Commission Meeting Agenda Item No. 1
Presenter: Reggie Pegues
Action
Financial Overview
August 24, 2023
I. Executive Summary: Staff will present a summary of the Fiscal Year (FY) 2024 Operating and Capital Budget, including information on the Conservation and Capital 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: Staff will discuss the following with the Commission:
- Staff will present and discuss the FY 2024 Operating and Capital Budget, including the Conservation and Capital Account (5004);
- Staff will summarize the Commission’s Budget Policy and Investment Policy requirements;
- Staff will present the list of state parks that will serve as the basis for calculating the Legislative Budget Board performance measure “Number of State Parks in Operation” over the 2024-2025 biennium; and
- Staff will discuss Texas Parks and Wildlife Code section 11.032(c), which permissively allows Texas Parks and Wildlife Department (TPWD) to retain all boat-related fees in Fund 9, or to transfer up to 15 percent of those fees into Fund 64 on a monthly basis.
III. Recommendation: Staff recommends that the Commission adopt the following motions:
Motion one: “The Executive Director is authorized to expend funds to operate TPWD in accordance with the proposed FY 2024 Agency Budget by Strategy (Exhibit A), the FY 2024 Operating and Capital Budget by Division/Object of Expense (Exhibit B), the Budget Policy (Exhibit C), and the Investment Policy (Exhibit D).”
Motion two: “The Commission approves the FY 2024-2025 Biennium State Parks List and Change Procedures (Exhibit E) and authorizes TPWD to adjust the listing as necessary for accurate reporting.”
Motion three: “The Commission approves retaining 100 percent of all boat registration, titling, and related fees collected during FY 2024 in Fund 9.”
Attachments – 5
Commission Agenda Item No. 1
Exhibit A
Strategy | FY 2024 |
---|---|
A.1.1. Wildlife Conservation | $ 36,778,304 |
A.1.2. Technical Guidance | 9,292,666 |
A.1.3. Hunting and Wildlife Recreation | 2,342,451 |
A.2.1. Inland Fisheries Management | 16,638,472 |
A.2.2. Inland Hatcheries Operations | 7,635,480 |
A.2.3. Coastal Fisheries Management | 16,035,248 |
A.2.4. Coastal Hatcheries Operations | 3,972,043 |
B.1.1. State Park Operations | 97,603,014 |
B.1.2. Parks Minor Repair Program | 11,209,946 |
B.1.3. Parks Support | 6,741,460 |
B.2.1. Local Park Grants | 40,804,930 |
B.2.2. Boating Access and Other Grants | 12,669,974 |
C.1.1. Enforcement Programs | 64,840,069 |
C.1.2. Texas Game Warden Training Center | 3,098,738 |
C.1.3. Law Enforcement Support | 3,733,773 |
C.2.1. Outreach and Education | 2,974,505 |
C.2.2. Provide Communication Products | 5,811,397 |
C.3.1. License Issuance | 8,408,213 |
C.3.2. Boat Registration and Titling | 1,960,169 |
D.1.1. Improvements and Major Repairs | 72,401,513 |
D.1.2. Land Acquisition | 32,243,352 |
D.1.3. Infrastructure Administration | 7,910,410 |
D.1.4. Centennial Parks Conservation Fund* | 1,000,000,000 |
E.1.1. Central Administration | 10,774,304 |
E.1.2. Information Resources | 18,412,398 |
E.1.3. Other Support Services | 5,221,360 |
F.1.1. Salary Adjustments | 10,431,341 |
Fringe Benefits | 82,510,740 |
Estimated Uexpended Balances (UB) | 361,795,515 |
Total | 1,954,251,785 |
Method of Finance | FY 2024 |
---|---|
General Revenue (GR) | $ 1,413,456,373 |
GR Ded-Game, Fish and Water Safety | 198,490,110 |
GR Ded-State Parks | 48,866,340 |
GR Ded-Other | 11,849,328 |
Federal Funds | 256,390,863 |
Other Funds | 25,198,771 |
Total | $ 1,954,251,785 |
*Strategy D.1.4. Centennial Parks Conservation Fund includes $1 billion General Revenue (GR) contingent on voter approval of Senate Joint Resolution 74. Once approved, the $1 billion GR will be transferred out of TPWD to the Centennial Parks Conservation Fund outside the state treasury, to be used by TPWD for the creation and improvement of state parks per Senate Bill 1684. If not approved by the voters, the amounts will be reduced from TPWD’s budget.
Commission Agenda Item No. 1
Exhibit B
Division | Salaries & Other Personnel Costs |
Operating | Grants | Capital Budget | Fringe Benefits | Total Budget | FTEs |
---|---|---|---|---|---|---|---|
Coastal Fisheries | 10,721,852 | 6,393,752 | 0 | 766,817 | 4,353,182 | 22,235,603 | 190.0 |
Communications | 5,109,567 | 3,317,713 | 0 | 15,500 | 1,773,006 | 10,215,786 | 68.0 |
Departmentwide* | 13,764,137 | 1,028,284,392 | 0 | 0 | 0 | 1,042,048,529 | - |
Executive | 3,471,935 | 332,221 | 0 | 0 | 1,147,594 | 4,951,750 | 36.0 |
Financial Resources | 5,646,483 | 1,288,477 | 0 | 0 | 2,142,928 | 9,077,888 | 90.1 |
Human Resources | 2,217,666 | 408,367 | 0 | 0 | 794,988 | 3,421,021 | 35.0 |
Information Technology | 7,029,466 | 859,725 | 0 | 0 | 2,579,330 | 10,468,521 | 80.0 |
Infrastructure | 7,277,997 | 796,041 | 1,760,910 | 25,000 | 2,670,524 | 12,530,472 | 90.0 |
Inland Fisheries | 12,648,546 | 6,128,442 | 1,429,399 | 579,442 | 5,011,110 | 25,796,939 | 200.0 |
Law Enforcement | 54,461,066 | 11,582,936 | 0 | 3,343,002 | 21,730,879 | 91,117,883 | 653.0 |
Legal | 1,016,366 | 72,488 | 0 | 0 | 347,352 | 1,436,206 | 10.0 |
Local Parks | 2,597,138 | 1,139,726 | 43,927,846 | 0 | 934,305 | 48,599,015 | 21.0 |
State Parks | 73,364,258 | 27,518,585 | 0 | 13,028,370 | 32,552,839 | 146,464,052 | 1,354.8 |
Support Resources | 2,087,061 | 3,549,039 | 0 | 0 | 792,074 | 6,428,174 | 31.0 |
Wildlife | 19,942,156 | 13,965,576 | 4,948,349 | 312,161 | 5,680,629 | 44,848,871 | 302.0 |
Capital Construction | 0 | 0 | 0 | 72,401,513 | 0 | 72,401,513 | - |
Capital Information Technology | 0 | 0 | 0 | 10,414,047 | 0 | 10,414,047 | - |
Capital Land Acquisition | 0 | 0 | 0 | 30,000,000 | 0 | 30,000,000 | - |
Total | 221,355,694 | 1,105,637,480 | 52,066,504 | 130,885,852 | 82,510,740 | 1,592,456,270 | 3,160.9 |
Estimated UB | 361,795,515 | ||||||
Total with UB | $ 1,954,251,785 | 3,160.9 |
Commission Agenda Item No. 1
Exhibit C
BUDGET POLICY (CP-009)
It is the policy of the Commission to authorize the Executive Director or their designee to increase, decrease, or otherwise adjust the budget during the fiscal year based on revenue and expenditure information. Changes to the budget may include:
- Adjust the budget to bring unexpended balances forward from the prior fiscal year’s approved budgets.
- Adjust the budget for transfers between budgetary units, major expense categories, or line items.
- Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
- Approve and/or execute contracts and agreements necessary in the daily operation of TPWD. Revenues derived from interagency agreements may be budgeted and expended.
- Adjust the budget for appropriated revenues, such as the 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 to cover the budgeted amounts during the relevant fiscal year.
- Approve and/or execute construction, repair, or renovation budgets, contracts, agreements, and change orders (if necessary) to complete a project.
- Adjust the budget from one TPWD facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
- 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.
- Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of TPWD.
- Adjust the budget to place a TPWD facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
- Authorize classification changes anytime during a fiscal year, provided that such changes have been thoroughly justified and funds are available.
- Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized full-time equivalency (FTE) limit.
- Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
- 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.
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 on a monthly basis by the Chair, Vice-Chair, or commissioner designee, 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 law including administrative rules as set forth in the Texas Administrative Code.
Review
The Commission shall review this policy at least annually.
APPROVED this the 24th day of August 2023.
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 24th day of August, 2023.
Arch “Beaver” Aplin, III, Chairman
Dick Scott, Vice-Chairman
James E. Abell, Member
Oliver J. Bell, Member
Paul L. Foster, Member
Anna B. Galo, Member
Jeffery D. Hildebrand, Member
Robert L. “Bobby” Patton, Jr., Member
Travis B. “Blake” Rowling, Member
Commission Agenda Item No. 1
Exhibit D
INVESTMENT POLICY (CP-016)
All funds paid to Texas Parks and Wildlife Department (TPWD) pursuant to the Parks and Wildlife Code §11.042 or allocated to TPWD pursuant to Tax Code §151.801 must be deposited in the treasury with two exceptions: the Operation Game Thief Fund and the Texas Park Development Fund (Parks and Wildlife Code §21.101). 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 of Public Accounts.
Parks and Wildlife Code §11.065 requires 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 of Public Accounts.
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 Comptroller of Public Accounts. [1] 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
- Suitability of the investment for TPWD requirements
- Preservation and safety of the principal
- Liquidity
- Marketability
- Diversification of the portfolio
- Yield
- TPWD funds shall be held in the state treasury and invested by the Comptroller of Public Accounts under Gov’t Code §404.024.
- Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately.
- Bank accounts authorized by Gov’t Code §§403.241-403.252 and the General Appropriations Act (petty cash accounts and imprest accounts for the purchase of evidence and/or information and surveillance) 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 Chief Financial Officer (Signature and Approval Policy OP-03-03). Continuance of bank accounts is dependent upon timely and accurate records keeping and reporting.
II. Policy Guidelines
Texas Public Funds Investment Act: Investment Officer Designation and Reporting
- Pursuant to Gov’t Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds that are deposited into the state treasury and which are managed by the Comptroller of Public Accounts in accordance with Gov’t Code §404.024.
- In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or the Executive Director’s designee, shall identify and designate an Investment Officer or Investment Officers (Gov’t Code §2256.005).
- The designated TPWD Investment Officer(s) shall perform the functions and responsibilities required by the PFIA.
- 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.
- The Investment Officer(s) are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
- The Investment Officer(s) are required to provide a written copy of this Investment Policy to every business organization engaging in investment activity and must obtain written acknowledgement that the policy was received and reviewed, and that appropriate procedures and controls are in place to preclude unauthorized transactions.
- The Investment Officer(s) will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by 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 collateralizations that meets state requirements to cover the amount exceeding the deposit insurance limit.
- The Investment Officer(s) shall prepare reports of investment transactions for all funds managed under the PFIA within 45 days of the end of each quarter and distribute them to the members of the Commission, the Executive Director, and the Chief Financial Officer, as required by Gov’t Code §2256.023. These quarterly reports shall comply with statutory requirements for content.
- To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, the Investment Officer(s) shall prepare a report summarizing those legislative changes to the PFIA and distribute it to the members of the Commission, the Executive Director, and the Chief Financial Officer within six months of the end of a regular legislative session.
III. Review
The Commission shall review this policy at least annually pursuant to Gov’t Code §2256.005.
[1] Texas Treasury Safekeeping Trust Company
TPWD jointly manages another Texas Treasury Safekeeping Trust Company account for the purpose of holding funds recovered under federal and state laws by the designated natural resource trustees for the State of Texas (TPWD, General Land Office, and Texas Commission on Environmental Quality) for restoration of natural resources lost or injured by the unauthorized discharge or release of oil or hazardous substances. A decision on use and any investment of these funds is exclusively the joint decision of the designated natural resource trustees and does not involve the Commission.
APPROVED this the 24th day of August 2023.
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 24th day of August 2023.
Arch “Beaver” Aplin, III, Chairman
Dick Scott, Vice-Chairman
James E. Abell, Member
Oliver J. Bell, Member
Paul L. Foster, Member
Anna B. Galo, Member
Jeffery D. Hildebrand, Member
Robert L. “Bobby” Patton, Jr., Member
Travis B. “Blake” Rowling, Member
Commission Agenda Item No. 1
Exhibit E
Fiscal Year 2024-2025 Biennium State Parks 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 2024-2025 biennium.
The Texas Parks and Wildlife Department is authorized to adjust this list as needed throughout the 2024-2025 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 2024-2025 biennium will be presented to the Commission as part of the next state park listing (approval of the list for the 2026-2027 biennium).
Number | Name | County | Facility Type |
---|---|---|---|
1 | Abilene | Taylor | State Park |
2 | Albert and Bessie Kronkosky | Bandera/Kendall | State Natural Area |
3 | Atlanta | Cass | State Park |
4 | Balmorhea | Reeves | State Park |
5 | Bastrop | Bastrop | State Park |
6 | Big Bend Ranch | Brewster/Presidio | State Park |
7 | Big Spring | Howard | State Park |
8 | Blanco | Blanco | State Park |
9 | Bonham | Fannin | State Park |
10 | Brazos Bend | Fort Bend | State Park |
11 | Buescher | Bastrop | State Park |
12 | Caddo Lake | Harrison | State Park |
13 | Caprock Canyons and Trailway | Briscoe/Floyd/Hall | State Park |
14 | Cedar Hill | Dallas | State Park |
15 | Chinati Mountains | Presidio | State Natural Area |
16 | Choke Canyon | Live Oak/McMullen | State Park |
17 | Cleburne | Johnson | State Park |
18 | Colorado Bend | Lampasas/San Saba | State Park |
19 | Cooper Lake | Delta/Hopkins | State Park |
20 | Copper Breaks | Hardeman | State Park |
21 | Daingerfield | Morris | State Park |
22 | Davis Hill | Liberty | State Park |
23 | Davis Mountains | Jeff Davis | State Park |
24 | Devils River | Val Verde | State Natural Area |
25 | Devil’s Sinkhole | Edwards | State Natural Area |
26 | Dinosaur Valley | Somervell | State Park |
27 | Eisenhower | Grayson | State Park |
28 | Enchanted Rock | Gillespie | State Natural Area |
29 | Falcon | Starr | State Park |
30 | Fort Boggy | Leon | State Park |
31 | Fort Leaton | Presidio | State Historic Site |
32 | Fort Parker | Limestone | State Park |
33 | Fort Richardson | Jack | State Park and Historic Site |
34 | Franklin Mountains | El Paso | State Park |
35 | Galveston Island | Galveston | State Park |
36 | Garner | Uvalde | State Park |
37 | Goliad | Goliad | State Park and Historic Site |
38 | Goose Island | Aransas | State Park |
39 | Government Canyon | Bexar | State Natural Area |
40 | Guadalupe River/Honey Creek | Comal/Kendall | State Park and State Natural Area |
41 | Hill Country | Bandera/Medina | State Natural Area |
42 | Hueco Tanks | El Paso | State Park and Historic Site |
43 | Huntsville | Walker | State Park |
44 | Inks Lake | Burnet | State Park |
45 | Kickapoo Cavern | Edwards/Kinney | State Park |
46 | Lake Arrowhead | Clay | State Park |
47 | Lake Bob Sandlin | Titus | State Park |
48 | Lake Brownwood | Brown | State Park |
49 | Lake Casa Blanca | Webb | State Park |
50 | Lake Colorado City | Mitchell | State Park |
51 | Lake Corpus Christi | San Patricio | State Park |
52 | Lake Livingston | Polk | State Park |
53 | Lake Mineral Wells and Trailway | Parker/Palo Pinto | State Park |
54 | Lake Somerville | Burleson/Lee | State Park |
55 | Lake Tawakoni | Hunt | State Park |
56 | Lake Whitney | Hill | State Park |
57 | Lockhart | Caldwell | State Park |
58 | Longhorn Caverns* | Burnet | State Park |
59 | Lost Maples | Bandera/Real | State Natural Area |
60 | Lyndon B. Johnson | Gillespie | State Park and Historic Site |
61 | Martin Creek Lake | Rusk | State Park |
62 | Martin Dies Jr. | Jasper/Tyler | State Park |
63 | McKinney Falls | Travis | State Park |
64 | Meridian | Bosque | State Park |
65 | Mission Tejas | Houston | State Park |
66 | Monahans Sandhills | Ward/Winkler | State Park |
67 | Mother Neff | Coryell | State Park |
68 | Mustang Island | Nueces | State Park |
69 | Old Tunnel | Kendall | State Park |
70 | Palmetto | Gonzales | State Park |
71 | Palo Duro Canyon | Armstrong/Randall | State Park |
72 | Palo Pinto Mountains | Palo Pinto/Stephens | State Park |
73 | Pedernales Falls | Blanco | State Park |
74 | Possum Kingdom | Palo Pinto | State Park |
75 | Powderhorn | Calhoun County | State Park |
76 | Purtis Creek | Henderson/Van Zandt | State Park |
77 | Ray Roberts Lake | Cooke/Denton/Grayson | State Park |
78 | San Angelo | Tom Green | State Park |
79 | Sea Rim | Jefferson | State Park |
80 | Seminole Canyon | Val Verde | State Park and Historic Site |
81 | Sheldon Lake | Harris | State Park |
82 | South Llano River | Kimble | State Park |
83 | Stephen F. Austin | Austin | State Park |
84 | Tyler | Smith | State Park |
85 | Village Creek | Hardin | State Park |
86 | World Birding Center (WBC)/Bentsen-Rio Grande Valley | Hidalgo | State Park |
87 | WBC/Estero Llano Grande | Hidalgo | State Park |
88 | WBC/Resaca de la Palma | Cameron | State Park |