Title: Memo to Governor and Cabinet re State Appropriations
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 Material Information
Title: Memo to Governor and Cabinet re State Appropriations
Alternate Title: Memo to Governor and Cabinet re State Appropriations for Central and Southern Florida Project.
Physical Description: 3p.
Language: English
Publication Date: July 23, 1971
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
 Notes
General Note: Box 1, Folder 7 ( FUNDING WATER MANAGEMENT DISTRICTS ), Item 75
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
 Record Information
Bibliographic ID: UF00050772
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text


MEMORANDUM
TO 4 1
FROM: DALE4 WACHTMANN, Executive Director
SUBJECT:

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jt bc: Dale Twachtmann
REUBIN O'D. ASCEW
Governor
l -- ,- =_RICHARD (DICK) STONE
State of Florida Secetary of
ROBERT L. SHEV1N
"Attorney General
FRED 0. DICQIlNSON, JR.
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DEPARTMENT OF NATURAL RESOURCES, YLE C
.Comnissioner of- Agriciulree
/.LOY1 T."CHRISTIAN
RANDOLPH HODGES LARSON BUILDING / TALLAHASSEE 32304 / TELEPHONE 224-7141 Commissioner of Educate
Executive Director JUL 2 6 1971 c!
July 1971

M E M 0 R A N D. U M

TO: Governor and Cabinet

FROM: Randolph Hodges, Executive Directo1i1

SUBJECT: State Appropriations for Central and Southern Florida Project

Public Law 91-282, June 19, 1970, established a priority requirement
for accelerated delivery of water from the Central and Southern Florida (C&SF)
project to Everglades National Park (ENP) and also provided federal authorization
to accelerate construction of facilities for delivery of the water. That
public law and subsequent federal appropriations acts have stated that the
conveyance facilities to ENP should receive priority scheduling for initiation
of construction at the earliest possible date in order to meet the water needs
of the park. The Senate Appropriations Committee (United States Congress) in
their report for Fiscal Year 1971 stated that they were recommending appropri-
ations for the C&SF project to the limit of the Corps of Engineers capabilities
in order to expedite construction of those conveyance facilities.

With state appropriations for FY 71-72 totaling only $2,805,000 for
the Department of Natural Resources (DNR) Water Resources Development Account
(WRDA), (including an allowance of only $1,383,000 for the C&SF project),
instead of the $7,200,000 requested by the Budget Commission, or the $14,200,000
requested by DNR, there is no way to provide state funds to meet all of the
continuing contracts in the public works program in Florida, much less initiate
construction of conveyance facilities to the ENP.

The State Appropriations Act for FY 71-72 provides funds for construction
on the C&SF project only to permit raising the Lake Okeechobee water level.

Second priority items for C&SF (not funded) would have permitted other
continuing contracts to be carried on into FY 71-72. The next priority items
included funds to permit initiation of construction on conveyance facilities
for water supply to the ENP, in accordance with P.L. 91-282, as explained
above.

Actual appropriations to the WRDA permit only first priority items
with no allowance for other continuing contracts or for initiation of con-
struction of conveyance facilities for ENP.

Problems resulting from failure of the state appropriations act to
provide funds for continuing contracts can be illustrated by reference to the
agreement for construction of the South Dace Canals of the C&SF project. The




DIVISIONS / ADMINISTRATIVE SERVICES ENVIRONMENTAL RESEARCH AND PROTECTION INTERIOR RESOURCES
SfMARINE RESOURCES RECREATION AND PARKS










Memo to Governor and Cabinet
July 23, 1971
Page Two



report of the Secretary of the Army to Congress on September 20, 1962,
contained assurances that local interests would, in addition to other things,
contribute in cash 19.2% of the contract price and cost. of supervision and
administration of the construction, which amount would be paid either in a
lump sum prior to start of construction or in installments prior to start
of pertinent work items. The C&SF District in their Resolution Number 512,
April 5, 1963, agreed to meet the requirements specified above. Congress
in a public law authorized construction of the federal-state participating
project based on acceptance of the respective responsibilities specified in
that agreement.

These continuing contracts are now under way, except for Canal C-108
where construction has been stopped at request of the State. On these con-
tinuing contracts, the Corps of Engineers is incurring costs which are attributable
to the State and local interests under the assurances given on these projects.

Procedure permitting local interests in Florida to pay for the project
in installments rather than a single lump sum payment prior to start of con-
struction is based on demonstrated good fiscal performance by the State and
local interests on the total public works program, thereby establishing con-
fidence with the Chief of Engineers and the Secretary of the Army in the State's
continued performance.

Failure of the State to recognize the agreement of 1962 as a binding
contract could have an unfavorable reaction with federal authorities, result-
ing in some action, not the least of which could require advance payments
amounting to millions of dollars on all public works projects prior to initiation
of construction. Such advance payments would necessitate new financing procedures
by State and local interests and reconsideration of the public works program,
with new legislation and funding arrangements required for all projects in
the State program. It would also probably require a halt in construction
on many of the projects and several years' delay before arrangements could
be made and a resumption of construction could be considered.

The State is thus faced with a most critical situation because of apparent
breach of contract agreements with the federal government.

This problem has been identified to the extent outlined above only
this week, as explained in the enclosed copy of letter dated July 16, 1971,
from the State Department of Administration. Action on the unfunded continuing
contracts is held pending consideration of this matter by the Governor and
Cabinet.

RH:jkw

Enclosure





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