BIENNIAL BUDGET FACT SHEET Governor Recommendations

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1 Governor Recommendations The Governor proposes increased funding to the Department of Natural Resources (DNR) of $105 million (including $72 million from Legacy Funds) for strategic investments that further our mission and accomplish his goals of 1) Creating jobs and improving Minnesota s competitiveness; 2) Improving how state government works to deliver the best services at the best price; and 3) Creating a sustainable, balanced budget. The recommendations represent a 5% increase to our base funding. Increased expenditures of $117 million are offset by $12 million in revenues. See the table below for details by fund and the biennial comparison table on page three. NET FISCAL IMPACT dollars in millions General Fund Game & Fish Fund Natural Resources Fund 2 2 Subtotal Legacy Funds 72 0 Total Change Request with Legacy Funds New General Fund dollars focus on maintaining parks services and making critical investments in state forests. The table below shows our general fund proposals. GENERAL FUND PROPOSALS dollars in millions Parks and Trails Operations & Maintenance Investments in Forest Management 4 4 Operating Adjustment Enforcement Retirement & Aviation 1.1 Citizen Engagement in Natural Resources 1 1 Legal Costs 1 TOTAL Game and Fish Fund proposal focus on improving fisheries and wildlife habitats, increasing angler/hunter recruitment and retention, protecting rare water-based resources, and providing an operating increase to the agency. Many of these proposals help ensure that Minnesota captures its full federal apportionment of Pittman-Robertson dollars, which have increased significantly in the recent past. GAME AND FISH FUND PROPOSALS dollars in millions Fish and Wildlife Enhancement & Reinvestments Operating Adjustment Investment in Natural Res. Law Enforcement Aviation Service Right-Sizing 1.6 Heritage Enh. Rare Resources Preservation Expanding Shooting Ranges 1 1 Enforcement Retirement TOTAL EXPENDITURE Pittman-Robertson Reimbursement NET FUND IMPACT The DNR focuses its efforts on conserving, maximizing, and enjoying the state s natural resources, yet we have critical needs that, if left unaddressed, will negatively impact our ability to deliver the services our customers deserve and expect.

2 MAJOR PROPOSALS PARKS AND TRAILS Increasing funding to the parks system by $9.5 million including $7.2 million in general funds and $2.3 million in increased fees. The proposal includes increasing annual and daily permits by $5 and $1 respectively. These funding and permit increases are critical to maintaining the current level of services. FORESTRY Investing in forest management ($4m general fund) through increased inventory, stand treatments, infrastructure investments, protection from damaging pests and improved forestry tracking systems. FISH AND WILDLIFE Enhance fisheries management, accelerated angler and hunter recruitment/retention, improved recreation through bettermaintained facilities and service, increased wildlife population and habitat monitoring. Provides $11 million, which generates $6 million in new federal Pittman-Robertson dollars. ENFORCEMENT Provides $2.5 million to refill 11 conservation officer (CO) vacancies, which begins to rightsize our enforcement efforts to maintain natural resource protection statewide. Invest $2.5 million to replace two aging aircraft while concurrently downsizing the air fleet. ECOLOGICAL AND WATER RESOURCES Increased protection for rare resources ($1m) to provide continued work on the Minnesota Biological Survey and restoration of endangered mussels. OPERATIONS SUPPORT Improve operational capacities of our webbased programs to ease access to information, products, and services. Provides for a modernized web platform and new digital content that will complement an enhanced social media presence ($1m). AGENCYWIDE Provides $8 million to help offset anticipated increased compensation costs to ensure we maintain our current level of service. It equates to a 1.8% increase to FY2015 costs in certain direct appropriated funds. Barb Juelich, Chief Financial Officer Operations Services/Office of Management and Budget Services barb.juelich@state.mn.us

3 DNR BUDGET SUMMARY BIENNIAL COMPARISON dollars in millions Base Base Base Change from Governor Recommendation Gov Rec Change from Base General Fund % % Game & Fish Fund % % Natural Resources Fund % % Other Funds % TOTAL (Non-Legacy) (9) -1% % Legacy Funds (direct approp) Clean Water % % Parks & Trails % % TOTAL (Legacy) 74 - (74) -100% % Table Notes: 1) The General Fund includes direct and open appropriations. 2) The Game and Fish and Natural Resources Funds show budgeted expenditures from direct and statutory appropriations. 3) The Legacy Fund includes direct appropriations from the Clean Water Fund and the Parks and Trails Fund. 4) Other funds include the special revenue funds, gift fund, Reinvest in Minnesota (RIM) fund, remediation fund, federal fund, permanent school fund, and miscellaneous agency fund.

4 BIENNIAL BUDGET FACT SHEET Conservation Easement Stewardship Investment Fund Budget Neutral The Department of Natural Resources (DNR) currently holds over 1,000 conservation easements. The DNR continues to protect land and natural resources and provide opportunities for public recreation through conservation easement acquisition. Conservation easements require ongoing stewardship, including regular monitoring, to ensure that their conservation values remain protected. This initiative is needed to allow the DNR to address the long-term stewardship of its new conservation easements at the time of easement acquisition through deposit of a principal amount into an investment fund that would be managed to maximize long-term gain. Interest and other earnings on the fund would be used for conservation easement stewardship. The DNR has $1,043,840 in existing Outdoor Heritage Fund appropriations for conservation easement stewardship but is not able to invest this money for a sustainable level of return. The DNR needs to be able to transfer this money into a fund where it will generate more interest and other earnings. This initiative: Creates a conservation easement stewardship investment fund that will be managed by the State Board of Investment to maximize long-term gain. Creates an account within the investment fund for the stewardship of DNR s conservation easements and provides for deposit of specified contributions, appropriations and gifts into the account. Appropriates five percent of the balance on July 1 of each year in the account to the DNR for conservation easement stewardship. Requires the commissioner to seek a financial contribution to the account for each conservation easement acquired by or assigned to the DNR and specifies considerations for determining the contribution amount. Transfers money already appropriated to the DNR for conservation easement stewardship into the account. The goal of this initiative is to enable the DNR to monitor, through money earned in the investment fund: All new DNR conservation easements; and Key easements where Outdoor Heritage Fund appropriations for stewardship have already been provided. This proposal is budget neutral because 1) Initial deposits into the account would be from the transfer of $1,043,840 previously appropriated from the Outdoor Heritage Fund, and 2) All revenues from earnings on this money are expected to be expended on the annual appropriation from the fund. The DNR would seek future appropriations for the deposit into the fund in conjunction with requests for conservation easement acquisition funding. Specific sources and amounts are unknown at this time. Susan Damon, Manager, Land Acquisition & Legal Services Division of Lands and Minerals susan.damon@state.mn.us

5 Rare Resources Preservation $477,000 FY16/$477,000 FY17 [Heritage Enhancement Account and Natural Resources Fund] Nongame Wildlife, Minnesota Biological Survey (MBS), Scientific Natural Area (SNA), Conservation Management and Rare Resources (CMRR), and endangered mussel recovery programs are among the foundation of conservation and enhancement of Minnesota s natural resources. These programs provide resource and land managers, permit programs and environmental review processes, with up to date and technically accurate information to inform their decisions. The Nongame Wildlife Fund can no longer support activities at current levels due to declining donations. The Division of Ecological and Water Resources appropriation from the Nongame Wildlife Fund must be reduced, which also reduces the matching funds provided by license plate donations. Retain Minnesota Biological Survey (MBS) animal survey staff despite Nongame Fund reductions. Continue to plan and implement priority habitat conservation efforts through the work of regional ecologists in Conservation Management and Rare Resources (CMRR). Pay land easement stewardship costs not covered by project money supporting the Scientific Natural Area (SNA) program. Begin full-scale restoration of Minnesota s mussel fauna to recover rare species and contribute resilience to ongoing efforts to restore clean water to the state s streams. MBS s information about plant and animal distribution, native plant communities and functional landscapes will be maintained. MBS information will be managed effectively and results communicated to decision-makers efficiently. Maintain technical assistance for forest and wildlife management. MBS information is used in all State Forest Management Plans, Analysis for Forest Certification requirements, and for priority conservation planning and recovery efforts. Biologists and ecologists will monitor species populations, including those in the DNR s Conservation Agenda. Increased endangered mussel recovery efforts will leverage substantial federal matching funds. These measures will help ensure Minnesota s waters, natural lands, and diverse fish and wildlife habitats are conserved and enhanced. These measures also help to provide an outdoor recreation system that is diverse and of high quality. Increase the appropriation to the Division from the Heritage Enhancement Account by $750,000/yr. to support 3 FTE within MBS for nongame wildlife and information delivery, 1 FTE within CMRR for habitat conservation, 2.5 FTE for recovery and restoration of endangered mussels, and provide land easement stewardship support for the SNA program. Reduce the appropriation to the Division from the Nongame Wildlife Fund by $273,000. Luke Skinner, Division Director Ecological and Water Resources Luke.Skinner@state.mn.us

6 Invasive Species $958,000 FY16/$958,000 FY17 [Invasive Species Account] Aquatic Invasive Species (AIS) have the potential to cause serious problems in Minnesota. These nonnative species disrupt economic activity and degrade the quality of recreation. Their spread is a threat to the state s natural resources. Prevention efforts reduce the spread of invasive species and buy critical time needed for research and management that may provide long-term control solutions. The DNR s AIS strategies identify fundamental steps needed to respond to this pressing issue, among others. One-time funding of $400,000 for county assistance will expire at the end of fiscal year 2015 and the balance in the Invasive Species Account is declining. Meet the growing needs of the Invasive Species Program, which is funded primarily from the Invasive Species Account through surcharges on watercraft and non-resident fishing licenses. Provide funding to support counties Aquatic Invasive Species (AIS) activities and to restore habitat and native species that have been degraded by AIS. Counties are requesting guidance and support from the DNR. DNR AIS watercraft inspectors will be stationed at priority access sites. AIS prevention plans will be developed and implemented with counties and other local governments. In 2013, the DNR entered into 25 delegation agreements with local units of government for authorized inspectors. The number of delegation agreements and requests for assistance with planning has increased with the new $10 million in county aid. Provide training for local watercraft inspectors. In 2013, the DNR trained 298 local watercraft inspectors and this number is expected to increase substantially with the new local aid coming to the counties. Support County AIS efforts with increased enforcement. Restore habitat and native species that have been degraded by AIS. Increase the watercraft surcharge from $5 to $10 to increase receipts to the Invasive Species Account by $1,002,000 in the first year and $1,336,000 in subsequent years. Increase the appropriation to the Division from the Invasive Species Account by $958,000 to support 8.4 FTE to carry out existing and increasing AIS prevention efforts. Luke Skinner, Division Director Ecological and Water Resources Luke.Skinner@state.mn.us

7 Clean Water Legacy $ 9,475,000 FY16/$ 9,475,000 Clean Water Fund Adequate supplies of clean water are essential for strong and sustainable job markets, economies, and communities, and for conserving Minnesota s waters, natural lands, and diverse fish and wildlife habitats. We currently face water quality and availability issues in many parts of the state. Improving water quality and managing water sustainably is one of the most challenging resource issues facing Minnesota. The DNR provides information and analysis to identify the most important water quality and supply issues and prioritize innovative solutions for the most pressing problems. This proposal requests $18.95 million for the FY biennium to support the State s clean water and sustainability efforts in seven main areas. Helping local partners plan for and implement water quality strategies: $6.48 million for the biennium. Maintaining and updating water data: $4.0 million for the biennium. Collecting and analyzing watershed-based data in rivers, streams, and lakes: $2.87 million for the biennium. Aquifer level testing and modeling: $2.75 million for the biennium. Drainage hydrology and modeling: $1.7 million for the biennium. Assessing riparian buffers: $650,000 for the biennium. Completing county geologic atlases to define and characterize the state s aquifers: $500,000 for the biennium. These activities are done in partnership with other state agencies and local partners working on water quality and supply issues. Agencies are working in interagency teams to streamline the way information is collected, stored, and shared, and aligning staff around major watershed projects to capitalize on a broad array of knowledge and skills. Project priorities are determined by an existing schedule for statewide watershed assessments (developed by the MPCA), existing watershed implementation plans (developed by state and local partners), and priority watersheds for pilot studies as determined by interagency teams or statewide initiatives (e.g., sentinel watershed studies, MN Agricultural Water Quality Certification Program). Information and analysis about water quality and watersheds will inform targeted plans and strategies to address water quality problems and provide long-term watershed protection. Local capacity to plan and implement projects will be enhanced so that communities can grow and develop while sustaining high quality natural resources that support their long-term needs. Groundwater and drinking water supplies will be protected from contamination and managed sustainably. Clean Water Funding is treated as a new initiative each biennium. For further information contact: Luke Skinner, Director Division of Ecological and Water Resources Luke.Skinner@state.mn.us

8 Investments in Forest Benefits $2,000,000 FY16/$2,000,000 FY17 [General Fund] The 4.2 million acres of state forest lands, including consolidated conservation (con-con) and school trust lands, administered by the DNR Division of Forestry (DOF) create great economic, social, and environmental benefits for all Minnesotans. Investments in forest management will ensure that forests remain healthy and resilient statewide. Minnesota s forests provide two-thirds of our state s clean drinking water; a multitude of bird-watching, skiing, camping, snowmobiling, and hunting opportunities; clean air; and storage of 1.6 million metric tons of atmospheric carbon. The forest products industry is the fifth largest source of manufacturing jobs in Minnesota. It has a $16.1 billion per year economic impact and provides 62,400 jobs. State forest lands provide 30 percent of the wood fiber available in Minnesota. The wood products industry relies on this stable, sustainable, certified wood fiber source. Investments in forest management, technology, and invasive species management are needed to ensure diverse, healthy, and reliable forests for today and tomorrow. In Minnesota s forests, 46 percent of the trees are at risk of attack from emerald ash borer (EAB) or gypsy moth. New to Minnesota, both insects have cost infested states many millions in lost timber, recreation, water quality, energy conservation, and human health. Rural communities are at a higher risk for damage because their forests are comprised mostly of trees species susceptible to gypsy moth and EAB. Invasive plants, like buckthorn and oriental bittersweet, are threatening forest sustainability in southern Minnesota and are becoming a growing concern in northern Minnesota. Protecting hardwood resources will become increasingly difficult over time if invasive plants take hold in our forests. This initiative impacts activities in three areas: Improving state forest land management and infrastructure to ensure safe state forest roads, timely and accurate forest inventory, and sustainable forest management. Reducing effects of invasive forest pests and engaging the public in the fight against terrestrial invasive species. Modernizing forestry data management to provide reliable and integrated technology systems for efficient field application and improved accountability. The activities in this initiative will be applied across all state forest land types, thus the investments provide environmental and financial benefits to the School Trust Fund and counties with con-con lands. Outcomes of improved state forest land management: Increase forest inventory work by 50,000 acres per year to reach our desired 20-year inventory cycle. All management activity starts from solid, timely inventory data. An accurate on-the-ground picture makes us more efficient and allows for sound sustainable forest management decisions. Provide safe roads and bridges for recreational activities and timber harvesting. Increase maintenance by 25 percent on the 2,340-mile state forest roads system, including culvert repair, spot graveling, grading, beaver control, vegetation removal, and other non-bondable maintainence. Apply thinnings and other treatments on an

9 additional 2,000 acres per year. Such activities remove unwanted trees, adjust the types of trees growing in a stand, and make stands more accessible for future management activities. Evaluate 100 timber harvest sites for sustainable forest management methods. Indicators of improved forest health: Increase our ability for early detection and rapid response to regional and statewide forest health issues; address pest outbreaks and emerging threats to county, city, private, and state forests. Survey and treat 750 acres of state forest lands for terrestrial invasive plants, such as oriental bittersweet, buckthorn, and garlic mustard. Treatments will preserve the environmental quality, diversity, and health of the forest. Expand the acclaimed PlayCleanGo program that engages residents, recreationists, and businesses in the campaign to reduce the impact of gypsy moth, EAB, wild parsnip, and other invasive species threatening the health and vitality of our forests. Forrest Boe, Director Division of Forestry 500 Lafayette Road, St. Paul, MN Forrest.Boe@state.mn.us Key measures of improved data management: Perform an in-depth business analysis and create a plan for needed forestry technology systems replacements. This road map will lead to 21st Century systems that best assist ongoing forest management decisions and activities. Complete critical updates to existing inventory, silviculture (growing trees), and forest road data management systems to keep them functioning while transitioning to new systems. Create a web-based logger registration and notification system that will serve 350 loggers per year, improving quality and timeliness of communications and reducing DOF timber sale administration and mailing costs. $2,600,000 and 6.5 FTEs for state forest land management and infrastructure $800,000 and 2 FTEs for forest health protection $600,000 and 1 FTE for technology to improve forestry data management

10 State Parks Operations and Maintenance $4,600,000 in FY 2016 / $4,900,000 in FY 2017 (expenditures) [General Fund and Natural Resources Fund] This initiative will help sustain, operate and maintain 75 state parks and recreation areas for a growing number of visitors seeking the health and wellness benefits of outdoor recreation. Outdoor recreation is a key component of Minnesota s quality of life and a cornerstone of its $12.5 billion tourism industry. This initiative is connected to the DNR Conservation Agenda goal of natural resources and outdoor recreation contributing to strong and sustainable job markets, economies and communities. Without an appropriation increase to address the increased costs of doing business, the Department of Natural Resources (DNR) will have to reduce customer services, camping and lodging nights, and staff. Increase the DNR general fund appropriation by $3.6 million each year and raise an additional $1.3 million of revenue annually through increased entrance fees to parks ($1 daily and $5 annually). This funding will allow the DNR to operate and maintain parks at a level the public has become accustomed to over the past biennia. Use of the Minnesota state park and trail system has increased significantly (one-day and yearround permit sales have increased 24% since 2008) so there is a clear and growing demand for the services we provide. The Division has cut costs by approximately $3 million since 2010 by shortening camping seasons at dozens of parks, by expanding the number of co-managed parks (where one park manager oversees multiple parks), and by reducing routine maintenance. Over the past couple of years the Parks and Trails Division, with significant stakeholder input, developed a system plan with criteria to help ensure that future investments focus on Minnesota s most important natural and cultural resources and its highest-quality recreational opportunities. This initiative impacts an estimated 9 million visitors to state parks annually. Providing high-quality recreation opportunities at Minnesota state parks gives people a reason to travel. Annual spending in local economies by Minnesota state park visitors totals $229 million. Protecting the state s natural and cultural resources for future generations and interpreting them meets the statutory requirements in the Outdoor Recreation Act. This proposal increased appropriations by $9.5 million in FY16/17. This increase is partially offset by $2.3 million in increased fees. Total net fiscal impact for the biennium is $7.2 million in the General Fund and net zero in the Natural Resources Fund. One-time funding was used to offset reductions in general fund support in each of the last two biennium s. This change provides a more permanent and consistent solution going forward. Erika Rivers, Director Parks and Trails Division erika.rivers@state.mn.us

11 Snowmobile Operations and Maintenance $225,000 in FY 2016 / $225,000 in FY 2017 [Natural Resources Fund] This initiative will help sustain Minnesota s 22,000 miles of snowmobile trails that are an essential part of the state s quality of life, tourism, and economic development. This initiative is connected to the DNR Conservation Agenda s outdoor recreation goal of meeting the needs of new and existing participants so all benefit from nature and the outdoors. It also relates to the DNR Conservation Agenda goal of natural resources and outdoor recreation contributing to strong and sustainable job markets, economies and communities. Without this appropriation increase, the Department of Natural Resources (DNR) will have to reduce services in trail grooming and maintenance; this will diminish trail quality and likely affect snowmobile tourism, including local winter businesses that rely on snowmobilers. Increase the DNR appropriation by $225K each year to allow the DNR to complete trail management activities necessary to sustain highquality snowmobile trails. This funding will be directed toward core DNR operations related to labor, fleet and grooming costs. Continue the partnership between the DNR and the Minnesota United Snowmobilers Association (MnUSA) to manage and maintain a high-quality snowmobile trail system in Minnesota. This proposal is an interim step to shore up basic snowmobile operations while we work together to address future funding needs. The DNR has continuously taken steps to become as efficient as possible with snowmobile operations, in response to a decade of essentially flat funding. We regularly implement staffing efficiencies, employ strategies to reduce groomer fleet expenses, and develop new approaches to trail grooming and maintenance. Priorities are set in statute, program policy and through working cooperatively with MnUSA, local units of government and business. This initiative affects the statewide system of snowmobile trails, including state administered and grant-in-aid (GIA) trails. Maintain Minnesota s outstanding system of snowmobile trails so that they contribute to the state s cultural and economic vitality. Sustain work with the GIA snowmobile clubs and have the resources necessary to maintain and groom state trails to a safe and enjoyable standard. This proposal increased funding from the Natural Resources snowmobile account by $450,000 in FY2016/17. The FY15 budget for this activity is $3,552,000. Increasing the appropriation by $225,000 one-time for the FY16-17 biennium for state trail maintenance and grooming, as well as for costs related to administering the GIA program, represents about a 6% change per year to the budget. The snowmobile account has recently experienced challenges due to a structural deficit and a low-snow winter in FY We are working with MnUSA to identify long-term funding needs and a means to increase revenue. Laura Preus, Policy, Programs and Planning Manager Division of Parks and Trails laura.preus@state.mn.us

12 Parks and Trails Legacy DNR Parks and Trails $17,061,000 in FY 2016 / $17,841,000 in FY 2017 [Parks and Trails Legacy Fund] This initiative will advance DNR s Legacy priorities and help establish a 21 st century state park and trail system. DNR will continue to make targeted progress toward the four main goals from the 25-year Parks and Trails Legacy Plan, including connecting people to the outdoors, acquiring land and creating new opportunities, taking care of what we have, and coordinating with partners. This initiative also supports the DNR s Conservation Agenda goals to create outdoor recreation opportunities, conserve natural resources, and contribute to strong and sustainable job markets, economies and communities. Connect People to the Outdoors. We promote and provide innovative programs and special events that educate, interpret and build outdoor stewardship skills. For example, the I Can! series reaches out to young families and new park and trail users to teach camping, climbing, archery and more. In FY we will provide interpretive programs to 240,000 participants and skill-building programs to 16,000 participants. We will also offer more outreach to diverse audiences, and use new technologies to better engage the next generation. Acquire Land, Create Opportunities. We pursue high-priority acquisitions that provide important connections and conserve natural and cultural resources. In FY16-17 we will acquire approximately 40 new state park acres and 25 new state trail acres. We will also complete highpriority development projects, including the construction of one new campground. Take Care of What We Have. This means that we renew infrastructure and maintain natural and cultural resources to support high-quality outdoor experiences. In FY16-17 we will rehabilitate one campground, 30 state trail miles, four trail bridges, and we will enhance accessibility and solar energy across the system. We will also conduct prescribed burns on about 5,600 acres, control invasive species on about 8,700 acres, and reconstruct native plant communities on about 900 acres. Coordinate with Partners. Minnesotans and visitors should experience parks and trails of state and regional significance as a seamless network. DNR works with the Parks and Trails Legacy Advisory Committee and partners to create this network. In FY16-17, the DNR Parks and Trails Division System Plan will help us better coordinate project activities with our partners. We describe more detailed coordination activities in the Parks and Trails Legacy Coordination Among Partners Fact Sheet. We will continue to track progress toward the 25- Parks and Trails Legacy Plan and DNR Legacy priorities. Key measures include: State park permit sales and overnights stays Participation in interpretive and skill-building programs and special events Acres of parkland and state trails miles acquired Measures of specific improvements to our aging infrastructure, including rehabilitations on state trails and trail bridges Number and type of new opportunities in parks and trails (e.g., from new development projects), and Acres of prescribed burns, invasive species control, and native plant restorations

13 In FY16-17 DNR will direct spending in the following categories: $5,448,000 for connect people to the outdoors $9,527,000 for acquire land, create opportunities $19,927,000 for take care of what we have $1,080,000 for coordinating with partners (as a separate appropriation) Laura Preus, Policy, Programs and Planning Manager Division of Parks and Trails laura.preus@state.mn.us

14 Parks and Trails Legacy Greater Minnesota $8,530,000 in FY 2016 / $8,920,000 in FY 2017 [Parks and Trails Legacy Fund] This funding will provide grants to local governments to connect people to the outdoors, create new parks and trails, and maintain existing ones. The grant program will help create a seamless system of outdoor recreation across the state. This initiative advances the 2015 Greater Minnesota Regional Parks and Trails Commission System Plan. It also contributes to the DNR s Conservation Agenda goals to create outdoor recreation opportunities, conserve natural resources, and contribute to strong and sustainable job markets, economies and communities. This funding will directly provide for a competitive grant program that will help achieve the goals of the 25-year Parks and Trails Legacy Plan, including connecting people to the outdoors, acquiring land and creating opportunities, taking care of what we have, and improving coordination across outdoor recreation providers. In the past, the DNR has led and managed the Parks and Trails Legacy Grant Program for Greater Minnesota. The Greater Minnesota Regional Parks and Trails Commission, established by the legislature in 2013, is now ready to lead and manage this program. The commission will guide the planning and grant selection for Greater Minnesota based on the results of its public engagement process in six districts across the state, and provide recommendations to the legislature for Greater Minnesota parks and trails grants. The DNR will continue to work closely with the commission and provide contract management for funded projects, as well as technical assistance to grant applicants and recipients. This program will provide grants to local governments to create and maintain outdoor recreation opportunities of regional or statewide significance in Greater Minnesota. Key measures include: the number and type of grants; dollars awarded; results achieved (e.g., acres acquired, parks and trails developed, and satisfaction of park and trail users); and economic trends and benefits resulting from local parks and trails. Since 2010, Greater Minnesota Legacy funds have been used to acquire more than 1,000 acres of parkland. These important acquisitions, most in rapidly growing areas, provide the land for new recreational opportunities. This proposal provides $17,450,000 from the Parks and Trails Legacy Fund. It allows for: At least 93% of the total appropriation ($7,932,900 in FY 2016 and $8,295,600 in FY 2017) for local grants directed to Greater Minnesota. Up to 2.5% for the DNR to manage the grants according to standards consistent with the Minnesota Office of Grants Management. Up to 4.5% for the Greater Minnesota Regional Park and Trail Commission to provide grant program leadership and implement a system plan. Laura Preus, Policy, Programs and Planning Manager Division of Parks and Trails laura.preus@state.mn.us

15 Parks and Trails Legacy Coordination Among Partners $531,000 in FY 2016 /$549,000 in FY 2017 [Parks and Trails Legacy Fund] The state and regional parks and trails system is made up of different providers across the state funded by numerous sources. This complex network poses a challenge to state and regional providers interested in meaningful coordination, as well as end users who seek high quality, connected and accessible opportunities. Coordination among partners is critical to achieve the goals of the 25-year Parks and Trails Legacy Plan. The three implementing agencies (Department of Natural Resources, Greater Minnesota Regional Parks and Trails Commission, and Metropolitan Council) are working together to advance a more coordinated approach to achieve outcomes for the Legacy Parks and Trails Fund. Effective coordination results in wise use of funds and may result in cost savings. This initiative contributes to each implementing agency s strategic goals. This request builds on previous appropriations from the Legacy Parks and Trails Fund related to coordination and research. It advances partnership work in the following key areas: Research Standardized coordinated research is needed across the three systems to understand who is using the state and regional park and trail system, where they are coming from, and their satisfaction with facilities and programs. Research is critical to ensuring Minnesotans expectations for use of the Legacy Parks and Trails Fund are being met. Web-based systems One of the goals in the Parks and Trails Legacy Plan is enhanced, integrated and accessible information for park and trail users. Partners have already been coordinating on the development of integrated Web tools that will give people the ability to do trip planning, create customized maps, use printon-demand services and interface with smartphones. Accessing information about desired park and trail experiences through an integrated website will be a service for park and trail users. This proposal will build on that effort. Support for the Legacy Advisory Committee - The Parks and Trails Legacy Advisory Committee (LAC) works to ensure implementation of the 25-year Parks and Trails Legacy Plan. Members provide recommendations and help advance common goals (Parks and Trails Advisory Committee Home page). Restoration evaluation Evaluation of natural resource restoration projects across all four Legacy funds will determine progress toward achievement of restoration goals. A significant amount of Legacy funds have been invested in restoration projects and an assessment of progress will guide future investments and assess achievement of restoration goals. Other priority coordination needs such as joint marketing and youth involvement and connecting racially and ethnically diverse audiences need a coordinated effort as well. Key outcomes of coordination include improved performance for achieving the goals of the 25-year Parks and Trails Legacy Plan, and more efficient use of the Legacy Parks and Trails Fund. Specific measures and outcomes include: Develop an integrated user-friendly website.

16 Develop and implement a standard survey tool and methodology for implementation across state and regional parks and trails. Hold six Legacy Advisory Committee meetings per year with the completion of an annual work plan designed to monitor and evaluate and recommend how to implement the Parks and Trails Legacy Plan. Complete restoration evaluations and an assessment of the acres of natural resource sites improved. Increase engagement among youth and diverse audiences. A major goal for all outdoor recreation providers is to increase the per capita participation in naturebased outdoor recreation, particularly among underrepresented groups, including families with young children and communities of color. This proposal provides $1.08 million from the Parks and Trail Legacy Fund in FY2016/17 for this effort. The products and benefits of this change item are shared among the Department of Natural Resources, the Greater Minnesota Regional Parks and Trails Commission, and the Metropolitan Council. The responsibility for coordinating, planning and communicating is also shared to ensure that these benefits meet the needs of the three entities. Laura Preus, Policy, Programs and Planning Manager Division of Parks and Trails laura.preus@state.mn.us

17 Fish and Wildlife Enhancement and Reinvestment $5,443,000 FY16/$5,075,000 FY17 (expenditures) [Game and Fish Fund] Minnesota s hunting and fishing heritage is exceptionalwe lead the nation in fishing participation rates and are in the top ten in hunting participation. High-quality fishing and hunting also attract more than 300,000 nonresidents and their families to the state every year. As a result, hunting, fishing, and wildlife watching generate over $3 billion in retail expenditures in Minnesota each year. Abundant, healthy fish and wildlife populations and habitat are the foundation for these important cultural and economic benefits. Threats to fish and wildlife populations and habitat are increasingly complex. The Department of Natural Resources (DNR) role is to foster healthy habitats and improve the ability of fish and wildlife to respond to change. This initiative addresses indicators of declines in populations of some key species and habitats as described in Conservation Agenda ( ), the agency s 10 year strategic plan. Outdoor recreation fosters natural resource conservation and promotes healthy living; however, across the nation, outdoor recreation is in decline. With support from this initiative, the DNR will maintain highquality accessible facilities and implement recruitment and retention efforts to minimize loss of current and future recreationists. This change request helps ensure that Minnesota fully captures the state s increased apportionment of federal excise taxes under the Wildlife Restoration Act (aka Pittman-Robertson), which has doubled in recent years, enabling projects to be completed at a net cost of twenty-five percent. Without this appropriation, we risk losing $6 million in federal funds for wildlife support efforts. The Division of Fish and Wildlife manages fish and wildlife populations and habitat through monitoring, research, and active management. $1,450,000 (net) will support habitat management, population assessments, and harvest monitoring to enhance fisheries management and maintain high quality angling opportunities. $182,000 (net) will engage partners and support training on best practices in recruitment and retention for key organizations in outdoor recreation $1,049,000 (net) will improve facilities, access, and customer service to enhance fishing, hunting, and wildlife recreation experiences $1,766,000 (net) will accelerate monitoring, research, habitat management, and partnerships to support wildlife populations in prairies, wetlands, and forests throughout Minnesota. Healthy fish and wildlife populations and habitat consistent with sustainable and socially accepted population goals for the benefit of current and future generations of Minnesotans. Abundant, available and high quality fish and wildlife related recreation opportunities to preserve Minnesota s heritage of hunting and fishing. Effective partnerships with citizens to manage fish and wildlife resources and meet the needs of Minnesota s diverse residents. Robust participation in fishing, hunting, and fish and wildlife associated recreation to support a robust outdoor recreation economy.

18 $10,518,000 million for the Division of Fish and Wildlife, which is offset by $6,071,000 in federal reimbursement. o Fisheries $1,650 million o Wildlife $8,738 million o Outreach $330 thousand Ed Boggess, Director Division of Fish and Wildlife mail to: Ed.Boggess@state.mn.us

19 Expanding Shooting Ranges $500,000 FY16/$500,000 FY17 [Game and Fish Fund] Outdoor recreation is a Minnesota tradition. However, changes in leisure time, increasing urbanization, and other factors are limiting participation in many activities. In contrast, youth and adult archery participation is increasing. There are a growing number of recreational target shooters. Through the National Archery in the Schools Porgram, the DNR collaborates with nearly 400 schools to establish two-week archery lessons. Archery is increasing in popularity; however, the opportunity to practice on private property is increasingly limited. More locations that are designated and designed to accommodate target archery shooting are needed. There are over 500,000 licensed hunters in Minnesota. In addition, there has been a large growth in trap shooting leagues with nearly 8,000 high s school team participants. To support Minnesota s hunting heritage and shoorting sports enthusiasts, there is a need to provide public firearm shooting ranges. Increase in number of public archery and firearm shooting ranges, improving opportunities for Minnesotans to maintain their hunting tradition $1.0 million for the Division of Fish and Wildlife, which is offset by $732,000 in federal reimbursements. This change request helps ensure that Minnesota fully captures the state s increased apportionment of federal excise taxes under the Wildlife Restoration Act (aka Pittman-Robertson), which have doubled in recent years, enabling projects be completed at a net cost of twenty-five percent. Ed Boggess, Director Division of Fish and Wildlife Ed.Boggess@state.mn.us This initiative will enhance and expand public archery and firearm shooting ranges. Provide technical expertise state and local government units to ensure safe, accessible, environmentally sound archery and firearms shooting ranges Provide and administer grants to site, design, construct, or enhance public archery and firearms shooting ranges, and develop ranges on public lands.

20 2015 Enforcement Service Deficiency $568,000/FY15 [General Fund, Game and Fish Fund, and NR Fund] It is needed because The Department of Natural Resources (DNR) Enforcement Division s primary role is protecting natural resources and public safety. We accomplish this through education, outreach and law enforcement. Over time, the capacity to serve this role throughout the state has diminished due to impacts of inflation over years of flat budgets. The Enforcement Division entered fiscal year 2015 with a projected $1.8 million deficit. Some causes include: Bargaining unit negotiated compensation adjustments of 2.5% to 3% per year over the last four years; 1.5 percentage point increase (8% increase) in employer share retirement enacted in the 2014 legislative session; Vehicle increases for acquisition, maintenance and insurance; and Division funding tied to dedicated accounts (snowmobile, ATV, etc.). Spending in these funds is limited to the lesser of the appropriation amount or the available funds from fees. Resources available do not always match program needs. In addition, the division has been maintaining 28 vacancies, including 24 field officer positions to meet prior years budget challenges. The DNR cannot continue to reduce service area coverage by enforcement staff to resolve this issue. The DNR has been receiving concerns from citizens and user groups related to the limited coverage and reduced capacity of the Division. If we continue down this path without additional resources, there is a significant potential for a reduction in voluntary compliance for resource protection and public safety regulations impacting the quality of outdoor recreation and tourism. The division has enacted a number of cost reduction options and budget adjustments. These actions have been accomplished in a way to allow for maintaining acceptable services levels and include: Reducing training, travel, fleet and communication (radio) costs; Postponing of the Conservation Officer Academy; Identifying additional federal resources; and Refocusing work to match areas of available state funding (boat safety, AIS). Through these actions, we have identified approximately $1.3 million in savings or offsets. Major program elements The proposal requests $568,000 in one-time funding to offset the balance of the projected deficit that are specifically related to recent cost increases: $255,000 for the increase in employer paid portion of the State Patrol Retirement Plan for FY 2015, and $313,000 for the 3% pay increase for FY2014 that will be paid as back-pay in FY15. Key measures and outcomes Funding allows the DNR to maintain current staffing and service coverage levels and avoid a reduction of up to 15,000 service hours. Fiscal impacts Funding of this proposal would come from a variety of funds including General Fund, Natural Resource Fund (NR) and Game and Fish Fund (GFF). $69,000 GF $371,000 GFF $128,000 NR

21 Retirement Funding Increase $255,000 FY16/$510,000 FY17 [Multiple Funds] The Department of Natural Resources (DNR) Enforcement Division s primary role is protecting natural resources and public safety. We accomplish this through education, outreach and law enforcement services. An increase in employer obligation to fund retirement cost of $255,000 in FY16 and $510,000 in FY17 has the cumulative effect to reduce the number of Conservation Officers full-time equivalents (FTEs) by 2.5 FTEs in FY16 and 4 FTEs in FY17 and beyond. These costs are driven by two 1.5% increases to the employer-paid contribution to retirement effective July 1, 2014 and June 30, Without the requested increase, these additional vacant stations will negatively impact DNR s capacity to provide game and fish protection, recreational safety training and enforcement, natural resource protection, and public safety, as well as to respond to increasing demands for enforcement of invasive species, water appropriation, and other natural resource protection laws. The proposed increase to base funding will help to correct the diminished capacity for the Division of Enforcement to provide resource protection and public safety due to vacant conservation officer stations (currently 24 vacant stations). This funding allows the DNR Division of Enforcement to provide essential Law Enforcement services listed above by supporting 2.5 FTE s in FY16 and 4 FTE s in FY2017 and beyond. This request is for increase in base funding from the various accounts including General Fund (GF), Game and Fish Fund (GFF), Natural Resource Fund (NR) and Heritage Enhancement Fund (HE). FY16 FY17 31K 62K (GF) 153K 306K (GFF) 58K 116K (NR) 13K 26K (HEA) Col. Ken Soring DNR Enforcement Division 500 Lafayette Rd, St Paul, MN ken.soring@state.mn.us The proposal requests: $255K in FY16 $510K in FY17 and beyond in order to meet the employer obligation to pay for retirement costs approved in the 2013 legislative session.

22 Delivery of Natural Resources Law Enforcement $1,004,000 FY16/$1,523,000 FY17 [Game and Fish Fund and Natural Resources Fund] The Department of Natural Resources (DNR) Enforcement Division s primary role is protecting natural resources and public safety. We accomplish this through education, outreach and delivery of law enforcement services. The capacity to provide these services has diminished due to budgets not keeping pace with inflationary costs. This funding will be used to hire conservation officers to fill the equivalent of 11 of the 24 vacant field stations over the biennium. The services provided by Conservation Officers support the DNR mission by: Protecting habitat (water, air, wetlands, vegetation); Ensuring sustainable harvest of resources; Increasing quality of life by ensuring safe and equitable outdoor experiences; Recruiting and training of youth and adults in outdoor activities; Supporting economic opportunities, ensuring commercial activities are conducted in sustainable manner; and Responding to citizen calls for service search and rescue, and natural disasters 24/7. The proposal will also support the implementation of the Division of Enforcement Strategic Plan. The proposal requests an increase to base funding of $1,004,000 in FY16 and $1,523,000 in FY17 to fund 7.5 conservation officers in FY16 and an additional 4 conservation officers in FY17 for a total 11 new officers in biennium to provide law enforcement services and fill field officer vacancies across the state that have increased to 24 over the last several years. Funding will help reverse the diminishing capacity of the division to provide core law enforcement services statewide. The Division has experienced a reduction of approximately 60,000 hours of conservation officer service in FY14-15 through 24 field officer vacancies (approx. 15% of complement). This funding would reduce officer vacancies from 24 to 13 over the biennium. Filling vacant stations will help to ensure the safety and quality of life for the citizens of Minnesota who rely on the health of our natural resources for their recreational and commercial uses. Funding for this proposal comes from a variety of dedicated accounts including Game & Fish Fund (GFF), Natural Resource Fund (Water Recreation, Snowmobile, All-Terrain Vehicle, Off-Road Vehicle, Off-Highway Motorcycle, and the Heritage Enhancement account). $870,000 in FY16 and $130,000 in FY17 from the General Fund. $$1,330,000 in FY 16 and $220,000 in FY17 from the Game and Fish Fund. The funding from these accounts would need to be continued in the base funding to maintain the positions. Col. Ken Soring Chief Conservation Officer Enforcement Division 500 Lafayette Rd, St Paul, MN ken.soring@state.mn.us

23 Aviation Services Rightsizing $2,200,000 FY16/$350,000 FY17 [General Fund and Game and Fish Fund] The aviation section of the Department of Natural Resources (DNR) Division of Enforcement provides efficiency and support for DNR programs as well as public safety missions statewide. The Aviation section provides support for goals outlined in the DNR Strategic Plan through: Wildlife survey and census; Wetlands and waters protection; Support to enforcement operations for tribal and local agencies; Search and rescue; Asset damage survey for natural disaster; and Safe and efficient transportation of staff in research projects (ie. Moose study crew). Through this proposal, the DNR will be reducing the rotary aircraft fleet from three helicopters to two while increasing safety. The rotary aircraft being replaced are two Military Surplus OH58 s from 1968 and 1972, and two none-flying helicopters that will be returned to the Department of Defense (DNR will not realize any income/value from the return). These helicopters are becoming expensive to maintain and parts are becoming scarce. In addition, this proposal will replace a 1985 fixed wing aircraft with high hours of use. The Division of Enforcement operates the aircraft and charges operation costs (hourly rate) of the aircraft to other DNR customers. (Pilot salary and replacement cost of the aircraft is not charged). The DNR Enforcement Pilots are exceptionally well trained to perform specific duites required for these missions (wildlife identification) and are SAFETY DRIVEN rather than profit driven. The proposal requests one-time funding of $2,200,000 in FY16 for the purchase of one helicopter to replace two aged military surplus helicopters, and $350,000 in FY17 for the replacement of one fixed wing aircraft. The proposal will provide for efficiency by right-sizing the DNR s aviation fleet and increase safety by operating modern aircraft. More specific outcomes include: Rotary aircraft fleet will be reduced from three to two; Safer and more fuel efficient aircraft; Maintain lower hourly rates to DNR customers; Ability to continue to provide operational efficiency and effectiveness for critical DNR Programs; and Better government for Minnesotans through cooperative program with Public safety to reduce total fleet required Funding of this proposal comes from the General Fund and the Game & Fish Fund (GFF) and is based on historical usage. $2,200,000 in FY16 for rotary aircraft from funds $880,000 (General Fund) $1,320,000 (GFF) $350,000 in FY17 for fixed wing from funds: $140,000 (General Fund) $210,000 (GFF) Col. Ken Soring, Chief Conservation Officer Enforcement Division ken.soring@state.mn.us

24 For further information contact: Col. Ken Soring, Enforcement Division

25 Citizen Engagement in Natural Resources $500,000 in FY2016/$500,000 in FY2017 [General Fund] Technology and social media are changing the face of public-sector communication and service delivery. No longer bound by hours of services, mail or paper, citizens expect easy online access and to be able to find the information they want, when they want it and in formats that meets their needs. A modernized web platform, new digital content, and mobile applications are needed to meet the needs of and engage Minnesota s citizens in outdoor recreation and conservation. As one of the largest electronic information and license distribution government networks in the Midwest, DNR needs to be prepared to provide information and services that best meets our citizens needs within a secure environment. The DNR is the state s trusted source for natural resources information as demonstrated by: o DNR estimates 2.8 million individual people visited its website from 6 million different devices between Aug 2013 and Sep It tracks the number of visits from mobile, tablet, and traditional PC visits. o In the past five years, the number of visits to DNR websites has been increasing. The percentage of visits on mobile and tablet devices has increased from 5% of all visits in 2010 to 39% of all visits between January and September Approximately 1.5 million anglers and 500,000 hunters annually buy their licenses from electronic point-of-sale portals. o DNR s website supports approximately 25,000 pages of information and more than 55 million hits in FY14. o o DNR s Parks and Trails Division make about 80,000 park reservations through its electronic reservation system. There are more than 40,000 users of the DNR s social media channels, including Facebook and Twitter. Provide mobile applications that make it easier for hunters, anglers, snowmobilers, and others to discover and enjoy state lands and other recreation opportunities. A website that not only allows DNR to engage citizens, but also for citizens to engage with us in meaningful ways. Refresh priority content and establish a framework for the governance of the vast amount of data available on our website. Individuals are accessing DNR websites from many different devices. This initiative will allow DNR to provide access to information and services anywhere, anytime, and from any device. The number of visits and type of device used will continue to be tracked, and websites that focus on outdoor recreation will be optimized for use on mobile devices. Success will be measured by significantly increasing availability and use of these mobile friendly websites. Content will be managed in a way that is most useful for citizens. DNR web applications and social media channels will ensure the safe and secure delivery of information and protection of not public data.

26 (in $000s) This proposal request $500,000 in general funds annually. No base funding exists for this work. This proposal includes elements provisioned through IT services. DNR would rely on MN.IT DNR to provide services to build and maintain the web platform and applications. Laurie Martinson, Director Operations Services Division

27 Legal Support Costs $500,000 in FY2016/$500,000 in FY2017 [General Fund] The DNR has a difficult time adequately funding the agency s response to a growing number of legal challenges because of the high costs for expert witnesses and staff, attorneys, Attorney Generals Office, court time and defense preparation. This is especially true for large and complex issues relating to water, mining, and other natural resources. With this change DNR will be able to retain advice from experts in natural resources legal issues while defending its natural resources decisions whether in federal or state court, contested case hearings, mediation and other venues without imposing undue hardship on existing division budgets. The DNR is increasingly dependent on dedicated funding sources which results in less flexibility to direct those funds to cover legal challenges. In addition, DNR does not have the ability to seek damages or reimbursement for these costs from proponents, plaintiffs or defendants except in rare cases. This means that DNR must reduce program funding in order to cover these costs. Providing special funding for these large and unexpected legal costs has precedent. An example is an appropriation that the legislature provided to defend the 1837 Treaty Rights lawsuit that was eventually heard by the U.S. Supreme Court in the 1990s. Other funding sources and general fund program dollars will not be redirected away from program priorities for this work. Agency decisions will be sustained. The Governor recommends $500,000 each year in FY16 and FY17 to fund legal support costs to defend agency decisions on water management environmental and other issues. This is a one-time request. Sherry Enzler, DNR Legal Counsel Sherry.Enzler@state.mn.us This proposal funds two positions within the agency to provide legal counsel to support the agency on anticipated lawsuits and additional funding for the attorney general s office, contracted legal support and other costs.

28 BIENNIAL BUDGET FACT SHEET Operating Adjustment $2,645,000 FY16/$5,337,000 FY17 Each year compensation cost rise due to labor contract settlements, annual step-increases, changes in employer paid contributions for insurance, FICA, Medicare and other factors. Absorbing these increases within existing base funding results in reduced staffing and/or reduced non-compensation spending and an overall reduced capacity to meet the agency s core functions. The last operational budget increase was enacted in Over the last four years bargaining unit negotiated compensation adjustments have ranged from 2.5% to 3% per year. The DNR has enacted a number of cost saving initiatives over time to manage these and other inflationary increases. We have managed vacancies, reduced seasonal staff, reduced camping seasons, reduced maintenance on state lands and facilities, reduced training and other activity for enforcement staff, and relied more heavily on one-time funding. We have reduced travel and optimized fleet use via strong fleet management and energy efficient vehicles. $2,288,000 General Fund $4,313,000 Game and Fish Fund ($239,000) Game and Fish Fund Revenue Offset $1,381,000 Natural Resources Fund Emily Engel Operations Services/Office of Management and Budget Services Emily.Engel@state.mn.us We cannot continue to allow our services to decline due to inflationary pressures. We cannot use constitutional funding sources for operating expenses. Provides for a 1.8% per year increase for compensation costs within certain direct appropriated funds. Increased funding is partially offset by federal Pittman-Robertson reimbursement which is deposited in the Game and Fish fund. Current levels of service will be maintained.