Michigan Muskie Alliance

Speer: Something smells fishy with DNR budget

By BILL SPEER - Alpena News

When will it end?

The “it” I refer to is the circus we know as state government.

I’m sorry, for I struggled for 10 minutes over the above sentence to try and find a more appropriate word to replace circus. Try as I might, I could think of nothing better and in fact, thought incompetence and ineptitude would be better choices to work into the sentence, but I decided against them as being too harsh.

What pray tell has my gander up this morning?

After months of belly-aching about budget shortfalls — including notice to department employees in line to be laid off if money wasn’t found — Department of Natural Resources’ Director Rebecca Humphries told lawmakers this week that the Game and Fish Fund will have a $10 million fund balance because of an unexpected increase in license sales, operational savings and higher-than-expected returns on investments.

So where did that money materialize?

Within the last month I wrote a column advocating the need for lawmakers to find the funds needed for the DNR. Within the last month Humphries was meeting with Alpena News staffers advocating for the needed funds and she appeared as a guest on The Bottom Line radio show warning of cuts and closures unless the funds were found.

Within the last month I sat with both of our state legislators and specifically discussed the DNR needs. Both State Sen. Tony Stamas and House Rep. Matt Gillard were concerned. In fact, Gillard had introduced legislation in the House to raise hunting fees — a move that raised the ire of many of his constituents and sportsmen across Michigan.

So how now, less than four weeks later, was this money suddenly located within the budget and no new revenue is needed for this fiscal year?

Humphries in her report to lawmakers said a portion of the money was from increased license sales. Will you have me believe this morning DNR officials did not have a good handle on those sales this year before now? Come on! Even if there was a spike in deer license sales before the season started Nov. 15 that the DNR did not predict, they still should have been able to track those sales as they were happening.

Sure smells to me like the DNR position was nothing more than political maneuvering while state budget talks were going on.

Is it any wonder Michigan residents have little faith in state government leaders anymore? They are like the fairy tale of the boy who cried “wolf.”

Personally, I always have had high regards for Humphries. Since I first met her as a biologist working on the bovine tuberculosis issue locally years ago, I have liked and supported her leadership.

I also trust Gillard and Stamas. Both meet or talk regularly with me in both on-record and off-record conversations, and I trust neither had any insight into this four weeks ago. Evidence of that is Gillard’s backing of the legislation, which he did as a conservation leader and majority party member within the Michigan legislature, even though he knew it was a firecracker that could explode in his hands.

According to an Associated Press report, Republican leaders were upset this week with the sudden discovery — wondering if DNR personnel had exaggerated their need for the revenue earlier.

Stamas said Friday afternoon he was frustrated as any talks to explore alternative long-term solutions to DNR budget concerns now are as good as dead.

It appears more than coincidental that Gov. Jennifer Granholm late last week went on record for “no new taxes” (see editorial on this page) and less than seven days later, the extra revenue magically appears.

I wonder today whether Humphries was just being a good Democrat lieutenant, marching to the then orders of Granholm, her commander-in-chief, back in November, and is continuing that loyalty today for her boss?

I would like to think differently.

I would hope something as precious as our natural resources would not have been held hostage in a political tug-of-war with the budget.

When will it end?

Michigan citizens have had enough.

here's the other side/spin on the story straight from the DNR's mouth(actual emails ripped off another michigan website):

TO: NRC Hunting and Fishing License Package Development Work Group, Citizens
Committee for Michigan State Parks, Hunter Recruitment and Retention
Implementation Committee, Waterways Commission, Forest Management Advisory
Committee, Snowmobile Advisory Committee, ORV Advisory Board, Accessibility
Advisory Council

You may have read, heard or seen in various reports lately that the
Department of Natural Resources closed its books with a $10 million fund
balance in the Game and Fish Protection Fund (revenue from the sale of
hunting and fishing licenses). It's important to note and clarify that this
in NOT a surplus as being reported by some media. Per the direction of the
Natural Resources Commission, we try to maintain a $10 million fund balance
in case funding emergencies come up that we need to address immediately.
This year we thought we would be well below the goal ($4 million), but
through the three reasons listed in my e-mail to staff below, we were able
to maintain the goal, but it came at significant cost in the form of program
reductions and vacancies.

You might also be wondering what's going on with the Legislation that would
have increased the hunting and fishing license fees. Well, for right now,
that legislation is put on hold.

What we are working on is a supplemental appropriation to help provide
funding that will address those program reductions and vacancies.
Discussion of short- and long-term funding is still important because we
spend more than we bring in each year (due to the age of our fee package),
so additional funding is still needed.

I want to again thank you for your help, and if you have any questions
please let me know.

Becky Humphries
Director
Michigan Department of Natural Resources

***********************

>>> Rebecca Humphries 12/11/2007 9:33 AM >>>
This is a DNR-All message.

As we work to fully implement the current fiscal year budget that was put
into place by the Legislature and the Governor on October 31, and we close
the books on Fiscal Year 2006-07, I want to provide an update on where we
are budget-wise.

For the programs that are administered with Game and Fish Protection Funds
(hunting and fishing license revenues), we will close the books from last
fiscal year with a greater fund balance than anticipated. This fund balance
has been driven primarily by three factors: 1) increased license sales (due
to lowering of the hunting age and sales of apprentice licenses); 2) better
than projected returns on our investments; and 3) implementation of the
Executive Directives limiting travel, filling of vacancies, purchases, etc.
I have notified the bargaining units that at this time, it is not my
intention to eliminate any positions or lay off any employees as a result of
the fund balance.

Our other two major funding sources are in a different place. We continue to
manage the deficits and General Fund reduction in Forest, Mineral and Fire
Management, and are closely watching how the Parks Improvement Fund is
doing. Both of these continue to be of concern, but I am hopeful they can be
addressed as the Governor and Legislature work on the short- and long-term
funding needs for the Department.

To address our short-term funding, the administration has announced support
for a supplemental appropriations bill that will provide $5 million in
General Fund/General Purpose revenue to the Department for this fiscal year.
To address our long-term funding needs, we have several initiatives that we
are working with constituent groups, the Governor, and the Legislature to
implement, including the license plate fee that was passed by the Citizens
Committee for Michigan State Parks and approved by the Natural Resources
Commission as a means to address parks, state forests, and local recreation
needs.

As we continue to work through these tough fiscal times, I hope this news
can provide a little lift to you and your families during the holiday
season.

Becky

Hmmmmm????? I think it was political posturing in the form of a bluff. Trying to scare us into giving in so the Headstart and 80 thousand unemployed workers going to school could be funded. Both un needed social programs that have been scrapped. Now all of a sudden we have not just a 10 million dollar fund to carry into 2008 but 5 million more being allocated. Looks like I was right It was all about adding new socail programs to an already stressed budget. This state government just needs to get out of our way and let us move forward. The biggest thing that would turn this state around are incentives for companies to move here and employ Michigan workers period. Kingfisher

Kingfishers social program garble babble has nothing to do with the present DNR funding. Go back and reread the previous post by Duke.

Maybe the additional funding came from US and other organizations encouraging people to buy youth licenses!!

A year ago at a fishery meeting in Lansing I mentioned the idea of fishing clubs sponsoring the complete middle school with $2 fishing licenses so the DNR could collect the $8.18 per license. Kelly Smith thought it was a good idea at the time, but idea got lost by the fishing clubs in the fog of budget debate. Once the budget gets back on track the youth sponsor program can resume. Can you imagine the dollars generated if each club sponsored their local middle school? Good future topic on its own thread.

From MUCC web site: http://mucc.org/policy/feefiasco.php
The Fee Fiasco

After months of behind-the-scenes work that included countless hours of discussion, meetings and correspondence that included the formation of a conservation coalition of more than three dozen of the state’s outdoors organizations, the DNR’s 2008 budget crisis appears to be resolved.

The solution? Well, they’ll simply use the $10 million that they “discovered” in the Game and Fish Protection Fund.

On Dec. 11, DNR Director Rebecca Humphries confirmed to state legislators that the DNR would have a $10 million fund balance in the Fish and Game Protection Fund.

In October of 2007, the Director reported that the fund would have a $7.8 million fund balance which would leave the DNR’s budget for 2008 about $2.5 million short. Soon after, the Department rolled out a series of proposed cuts that included the closure of fish hatcheries, research stations and waterfowl areas if a license fee increase wasn’t passed to cover the shortage.

Rather than see our state lose valuable services, MUCC and the coalition fought valiantly to see a license fee increase implemented and prevent those cuts from happening. It was a fight that, apparently, didn’t need to be fought just yet.

Michigan United Conservation Clubs took a stand for the DNR and the outdoors we all love so dearly. We encouraged our members to support a license fee increase despite the fact that it wasn’t always a popular position. In fact, at times it was a downright unpopular position and certainly created some ill will.

MUCC, along with our dedicated coalition partners, took this position because we felt it was the right thing to do and, according to the information that we were provided by the DNR, was the only viable option to prevent devastating cuts in DNR staff and programs – cuts that would directly impact hunters, anglers and those that love the outdoors.

The facts are now clear that the entire picture wasn’t being presented. In a few short months, the Department went from projecting a $10.8 million deficit in the Fish and Game Protection Fund to a $10 million fund balance. That’s a swing of more than $20 million.

In situations such as this, anyone would be compelled to point the finger and lay blame. But that’s simply not productive and it’s not how MUCC – or any credible leader or organization -- operates. Instead, we must learn from this experience and apply those lessons in the future.

In fact, we are doing exactly that.

At the request of MUCC Executive Director Dennis Muchmore, we will be having an independent audit and evaluation of revenues and expenditures of the Fish and Game Protection Fund performed. It’s clear that we simply can not properly represent our members without first clarifying exactly how much money the Fish and Game Fund has and how it’s spent. It’s also clear that those numbers must be verified from an independent source. Should these steps have been taken in the first place? Well, given the current situation the answer to that is easy: Of course they should have. But there’s a reason that old saying about hindsight is so popular.

Standing up for what you believe to be right is never easy and it’s almost never the “safest” option. There’s little risk in standing on the sidelines. MUCC has never been content to do so and you, our members, wouldn’t want us to be. Taking a position and defending that position involves no shortage of risk. Sometimes you get burned.

MUCC will continue to fight for the rights of hunters and anglers in Michigan. We will continue to be a watchdog over natural resource and conservation issues.

While the DNR’s budget issue is resolved for this year, there almost certainly will be a budget shortage in the near future. Conservation is still underfunded in our state and there are tremendous problems on the horizon that must be addressed. The DNR will, undoubtedly, be looking to members of the outdoors community to help solve the funding issues of the future.

MUCC will be there to represent the interests of hunters and anglers when that happens. And, next time, we’re going to make certain that all the facts are being presented to all involved.

Now is the time for someone like MUCC to step up and take charge of this. Propose a license fee increase that gets us to the point of where the licenses need to be but over the next five years instead of overnight. This solution would make everyone happy and the increase a little easier to swallow. While also finding additional revenue for the use of state properties that have no associated fee, there is so much state land used that doesn't charge a fee. There are hundreds of tournaments that are run each season that don't pay a fee but they use the resource to make money - why isn't the state charging them? The business end of the DNR needs to be run like a business.

5 million in general funds allocated from the state? A couple months ago she was ready to shut down the state because it was supposed to be broke! where did that money come from if not from the scrapped programs? Its the truth and you know it. They bluffed and got called . end of story. Same old same old politics as usual. We never did need higher rates or new taxes. Just less spending period. How long is this state going take this bs? Its time for a clean sweep of both the house and senate. Its time for new blood that does not play partisan politics. We said shut it down!!!! and they did nothing!!!! Because they were lying through thier teeth. No new taxes, no rate hikes and no more B711 s973 savvy? I wonder how much more besides the 5 million is just waiting to be found? Well as it stands now they have 15 million so Ill hold my breath for a week and maybe they will have 20 million. Give us a break will you ?? My words to the state government just do your damned jobs follow the constitution and stop lying to us. Kingfisher

Will Schultz wrote:Now is the time for someone like MUCC to step up and take charge of this. Propose a license fee increase that gets us to the point of where the licenses need to be but over the next five years instead of overnight. This solution would make everyone happy and the increase a little easier to swallow. While also finding additional revenue for the use of state properties that have no associated fee, there is so much state land used that doesn't charge a fee. There are hundreds of tournaments that are run each season that don't pay a fee but they use the resource to make money - why isn't the state charging them? The business end of the DNR needs to be run like a business.

I agree that state lands and Boat launches in particular are free. Pleasure boats and like you say tournements should not just be able to have a free for all and let us hunters and fishermen foot the bill. How about small increases in pleasureboat stickers???? lets spread the wealth gents. Personally I doubt there is a big shortcoming. Ill bet there is plenty of money to fund existing state functions. I saw the proposed list of new spending by both sides of the isle. All of them scrapped and I applaud that. We dont need more government agencies and programs.

Even 2 bucks a day for D.N.R boat launches would raise a lot of new money. yes run it like business. Kingfisher

One other easy way to address this is to increase the cost of state park stickers by a couple of dollars. Then make it mandatory that all state owned boat launches require one on your windshield. Im saying treat state owned boat launches like state parks. This would eliminate the state to have to print new stickers or put collection cans at all the access sites . Kingfisher

DNR crisis averted for now, but budget woes are sure to return

The Department of Natural Resources now says that a projected deficit of $10.8 million in the game and fish fund has turned into a positive balance of $10 million, or enough to get the agency through 2008.

It's not surprising that hunters and anglers who opposed the DNR's proposed license fee hikes screamed foul and that some legislators used the information to pummel the agency in hopes of picking up votes and throwing mud at the opposition.

http://www.freep.com/apps/pbcs.dll/arti ... 00398/1058

Good article, Now Grandholm needs to practice what she is starting to preach. Cut spending. Its not just the D.N.R. that needs to cut spending but the entire state government. Somehow this state which was broke a couple of months ago coughed up 5 million from the general fund. How ?? They did it by cutting back on unneeded social programs like the Headstart program that was being pushed by this admistration. Grandholm had to make consessions but she doesnt want to talk about that does she? Dukes post explains that 5 million has been alocated to the D.N.R. from the general fund which she had vowed would not help the D.N.R. Now because of pressure from opponents this administration has been forced to do what the people of this state are demanding.

No new taxes, Cut social spending , Stimulate the state economy by giving tax breaks to companies who would move here and create jobs and most of all create a smaller more efficient state government that is under the peoples feet not over our heads. Kingfisher

I have one other thing to say, as for myself I choose not to pummel the D.N.R. The Michigan D.N.R. has been pummeled by this state for 20 years. It has been robbed blind by three Governors and 6 state houses. If we give this Agency the time it will stand on its own as it was intended to in the beginning. We the people passed a law that says the state can no longer raid this fund. In time these investments will increase and capital from the parks and license fees and all other funds generated by our D.N.R. will once again create a surplus that will bring our parks and D.N.R. services to a point where they are second to none in this country. It was producing huge surplus revenues prior to the fund raids by Blanchard, Engler and Grandholm administrations. It will rise again as a great agency with funds that will be coveted by the state.

Our camp ,meaning my company ,my wife and I and family support small across the board increases in boat launch fees, state park stickers and other general fee increases that will affect all of the people not just hunters and fishermen. We encourage the D.N.R. to continue to invest in the same investments that seem to be paying off. We demand more social program cuts by the State of michigan and a return to an (earn it) mentality. Workers in this state want jobs not handouts. Jobs are created when government gets out of the way. But that does not mean at the expense of the environment. It means unfair taxes laid on small business owners who are carrying this state . It means zoning restrictions removed for buildings on private property. It means let local towns decide how to educate thier children because we pay for it with our property taxes . My money works best here in My town not in Detroit Savvy? Kingfisher

DNR hirings a reaction to surplus

http://www.mlive.com/outdoors/index.ssf ... _surp.html

02/29/08 By Bob Gwizdz

If you look at the job opportunities on the state government Web site, you'll see the Department of Natural Resources has begun advertising open positions. The agency, which has been running on short staff for a couple of years -- and became even dramatically smaller during last year's hiring freeze -- plans to add staff on all levels, from temporary field workers to Lansing biologists.

The hiring is not just necessary to keep the ship afloat, but it's also a reaction to the brouhaha created when the DNR closed the books on fiscal 2007.

As you no doubt remember, the agency wound up with a Game and Fish Fund balance of around $10 million, roughly $6 million more than original budget projections.

Balance from various sources

The balance reflected not only some unexpected revenue and savings from the mandated hiring freeze, but deliberate actions by DNR poobahs designed to save money in the face of what looked like a fast-approaching train wreck.

A number of sportsmen (and, of course, their legislators) were steamed that the agency -- which had been banging the drum for license fee increases -- actually had some money in the bank.

At the January Natural Resources Commission meeting, DNR director Becky Humphries accepted responsibility for doing a poor job of keeping the public abreast of the changing financials and issued an apology. But Frank Wheatlake, the commissioner who chairs the financial subcommittee, had a somewhat different take on it.

He, too, accepted responsibility for the bad press. But he refused to apologize. And that's because Wheatlake is actually kind of pleased -- and justifiably so -- that the agency forestalled financial disaster.

Although $10 million seems like a lot of dough, Wheatlake pointed out that it only amounts to about two month's operating expenses. Any financial advisor will tell you to keep at least that much on hand in case of emergency.

And as Wheatlake noted, it was always the plan to keep at least that much in reserve in case something disastrous occurred. Wheatlake said the Legislature was fully aware of that plan. And improvements in the agency's fiscal situation had been publicly announced several months earlier.

At the February meeting, Wheatlake et al unveiled a new monthly financial report, which will be posted on the DNR's Web site. Because of the complexity of the agency the monthly reports will not have a lot of meaning to those who not intimately familiar with the budget process. But it will be there for all to see. There is no financial sleight of hand going on in the Mason Building, according to Wheatlake.

At the same time, Humphries has said that she plans to start spending the full appropriations from the Legislature.

Humphries is too classy to make what seems to be the salient point here, so I'll make it for her: Back in autumn, when several state agencies closed the books on budgets that had been overspent, the Legislature went ballistic, throwing out accusations that bureaucrats deliberately misled lawmakers on the fiscal state of affairs.

Warning had been issued

Truth is, legislators had been warned that this was going to happen. But that didn't stop some of them from posturing. Meanwhile, the DNR is being savaged for saving money?

So Humphries' response -- OK, fine, we'll just spend it then -- is totally rational.

The bottom line is that the sportsmen who pony up to the Game and Fish Fund will start getting a little more for their money -- in terms of personnel and programs. But that also means the 800-pound gorilla in the room -- a projected budget deficit -- will be sitting in the Legislature's lap directly.

It'll be up to lawmakers to figure out where the money's going to come from.