ADVOCACY REPORT
Ag Council Leads Coalition Requesting State Dollars to Reduce Fees at State Water Board
Also Working to Secure Funds for the Food Production Investment Program
While farmers face the extraordinary challenges of drought, supply chain obstacles, skyrocketing energy costs and more, some state officials are predicting an approximately $68 billion budget surplus in 2022–2023. Ag Council views the budget surplus as an opportunity to tackle issues the agricultural community faces. Our team is working to secure funding on several fronts, and while the overall drought issues remain a priority, I’ll highlight two additional, unique opportunities for you: 1) a funding request to lower water board fees and 2) support for the existing Food Production Investment Program (FPIP). Seeking Funds to Reduce Water Board Fees Ag Council is actively engaged with leadership at the State Water Resources Control Board (SWRCB) to explore creative ways to address budget challenges and curb the sharply rising fees and compliance processes impacting our members. California historically allocated general fund taxpayer dollars to offset costs of the SWRCB. However, over a decade ago the funds were stripped from the budget as the state experienced record deficits during the Great Recession. Ultimately, the SWRCB moved to a 100 percent fee-based system, and the board passed all administrative, program and regulatory costs onto the regulated community, with increases every year. This is where our members are feeling the pinch and paying ever increasing costs for certain SWRCB programs not related to agricultural programs.
At a meeting at the SWRCB last fall, Chair Joaquin Esquivel expressed concerns with the “cyclical” nature of the fee process and asked for a specific look at how to evaluate potential changes. To explore ways to reduce costs on all fronts, Ag Council has held meetings with SWRCB leadership to analyze the budget process and learn about the technology challenges and compliance costs of its regulatory programs. Ag Council continues to regularly conduct these meetings. Those conversations led to where we are today, and Ag Council is now urging Governor Gavin Newsom to utilize a portion of the state’s budget surplus to: 1) assist in offsetting certain foundational costs of SWRCB programs that generally benefit the public statewide and 2) assist in building a more robust reserve to be utilized during tough economic times, a concept similar to a “rainy day fund.” Specifically, Ag Council seeks a three-year general fund allocation of $150.9 million, which would cover programs such as Basin Planning, Groundwater Ambient Monitoring and Assessment and beach monitoring. Additionally, as the SWRCB strives to keep a five percent reserve fund, Ag Council is seeking a 10 percent reserve to allow more flexibility within the fee system. A one-time allocation of $24.9 million is requested for 10 percent reserve. If secured, the funding is not an elimination of state water board fees. Instead, the dollars would ensure those programs that benefit the public statewide are being paid for by general fund dollars, rather than by the farming community. Meanwhile, farmers would continue to pay for the operation of specific agricultural programs, such as the Irrigated Lands Regulatory Program.
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ALMOND FACTS
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