The 2009 Executive Budget Document
Department of Mines, Minerals and Energy
Mission Statement
It is the mission of the Department of Mines, Minerals and Energy (DMME) to enhance the development and conservation of energy and mineral resources in a safe and environmentally sound manner to support a more productive economy.
Operating Budget History
| General Fund | Nongeneral Fund | Positions | |
|---|---|---|---|
| 2005 Appropriation | $ 9,545,182 | $ 17,845,337 | 237.00 |
| 2006 Appropriation | $ 9,574,799 | $ 17,845,337 | 236.00 |
| 2007 Appropriation | $ 12,917,049 | $ 18,601,968 | 240.00 |
| 2008 Appropriation | $ 11,787,097 | $ 18,601,968 | 240.00 |
| General Fund | Nongeneral Fund | Positions | |
|---|---|---|---|
| 2009 Base Budget | $ 12,912,049 | $ 20,844,848 | 243.00 |
| 2009 Addenda | $ (809,116) | $ 0 | (9.00) |
| 2009 Total | $ 12,102,933 | $ 20,844,848 | 234.00 |
| 2010 Base Budget | $ 13,044,566 | $ 20,844,848 | 243.00 |
| 2010 Addenda | $ 1,103,875 | $ 475,560 | (9.00) |
| 2010 Total | $ 14,148,441 | $ 21,320,408 | 234.00 |
Recommended Operating Budget Addenda
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Replace reduced federal funding for state energy programProvides general fund dollars to replace the 25 percent reduction in federal grant funding for the Division of Energy. Dollars will be used to support personnel and programs that provide outreach to the general public to implement and assist energy efficiency efforts. For 2010, $182,000 (GF).
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Reflect Governor’s October reductions in agency budgetsReflects the reductions approved by Governor Kaine in October 2008 for 2009 and the corresponding continuation of savings in 2010. See Part D of this document for reduction details. For 2009, a decrease of $600,891 (GF) and nine positions. For 2010, a decrease of $1.0 million (GF) and an increase of $436,862 (NGF).
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Implement targeted reductionsImplements targeted reductions for 2009 and 2010 included in Governor Kaine's 2008-2010 Budget Reduction Plan. Reduction details can be found in Part D of this document. For 2009, a decrease of $208,225 (GF). For 2010, a decrease of $74,873 (GF) and an increase of $38,698 (NGF).
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Provide funding for the Solar Photovoltaic Manufacturing Incentive Grant and expand eligibilityProvides funding and revises the existing eligibility for the Solar Photovoltaic Manufacturing Incentive Grant to include additional renewable energy types. For 2010, $2.0 million (GF).
Budget Reduction Strategies
October Reduction Strategies
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Consolidate field offices
Combine agency field offices in Abingdon and Keen Mountain to a more centralized office in Lebanon.
FY 2009 FY 2010 General Fund Savings $ (20,000) $ (40,000) -
Defer filling a vacant energy management training coordinator position
Defer filling a vacant energy management training coordinator position in the Virginia Energy Management Program until FY 2010.
FY 2009 FY 2010 General Fund Savings $ (54,882) $ 0 -
Delay filling vacant energy management specialist/program manager position
Delay filling a vacant specialist/program manager position in the Virginia Energy Management Program until January 2009.
FY 2009 FY 2010 General Fund Savings $ (46,027) $ 0 -
Eliminate a vacant stores and warehouse specialist position
Eliminate a vacant stores and warehouse specialist position and divide the position's responsibilities among current staff.
FY 2009 FY 2010 General Fund Savings $ (17,466) $ (34,931) -
Eliminate six positions in the Division of Geology and Mineral Resources
This is one of four separate strategies impacting the Division of Geology and Mineral Resources (DGMR). This strategy eliminates six positions in the division.
FY 2009 FY 2010 General Fund Savings $ (10,820) $ (287,470) Position Changes (6.00) (6.00) Layoffs 6 0 -
Eliminate three positions in the Division of Geology and Mineral Resources
This is one of four separate strategies impacting the Division of Geology and Mineral Resources (DGMR). This strategy downsizes the Division of Geology and Mineral Resources by eliminating three positions and supplanting general funds with federal funds.
FY 2009 FY 2010 General Fund Savings $ (103,192) $ (206,383) Position Changes (3.00) (3.00) Layoffs 3 0 -
Increase pool bond administration fees
Increase administration fees for the Coal Pool Bond Fund. Additional revenue earned by this increase will be transferred to the general fund. Fee increase requires agreement from the Pool Bond Advisory Committee before going into effect.
FY 2009 FY 2010 General Fund Savings $ (41,700) $ (41,700) NGF Appropriation $ 0 $ 23,300 -
Pay annual membership dues with nongeneral funds
Pay annual membership dues to the Interstate Oil and Gas Compact Commission with permit fees instead of with general fund dollars.
FY 2009 FY 2010 General Fund Savings $ (6,100) $ 0 -
Reassign a mineral resources scientist II position
This is one of four separate strategies impacting the Division of Geology and Mineral Resources (DGMR). This strategy transfers a general fund position in the Gas and Oil environmental protection program within DGMR to the Worker Safety and Land Reclamation service area where it will be supported with permit fee revenue.
FY 2009 FY 2010 General Fund Savings $ (39,603) $ (79,206) NGF Appropriation $ 0 $ 100,000 -
Reassign four positions to a federal grant
This is one of four separate strategies impacting the Division of Geology and Mineral Resources (DGMR). This strategy transfers four general fund positions in the Division of Geology and Mineral Resources (DGMR) to the federally-funded Abandoned Mined Land (AML) program. Additional federal funding is available to support these positions through FY 2015. This transfer will reduce DGMR's technical capabilities, as these functions will no longer be performed, but AML program capabilities will be enhanced with the additional four employees.
FY 2009 FY 2010 General Fund Savings $ (156,781) $ (313,562) NGF Appropriation $ 0 $ 313,562 -
Revert energy revolving loan funds
Transfer to the general fund a portion of the balance of the Division of Energy's Revolving Loan Fund. This fund is used for specific energy savings projects throughout state agencies. Awards from this fund are to be repaid and will be used as a perpetual base to fund energy projects at state agencies and institutions of higher education that may not necessarily have the budgets to complete modifications that are energy-savings related. Specifically these funds are used for energy efficiency projects between approximately $20,000 and $200,000 that are too small to qualify for an energy performance contract. The current demand for grants from this fund is low.
FY 2009 FY 2010 Revenue / Transfers $ 128,853 $ 0 -
Revert sales office funds
Transfer to the general fund a portion of the Division of Geology and Mineral Resources sales office funds. These funds are used to provide printed geologic products to agency customers.
FY 2009 FY 2010 Revenue / Transfers $ 20,400 $ 0 -
Revert sub metering special funds
Transfer to the general fund a portion of the agency's sub-metering special fund balance. These special funds were appropriated in the 1999 Appropriation Act to be used to aid state agencies in saving on energy costs and also to provide statewide accounting of costs, consumptions and utility demand. Any balance left in the fund is to be dedicated towards efforts to implement an automated utility billing process. This process will be a more advanced effort to track and organize state energy usage.
FY 2009 FY 2010 Revenue / Transfers $ 56,920 $ 0 -
Utilize federal funds for general fund costs
Defer filling a vacant federally-funded position, thus allowing the agency to charge the general fund portion of two split-funded Division of Energy positions to the federal grant.
FY 2009 FY 2010 General Fund Savings $ (104,320) $ 0
December Reduction Strategies
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Absorb Workforce Transition Act retirement costs in the Virginia Retirement System
When an agency implements layoffs for employees eligible for retirement, in lieu of severance, the employee is offered an enhanced retirement package. In such cases, the agency would normally pre-pay the Virginia Retirement System for the cost of the enhanced package. This savings strategy would require the Virginia Retirement System to temporarily absorb such costs incurred as the result of layoffs in the Governor's 2008-10 reduction plan and amortize the cost as part of future actuarial valuations.
FY 2009 FY 2010 General Fund Savings $ (208,225) $ 0 -
Pay operating costs with nongeneral funds
Switch payment of operating costs in specified agency programs to permit fees and indirect cost recoveries.
FY 2009 FY 2010 General Fund Savings $ 0 $ (38,698) NGF Appropriation $ 0 $ 38,698 -
Remove additional funding for pay practices
Removes the half-percent pay practices funding granted to Executive branch agencies in the 2006-08 biennium.
FY 2009 FY 2010 General Fund Savings $ 0 $ (36,175)