FY 2014-15 NATURAL RESOURCES TRUST FUND APPROPRIATION                         H.B. 4078:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 4078 (as reported without amendment)

Sponsor:  Representative Jon Bumstead

House Committee:  Appropriations

Senate Committee:  Appropriations

CONTENT

Michigan Natural Resources Trust Fund. On December 3, 2014, the Michigan Natural Resources Trust Fund (MNRTF) Board adopted FY 2014-15 recommendations for acquisition and development projects pursuant to Article IX, Section 35 of the Michigan Constitution and the Natural Resources and Environmental Protection Act. The recommendations include a $24.7 million appropriation from the MNRTF for 25 acquisition projects ($18.2 million) and 44 development projects ($6.5 million). Matching funds of $9.8 million result in total project costs of $34.5 million. An appropriation bill is necessary to authorize the spending recommended by the MNRTF Board. On January 20, 2015, the State Budget Director recommended a capital outlay supplemental appropriation to fund the projects as approved by the MNRTF Board. The attached information provides details on projects recommended, including a description of the project, location and cost.

The MNRTF was capitalized through deposits of bonuses, rentals, delayed rentals, and royalties collected or reserved by the State under provisions of leases for the extraction of nonrenewable resources from State-owned land, except such revenue accruing under leases of State-owned land acquired with money from the State or Federal Game and Fish Protection Fund. Pursuant to the Michigan Constitution, annual expenditures consisted of MNRTF interest and earnings, and 33⅓% of MNRTF revenue received by the State during the previous fiscal year, until the corpus of the MNRTF reached $500 million. The MNRTF reached $500 million in 2011, thereby limiting subsequent annual expenditures to interest and investment earnings, and funding carried forward from previous years.

The Michigan Constitution provides that not less than 25.0% of the total amounts made available for expenditure from the trust fund from any state fiscal year shall be expended for acquisition of land and rights in land and not more than 25.0% of the total amounts made available for expenditure from the trust fund from any state fiscal year shall be expended for development of public recreation facilities.

Boilerplate

Sec. 301. Provides criteria for agreements with local units of government for administration of MNRTF grants.

Sec. 302. Requires funds to be carried forward at the end of the fiscal year consistent with the provisions of Section 248 of the Management and Budget Act.

Sec. 303. Authorizes lapse of funds remaining from Trust Fund projects that have been withdrawn by the grantees.

FISCAL IMPACT

The bill would appropriate $24,729,500 from the MNRTF for 25 acquisition projects and 44 development projects. Matching funds of $9,780,000 for local projects results in total project costs of $34,509,500.

FY 2014-15 Michigan Natural Resources Trust Fund (MNRTF)
Projects	Number of Projects	Trust Fund	Match	Total Cost
Acquisition Projects
State owned	9	$9,369,900	$0	$9,369,900
Local Government	16	8,880,000	3,645,200	12,525,200
Subtotal Acquisition Projects	25	$18,249,900	$3,645,200	$21,895,100
Development Projects
State owned	4	$940,000	$0	$940,000
Local Government	40	5,539,600	6,134,800	11,674,400
Subtotal Development Projects	44	$6,479,600	$6,134,800	$12,614,400
TOTAL	69	$24,729,500	$9,780,000	$34,509,500

Date Completed:  2-25-15                                                  Fiscal Analyst:  Bill Bowerman

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.