DNR outlines $1.6 billion FY26-27 budget, proposes fee increases and new gas permitting staff

Commissioner Sarah Stroman, commissioner of the Minnesota Department of Natural Resources, told the House Environment, Natural Resources Policy and Finance Committee on March 20 that the governor's proposed fiscal year 2026-27 budget for the agency totals roughly $1.6 billion across all DNR funds.

The proposal, Stroman said, combines limited new general-fund requests with a set of targeted fee increases and one-time appropriations intended to cover rising operating costs, legal expenses and new regulatory duties tied to gas permitting and leasing. "This budget represents a total budget of $1,600,000,000 across all DNR funds," Stroman said during the presentation.

The package is aimed at keeping core services running amid a tight state budget while shifting some ongoing program costs to user fees. Stroman and agency budget staff described the measures as a narrowly prioritized response to the state's fiscal constraints and said the agency minimized new general-fund requests where possible.

Key budget items and numbers - Fee proposals: The governor's recommendations include a sliding-scale increase to the aquatic invasive species (AIS) surcharge that the DNR estimates will generate $5.7 million; as an example, the surcharge for pleasure craft under 17 feet would rise to $25 per three-year registration from $10.60. A groundwater fee proposal would raise water-use permit fees (the first tier example rises from $140 to $200 per permit) and is estimated to generate $4.4 million. State park vehicle permit increases (daily permit from $7 to $10; annual from $35 to $45) are projected to generate $850,000 to…