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.”

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Commission Agenda Item No. 1
Exhibit A

Fiscal Year 2024 Agency Budget by Strategy

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.

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Commission Agenda Item No. 1
Exhibit B

Fiscal Year 2024 Operating and Capital Budget by Division/Object of Expense

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

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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 24^th 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 24^th day of August, 2023.

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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 24^th 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 24^th day of August 2023.

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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