Deep Creek Lake PRB Meeting Budget Update 25 April 2016 Mark L. Hoffman Assistant Secretary, Mission Support Department of Natural Resources

Mission Support Department of Natural Resources Introduction Mark L. Hoffman Assistant Secretary, Mission Support Department of Natural Resources

Goals for Deep Creek Lake Common Ground to protect the lake as a man-made resource, preserve its ecological balance, and maintain its use as a recreational and economic asset. Unique situation - Water and buffer strip are publicly owned and managed by DNR - private land surrounding Needs to be a partnership

Background Role of the PRB The DCL Fund The State budget process State accounting and fiscal management

Role of the Deep Creek Lake Policy and Review Board Natural Resources Article §5-216 (g) (1) The Board shall review and advise the Secretary on matters that relate to the Deep Creek Lake Recreation Maintenance and Management Fund and the Deep Creek Lake management program. (2) The Board may review and make recommendations to the Secretary on budgetary matters that concern the management and maintenance of the lake and buffer area. Desired Outcome: Institutionalize DNR-PRB engagement to a fulfill (g).

Deep Creek Lake Recreation Maintenance and Management Fund Natural Resources Article §5–215 (b)   There is a Deep Creek Lake Recreation Maintenance and Management Fund in the Department for the maintenance and management of the land, recreational facilities, and services that are related to Deep Creek Lake in Garrett County.

Natural Resources Article §5–215 (continued) (c)    (1)   Except as provided in paragraphs (2) and (4) of this subsection, the Department shall pay all fees collected for boat launching at Deep Creek Lake State Park, all funds collected from lake and buffer use permits, contracts, grants, and gifts as a result of the Deep Creek Lake management program into the Fund. (2)   At the end of each quarter of the fiscal year, the Department shall pay 25% of the total revenue collected during the quarter under paragraph (1) of this subsection to the Board of County Commissioners of Garrett County. (3)    (i)   The Fund is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article. (4)   Moneys in the Fund may be used for administrative costs calculated in accordance with § 1-103(b)(2) of this article. (d)   Unless there is an agreement between the Secretary and the Deep Creek Lake Policy and Review Board as to a proposed change, the fee for issuance and processing of any permit covered under subsection (c) of this section may not be changed.

Natural Resources Article §1–103 (b)    (1)   The Secretary is responsible for the budget of his office and for the budgets of the units within the Department. (2)    (i)   Unless otherwise authorized by statute, the Secretary may use money in a fund or account created under this article for administrative expenses directly relating to the purposes of the Fund or account up to an amount calculated under a generally accepted methodology for determining indirect costs. (ii)   The Secretary shall submit any changes to the methodology used under subparagraph (i) of this paragraph for review and comment to the House Appropriations Committee and the Senate Budget and Taxation Committee within 45 days before implementing the methodology. → Pays for Office of the Secretary, Office of the Attorney General, Finance and Administrative Services, Human Resource Services, Information Technology Services and Office of Communications. FY 2015 Rate = 13%.

State of Maryland Budget Process Aug-Sep: Agencies prepare budgets in accord with guidelines issued by Department of Budget and Management (DBM). = Request (pre-decisional) Oct-Dec: DBM reviews agency submission, makes final recommendations to Governor. Jan: Governor submits budget to General Assembly. = Allowance Jan-Apr: General Assembly reviews budget and passes budget bill. = Appropriation Jul 1: Fiscal Year begins, appropriation available for use by State agencies. Can not make expenditures without appropriation. Budget amendments: Mid-year changes to appropriation. Require review by General Assembly and approval of Governor.

State Accounting and Fiscal Management Follow Generally Accepted Accounting Principals for State Governments. Rolling three-year audits by the Office of Legislative Audits (a component of the General Assembly). 1 July to 30 June Fiscal Year. Fund accounting. Information is public. Structure – Unit-program-subprogram (DC21 Deep Creek NRMA)

Revenue FY 2015 Actual Revenue (DC21; Deep Creek NRMA)   Actual Revenue (DC21; Deep Creek NRMA) Lake Use Permits (5889) $ 824,000 Land Rent (7956) $ 60,497 Miscellaneous $ 10,222 Subtotal $ 894,739

DCL LMO FY 2015 Expenditure Expenditures (DC21; Deep Creek NRMA) Obj 01: Salaries and Wages $ 74,304 Obj 02:Contractual Salaries $ 95,793 Obj 03:Communications $ 9,245 Obj 04: Travel $ 1,607 Obj 06: Utilities $ 6,494 Obj 07: Motor Vehicle Operations $ 27,036 Obj 08:Contractual Services $ 365,409 Obj 09:Supplies $ 21,077 Obj 10:Equpment-Replacement $ 16,470 Obj 11:Equipment-Additional $ 1,766 Obj 12:County Refund $ 217,733 Subtotal (DC21) $ 836,935

Detailed Financial Statements/Reviews Questions/Discussion DNR Handout Questions/Discussion