1. AQD Fee Proposal Air Quality Council July 18, 2007

2. Income FY07FY08 ActualsEstimates Title V Fees53.98%54.59% Non Title V Fees16.12%15.28% State Appropriations13.05 %14.20 % Federal Grants16.85 %15.94 % –PPG –PM2.5 (Actual Title V expense is 78.51%)

3. Air Quality Budgets

5. Fee History Fee YearEmission YearInvoice DateTitle VMinor 199419931/1/199515.19 199519941/1/199615.58 199619951/1/199716.03 199719961/1/199816.39 199819971/1/199917.12 199919981/1/200017.5117.12 200019991/1/200118.1017.12 200120001/1/200218.5917.12 200220011/1/200322.28 200320021/1/200422.7522.28 200420031/1/200523.3622.28 200520041/1/200624.2022.28 200620051/1/200725.1222.28

6. Projected Shortfall Unfunded Legislative Increases Salary (5%)$ 281,959 Insurance (36.26%) 513,704 FICA & Retirement (2%) 212,585 –Additional 1% each year until reaches 16.5% of salary Total of all Increases$1,008,248 Amount provided by Legislature 159,160 Shortfall($ 849,088)

7. Projected Shortfall Loss of Federal Funds 105 Grant –Currently being discussed in Congress –16% cut has been proposed $204,727 PM2.5 Grant –Last year for 103 grant for this program –100% loss at current funding$363,278 Shortfall($568,005)

8. PM2.5 Grants

9. Declining 105 Grant

10. Projected Shortfall Customer Service Support Permit Assistance Small Business Assistance Program Mercury/Lab Analysis Requested Funding –Support of 3.1 current FTEs $212,011 Historical Support 92,916 Shortfall($119,095)

11. Projected Shortfall Salary Administration Retention –Level III and IVs –Equity Adjustments –Market Based Adjustments –Pay for Performance Addition of Level 3 Managers Training of New Staff This will require additional ongoing funding

12. Title V Fee Comparison

13. Minor Source Fee Comparison

14. Shortfall Summary Unfunded Legislative Increases$849,088 Loss of Federal Funds$568,005 Customer Service Support$119,095 Indirect Charge on Fees 16%$261,000 Salary Administration$281,959 Total Shortfall $2,079,147

15. Projected Fee Increase Minor Source$ 2.84 plus apply CPI in future years Title V$ 6.84