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002548 . . " ,.J' EXECUTIVE DIRECTOR'S MONTHLY REPORT TO THE COLORADO RIVER BOARD OF CALIFORNIA AUl!ust 19.2003 ADMINISTRATION CRR Budget for FY 03/04 As you are aware, the State's financial challenges continue to escalate. The Colorado River Board's budget for FY03/04 has had its General Fund contribution reduced from $192,000 to zero. Also, there is a legislative mandate to eliminate 16,000 positions from state government. AGENCY MANAGERS MEETING Nevada's Prooosal for Suoolemental Water from the Colorado River On July 28th, the Southern Nevada Water Authority briefed the Agency Managers and a number of Board members on the State of Nevada's proposal for modifying the Interim Surplus Guidelines, in order to receive supplemental water from the Colorado River due to the failure of the southern California water agencies to execute the Quantification Settlement Agreement. Nevada proposes that the Secretary of the Interior modify the Interim Surplus Guidelines (IGS) for Nevada, both with respect to when surplus eonditions exist and the amount available annually, without modifying the total amount that was to be available to Nevada over the l4-year period. The modified ISG would determine that a surplus condition will exist each year through 2016 and that 60,000 aCIe-feet per year of surplus will be available for Nevada's use annually for domestic purposes without further limitation as to use. CONSENT ITEMS Lower Colorado Water Supolv Proiect Work is continuing on the Lower Colorado Water Supply Project (Project). As a consent item, I have included in the Board folder the fourth submittal of applications for Lower Colorado Water Supply Project water. I am requesting that the Board recommend to the U. S. Bureau of Reclamation (Reclamation), with the approval of Resolution 2003-1, that the following applicants are eligible to receive Project water and that the City of Needles should offer a subcontract to each applicant.