South Coast Air Quality Management District

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Executive Officer Proposal for Expenditure of Increased State Subvention Funding

SYNOPSIS: 

An increase in state subvention funding to local districts will result in an additional approximately $3 million for AQMD. This action is to summarize the initial proposed allocation of these additional funds.

COMMITTEE: 

Administrative, September 8, 2000, Reviewed

RECOMMENDED ACTION:

Receive and file the Executive Officer's proposed expenditure plan for additional subvention funds.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The air district subvention program was initiated in fiscal year 1972-73 in recognition that local air districts were performing functions whose costs should properly be covered by state funding sources. The funding level gradually increased until 1986-87 where it was held constant until this year, despite the fact that a number of factors added costs to local air districts that went unrecognized by the state subvention program. ¹. Over the last two years efforts were renewed to increase state subventions for local air districts. This year the effort has been successful in getting an increase in subvention funding approved in the state's budget.

¹ State mandated costs to local air districts increased as a result of enactment of major clean air laws (e.g., the Air Toxics "Hot Spots" Information and Assessment Act, 1987, the California Clean Air Act of 1988, etc.). Inflation reduced the purchasing power of subvention funding by 50%. Population growth significantly increased the number of regulated businesses, which contributed to increased baseline workload. Advancements in technology increased knowledge of the health risks of air pollution, as well as techniques to control pollution, which led to increased complexity and workload in the control of air pollution.

The California Air Pollution Control Officers' Association (CAPCOA) conducted a comprehensive strategy with emphasis on developing non-traditional constituencies (e.g., Central Valley agriculture) and identifying more effective contacts with the Governor to illustrate the importance of increased subvention funding to local air districts. CAPCOA did an excellent job of (1) documenting the purpose of the subventions program to dismiss arguments about the ability to raise fees to cover costs and the alleged short-term purpose of the original subventions and (2) identifying activities that could not be funded through fees.

Proposal

The Executive Officer has reviewed current agency needs in the areas of enforcement and compliance and has reviewed those items initially requested by staff, but removed from the proposed AQMD budget due to fiscal constraints, to develop the attached list. The items are arranged in priority order and will be funded in that order, based on additional subvention monies received. Generally speaking, about half of the anticipated $3 million will be used to hire permit processing engineers and inspectors. This would result in about a 15% increase in permit processing staff and would allow us to have inspectors in all the designated geographic sectors rather than having sectors share an inspector. In addition, the purchase of some source test and other laboratory equipment needed for compliance analysis had been deferred due to budget constraints. The Executive Officer now proposes to move forward to make needed equipment purchases. Additional resources are also needed in the District Prosecutor's Office, Public Affairs Office, and Area Sources to facilitate and enhance compliance by providing compliance assistance, customer service, and response to complaints.

Fiscal Impacts

These funds will constitute a budget augmentation for which public notice is required to be given. Staff will return to the Board as soon as practicable with the appropriate request for the Board's approval to augment the FY 00-01 budget with the exact amount of additional subvention funds to be received, when that amount is ascertained.

Attachment

Priority List of Items to be Funded from Increased Subvention Funds

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