NATURAL RESOURCES

HB 4446, H-1, Draft 3

Summary: FY 2009-10 House Subcommittee Recommendation

Analyst: Kirk Lindquist

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: House* *From FY 2008-09 YTD*
	FY 2008-09 YTD	Executive	House	Senate	Enacted	*Amount*	%
IDG/IDT	$3,802,200	$3,802,200	$3,802,200			0	0
Federal	53,802,100	54,763,700	54,763,700			961,600	1.8
Local	0	0	0			0	0
Private	4,745,000	5,381,100	5,381,100			636,100	13.4
Restricted	222,103,600	226,823,900	217,859,700			(4,243,900)	(1.9)
GF/GP	10,464,800	17,217,600	17,292,600			6,827,800	65.2
Gross	$294,917,700	$301,988,500	$299,099,300			*$4,181,600*	*1.4*
FTEs	2,173.9	2,267.9	2,208.9			35.0	1.6

Note: FY 2008-09 figures reflect supplementals, transfers, and Executive Order (EO) actions throughMarch 31, 2009.

Overview

The Department of Natural Resources (DNR) 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.

Major Budget Issues

· Programs transferred from the Dept. of History, Arts and Libraries: $10,014,100

· Game and Fish Protection Fund programs reduced to reflect reduced revenue: ($8,964,200)

· Federal grant increase for trail development: $1,800,000

· Snowmobile trail easement purchases: $700,000

· Capital Outlay: Parks, Forestry, Waterways: $850,400 increase; Gross: $15,043,400

· State Park Motor Vehicle Permit Increase (no increase in appropriation)

· Cormorant Population Control: $75,000, GF/GP

· Rebase funded full time positions: Reduced Exec. Rec. by 59.0 FTE

Major Budget Changes From FY 2008-09 YTD Appropriations	FY 2008-09 YTD	House Change From YTD
*1. Historic and Museum Programs: Transferred from DHAL* Several programs are transferred from the Department of History, Arts and Libraries: Mackinac Island State Park.......................................................... $3.4 million State Museum $3.2 million Museum Stores.............................................................................. $0.5 million Heritage Publications.................................................................... $1.0 million Freedom Trail $0.2 million Lighthouse Programs................................................................... $0.2 million Thunder Bay Underwater Preserve............................................ $0.2 million Mann House $0.1 million State Rent (BOC)............................................................................ $0.9 million Information Technology................................................................ $0.4 million	FTE Gross Private Restricted GF/GP	NA	94.0 $10,014,100 112,600 3,281,700 $6,619,800
*2. Game and Fish Protection Fund Supported Programs: Reduced* Several programs reduced to reflect expected revenue shortfalls in the Game and Fish Protection Fund-General Purpose: Administrative Units (Various)......................................................... $955,000 Land and Facilities............................................................................ $400,000 Wildlife Management..................................................................... $1,700,000 Fish Production $700,000 Fisheries Resource Management.............................................. $2,200,000 Forestry: Coop. Resource Programs............................................. $220,700 Forest Management Initiatives........................................................... $38,500 Law Enforcement............................................................................ $2,550,000 Inland Fisheries Grants.................................................................... $200,000	Gross Restricted	$64,513,700 64,513,700	($8,964,200) (8,964,200)
*3. National Recreational Trails Grants* TheMichigan share for this grant program for trail development and maintenance is increased. Funds are awarded through a competitive application process.	Gross Private Federal	$2,150,000 50,000 2,100,000	$1,800,000 0 1,800,000
*4. State Parks Funding: Park Endowment Fund Increase* Funding from the State Parks Endowment Fund is increased to make up for deficient revenues from motor vehicle permits and other user fees.	Gross Federal Private Restricted	$44,654,200 120,300 363,900 44,170,000	$1,000,000 0 0 1,000,000
5. *State* *Forest* *Management* Revenueincreases, generated during FY 2007-08 through timber harvest activities, are added to the forest management program.	Gross Federal Private Restricted	$15,423,900 922,600 822,800 13,678,500	$750,000 0 0 750,000
*6. Snowmobile Trail Easements* Funding, realized through the recently approved fee increase, will be used to purchase or lease easements to lengthen or create snowmobile trails.	Gross Restricted	$0 0	$700,000 700,000
*7. Capital Outlay* Proposed funding for FY2009-10 would support state park, forestry, and waterways construction and infrastructure maintenance projects. State Park Endowment Fund support replaces Park Improvement revenue ($2,000,000).	Gross Federal Private Restricted	$14,193,000 1,293,000 1,500,000 11,400,000	$850,400 685,400 500,000 (335,000)
*8. Economic Adjustments* Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.	Gross Federal Private Restricted GF/GP	NA	$4,150,100 528,800 23,500 3,393,100 $204,700

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

House Change

From YTD

1. Historic and Museum Programs: Transferred from DHAL

Several programs are transferred from the Department of History, Arts and Libraries:

Mackinac Island State Park.......................................................... $3.4 million

State Museum $3.2 million

Museum Stores.............................................................................. $0.5 million

Heritage Publications.................................................................... $1.0 million

Freedom Trail $0.2 million

Lighthouse Programs................................................................... $0.2 million

Thunder Bay Underwater Preserve............................................ $0.2 million

Mann House $0.1 million

State Rent (BOC)............................................................................ $0.9 million

Information Technology................................................................ $0.4 million

FTE

Gross

Private

Restricted

GF/GP

94.0

$10,014,100

112,600

3,281,700

$6,619,800

2. Game and Fish Protection Fund Supported Programs: Reduced

Several programs reduced to reflect expected revenue shortfalls in the Game and Fish Protection Fund-General Purpose:

Administrative Units (Various)......................................................... $955,000

Land and Facilities............................................................................ $400,000

Wildlife Management..................................................................... $1,700,000

Fish Production $700,000

Fisheries Resource Management.............................................. $2,200,000

Forestry: Coop. Resource Programs............................................. $220,700

Forest Management Initiatives........................................................... $38,500

Law Enforcement............................................................................ $2,550,000

Inland Fisheries Grants.................................................................... $200,000

Gross

Restricted

$64,513,700

64,513,700

($8,964,200)

(8,964,200)

3. National Recreational Trails Grants

TheMichigan share for this grant program for trail development and maintenance is increased. Funds are awarded through a competitive application process.

Gross

Private

Federal

$2,150,000

50,000

2,100,000

$1,800,000

1,800,000

4. State Parks Funding: Park Endowment Fund Increase

Funding from the State Parks Endowment Fund is increased to make up for deficient revenues from motor vehicle permits and other user fees.

Gross

Federal

Private

Restricted

$44,654,200

120,300

363,900

44,170,000

$1,000,000

1,000,000

5. State Forest Management

Revenueincreases, generated during FY 2007-08 through timber harvest activities, are added to the forest management program.

Gross

Federal

Private

Restricted

$15,423,900

922,600

822,800

13,678,500

$750,000

750,000

6. Snowmobile Trail Easements

Funding, realized through the recently approved fee increase, will be used to purchase or lease easements to lengthen or create snowmobile trails.

Gross

Restricted

$700,000

700,000

7. Capital Outlay

Proposed funding for FY2009-10 would support state park, forestry, and waterways construction and infrastructure maintenance projects. State Park Endowment Fund support replaces Park Improvement revenue ($2,000,000).

Gross

Federal

Private

Restricted

$14,193,000

1,293,000

1,500,000

11,400,000

$850,400

685,400

500,000

(335,000)

8. Economic Adjustments

Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.

Gross

Federal

Private

Restricted

GF/GP

$4,150,100

528,800

23,500

3,393,100

$204,700

Major Boilerplate Changes From FY 2008-09
*Sec. 205. State Hiring Freeze* – DELETED Imposes a state-wide hiring freeze in all departments, and provides process for approvals of position vacancies.
*Sec. 207. Restricted Fund Revenue, Expenditures, and Fund Balances* – REVISED Requires report of revenue, spending, and estimated year-end balance for each restricted fund appropriated. House added requirement to recalculate the number of fundedFTE positions onOctober 15, 2009.
*Sec. 222.* *FTE* *Monthly Report* – NEW Requires a bi-monthly report of the number of departmentFTE positions by classification.
*Sec. 223. Detailed Allotment Information* – NEW Requires report with detailed allotment detail by item of expense for each line item
*Sec. 223 (Current Law)* *DNR* *Funding Workgroup* – DELETED States legislative intent to implement recommendations of the work group on department long term funding.
*Sec. 226 (Current Law) MuskratLakeWater* *Control* – DELETED Requires report on the status of permit applications and efforts to maintain water levels ofMuskrat Lake in Clinton County.
*Sec. 306. Payments in Lieu of Taxes: Report to Department of Treasury* –REVISED DirectsDNR to provide billing information related to payments in lieu of taxes to Michigan Department of Treasury within 10 days of receipt.
**Sec. 402. Bovine TB Eradication Efforts –REVISED** Requires semi-annual reports on enforcement actions taken to eradicate bovine TB, relevant scientific studies and the number of deer found to be infected.
*Sec.603. (Current Law) Fish Hatchery Operations* – DELETED Requires that DNR operate six fish hatcheries.
*Sec. 502. State Park Campground Closures* – REVISED Requires notice ifDNR intends to reduce operations or reduce recreation opportunities at any state park or recreation area.
*Sec. 703 (Current Law). Defibrillators in State Parks* – DELETED DirectsDNR to maintain defibrillators placed in state parks.
*Sec. 701. Appropriation of Historical Program Revenue* – NEW Revenue collected for document reproduction, conferences, workshops and training classes and related services are appropriated
*Sec. 702. Historic Preservation Grants: Work Project Status* – NEW Provides work project status for federal grants awarded for historic programs.
*Sec. 703* *Michigan* *Heritage Publication Fund* –NEW Appropriates revenue collected for the Michigan Heritage Publication Fund.
*Sec. 704. Museum Store* – NEW Exempts museum store from purchasing requirements specified in the Management and Budget Act.
*Sec. 705. Michigan Freedom Trail Commission* – NEW Appropriations may be used for freedom trail commission expenses.
*Sec. 706.* *Sale* *of State Historical Museum Artifacts* –NEW Allows sale of unsuitable artifacts. Sale proceeds may be used to purchase other items for the collection.
**Sec. 803. Timber Marking –REVISED** DirectsDNR, subject to forest certification process, to mark for harvest, 58,000 acres at an average rate of 12.5 to 15.0 cords per acre; be responsive to changes in regional markets for timber products; impact of timber harvest on wildlife habitat and recreation uses to be considered; requires quarterly report.
*Sec. 902.* *Island* *LakeShootingRange* *Concession Contract* – DELETED Requires public notice of the expiration date or adoption of amendments to the concession contract to operate theIslandLakeShootingRange.

Major Boilerplate Changes From FY 2008-09

Sec. 205. State Hiring Freeze – DELETED

Imposes a state-wide hiring freeze in all departments, and provides process for approvals of position vacancies.

Sec. 207. Restricted Fund Revenue, Expenditures, and Fund Balances – REVISED

Requires report of revenue, spending, and estimated year-end balance for each restricted fund appropriated. House added requirement to recalculate the number of fundedFTE positions onOctober 15, 2009.

Sec. 222. FTE Monthly Report – NEW

Requires a bi-monthly report of the number of departmentFTE positions by classification.

Sec. 223. Detailed Allotment Information – NEW

Requires report with detailed allotment detail by item of expense for each line item

Sec. 223 (Current Law) DNR Funding Workgroup – DELETED

States legislative intent to implement recommendations of the work group on department long term funding.

Sec. 226 (Current Law) MuskratLakeWater Control – DELETED

Requires report on the status of permit applications and efforts to maintain water levels ofMuskrat Lake in Clinton County.

Sec. 306. Payments in Lieu of Taxes: Report to Department of Treasury –REVISED

DirectsDNR to provide billing information related to payments in lieu of taxes to Michigan Department of Treasury within 10 days of receipt.

Sec. 402. Bovine TB Eradication Efforts –REVISED

Requires semi-annual reports on enforcement actions taken to eradicate bovine TB, relevant scientific studies and the number of deer found to be infected.

Sec.603. (Current Law) Fish Hatchery Operations – DELETED

Requires that DNR operate six fish hatcheries.

Sec. 502. State Park Campground Closures – REVISED

Requires notice ifDNR intends to reduce operations or reduce recreation opportunities at any state park or recreation area.

Sec. 703 (Current Law). Defibrillators in State Parks – DELETED

DirectsDNR to maintain defibrillators placed in state parks.

Sec. 701. Appropriation of Historical Program Revenue – NEW

Revenue collected for document reproduction, conferences, workshops and training classes and related services are appropriated

Sec. 702. Historic Preservation Grants: Work Project Status – NEW

Provides work project status for federal grants awarded for historic programs.

Sec. 703 Michigan Heritage Publication Fund –NEW

Appropriates revenue collected for the Michigan Heritage Publication Fund.

Sec. 704. Museum Store – NEW

Exempts museum store from purchasing requirements specified in the Management and Budget Act.

Sec. 705. Michigan Freedom Trail Commission – NEW

Appropriations may be used for freedom trail commission expenses.

Sec. 706. Sale of State Historical Museum Artifacts –NEW

Allows sale of unsuitable artifacts. Sale proceeds may be used to purchase other items for the collection.

Sec. 803. Timber Marking –REVISED

DirectsDNR, subject to forest certification process, to mark for harvest, 58,000 acres at an average rate of 12.5 to 15.0 cords per acre; be responsive to changes in regional markets for timber products; impact of timber harvest on wildlife habitat and recreation uses to be considered; requires quarterly report.

Sec. 902. Island LakeShootingRange Concession Contract – DELETED

Requires public notice of the expiration date or adoption of amendments to the concession contract to operate theIslandLakeShootingRange.