Commission Agenda Item No. 1
Presenter: Mike Jensen

Financial Overview
August 22, 2019

I.     Executive Summary: The staff will present a summary of the Fiscal Year (FY) 2020 Operating and Capital Budget, including the Capital Conservation Account, Texas Parks and Wildlife Code section 11.032(c) deposit options regarding boat-related fees; and the Texas Parks and Wildlife Commission’s (Commission) Budget and Investment policies.

II.     Discussion: The staff will discuss the following with the Commission:

III.      Recommendation: The staff recommends the Commission adopt the following motions:

“The Executive Director is authorized to expend funds to operate the Texas Parks and Wildlife Department in accordance with the proposed FY 2020 Operating and Capital Budget (Exhibits A and B), the Budget Policy (Exhibit C), and the Investment Policy (Exhibit D).”

“The Commission approves the State Parks Listing (Exhibit E) and authorizes TPWD to adjust the listing as necessary for accurate reporting.”

“The Commission approves retaining 100 percent of all boat registration, title, and sales tax revenue collected during FY 2020 in Fund 9.”

Attachments – 5

  1. Exhibit A – FY 2020 Agency Budget by Strategy
  2. Exhibit B – FY 2020 Operating and Capital Budget by Division/Object of Expense
  3. Exhibit C – Budget Policy
  4. Exhibit D – Investment Policy
  5. Exhibit E – FY 2020-2021 Biennium State Parks List and Change Procedures

Commission Agenda Item No. 1
Exhibit A

Fiscal Year 2020 Agency Budget by Strategy
Strategy AY2020
A.1.1. Wildlife Conservation 35,486,394
A.1.2. Technical Guidance 9,923,789
A.1.3. Hunting and Wildlife Recreation 2,331,533
A.2.1. Inland Fisheries Management 15,875,668
A.2.2. Inland Hatcheries Operations 7,090,202
A.2.3. Coastal Fisheries Management 14,327,840
A.2.4. Coastal Hatcheries Operations 3,603,688
B.1.1. State Park Operations 80,923,743
B.1.2. Parks Minor Repair Program 4,985,592
B.1.3. Parks Support 5,724,167
B.2.1. Local Park Grants 24,469,383
B.2.2. Boating Access and Other Grants 9,070,568
C.1.1. Enforcement Programs 61,072,292
C.1.2. Texas Game Warden Training Academy 2,730,481
C.1.3. Law Enforcement Support 2,782,462
C.2.1. Outreach and Education 3,879,658
C.2.2. Promote TPWD Efforts 5,541,827
C.3.1. License Issuance 8,143,409
C.3.2. Boat Registration and Titling 1,670,280
D.1.1. Improvements and Major Repairs 84,652,481
D.1.2. Land Acquisition 4,083,476
D.1.3. Infrastructure Administration 6,808,555
D.1.4. Debt Service 710,911
E.1.1. Central Administration 10,543,334
E.1.2. Information Resources 14,047,880
E.1.3. Other Support Services 4,343,894
Fringe Benefits 72,967,949
Total 497,791,456
Method of Finance AY2020
General Revenue 184,653,880
GR Ded-Game, Fish, and Water Safety 146,559,473
GR Ded-State Parks 71,740,062
GR Ded-Other 168,233
Federal Funds 72,001,587
Other Funds 22,668,221
Total 497,791,456

Commission Agenda Item No. 1
Exhibit B

Fiscal Year 2020 Operating and Capital Budget by Division/Object of Expense
Division Salaries & Other Personnel Costs Operating Grants Debt Service Capital Budget Fringe Benefits Total Budget FTEs
Coastal Fisheries 10,272,846 5,793,178 10,000   200,817 4,339,799 20,616,640 192.0
Communications 4,514,873 3,318,274 373,843   33,459 1,754,105 9,994,554 73.0
Departmentwide   39,881,576 2,000,000 710,911 1,527,830   44,120,317 0.0
Executive 1,965,076 262,961       614,281 2,842,318 21.0
Financial Resources 6,066,705 806,534       2,103,737 8,976,976 108.0
Human Resources 2,200,122 246,407       799,214 3,245,743 36.0
Information Technology 5,509,807 990,486       1,779,596 8,279,889 83.0
Infrastructure 6,462,498 475,824 1,790,536   201,788 2,216,065 11,146,711 97.0
Inland Fisheries 11,719,825 7,297,161 70,268   831,642 5,513,106 25,432,002 211.0
Law Enforcement 47,274,768 11,753,541   5,919,658   21,102,011 86,049,978 681.8
Legal 892,254 59,999       261,072 1,213,325 10.0
Local Parks 1,681,195 678,361 28,175,669     722,100 31,257,325 20.0
State Parks 57,254,601 28,991,748     2,064,089 22,269,823 110,580,261 1,322.2
Support Resources 1,918,805 3,187,891     69,739 677,594 5,854,029 32.0
Wildlife 19,138,387 4,492,088 4,496,000   659,161 8,815,446 37,601,082 332.5
Capital Construction         83,882,742   83,882,742 0.0
Capital Information Technology         6,697,564   6,697,564 0.0
Capital Land Acquisition             0 0.0
Total 176,871,762 108,236,029 36,916,316 6,630,569 96,168,831 72,967,949 497,791,456 3,219.5

Note: The above FTE numbers are budgeted FTEs. GAA FTE cap for TPWD is 3,204.6

Commission Agenda Item No. 1
Exhibit C


It is the policy of the Texas Parks and Wildlife Commission (Commission) to authorize the Executive Director to approve and execute or have executed on his behalf, expenditures, budget adjustments and transfers as follows:

  1. Adjust the budget to bring unexpended balances forward from prior year approved budgets.
  2. Adjust the budget for transfers between budgetary units, major expense categories, or line items.
  3. Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
  4. Approve and/or execute contracts and interagency agreements necessary in the daily operation of the Department.  Revenues derived from interagency agreements may be budgeted and expended.
  5. Adjust the budget for appropriated revenues, such as sale of equipment, donations, concessions, escrow, refunds, insurance proceeds, and publications revenue, so long as the expenditures are in agreement with the stated program goals and there will be sufficient cash during the fiscal year.
  6. Approve and/or execute construction, repair, or renovation budgets, contracts, interagency agreements, and change orders if necessary to complete a project as approved by the Commission.  Adjust the budget from one Department facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
  7. Allocate super combo license revenue to the related stamp funds according to the documented methodology and authorize the related transfers of revenue to appropriate accounts.
  8. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
  9. Adjust the budget to place a Department facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
  10. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
  11. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.
  12. Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
  13. Approve and/or execute the reimbursement of construction project costs with the proceeds of tax-exempt bonds issued by the Texas Public Finance Authority, pursuant to federal Internal Revenue Code guidelines.
  14. The Chair or Vice Chair of the Commission, or a Commissioner designee of the Chair or Vice Chair, is authorized to increase, decrease or otherwise adjust the budget during the fiscal year based on revenue and expenditure information and document those actions as noted below.  Any budget adjustments that exceed a threshold of $250,000, excluding federal and bond funds, require the prior approval of the Chair, Vice Chair, or Commissioner designee through such means as a conference call or memo. Donations or gifts exceeding $500 shall be accepted by the Chair, Vice Chair, or Commissioner designee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

Subject to notification of the Commission of any changes to previously discussed purposes or uses of funds, TPWD is authorized to use dedicated accounts and sub-accounts for purposes consistent with those outlined in relevant statutory provisions or administrative rules as set forth in the Texas Administrative Code.

This policy shall rescind any existing policy on budget adjustments and transfers.

             APPROVED this the 22nd day of August 2019.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 22nd day of August 2019.


Commission Agenda Item No. 1
Exhibit D


All funds paid to Texas Parks and Wildlife Department (TPWD) pursuant to the Texas Parks and Wildlife Code (Parks and Wildlife Code) or allocated to TPWD per §151.801 of the Texas Tax Code are required by §11.042 of the Parks and Wildlife Code to be deposited in the treasury with two exceptions, the Operation Game Thief Fund and the Texas Park Development Fund.  The Operation Game Thief Fund is held outside the treasury and, as authorized by Parks and Wildlife Code §12.201, is invested according to rules adopted by the Operation Game Thief Committee.  Therefore, the investment of the Operation Game Thief Fund is not governed by this Investment Policy. Although not required, the Texas Park Development Fund is and will continue to be deposited in the treasury and invested by the Comptroller.

Parks and Wildlife Code §11.065 authorizes the commission to adopt rules for investment of the Lifetime License Endowment Account.  The Lifetime License Endowment Account is and will continue to be deposited in the treasury and invested by the Comptroller.

In addition, TPWD has established an account at The Texas Treasury Safekeeping Trust Company, an organization created by the Texas Legislature to invest and safeguard funds for the state and various subdivisions whose sole shareholder and director is the Texas Comptroller of Public Accounts.  TPWD’s account at The Texas Treasury Safekeeping Trust Company is for the purpose of accepting donations of marketable securities which shall be held only until accepted by the Commission.  Donations of marketable securities shall be sold promptly upon acceptance by the Commission and the proceeds shall be deposited into the treasury.

I.      Objectives of TPWD

  1. Suitability of the investment to TPWD requirements
  2. Preservation and safety of principal
  3. Liquidity
  4. Marketability
  5. Diversification of the portfolio
  6. Yield

II.  Policy Guidelines

  1. TPWD funds shall be held in the state treasury and invested by the Comptroller under Texas Government Code §404.024.
  2. Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately.
  3. Bank accounts authorized by the General Appropriations Act of the 86th Legislature, Article VI, Rider 3, and Texas Government Code §403.241-403.252 and §660.025 (petty cash accounts and imprest accounts for the purchase of evidence) should be either interest-bearing accounts or accounts with no fees.  Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund. The establishment of any petty cash or imprest bank accounts must be approved by the TPWD’s Chief Financial Officer (Signature and Approval Policy OP-03-03).  Continuance of bank accounts is dependent upon timely and accurate record keeping and reporting. 

III. Texas Public Funds Investment Act:  Investment Officer Designation and Reporting

  1. Pursuant to Texas Government Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds which are deposited into the state treasury and which are managed by the Texas Comptroller of Public Accounts in accordance with Texas Government Code §404.024.  Therefore, TPWD does not presently have any funds on deposit outside the treasury subject to the PFIA.
  2. In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or designee, shall identify and designate an Investment Officer.
    1. The designated TPWD Investment Officer, or Officers, shall perform the functions and responsibilities required by the PFIA.
    2. The Investment Officer(s) shall attend investment training at least once each state fiscal biennium from a program recommended by the Texas Higher Education Coordinating Board.
    3. The Investment Officers are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
    4. The Investment Officers are required to provide a written copy of the investment policy to every business organization engaging in investment activity with TPWD and must obtain written acknowledgement that the policy was received and reviewed and appropriate procedures and controls are in place to preclude unauthorized transactions.
    5. The Investment Officers will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by Federal Deposit Insurance Corporation (FDIC) up to the FDIC deposit insurance limit, currently $250,000.  If at any time deposits exceed the FDIC deposit insurance limit in any financial institution, the custodian of the affected account(s) is required to obtain collateralization that meets state requirements to cover the amount exceeding the deposit insurance limit.
    6. Reports of investment transactions for all funds managed under the PFIA shall be prepared within 45 days of the end of each quarter and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer as required by § 2256.023.  These quarterly reports shall comply with state requirements for content.
    7. To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, a report summarizing those legislative changes to the PFIA shall be prepared and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer within six months of the end of a regular legislative session. 

IV.   Review — The Texas Parks and Wildlife Commission shall review this policy at least annually. 

                  APPROVED this the 22nd day of August 2019.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 22nd day of August 2019.


Commission Agenda Item No. 1
Exhibit E

Fiscal Year 2020-2021 Biennium State Park List and Change Procedures

This list will serve as the starting point for calculating the performance measure “Number of State Parks in Operation” for the 2020-2021 biennium.

The Texas Parks and Wildlife Department is authorized to adjust this list as needed throughout the 2020-2021 biennium to reflect deletion, transfer, or addition of sites to the park inventory.

This list will be updated and presented to the Texas Parks and Wildlife Commission (Commission) for approval before the start of each biennium (every two years).  Any adjustments made to this list during the 2020-2021 biennium will be presented to the Commission as part of the next State Park listing (approval of the list for the 2022-2023 biennium).

Count Facility Name County Facility Type
1 Abilene Taylor State Park
2 Albert & Bessie Kronkosky Bandera/Kendall State Natural Area
3 Atlanta Cass State Park
4 Balmorhea Reeves State Park
5 Bastrop Bastrop State Park
6 Battleship Texas* Harris State Historic Site
7 Big Bend Ranch Brewster/Presidio State Park
8 Big Spring Howard State Park
9 Blanco Blanco State Park
10 Bonham Fannin State Park
11 Brazos Bend Fort Bend State Park
12 Buescher Bastrop State Park
13 Caddo Lake Harrison State Park
14 Caprock Canyons & Trailway Briscoe/Floyd/Hall State Park
15 Cedar Hill Dallas State Park
16 Chinati Mountains Presidio State Natural Area
17 Choke Canyon Live Oak/McMullen State Park
18 Cleburne Johnson State Park
19 Colorado Bend Lampasas/San Saba State Park
20 Cooper Lake Delta/Hopkins State Park
21 Copper Breaks Hardeman State Park
22 Daingerfield Morris State Park
23 Davis Hill Liberty State Natural Area
24 Davis Mountains Jeff Davis State Park
25 Devil’s River Val Verde State Natural Area
26 Devil’s Sinkhole Edwards State Natural Area
27 Dinosaur Valley Somervell State Park
28 Eisenhower Grayson State Park
29 Enchanted Rock Gillespie State Natural Area
30 Fairfield Lake Freestone State Park
31 Falcon Starr State Park
32 Fort Boggy Leon State Park
33 Fort Leaton Presidio State Historic Site
34 Fort Parker Limestone State Park
35 Fort Richardson Jack State Park & Historic Site
36 Franklin Mountains El Paso State Park
37 Galveston Island Galveston State Park
38 Garner Uvalde State Park
39 Goliad Goliad State Park & Historic Site
40 Goose Island Aransas State Park
41 Government Canyon Bexar State Natural Area
42 Guadalupe River/Honey Creek Comal/Kendall State Park
43 Hill Country Bandera/Medina State Natural Area
44 Hueco Tanks El Paso State Park & Historic Site
45 Huntsville Walker State Park
46 Inks Lake Burnet State Park
47 Kickapoo Cavern Edwards/Kinney State Park
48 Lake Arrowhead Clay State Park
49 Lake Bob Sandlin Titus State Park
50 Lake Brownwood Brown State Park
51 Lake Casa Blanca Webb State Park
52 Lake Colorado City Mitchell State Park
53 Lake Corpus Christi San Patricio State Park
54 Lake Livingston Polk State Park
55 Lake Mineral Wells & Trailway Parker/Palo Pinto State Park
56 Lake Somerville SP Burleson/Lee State Park
57 Lake Tawakoni Hunt State Park
58 Lake Whitney Hill State Park
59 Lockhart Caldwell State Park
60 Longhorn Cavern** Burnet State Park
61 Lost Maples Bandera/Real State Natural Area
62 Lyndon B. Johnson Gillespie State Park & Historic Site
63 Martin Creek Lake Rusk State Park
64 Martin Dies Jasper/Tyler State Park
65 McKinney Falls Travis State Park
66 Meridian Bosque State Park
67 Mission Tejas Houston State Park
68 Monahans Sandhills Ward/Winkler State Park
69 Mother Neff Coryell State Park
70 Mustang Island Nueces State Park
71 Old Tunnel Kendall State Park
72 Palmetto Gonzales State Park
73 Palo Duro Canyon Armstrong/Randall State Park
74 Palo Pinto Mountains Palo Pinto/Stephens State Park
75 Pedernales Falls Blanco State Park
76 Possum Kingdom Palo Pinto State Park
77 Purtis Creek Henderson/Van Zandt State Park
78 Ray Roberts Lake SP Cooke/Denton/Grayson State Park
79 San Angelo SP Tom Green State Park
80 Sea Rim Jefferson State Park
81 Seminole Canyon Val Verde State Park & Historic Site
82 Sheldon Lake Harris State Park
83 South Llano River SP Kimble State Park
84 Stephen F. Austin Austin state Park
85 Tyler Smith State Park
86 Village Creek Hardin State Park
87 WBC/Bentsen-Rio Grande Valley Hidalgo State Park
88 WBC/Estero Llano Grande Hidalgo State Park
89 WBC/Resaca de la Palma Cameron State Park

* Pending the terms of a memorandum of understanding, TPWD will transfer the operations of this site, which may impact its inclusion on this list in the future

** Not operated by TPWD