The 2001-03 Capital Budget provided $472 million to 12 programs in six state agencies for grant and loan funding of environmental and natural resource projects throughout the state. JLARC’s 2001 “Investing in the Environment”performance audit recommended changes in the ways state agencies invest money in projects, track results, and coordinate services to local governments. JLARC’s recent follow-up reviews have found that agencies are generally making progress towards implementing the recommendations and improving investment strategies. However, legislative direction to improve cross-agency coordination has only been partially followed to date.