budget

The Department of Natural Resources exists because the state has a responsibility to maintain a healthy environment for this and future generations. Minnesota’s economies and communities depend upon the land, waters, and natural systems that provide everything from raw materials such as water, minerals and wood, to recreational opportunities such as fishing, hunting, camping and hiking. The state needs to have an agency that works with people to promote sustainability of our ecosystems and to serve the natural resource needs of citizens, local governments, and business.

Big deficit; big problem  

The state’s budget deficit for fiscal years 2004-05 will have a major impact on the DNR, which already experienced a $13 million General Fund cut in fiscal year 2003. This most recent reduction, of which more than $5 million was in permanent base budget cuts, resulted in the loss of 128 positions.

Currently, the estimated state budget deficit – the gap between revenue and planned expenditures – is over $3.0 billion for fiscal years 2004-05. Due to the enormity of this deficit, DNR leaders face unprecedented decisions in terms of how to deliver core services while also making the cuts to programs and staff that must occur. 

 Putting it in context

In anticipation of the next budget cycle, the DNR, like other state agencies, was directed by the Department of Finance to plan for a 10 percent reduction across all funding sources, including specially created accounts that have been dedicated for specific purposes such as fish and wildlife habitat enhancement or motorized recreational trails. Though it will be up to the new governor and his administration to decide on a final package of spending cuts to submit to the Legislature, the 10 percent cut scenario across all funds would mean that the DNR’s programs may be reduced by approximately $50 million each year of fiscal years ’04-’05, when taking all budget changes currently in law and inflationary issues into account. Merely trimming ongoing programs in not an option. $50 million is greater than the combined total annual operating budgets of three of the nine DNR divisions. Potentially, 500 positions could be eliminated from a total staff of 2,500 employees.  

 What this means to Minnesotans

The DNR will continue to protect and manage the state’s natural resources, which is central to its mission. However, more functions will be reduced or eliminated. What follows is a thumbnail sketch of annual impacts under a 10 percent budget reduction scenario and other anticipated reductions in funds.  

Enforcement: Potential reduction of $4.7 million. Up to 27 positions impacted. The average patrol area per officer would increase from 600 square miles to 900 square miles, with some over 2,000 square miles. Response time to citizen calls would increase, safety education would decrease, and the ability to detect violations will be more difficult.

Fisheries: Potential reduction of $6.8 million. Up to 83 positions impacted. We would have to reduce stocking trout, muskie, channel catfish and smallmouth bass. Creel surveys would be reduced by 72 percent; we would conduct 20 percent fewer lake and stream surveys, acquire less shoreline acquisition for habitat protection and angler access, and delay fish hatchery improvements.

Wildlife: Potential reduction of $6.5 million. Up to 39 positions impacted. We will reduce wildlife management area acquisition by 17 percent, prescribed burning by 80 percent, habitat management by 20 percent, and certain special deer and goose hunts. Shallow lake (waterfowl) management will not be done at about 30 different basins.

Forestry: Potential reduction of $5.9 million. Up to 60 positions could be impacted. 110,000 fewer cords of timber will be sold annually, resulting in loss of $3.4 million in revenue to state. Half the state forest road system could be closed, and we would have to decrease forest nursery production and cooperative forest management with private landowners.

Parks: Potential reduction of $9.7 million (including lost revenue). Up to 145 positions impacted.  Park programs, interpretive services, resource management, visitor services, and campground operations will be reduced. Twelve parks would have campgrounds open, while 54 parks will have their campgrounds closed.

Trails and Waterways: Potential reduction of $4.3 million. Up to 45 positions impacted. Boat launching sites won’t be maintained as regularly, and there would be a 20 percent reduction in snowmobile trail grooming and maintenance. Grants programs for local clubs will be reduced, and there will be less maintenance of all types of trails. 

Ecological Services: Potential reduction of $2.7 million. Up to 22 positions impacted. We will provide less scientific data, information, and education materials to local governments, lake associations, conservation organizations and educators, which they rely upon for their work.

Lands and Minerals: Potential reduction of $1.2 million. Up to 22 positions impacted. It will take longer to complete acquisitions for habitat management, as well as other transactions with the public and private businesses such as land surveys, road easements, utility licenses, land exchanges and sales.

Waters: Potential reduction of $1.6 million. Up to 4 additional positions impacted. Stakeholders can expect service delays relating to permit applications, local government and floodplain assistance. Financial support for the Mississippi Headwaters Board, Red River Mediation and others would be reduced. Collaboration with partners such as soil and water conservation districts would decrease.

Administrative and Operations Support: Potential reduction of $5.7 million. Up to 49 positions impacted. The public will see fewer services at the St. Paul license and information center.  The Becoming an Outdoor Woman program and the Minnesota Conservation Corps will be eliminated, and so will certain community technical assistance grants and other assistance provided to local communities working on resource protection issues.

 The need for both a short-term and long-term solution

The DNR is committed to a smooth governor’s office and legislative transition. We will provide full and accurate advice to the new governor and lawmakers.  To deal with the immediate FY04-05 budget shortfalls, we recommend taking dedicated funds and open and statutory appropriations (e.g. PILT payments) off the table for cuts, reducing the percent of across the board cuts, and allowing for certain fee increases to offset anticipated budget reductions or to allow increased services where dedicated funding is adequate.

Dealing with stable funding over the long-term is the most important issue ahead.  Last session, Senator Bob Lessard, Representative Mark Holsten, then-Representative Pawlenty and many others in the conservation and legislative community supported a “3/16ths” funding initiative. That creative proposal called for a constitutional amendment to dedicate 3/16ths of each cent of sales tax for environmental purposes.  We commend the excellent work of these leaders and recommend a new, expanded proposal.  The “Half Cent for Nature” proposal builds on the “3/16ths initiative” by increasing the amount to a half cent to provide about $355 million per year for natural resources, including replacing the entire General Fund appropriations for several state agencies. Currently, only about 2 percent of the state budget is appropriated to the DNR and the other environmental and agricultural agencies. The “Half Cent for Nature” proposal would increase that to 3 percent. If passed by the legislature, the constitutional amendment would be placed on the ballot during the next presidential election, and if passed, take effect in fiscal year 2006.