Laserfiche WebLink
<br />resources we take those monles that we collect from the <br /> <br />depletion, which is the severance tax, and we reinvest it. <br /> <br />And this is the existing statute. It says it is to be used <br /> <br />as a replacement for depleted natural resources and for the <br /> <br />development and conservation of the state's water resources. <br /> <br />That's what we're doing. And I think it's consistent with <br /> <br />the intent and I think there's a definite need out there for it. <br /> <br />Chairperson Fitz-Gerald: <br /> <br />Senator Grossman? <br /> <br />Senator Grossman: <br /> <br />Thank you, Madame Chair. <br /> <br />A couple of responses to Senator McElhany's question. <br /> <br />First off, the way that--pretty much all of the severance <br /> <br />tax money that we collect is used and is distributed pursuant to <br /> <br />a grant program. <br /> <br />For example, the Department of Local Affairs, which is 50 <br /> <br />percent of the severance tax that comes in, is administered <br /> <br />through the Department of Local Affairs through a grant process. <br /> <br />Some of them are--there's a tight neck that's between the <br /> <br />severance and the impact that that severance has on the <br /> <br />communities from which they're extracted. <br /> <br />Some of them, maybe <br /> <br />not so much. <br /> <br />For example, the wireless communications <br /> <br />initiative doesn't really have much to do with minerals being <br /> <br />extracted, but those are nonetheless done through a grant <br /> <br />process through DOA. <br /> <br />- 10 - <br />