Fall 2002 - Volume 11, Number 3

STATE’S FINANCIAL CRISIS RESULTS IN BUDGET CUTS IN THE DEPARTMENT OF NATURAL RESOURCES DIVISION OF FORESTRY

As you are probably aware, statewide budget cuts have caused significant reductions in our operational budget and have forced us to make cuts across the board. What happened? The national recession left Indiana with lower tax revenues than estimated when department spending plans were authorized in the summer of 2000. Given the state's financial crisis virtually every agency has had to make cuts in various areas. The DNR's operating budget (general fund portion) was cut $9,422,375 (17.14 percent) and the 01-03 biennium capital budget was cut $38,698,221 (44 percent). The Division of Forestry's budget was reduced by 5 percent resulting in a $509,013 cut in the 01 -02 fiscal year. The operating budget for the '02-03 fiscal year was reduced by 7.7 percent resulting in a $784,013 cut. The Division's '01-03 biennium capital budget of $4,244,650 was cut by $2 million.

Historically, the Division's operating budget was 78 percent dedicated fund and 22 percent general fund. In the '02-03 fiscal year, the state's Deficit Management Plan requires the Division to implement a "one-time replacement" of $1,171,307 of general fund money with dedicated fund money. Therefore, in the '02-03 fiscal year, the Division's budget will be 97 percent dedicated fund and 3 percent general fund.

There have been DNR wide cuts. Part-time/seasonal employee hours have been reduced and a hiring freeze placed on all positions, currently leaving ten full time positions in Forestry unfilled. The DNR has also offered voluntary unpaid leave to help cut costs.

We've had to make some tough decisions within the Division of Forestry on how and what we do. Some of the budget-related changes we've made include:

Closing Wyandotte pool at the Harrison-Crawford/ Wyandotte Complex. Last year, 11,937 visitors used the pool, generating less than $27,000 in revenue. The cost of operating and maintaining the pool, including staffing, is estimated at $80,000-$ 100,000 per year. Privatizing Wyandotte Cave operations. We will retain control of the property, cave resources and administer contract oversight. Reduce property maintenance. For example, we've reduced or discontinued mowing some areas on our properties.

Forestland owners will be affected the most by a price increase at our nurseries and reduced federal dollars available for some programs. Tree seedling prices have increased by 15 percent or $3.30 per 100 seedlings on average. Actual prices may vary from $28.75 per 100 for three-year-old evergreen seedlings to $23 for shrub seedling. Seedling prices vary by species group. A $10 processing charge will be added to each customer. The price increase and processing charge will allow the nursery program to recover approximately 70-75% percent of the program's costs at current production levels.

We moved funding for some program staff such as District Forester secretaries and summer students to federal funding. This reduces the amount of federal money available by $90,000. We believe this was the best way to continue to provide service without making program cuts.

As best we can tell, the budget reductions we've experienced are permanent and more cuts may be on the way. Our budget preparation instructions for FY 2003-05 were to keep the budget request at current levels. Also, we were told that we will not get extra money to pay the higher fringe benefit costs and to look for ways to increase fees and tighten eligibility for government programs. Legislators are prepared to ask the following question at the upcoming budget hearings 'Tell me how you can live on 10% less without degrading services."

How can you help? Be patient and understanding. Express your support for the Division and our services. The DNR has set up an e-mail address: goodideas@dnr.state.in.us to solicit input and suggestions on what the DNR should do (or not do) with the money we do have. If you have any 'good ideas' regarding the Division of Forestry, please send them in to that address and cc: me at bfischer@dinr.state.in.us. You can also send your comments via regular mail to the Division of Forestry at 402 W. Washington St., Rm. W296,Indianapolis, IN 46204.

I hope to hear from many of you.

Home