Team SCC,

Today, Governor Ferguson released his proposed supplemental budget for the current biennium. The supplemental budget will affect fiscal year 2027 and has implications that carry forward for future biennia. We've been actively monitoring the state's revenue forecasts and were not surprised by the proposal we saw today.

Governor Ferguson’s proposed operating budget includes limited reductions for the State Conservation Commission, which allow some flexibility of how they could be applied across programs.

Managing the state's budget is a multistep, complex process. Today's proposal from the Governor is just the first step. The next step of the process is for the Legislature to consider the Governor’s proposal. Both the House and Senate will put forward their own proposals during the legislative session before concurring on a final budget.

At the conclusion of session, it will return to the Governor for his approval. It will be some time before there is any certainty regarding its final form.

None of our decision packages are funded in the Governor’sproposal. We will continue monitoring the budget writing process, engaging withboth legislators and the Governor's Office, and we will keep you informed asthe process moves forward.

I encourage you to talk to your supervisor about anyquestions you might have. Thank you for the important work you do on behalf ofthe state's voluntary conservation efforts.

James

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