NATURAL RESOURCES

NATURAL RESOURCES

Summary: House Passed, HB 4354, H-1

FY 2007-08

Analyst: Kirk Lindquist

		FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference: House* *From FY 2006-07 YTD*
	FY 2006-07 YTD	Executive	House	Senate	Enacted	*Amount*	%
IDG/IDT	$3,618,900	$3,808,300	$3,808,300			$189,400	5.2
Federal	42,296,200	44,334,700	47,834,700			5,538,500	13.1
Local	0	0	0			0	0.0
Private	3,124,400	3,166,500	3,166,500			42,100	1.3
Restricted	208,741,900	211,123,100	230,767,800			22,025,900	10.6
GF/GP	24,289,700	24,791,400	26,363,500			2,073,800	8.5
Gross	$282,071,100	$287,224,000	$311,940,800			*$29,869,700*	*10.6*
FTEs	2,092.4	2,088.9	2,088.9			(3.5)	(0.2)

Note: FY 2006-07 figures include the results of supplementals and Executive Order (EO) actions

throughJune 30, 2007.

Overview

The Department of Natural Resources manages, conserves, and protects Michigan’s resources. Programs include forest management, land and minerals management, wildlife and fisheries management, conservation law enforcement, and state parks and forest campgrounds.

Summary of Major Budget Issues

Reauthorizes 21^st Century Jobs Trust Fund grant to the Forest Finance Authority: $20,000,000.

Forest Development Fund program reductions (revenue shortfall): ($7,679,800).

Game and Fish Fund license fee increase is addressed: $7,952,500.

Major Budget Changes From FY 2006-07 YTD Appropriations	FY 2006-07 YTD	House Change From YTD
*1. Game and Fish Protection Fund License Increase* The recommendation is based on the assumption that the proposed license increase for game and fish hunters and fishers will pass. If the bills fail to pass before the beginning of the fiscal year, these programs will be reduced by the amount of the shortfall: $7,827,500 (Boilerplate Sec. 218).	Gross Restricted	$64,965,900 64,965,900	$1,792,400 1,792,400
2. *Forest* *Development Fund Revenue Shortfall* Forest management programs are reduced to keep spending in line with expected revenue. A current year reduction plan designed to reduce spending by $5,993,200 has been adopted. GF/GP support provided to assure that fire suppression and current timber marking efforts are not affected. Funding was restored to the Conservation District grant program for forestry technical assistance to private woodlot owners.	Gross Restricted GF/GP	$34,277,900 34,277,900 $0	($5,483,000) (6,755,100) $1,272,100
3. *Forest* *Finance Authority* Reauthorizes the grant from the 21^st Century Jobs Trust Fund for forest products industry development efforts.	Gross Restricted	$6,000,000 6,000,000	$20,000,000 20,000,000
4. *Federal* *Forest* *Stewardship Grant: Kamehameha Conservation Easement Purchases* Increases grant level to provide assistance to purchase conservation easements on multiple properties located in the Upper Peninsula.	Gross Federal	$2,315,000 2,315,000	$3,500,000 3,500,000
*5. One-time Appropriations* Deletes funding for the following FY 2007 appropriations: · Special Payments to Counties $ 170,000 · Bay City State Park Access Project 100,000 · Project F.I.S.H. 25,000	Gross Restricted GF/GP	$445,000 125,000 $320,000	($295,000) (125,000) ($170,000)
*6. Tax Payment Adjustments* Reduces Purchased Lands PILT payments to reflect expected payment obligations.	Gross Restricted GF/GP	$5,400,000 2,700,000 $2,700,000	($700,000) (350,000) ($350,000)
*7. Deer Habitat Programs* Additional support is provided from the Game and Fish Protection sub-fund to expand the winter deer range habitat improvement program.	Gross Restricted	$2,358,000 2,358,000	$300,000 300,000
8. *Forest* *Use and Minerals Management Permits* Funding is provided for permit processing and monitoring of use permits and minerals exploration and development in State Forests.	Gross Federal Restricted	$2,145,400 1,000 2,144,400	$350,000 0 350,000
*9. Cormorant Population Control* Increases state share of federal cooperative program. Total funding: $300,000.	Gross GF/GP	$150,000 $150,000	$150,000 $150,000
*10. Civilian Conservation Corps* Reduces funding to reflect available funds. Endowment funds were transferred to the General Fund as a part of the FY 2006-07 GF/GP reduction plan.	Gross Restricted	$1,137,300 1,137,300	($559,000) (559,000)
*11. Clean Vessel Grants* Additional Federal grant support is available to provide expanded pump-out services at a private marina on Maumee Bay.	Gross Federal	$100,000 100,000	$300,000 300,000
*12. Off Road Vehicle Trail Expansion and Improvements* Increases amount available for ORV trail improvement projects on State lands.	Gross Restricted GF/GP	$4,978,600 4,410,400 $568,200	$250,000 250,000 $0
*13. Economic Adjustments* Provides support for negotiated civil service 4.0% wage increase, retirement plan contributions, and employer share of health insurance premiums.	Gross IDG Federal Private Restricted GF/GP	N/A N/A	$7,052,800 108,700 838,000 41,400 5,675,000 $389,700

Major Budget Changes From FY 2006-07 YTD Appropriations

FY 2006-07 YTD

House Change

From YTD

1. Game and Fish Protection Fund License Increase

The recommendation is based on the assumption that the proposed license increase for game and fish hunters and fishers will pass. If the bills fail to pass before the beginning of the fiscal year, these programs will be reduced by the amount of the shortfall: $7,827,500 (Boilerplate Sec. 218).

Gross

Restricted

$64,965,900

64,965,900

$1,792,400

1,792,400

2. Forest Development Fund Revenue Shortfall

Forest management programs are reduced to keep spending in line with expected revenue. A current year reduction plan designed to reduce spending by $5,993,200 has been adopted. GF/GP support provided to assure that fire suppression and current timber marking efforts are not affected. Funding was restored to the Conservation District grant program for forestry technical assistance to private woodlot owners.

Gross

Restricted

GF/GP

$34,277,900

34,277,900

($5,483,000)

(6,755,100)

$1,272,100

3. Forest Finance Authority

Reauthorizes the grant from the 21^st Century Jobs Trust Fund for forest products industry development efforts.

Gross

Restricted

$6,000,000

6,000,000

$20,000,000

20,000,000

4. Federal Forest Stewardship Grant: Kamehameha Conservation Easement Purchases

Increases grant level to provide assistance to purchase conservation easements on multiple properties located in the Upper Peninsula.

Gross

Federal

$2,315,000

2,315,000

$3,500,000

3,500,000

5. One-time Appropriations

Deletes funding for the following FY 2007 appropriations:

· Special Payments to Counties $ 170,000

· Bay City State Park Access Project 100,000

· Project F.I.S.H. 25,000

Gross

Restricted

GF/GP

$445,000

125,000

$320,000

($295,000)

(125,000)

($170,000)

6. Tax Payment Adjustments

Reduces Purchased Lands PILT payments to reflect expected payment obligations.

Gross

Restricted

GF/GP

$5,400,000

2,700,000

$2,700,000

($700,000)

(350,000)

($350,000)

7. Deer Habitat Programs

Additional support is provided from the Game and Fish Protection sub-fund to expand the winter deer range habitat improvement program.

Gross

Restricted

$2,358,000

2,358,000

$300,000

300,000

8. Forest Use and Minerals Management Permits

Funding is provided for permit processing and monitoring of use permits and minerals exploration and development in State Forests.

Gross

Federal

Restricted

$2,145,400

1,000

2,144,400

$350,000

350,000

9. Cormorant Population Control

Increases state share of federal cooperative program. Total funding: $300,000.

Gross

GF/GP

$150,000

$150,000

$150,000

$150,000

10. Civilian Conservation Corps

Reduces funding to reflect available funds. Endowment funds were transferred to the General Fund as a part of the FY 2006-07 GF/GP reduction plan.

Gross

Restricted

$1,137,300

1,137,300

($559,000)

(559,000)

11. Clean Vessel Grants

Additional Federal grant support is available to provide expanded pump-out services at a private marina on Maumee Bay.

Gross

Federal

$100,000

100,000

$300,000

300,000

12. Off Road Vehicle Trail Expansion and Improvements

Increases amount available for ORV trail improvement projects on State lands.

Gross

Restricted

GF/GP

$4,978,600

4,410,400

$568,200

$250,000

250,000

13. Economic Adjustments

Provides support for negotiated civil service 4.0% wage increase, retirement plan contributions, and employer share of health insurance premiums.

Gross

IDG

Federal

Private

Restricted

GF/GP

N/A

N/A

$7,052,800

108,700

838,000

41,400

5,675,000

$389,700

Major Boilerplate Changes From FY 2006-07
*Sec. 210. Waterways Fund Projects* – DELETED Requires report on activities of Waterways Commission during the previous fiscal year, and list of completed waterways fund projects be provided to Legislature and Department of Management and Budget by January 31, 2007.
*Sec. 217. Contingency Fund Transfers– NEW* Provides $3,000,000 in authorized transfer authority for unanticipated Federal grant revenue, $5,000,000 for restricted revenue, $100,000 for local revenue, and $1,000,000 for private revenue.
*Sec. 218. Game and Fish Protection Fund Program Reductions* – NEW Provides appropriation unit reduction detail, if proposed license increases are not enacted.
*Sec. 216. Prohibition of Disciplinary Actions For Legislative Contacts* – DELETED Prohibits disciplining state employees who communicate with the Michigan Legislature.
*Sec. 218. Prohibition of Transport of Higher Education, Legislative or Local Government Employees On Department Owned Aircraft* – DELETED Prohibits use of DNR aircraft to transport employees ofMichigan colleges or universities, the legislature, or local governments unless it is consistent with the mission of the department.
*Sec. 301. Project F.I.S.H.* – DELETED Provides a grant to Project F.I.S.H. to increase the number ofMichigan anglers.
*Sec. 503. Bobcat Population Study and Hunting Quotas* – DELETED Requires estimate of bobcat population and proposed bobcat hunting quotas.
*Sec. 702. State Park Campground Closures* – DELETED Requires detailed reports for construction projects involving campsite or campground closures; requires notice if Department intends to reduce operations or reduce recreation opportunities at any state park or recreation area.
*Sec. 703. Defibrillators in State Parks* – DELETED Directs Department to maintain defibrillators placed in state parks.
*Sec. 704. Misuse of Complimentary or Discounted Day Passes* – DELETED Requires report of cases of misuse of complimentary or discounted day passes provided to elected officials.
*Sec. 706. Shooting Range at Island Lake Recreation Area* – DELETED Requires an engineering study of noise problems at the shooting range at Island Lake Recreation Area.
*Sec. 707. Boating Access* – DELETED Requires the development of plans to improve public boating access onMichigan lakes.
*Sec. 708. Bay City State Park* – DELETED Appropriation to be used to build floating docks and barrier free access atBay City State Park.
*Sec. 803. Timber Marking Increase* – NEW Provides legislative intent that $478,100, added to theForest and Timber Treatments line item, shall be used to support timber marking efforts.
*Sec. 803 (FY '07). Snowmobile Trail Between Gaylord and Cheboygan* – DELETED Requires Department to develop a snowmobile trail between Gaylord and Cheboygan.
*Sec. 804. Strategic Fund Grant toForest* Finance Authority– REVISED** Authorizes use of grant funds provided to the Forest Finance Authority from the 21^st Century Jobs Trust Fund.
*Sec. 807. Federal Forest Fire Compact: Expenditure Authorization* – NEW Allows the expenditure of funds for forest fire suppression efforts on federal lands, provided the Department is reimbursed.
*Sec. 807 (FY '07). Jordon River Trail Connection to the Village of Bellaire* – DELETED Requires Department to allow access across state-owned land allowing connection of theJordon River snowmobile Trail to theVillage ofBellaire.
*Sec. 1001. Special Payments in Lieu of Tax Payments to Counties* – DELETED Explains that the appropriation for Special Payments to Counties is to be used to replace lost revenue caused by the single annual statement and billing for payments, and as a result of the set aside to the revenue sharing reserve fund authorized under the general property tax act.
*Sec. 1102. Federal Land and Water Conservation Fund Grants* – DELETED Coordinates federal land acquisition grants with Natural Resources Trust Fund grants to minimize matching requirements for local governmental units.

Major Boilerplate Changes From FY 2006-07

Sec. 210. Waterways Fund Projects – DELETED

Requires report on activities of Waterways Commission during the previous fiscal year, and list of completed waterways fund projects be provided to Legislature and Department of Management and Budget by January 31, 2007.

Sec. 217. Contingency Fund Transfers– NEW

Provides $3,000,000 in authorized transfer authority for unanticipated Federal grant revenue, $5,000,000 for restricted revenue, $100,000 for local revenue, and $1,000,000 for private revenue.

Sec. 218. Game and Fish Protection Fund Program Reductions – NEW

Provides appropriation unit reduction detail, if proposed license increases are not enacted.

Sec. 216. Prohibition of Disciplinary Actions For Legislative Contacts – DELETED

Prohibits disciplining state employees who communicate with the Michigan Legislature.

Sec. 218. Prohibition of Transport of Higher Education, Legislative or Local Government Employees On Department Owned Aircraft – DELETED

Prohibits use of DNR aircraft to transport employees ofMichigan colleges or universities, the legislature, or local governments unless it is consistent with the mission of the department.

Sec. 301. Project F.I.S.H. – DELETED

Provides a grant to Project F.I.S.H. to increase the number ofMichigan anglers.

Sec. 503. Bobcat Population Study and Hunting Quotas – DELETED

Requires estimate of bobcat population and proposed bobcat hunting quotas.

Sec. 702. State Park Campground Closures – DELETED

Requires detailed reports for construction projects involving campsite or campground closures; requires notice if Department intends to reduce operations or reduce recreation opportunities at any state park or recreation area.

Sec. 703. Defibrillators in State Parks – DELETED

Directs Department to maintain defibrillators placed in state parks.

Sec. 704. Misuse of Complimentary or Discounted Day Passes – DELETED

Requires report of cases of misuse of complimentary or discounted day passes provided to elected officials.

Sec. 706. Shooting Range at Island Lake Recreation Area – DELETED

Requires an engineering study of noise problems at the shooting range at Island Lake Recreation Area.

Sec. 707. Boating Access – DELETED

Requires the development of plans to improve public boating access onMichigan lakes.

Sec. 708. Bay City State Park – DELETED

Appropriation to be used to build floating docks and barrier free access atBay City State Park.

Sec. 803. Timber Marking Increase – NEW

Provides legislative intent that $478,100, added to theForest and Timber Treatments line item, shall be used to support timber marking efforts.

Sec. 803 (FY '07). Snowmobile Trail Between Gaylord and Cheboygan – DELETED

Requires Department to develop a snowmobile trail between Gaylord and Cheboygan.

Sec. 804. Strategic Fund Grant toForest Finance Authority– REVISED

Authorizes use of grant funds provided to the Forest Finance Authority from the 21^st Century Jobs Trust Fund.

Sec. 807. Federal Forest Fire Compact: Expenditure Authorization – NEW

Allows the expenditure of funds for forest fire suppression efforts on federal lands, provided the Department is reimbursed.

Sec. 807 (FY '07). Jordon River Trail Connection to the Village of Bellaire – DELETED

Requires Department to allow access across state-owned land allowing connection of theJordon River snowmobile Trail to theVillage ofBellaire.

Sec. 1001. Special Payments in Lieu of Tax Payments to Counties – DELETED

Explains that the appropriation for Special Payments to Counties is to be used to replace lost revenue caused by the single annual statement and billing for payments, and as a result of the set aside to the revenue sharing reserve fund authorized under the general property tax act.

Sec. 1102. Federal Land and Water Conservation Fund Grants – DELETED

Coordinates federal land acquisition grants with Natural Resources Trust Fund grants to minimize matching requirements for local governmental units.