Michigan DNR urges new revenue options to address deferred maintenance, dam repairs and park backlogs

The Department of Natural Resources told the Michigan House Appropriations Subcommittee on Agriculture and Rural Development and Natural Resources on an abbreviated session that it needs new and sustained revenue to address deferred maintenance, aging infrastructure and rising costs, and outlined several proposals for fiscal year 2026. Director Scott Bowen and finance chief Dan Lord presented the department's funding pressures and specific budget proposals while lawmakers pressed for clarification on funding details and next steps.

The DNR framed its budget request around rising costs and declining fee-based revenue. Bowen said the department has not increased license fees since 2014 while some input costs have risen dramatically, citing fish feed up 71% and negotiated salary costs up 34% since 2014. He told the subcommittee the department now receives about 14% of its budget from the general fund and that park funding from the general fund has dropped from 68% in 1970 to about 3% today.

The DNR said restricted revenues (from licenses, camping, recreation passport sales, timber and mineral leases) make up about 68% of its budget and are deposited in more than 40 restricted funds that statute limits to specific purposes. Dan Lord said the department received $273 million in one-time ARPA appropriations that helped address a capital backlog, but current identified park and trail capital needs still exceed $250 million.

Key proposals presented

- Recreation passport opt-out and resident military exemption: The DNR estimated that moving from the current opt-in model…