DNR outlines $1.5 billion budget package, proposes gas permitting program and fee increases

Commissioner Sarah Stroman told the Environment, Climate, and Legacy Committee on Feb. 27 that the governor's proposed FY26–27 budget for the Minnesota Department of Natural Resources (DNR) totals about $1.5 billion across all DNR funds and is intended to protect natural resources while respecting the state's fiscal constraints.

The budget matter: The proposal would pay for core operations across parks, fish and wildlife, forestry, ecological and water resources, enforcement, lands and minerals, and central operations. Stroman said about 30% of the department's overall funding would come from the general fund, about 19% from the Game and Fish Fund and roughly 10% from federal funds; other funding comes from numerous state special revenue accounts.

Major new items and staffing

- Gas permitting and leasing: The governor's package would create two separate programs to implement a temporary and later permanent regulatory framework for gas extraction, in line with recommendations from the Gas Resources Technical Advisory Committee (GTAC). The permitting proposal requests $1.3 million in general fund to support environmental review, financial assurance and other regulatory work and would fund four permitting positions. A parallel gas-leasing…