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State Lands Commission. Mineral Resources Management Division. State Lands Commission Revenue Sources and Distribution. David Mercier Chief, MRM Finance and Accounting. State Lands Commission Background.
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State Lands Commission Mineral Resources Management Division
State Lands CommissionRevenue Sources and Distribution David Mercier Chief, MRM Finance and Accounting
State Lands CommissionBackground • The State Lands Commission was established in 1938 with authority prescribed in Division 6 of the California Public Resources Code. • The members include: • Lieutenant Governor (Elected) • John Garamendi • State Controller (Elected) • John Chiang • State Director of Finance (Appointed by the Governor) • Michael Genest • Anne Sheehan (Director of Policy, delegated commission member) • Commission staff: • More than 200 specialists in mineral resources, land management, boundary determination, petroleum engineering and natural sciences. • The Executive Officer: • Paul Thayer is appointed by the Commission 3
State Lands Commission Divisions Executive Officer Paul Thayer Legal Mineral ResourcesManagement Land Management Fiscal and Information Systems Marine Facilities Environmental Planning and Management Human Resources and Records Management 4
Public Land Management • Two Types of Land: • Sovereign • Approximately 4 million acres • Include beds of California’s naturally navigable rivers, lakes and streams • State’s tide and submerged lands along more than 1,100 miles of coastline, extending three miles offshore. • More than 120 rivers and sloughs, 40 lakes and the State’s coastal waters. • School • Approximately 5.5 million acres throughout the State. • This was a grant to California by congress in 1853 to benefit education. 5
State Tidelands Leases • Offshore Oil & Gas Leases • 31 leases on over 58,000 acres offshore California • Santa Barbara, Ventura, Orange, Los Angeles, counties • Current Royalties from 16.7% - 55% • Revenue over $400 million/yr 6
State Lands CommissionMission • Provide stewardship of lands, waterways, and resources entrusted to its care through: • Economic development • Protection • Preservation • And Restoration 7
Mineral Resources Management Division Paul Mount Chief Greg ScottAsst. Chief Operations andCompliance Pete Johnson Planningand Development Marina Voskanian Engineering James Hemphill Finance and Economics David Mercier 8
MRMD FUNCTIONS • Manage • Offshore oil and gas leases • Onshore State hard rock mineral resources • State School Lands mineral resources to include geothermal • Inspection and audits of all oil, gas, geothermal, and mineral extraction facilities on State lands • Financial audits of state leases and royalty revenue collection • Assist other divisions with engineering, geological, and financial expertise 9
State of California Long Beach: > $5.6 billion Total: > $8.0 billion City of Long Beach Over $450 million Can only be used on projects within the Tidelands area. Projects include: Harbor Convention Center Beaches Belmont Pool Parks Tidelands RevenueSince 1930 10
Biggest Driver of State Lands Commission Revenue Feb 9, 1999 Low: $11.68/BO 11
California’s Oil Production 2.5%/yr 2.5%/Yr 12
State Lands Commodities • Oil/Gas • Electricity/Geothermal Energy • Aggregate • Talc • Granite • Gold • Borate • Uranium 14
CA State Budget Compared to CSLC Revenue 9% 8.2% 16
City of Long BeachFunding • Belmont Pier • Marinas • Fireboats • City Employees Working on Tidelands Projects 21
Long Beach Queen Mary Belmont Pool Port of Long Beach Convention Center 22
State of CaliforniaRevenue Sources Top Three: ~81%
State of CaliforniaExpenditures Top Five: ~83%
Conclusion • Since 1930,the State Lands Commission staff working with industry has contributed more than $8.0 billion to California. • This doesn’t include the billions of dollars of income, property, production, other tax revenue and job creation benefits. • In Long Beach, over $450 million helped fund the: • Port of Long Beach; • Convention Center; • Belmont Pool; • Belmont Pier; • Marina; • Fireboats; • Queen Mary; • And pay for many salaries. 26
Conclusion • Statewide contributions to the: • General Fund: education, health and welfare, and corrections and rehabilitation; • School buildings; • California water projects; • Energy projects; • Parks; • Housing; • Salmon & steelhead trout restoration; • Department of Fish and Game; • Marine life projects; • Santa Monica Mountain Conservancy; • And many more. • California really needs money! 27
Budget Info • ~$17B deficit • Sell $15B bonds over 3.0 years (paid back out of lottery revenue) • Sell future profits or securitize • Prop 37 (1984) • Total: $3.3 billion (plan to increase, bigger jackpots) • Prizes: $1.65 billion (50%) • Operating Exp: $0.45 billion (16%) • Education: $1.2 billion (34%) • Sales Tax • 7.5% to 8.5%: ~$3.5 billion/year (back stop funding?)
Extra Information • California: ~100 million acres (CSLC is 10%) • Education: ~$12,000 per child • Budget: ½ $500 million ~$250 million (~21,000 children per yr)
School Prop 98 • Three tests: • 39% of the budget • Prior year per capita • Bad years: 0.5% general funds ???