revenues.  In 2004-05, $31.5 million ($28.4 to Game, Fish and Water Safety Account 9 and $3.1 million to State Parks Account 64) prevented more drastic budget reductions, but state and local parks were significantly impacted.  The largest budget reductions occurred with local park grants, state park improvements and repairs, and outreach and public awareness programs.  $34.3 million of Proposition 8 bonds were also removed from the base request which slowed down construction and major repair progress in state parks and various other TPWD facilities.

In 2006-07, fee increases and other revenues brought in an estimated $8.5 of additional revenues annually to offset reductions ($4.9 million to State Parks Account 64 and $3.6 million to Game, Fish and Water Safety Account 9).  However, funding challenges were further compounded by absorbing increasing operating costs.  $2.1 million of salary increases for longevity, hazardous duty and reclassifications were absorbed annually, along with increased gasoline and utility costs.  Utilities in some parts of Texas have increased by as much as 35% over the past year. Compounding these increases were the ongoing costs incurred as a result of hurricanes Katrina and Rita.   171 vacant and 12 filled positions were eliminated at the beginning of fiscal year 2006, and another 73 state park positions were eliminated January 1, 2006 along with various reductions in state park operations.  Local park grant funding was reduced to a total of roughly $5.6 million in FY 2006 and 2007, down from $20.5 million appropriated in FY 2002.   

These reductions in services are of great concern to TPWD.  Coupled with an additional 10% reduction to general revenue and GR-related funds for fiscal years 2008-09, the impact to TPWD is critical.  Due to recent fee increases over the past two biennia, we cannot support further fee increases in fiscal years 2008-09 to offset these proposed reductions, but we continue to seek the ability to utilize any revenue earned above the Comptroller’s biennial revenue estimate.  Our highest priority exceptional item is to restore the 10% reduction as outlined in the summary of exceptional items below, and we recognize that even further funding is needed to restore service levels, particularly for State Parks and Law Enforcement.              

Summary of Exceptional Items            

We have requested 7 exceptional items in our LAR as summarized below.      

This exceptional item seeks restoration of $15.3 million of critical reductions each year and 117.4 FTEs.  The related reductions affect nearly all strategies and objects of expenditure including salaries, operating, grants and capital expenditures.  Major areas to restore include $3.7 million in local park grant funding and 2 FTEs, 52 game wardens, 44.4 FTEs in State Parks, 7 FTEs in Wildlife, Coastal and Inland Fisheries, 6 FTEs in Capital Programs, 6 FTEs in Licensing, Boat Registration and Indirect Administration along with various operating reductions.  In most cases, restoration of the amounts will allow TPWD to restore services and performance to at least 2007 levels.  However, due to continued increases in the cost of utilities and fuel, restoration of the 10% reductions to State Parks and Law Enforcement will not be sufficient to restore service to 2007 levels.  Furthermore, it is important to note that even at 2007 levels we are not keeping up with state park operational and maintenance needs, and TPWD facilities are continuing to deteriorate.

This exceptional item seeks $85.4 million of General Revenue each year to provide adequate funding and an additional 262.7 FTEs for state parks and support functions, as recommended by the State Parks Advisory Committee.  The request includes funding above the 2007 level for the following items in priority order: 

(1)   $7.1 million per year for State Park salaries

(2)   $5.7 million per year for operating

(3)   $4 million per year for minor repairs

(4)   $6.6 million per year for equipment, transportation items and computers

(5)   $2 million per year for other divisions costs to support the State Parks Division

(6)   $25 million per year for major repairs

(7)   $7 million per year for acquisitions surrounding existing parks and necessary development

(8)   $8 million per year for acquisition and development of new state parks

(9)   $20 million per year for Local Park grants

Proposition 8 General Obligation bonds were approved by voters in 2001 to address a critical backlog of repairs.  This exceptional item requests appropriation of the remaining balance of $46 million in GO bonds over the 2008-09 biennium.  Approval of these amounts will allow the department to address major repair and maintenance needs, help prevent an unreasonable critical repair backlog and will fund specific projects, such as Levi Jordan, Battleship Texas and the San Jacinto Battleground approved by the Legislature.  Debt service associated with this request is $343 thousand in fiscal year 2008 and $2.4 million in fiscal year 2009 and will be requested by the Texas Public Finance Authority.
 

This exceptional item seeks $2.6 million of General Revenue each year to support game warden operations.  This funding will offset budgetary impacts resulting from increased operational costs such as fuel, utilities and consumable supplies and provides funding for Law Enforcement to maintain level manpower at 510 game wardens.  The request also includes $500 thousand each year to allow for the replacement of unsafe, higher mileage vehicles in a more timely manner.  General Revenue is being requested since services provided by game wardens benefit all citizens of the state, not just hunters, anglers and outdoor enthusiasts.  The game wardens’ work on hurricanes Katrina and Rita underscores the vital role that game wardens play in protecting and serving citizens.  Further, increased game warden involvement in homeland security activities and emergency management responsibilities has raised concerns regarding use of the traditional source of funding (Game, Fish and Water Safety Account 009) for non-fish and wildlife related enforcement efforts.  This general revenue would address the potential risk of losing federal funding.

House Bill 1989 of the 78^th Legislature authorized TPWD to create a freshwater fishing stamp, the proceeds of which were to be used for the repair, maintenance, renovation, or replacement of freshwater fish hatcheries in Texas or for the purchase of game fish to be stocked in the state’s public waters.   TPWD estimates that the total amount of funding available from the sale of the freshwater fishing stamp (including existing balances and revenue received in fiscal years 2008 and 2009) will total $23.6 million over the 2008-09 biennium.  This exceptional item requests that after satisfying debt service ($2.8 million per year relating to previous bond authority to fund the fish hatchery), the remaining $18.1 million of dedicated funds collected from the sale of this stamp be appropriated for completion of the construction of the East Texas Fish Hatchery in Jasper and for maintenance and repairs to other hatcheries statewide. 
 

The Battleship Texas represents an ongoing funding challenge for TPWD.  The 1914-era ship requires extensive multi-million dollar repair and maintenance projects every decade or so.  Critical repairs to the Battleship Texas and the construction of a permanent on site dry berth at the San Jacinto Battleground is estimated to cost $51.04 million.  The 79^th Legislature authorized the Texas Department of Transportation (TXDOT) to issue $16.1 million in federal Surface Transportation Enhancement Program (SAFE-TEA) funds for the Battleship Texas.  If approved by the federal highway agency and the TXDOT Commission, these SAFE-TEA funds will be used for the construction of a permanent dry berth for the ship.  An additional $12.425 million of remaining GO Bond (Proposition 8) authority is being requested for fiscal years 2008 and 2009 as a part of exceptional item number three to complete the construction of the dry berth, install emergency dewatering pumps, perform necessary steel hull repairs, and electrical system and wood deck repairs.

This exceptional item requests General Revenue for the balance of $22.5 million in fiscal year 2009 for the remaining critical repairs to the ship that include internal structural repairs, steel hull repairs to ship bottom, keels, and blister tanks, repairs to above deck superstructure, cranes and masts, installation of a heating/cooling system, ventilation and dehumidification systems, and additional electrical system upgrades.

The Texas State Railroad (TSRR), a historical railroad dating back to 1881, represents the single most costly state park to operate.  The TSRR currently offers service between Rusk and Palestine.  Due to the high costs associated with repairs, safe operations and maintenance, the TSRR is slated to become a static museum display at TPWD’s base level funding request.  This exceptional item requests $11.8 million of General Revenue over the biennium and 61.7 FTEs to continue the TSRR as a fully operational railroad.  The request would cover additional salary and operating costs, annual track maintenance, repairs and rail operations, equipment purchases and repair, land acquisition, and major repairs and construction required to resume full operations.   There would be continuing construction, equipment, repair and other costs associated with the proper maintenance and upkeep of the TSRR beyond the 2008-09 timeframe.

Rider Revisions and Additions Request  

Several rider revisions are requested in the appropriations request, but some of the more significant rider revisions include the continuation of appropriation of receipts out of General Revenue-Dedicated Accounts.  This rider allows any additional revenue in excess of the Comptroller’s Biennial Revenue Estimate to be appropriated to the department.  With the absorption of inflationary costs, this rider has been particularly helpful.

The department also requests appropriation from land sale proceeds that occur over the 2008-09 biennium as well as the ability to carry forward any unexpended balances from fiscal year 2007.  Within this rider request the Department is seeking appropriation of all of the land sale proceeds from the sale of the Game Warden academy for the purpose of constructing and equipping the new academy.  In the event the academy is sold in fiscal year 2007, any unexpended balances from the sale are requested to be appropriated in the 2008-09 biennium.  Finally, this rider is broad enough to allow us to use proceeds from the sale of Eagle Mountain Lake State Park if that property were to sell during the 2008-09 biennium for the acquisition and development of a new state park in the vicinity of Ft. Worth/Dallas. 

TPWD is one of 27 initial agencies that will be consolidated into the State Data Center.  All current data center costs associated with the future consolidation have been reported as professional services in our appropriations request for fiscal years 2008 and 2009.  Should the cost of the future data center consolidation exceed the department’s current costs, we request that General Revenue be appropriated to cover the increase.  General Revenue is requested because any costs in excess of the department’s current costs will be considered as costs needed to support the State, and we cannot use Game, Fish and Water Safety Account 009 funds to support expenses that are not fish and wildlife related or our federal partners will withdraw their funding support.   It is our understanding that the Department of Information Resources will work with the 80^th Legislature to ensure that agencies included in the State Data Center receive additional appropriation if the costs exceed the agency’s current funding level.

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