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The final state budget approved by Gov. Arnold Schwarzenegger on Saturday did not include a controversial plan to borrow $30 million in wildlife funds from the Department of Fish and Game.
The proposed loan was controversial among sportsmen and wildlife advocates because it involved transferring $30 million generated by hunting and fishing license fees. That money is intended to be used for wildlife enhancement projects, not the state general fund. It also caught the attention of the U.S. Fish and Wildlife Service, which warned the state that it could lose another $30 million in federal matching funds if the loan took place.
State officials maintained that because the proposed revenue shift was a loan, and because it was predicted not to have any immediate impact on wildlife programs, it would not violate rules governing federal matching funds.
But in the final hour, said state Department of Finance spokesman H.D. Palmer, the $30 million shift simply didn't make the final menu of fiscal options in the budget.
"Just as the original mix of revenues that we had put forward weren't part of the package, so too was this not included," he said.
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The proposed loan was controversial among sportsmen and wildlife advocates because it involved transferring $30 million generated by hunting and fishing license fees. That money is intended to be used for wildlife enhancement projects, not the state general fund. It also caught the attention of the U.S. Fish and Wildlife Service, which warned the state that it could lose another $30 million in federal matching funds if the loan took place.
State officials maintained that because the proposed revenue shift was a loan, and because it was predicted not to have any immediate impact on wildlife programs, it would not violate rules governing federal matching funds.
But in the final hour, said state Department of Finance spokesman H.D. Palmer, the $30 million shift simply didn't make the final menu of fiscal options in the budget.
"Just as the original mix of revenues that we had put forward weren't part of the package, so too was this not included," he said.
More...
