AQD Fee Proposal Air Quality Council July 18, 2007

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%)

Air Quality Budgets

Fee History Fee YearEmission YearInvoice DateTitle VMinor /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/

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)

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)

PM2.5 Grants

Declining 105 Grant

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)

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

Title V Fee Comparison

Minor Source Fee Comparison

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

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