CWCB Construction Fund and Severance Tax Trust Fund Annual Report 1999

• Year: 1999
• Title: Construction Fund and Severance Fund Tax Trust Fund Annual Report
• CWCB Section: Agency-wide
• Publications - Doc Type: CF Annual Report

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Source Revenue 1
Oil and Gas $23,249,000
Coal 10,160,000
Metals 494,000
Total $33,903,000
Half of the severance tax revenue goes to local governments via the Energy and 1
Mineral Impact Grant Program and direct distribution to local governments. The other
half goes to the state's Severance Tax Trust Fund. Revenue to the Trust Fund is then
divided equally between the Operational Account and the Perpetual Base Account. Thus
in 1999, $16,951,000 was distributed to the Severance Tax Trust Fund with half
($8,476,000) going to the Operational Account and half to the Perpetual Base Account.
3.2 Operational Account I
One-half of the severance tax receipts credited to the Severance Tax Trust Fund for
tax years commencing on and after July 1, 1995, shall be credited to the Operational
Account of the Severance Tax Trust Fund. Money in the Operational Account shall be
used to fund programs established within the Colorado Oil and Gas Conservation
Commission, the Colorado Geological Survey, the Division of Minerals and Geology,
and the Colorado Water Conservation Board.
The programs supported by the Operational Account must promote and encourage I
sound natural resource planning, management, and development related to minerals,
energy, geology, and water. The General Assembly may appropriate moneys from the
total moneys available in the Operational Account to fund recommended programs as
follows:
Colorado Oil and Gas Conservation Commission 45% '
Colorado Geological Survey 20%
Division of Minerals and Geology 30%
Colorado Water Conservation Board 5%
For the fiscal years commencing on or after July 1, 1997, the Executive Director of
the Department of Natural Resources shall submit with the department's budget request
for each fiscal year a list and description of the programs the Executive Director
recommends to be funded from the Operational Account. The MEGA Board shall
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provide advice to the Executive Director on programs or projects that should receive a
grant of funds from the Operational Account and shall also review the Executive
Director's recommendation before submittal.
In the recent past, the four state agencies and the MEGA Board have proposed using
significantly less than the full allotted amount per agency in order to build up the cash
reserves in the Operational Account. In FY98 and FY99 the sum of $100,000 and
$275,000 was appropriated respectively in the Long Bill from the Operational Account
for use by the CWCB during the fiscal year. Any unused funds revert back to the
Operational Account. The Board's request for a total of $500,000 in FY00 has been —
CWCB FY99 Annual Report,page 20