DNR briefing: two-thirds of department funding is restricted; license fee and one-time program requests outlined

Austin Scott, fiscal analyst with the House Fiscal Agency, told the House Subcommittee on Rural Development and Natural Resources that roughly two-thirds of the Department of Natural Resources' funding is drawn from about 39–40 restricted accounts and that three funds (the State Park Improvement Account, the Game and Fish Protection Account, and the Forest Development Fund) make up about 60% of restricted funding. "Two thirds of funding in DNR comes from restricted funding," Scott said to illustrate the department's revenue mix.

Scott described DNR's scale — roughly 4.5 million acres under management and 103 state park facilities — and explained how revenue sources such as recreation passport sales (a $14 purchase) flow to park funds and local grants. He said the State Park Endowment Fund, which receives extraction revenues (oil, gas, minerals) after the Michigan Natural Resources Trust Fund reached its constitutional $500 million cap, was about $350 million at the end of last fiscal year and is capped at $800 million under the constitution.

Scott reviewed proposed FY2027 executive items: a one-time continuation of the Nature Awaits program (which subsidizes fourth-grade field trips to state parks) at a reduced dollar amount but slightly increased FTE count; proposed increases to hunting and fishing license fees and watercraft registrations (projected revenue of roughly $29.5 million from hunting/fishing fee increases and nearly $7 million from watercraft registration increases); gas-tax distribution authority for restricted funds (about $17.7 million projected for boating, snowmobiling and trails); targeted shifts in off-road vehicle (ORV) trail funding tied to license sales projections; and small FTE increases for historical center and park supervisory positions.

Scott said DNR law enforcement includes about 245 commissioned conservation officers and that law enforcement is a leading recipient of general fund support within DNR, which has risen to roughly $15 million in recent years. He told members invasive species prevention and control historically receives about $5 million and has risen nearer to $6 million in the current year with some one-time additions. He also said most DNR grant programs are federal pass-throughs or license-fee-supported grants such as snowmobile grants.

Members requested additional material. Representative Roth asked for a breakdown of snowmobile revenue and how much the department retains from trail-pass sales; Scott said there are two snowmobile-related funds (a smaller education fund and a larger trail-grants fund) and offered to compile revenue and appropriation detail. Representative Green asked about excise taxes on ammunition and weapons (referred to as the REINS excise tax) and how those revenues support wildlife and fisheries; Scott said excise taxes are used largely for wildlife and fisheries management and that Hunters Against Hunger (donated harvest distribution) is managed within the wildlife division and that he could report further specifics.

Scott also flagged several boilerplate sections that the executive declared unenforceable in recent budget materials and noted supplemental restricted requests for gas tax distribution and capital outlay adjustments. The subcommittee made no votes on DNR budget requests during the meeting and asked staff to provide additional line-item and fund accounting to support upcoming appropriations work.