NORTH DAKOTA STATE UNIVERSITY

Transcription

1 SB :30 a.m. Wednesday, March 4, 2009 LARRY A. KOTCHMAN, STATE FORESTER NORTH DAKOTA FOREST SERVICE NORTH DAKOTA STATE UNIVERSITY House Appropriations Committee Education and Environment Division Representative Bob Skarphol, Chairman

2 North Dakota Forest Service Biennial Budget Request Sustainable Forestry Programs Summary of Agency Services Funding Funding Request o Priority #1 - Parity o Priority #2 Replace Lost Federal Funding o Capital Assets Executive Budget Recommendations Senate Budget Recommendations Budget Detail

3 North Dakota Forest Service Page 1 A Message from the State Forester The NDSU-North Dakota Forest Service is organized under the North Dakota Board of Higher Education. The agency is administered by a State Forester who reports to the President of North Dakota State University at Fargo, and supports the land grant mission in public service. The mission of the North Dakota Forest Service is to care for, protect and improve forest resources to enhance the quality of life for future generations. This Biennial Budget Request summary is intended to provide the information you need to determine funding levels for forestry programs benefiting communities, fire districts and private forest landowners. Please feel free to contact us at any time if you need additional information. Larry A. Kotchman, State Forester CONTACT Larry A. Kotchman, State Forester NORTH DAKOTA FOREST SERVICE Molberg Forestry Center 307 First Street East Bottineau ND larry.kotchman@ndsu.edu Telephone: (701) CONTACT Dr. Joseph A. Chapman, President NORTH DAKOTA STATE UNIVERSITY Department 1000 PO Box 6050 Fargo ND joseph.chapman@ndsu.edu Telephone: (701)

4 North Dakota Forest Service Page 2 Summary of Agency Services A wide variety of customers depend on the North Dakota Forest Service for technical, financial and educational forestry assistance. The State Forester administers forestry programs serving communities, rural landowners and soil conservation districts, rural fire districts, schools and citizens of North Dakota. All the programs utilize a voluntary, educational and incentives-based approach to address natural resource needs and customer demands. The agency also operates a nursery at Towner specializing in the production of 1.2-million conifer (evergreen) tree stock in over thirty species and stock types. The nursery is the sole supplier of evergreen seedlings in North Dakota. The agency also owns and manages approximately 13,278 acres of state forest lands. Community Forestry means conservation activities in city parks, tree-lined streets or other green spaces within the community. Most of North Dakota s residents live in 372 cities and towns. The Community Forestry Program administers financial assistance programs that provide funds for tree planting and other forestry development projects each year. The agency also provides leadership and technical assistance for tree planting plans, management plans, shade tree ordinances, pest surveys and tree workshops. Fire Protection ensures the protection of lives, property and natural resources by training, organizing and equipping North Dakota s 376 rural volunteer and 12 career fire departments. A Cooperative Fire Protection Assistance Program provides departments assistance in organizing, training, planning, purchasing or repairing equipment. A companion program, the Federal Excess Personal Property (FEPP) program, loans surplus federal equipment to departments for enhancing firefighting capabilities. Community protection is improved through grants for wildfire hazard mitigation and FireWise landscape projects. Fire prevention is stressed through the distribution of Smokey Bear materials.

5 North Dakota Forest Service Page 3 Forest Health ensures the productivity and growth of North Dakota s private, community and state forests. Each year the North Dakota Forest Service conducts surveys to assess forest health conditions and trains public and private land managers on insect and disease management. North Dakota participates in the Great Plains Tree and Forest Invasives Initiative to identify contingency measures for minimizing the threat of invasive species such as emerald ash borer. Forest Stewardship focuses on improving the management of our forest resources by educating and assisting non-industrial private landowners on how to better manage, protect and utilize their native and planted forest resources. This is accomplished through the development of a Forest Stewardship Plan and direct financial assistance for forest improvement practices. Information and Education offers youth and adults the knowledge and skills they need to make wise decisions about the conservation and wise use of North Dakota s forest resources. The ND Forest Service, in conjunction with the NDSU Extension Forester, sponsors Project Learning Tree workshops for teachers and youth leaders working with students in grades K-12. The program also handles the daily requests for forestry information and the publication of educational materials. Towner State Nursery produces 1.2-million conifer (evergreen) seedlings in over thirty different species and stock types annually for distribution to landowners. The trees are used for farmstead, living snow fence, field windbreaks, wildlife, forestry and other conservation plantings. The nursery is a selfsupporting operation, and since 1927 has sold over 78 million trees. The nursery also provides tree improvement services, such as testing, evaluation, selection and development of improved nursery stock for forestry and conservation plantings.

6 North Dakota Forest Service Page 4 State Forests provide wildlife habitat, clean air and water, recreational opportunities, forest products, scenic beauty and other conservation benefits. The North Dakota Forest Service owns five state forests comprising approximately 13,278 acres. State Forests play an important role in the economic well-being of several rural communities by attracting hunters, hikers, campers, skiers, snowmobilers, tourists and other outdoor enthusiasts. The North Dakota Forest Service provided technical, financial and educational assistance to 17 counties, 102 fire departments, 172 communities, 3,890 landowners, 1,875 K-12 teachers and 42,270 K-12 students during Program highlights include: Forestry and Fire Management awarded $279,519 in community forestry grant funds for tree planting and other forestry development projects; funded $1,241,518 in cooperative forestry landowner assistance; provided $835,526 in incentives for living snow fence projects protecting interstate, state, county, township and BIA roads; enrolled 655 landowners with 41,370 acres in the Forest Stewardship Tax Law; and provided 8,800 training hours to enhance rural fire department capacity. The Forest Service reached 1,875 teachers and 42,270 students through educational workshops, poster contests, eco-education camps, conservation days, school presentations and the high school Envirothon program. Nursery and State Forests produced and marketed 1,395,228 high quality tree seedlings from Towner State Nursery to North Dakota customers for conservation plantings. The trees included 31 species and stock types. Tree orders are shipped to over 700 soil conservation districts, natural resource agencies and private landowners each year. State Forests leased 1,385 acres for haying and grazing to 11 landowners.

7 North Dakota Forest Service Page Funding Appropriation The appropriated budget for the North Dakota Forest Service is $3,533,032 including $997,486 generated by income from tree seedling sales and the Trees for North Dakota Trust Fund. The General Fund appropriation is $2,535,546. Grants to Trees to ND $247,486, 7.0% Capital Assets $180,204, 5.1% Operating $484,048, 13.7% Salaries & Wages $2,621, % The Operations budget includes salaries and wages and operating expenses for FTE and 45 seasonal positions that provide public forestry services. Operations...$3,352,828 The Capital Assets budget provides necessary repairs for 24 office, shop, storage and recreational buildings at Bottineau, Lisbon, Towner and Walhalla. The budget includes one capital project. Capital Project Two storage buildings and one outdoor ADA restroom...$120,000 Extraordinary Repairs Includes $23,566 in one-time funding for deferred maintenance to be spent on field office repairs...$60,204 Total...$180,204

8 North Dakota Forest Service Page 6 NORTH DAKOTA FOREST SERVICE Appropriation Status Report Expenditures Original Adjusted Through Percent Appropriation Appropriation 1/31/2009 Balance Remaining Expenditures by Line Item Operations 3,352,828 3,352,808 2,250,134 1,102,674 33% Capital Assets 180, , , % Total 3,533,032 3,533,012 2,430,154 1,102,858 31% Expenditures by Source General Fund 2,535,546 2,535,546 1,589, ,512 37% Special Fund 997, , , ,366 16% Total 3,533,032 3,533,032 2,430,154 1,102,878 31% As of January 31, 2009, approximately 67% of the operations budget and 100% of the capital assets budget have been expended. Biennium Carryover The biennium carryover is $210,965. The carryover originated from greater than anticipated revenues generated by tree sales at Towner State Nursery. $40,000 was used for plant improvements at field offices, $30,000 for equipment purchases and $73,988 for operating expenditures for Towner State Nursery. The balance of $66,977 will be held in reserve.

9 North Dakota Forest Service Page Funding Request Total Base Funding Increase $1,118,212 Budget Categories Parity (priority #1) $291,928 Replace Lost Federal Funding (priority #2) $826,284 The total requested base budget increase included in the Executive Recommendations (SB 2003) for Operations is $1,118,212. Operations fund public forestry services provided by the North Dakota Forest Service through field offices at Bismarck, Bottineau, Carrington, Fargo, Grafton, Lisbon, Towner and Walhalla.

10 North Dakota Forest Service Page 8 Priority #1 Funding of Parity $291,928 The Executive Recommendations (SB 2003) requests a $291,928 parity increase for the Forest Service s Priority #1 budget need, including $44,780 for costs-to-continue the salary increase; $143,422 for a salary increase of an average 5% per year; $65,530 for health insurance premium increases of 10% per year; $23,100 for operating inflation of 2% for FY 2010 and 2.2% for FY 2011; and $15,096 for a utilities increase.

11 North Dakota Forest Service Page 9 Priority #2 Replace Lost Federal Funding $826,284 SB 2003 requests $826,284 for the Forest Service s Priority #2 budget need to replace lost federal formula funding in State and Private Forestry provided by the USDA Forest Service. The loss of this federal funding jeopardizes the support of 7.6 FTE responsible for providing forestry assistance. A Redesigning the North Dakota Forest Service Initiative" addresses the shortfall in federal funding for forestry programs benefiting communities, fire districts and private forest landowners. Declining federal support for key State and Private Forestry programs is reducing formula funding to state forestry agencies. North Dakota s annual formula funding is projected to decrease from $855,100 in FY 2004 to $208,803 in FY This 75% reduction is seriously threatening Community Forestry, Fire Protection, Forest Health and Forest Stewardship program services. $900,000 Federal State & Private Forestry Formula Funding North Dakota FY FY 2009 $800,000 $700,000 $600,000 Funding $500,000 $400,000 $300,000 $200,000 $100,000 $0 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 Fiscal Year FY 04 FY 08 are actual funding allocations. FY 09 is the projected funding allocation based on the president s budget.

12 North Dakota Forest Service Page Capital Assets Extraordinary Repairs and a one-time Deferred Maintenance Request The North Dakota Forest Service is responsible for maintaining buildings and facilities at five locations. Buildings at Bottineau, Lisbon and Walhalla deliver forestry services while the Towner State Nursery provides tree seedlings to the citizens of North Dakota. Recreational improvements are also located on the State Forests. Capital assets consist of 41 office, shop and storage buildings. The buildings are valued at $2,166,044. Building ages vary from 1 year to 78 years. In addition, the infrastructure associated with these facilities is valued at $1,321,738. The North Dakota University System office identified $249,643 in outstanding deferred maintenance from the Forest Service 2006 Master Plan, adjusted for funding plus Consumer Price Index (CPI). Total Extraordinary Repairs and Deferred Maintenance Request $82,214 Budget Categories Extraordinary Repairs $ 36,638 Deferred Maintenance (one time) $ 45,576 Extraordinary repairs include improvements and repairs to field offices and state forest recreational areas. The base funding request for extraordinary repairs is $36,638. Improvements include energy efficient heating and repairs to sidewalks, parking areas, roads and trails at state forest recreation areas and the Bottineau and Lisbon field offices. The Executive Recommendations (SB 2003) also includes $45,576 in one-time funding for facility deferred maintenance. Deferred maintenance funding is needed for building upgrades at the Walhalla field office.

13 North Dakota Forest Service Page Capital Assets Capital Projects Request SB 2003 includes $300,000 in general funds for a greenhouse at Towner State Nursery. The NDSU-North Dakota Forest Service owns and operates the 160-acre Towner State Nursery. The nursery specializes in the production of bareroot and container seedlings to meet the conservation tree planting Greenhouse Towner State Nursery $300,000 SBHE Policy Criteria Total Project Costs $300,000 Funding Source General Fund Estimated Change in New greenhouse construction Operating Costs technology and materials will reduce maintenance and heating costs. They would also meet life, health and safety requirements to comply with local, state and federal law requirements. needs of the state. Approximately one million bare-root seedlings are grown in fields whereas container seedlings are produced within a greenhouse. Towner Nursery produces 60,000 container seedlings annually. Although this number is small in comparison to bare-root seedlings, the demand for container seedlings is increasing. Container seedling production at the nursery is limited by the size of the existing greenhouse. The current greenhouse was constructed in 1976 and is antiquated for the current tree production and safety needs. Specifically, the heating system is inefficient and expensive to operate, and the greenhouse lacks forklift accessibility, and lacks a cement floor that has led to nitrite contamination of ground water. The construction of a new greenhouse facility would address compliance issues with the Safe Water Drinking Act resulting from high nitrate levels in the ground water at Towner State Nursery. Nitrate levels are measured monthly and the State Health Department monitors the nursery s nitrate management program. Samples have exceeded the maximum contaminant level, which is a violation of the Act. Nitrates from fertilizers used in the irrigation system infiltrate the soils creating groundwater contamination.

14 North Dakota Forest Service Page 12 This contamination poses a safety hazard, conflicts with the conservation goals of the Forest Service, and could lead to cessation of greenhouse tree production at the nursery if corrective actions are not taken. This capital project would replace the existing greenhouse with a new facility including containment and recycling systems to eliminate nitrate contamination. Concurrent with these existing conditions, the greenhouse lacks sufficient space to test additional species. Assessing and evaluating new species and seed sources is critical to continue tree production and tree planting efforts in North Dakota in light of the emerald ash borer, Dutch elm disease, gypsy moth, and other invasive pests that threaten the state s tree resources. The new greenhouse would correct significant deferred maintenance by replacing the existing structure constructed in The present greenhouse is a hoop design with polycarbonate lexan roof glazing and wooden side walls. The greenhouse is in average condition. The high moisture environment for tree production requires the replacement of the wood sidewalls and the roof glazing every ten years. The new greenhouse will be a single gable design with straight sidewalls and a peaked roof. The proposed greenhouse measuring 42 feet wide and 120 feet long would replace the existing structure (tree production space within the current greenhouse is 30 x 90 ). The new greenhouse would include containment and recycling systems to eliminate fertilizer in the irrigation water from passing through the floor into the groundwater. Tree production would be expanded by 30,000 trees annually while providing adequate space to test and produce new species and seed sources. New construction would also include construction of a new shade house facility that would share the fertilizer containment system. The current greenhouse would be used as a solar cone drying facility to aid seed handling at the nursery. A new greenhouse would 1) expand container tree production, 2) allow for testing of new species and seed sources so new tree species can be introduced, 3) eliminate nitrate contamination of groundwater, and 4) reduce labor and heating costs.

15 North Dakota Forest Service Page 13 Executive Budget Recommendations The Executive Recommendations (SB 2003) provide an increase of $291,928 for parity, which includes an annual 5 percent salary increase, actual health insurance of $ per month, operating inflation at 2 percent for fiscal year 2010 and 2.2 percent for fiscal year 2011 and utility increases equivalent to 14.8 percent. The recommendations authorize a funding source change of $826,284 from the general fund to replace federal funds that will likely not be reauthorized to support 7.6 existing FTE. One position has already been eliminated due to federal budget reductions. The general fund monies will only be available to the Forest Service at the same rate federal funds are not received. It approves $300,000 for the construction of a new greenhouse in Towner, North Dakota. The budget provides $45,576 in one-time funding for deferred maintenance projects. Senate Budget Recommendations The Senate Budget Recommendations provide for the funding levels included in the Executive Recommendations (SB 2003).

16 North Dakota Forest Service Page 14 ND Forest Service Comparison of SBHE General Fund Revised Request to Executive Recommendation & Engrossed SB2003 (1) (2) (3) (4) ND Forest Service SBHE Prioritized GF Revised Request Executive Recommendation Senate Adjustments Engrossed SB Original General Fund Appropriation $ 2,535,546 $ 2,535,546 $ 2,535,546 Base Adjustments (143,566) (143,566) (143,566) Adjusted General Fund Appropriation, Net of Base Adjustments 2,391,980 2,391,980-2,391,980 Prioritized SBHE Needs Based Request: Parity 350, , ,928 Replace lost federal forestry funding 826, , ,284 Program Enhancement-10% base funding increase 292, Total Requested Increase in GF Base Funding 1,469,455 1,118,212-1,118,212 Total Base General Fund Request & Recommendation 3,861,435 3,510,192-3,510,192 One-time Budget Requests: Deferred Maintenance 113,940 45,576 45,576 Total One-time Budget Request & Recommendation 113,940 45,576-45, State-funded Projects 300, , ,000 Total General Fund Request & Recommendation $ 4,275,375 $ 3,855,768 $ - $ 3,855,768

17 North Dakota Forest Service Page 15 NORTH DAKOTA FOREST SERVICE Budget Request Including Executive Recommendations and Senate Adjustments BASE BUDGET: Operations Capital Assets & Equip > $5K Total Gen Fund Other Funds Total Funds Appropriation Budget Operations 3,352,828 3,352,828 2,355, ,486 3,352,828 Capital Assets - 180, , , ,204 Total Appropriation 3,533,032 2,535, ,486 3,533,032 Less One-Time Allocations: Deferred Maintenance - (23,566) (23,566) (23,566) - (23,566) Capital Projects - (120,000) (120,000) (120,000) - (120,000) Total Adjusted Budget Base 3,352,828 36,638 3,389,466 2,391, ,486 3,389,466 Add: Operating Continue Salary Increase 44,780-44,780 44,780 44,780 Adjusted Health Insurance Increases 65,530-65,530 65,530 65,530 Operating Inflation (2% for FY10 & 2.2% for FY11) 23,100-23,100 23,100 23,100 Salary Increases (7% & 7%) 202, , , ,100 Utilities Increase 15,096-15,096 15,096 15,096 Replace Lost Federal Forestry Funding 826, , , ,284 Program Enhancement - 10% base funding Increase 292, , , ,565 Total Operating Increases 1,469,455-1,469,455 1,469,455-1,469,455 Add: Capital Assets Capital Project , , , ,000 Capital Assets Base Increase (Improvements) Optional Deferred Maintenance Increase - 113, , , ,940 Total Budget Request 4,822, ,578 5,272,861 4,275, ,486 5,272,861 Executive Recommendation Salary Increases (5% & 5%) (58,678) - (58,678) (58,678) (58,678) Program Enhancement - 10% base funding Increase (292,565) - (292,565) (292,565) (292,565) Optional Deferred Maintenance Increase - (68,364) (68,364) (68,364) - (68,364) Total Budget Executive Recommendation 4,471, ,214 4,853,254 3,855, ,486 4,853,254 Senate Adjustments Total Exec Recommend & Senate Adjustments 4,471, ,214 4,853,254 3,855, ,486 4,853,254

18 North Dakota Forest Service Page 16 NORTH DAKOTA FOREST SERVICE Status of Extraordinary Repairs & Capital Projects Revised Budget Expenses As Of 01/31/2009 Balance % Remaining Extraordinary Repairs Misc. Small Projects < $50,000 20,684 17,566 3,118 Mechanical/Electrical Upgrades 21,732 9,943 11,789 Building Exterior 6,000 4,643 1,357 Utilities/Infrastructure 8,000 3,561 4,439 Paving and Area Lighting 3,788 3,788 0 Total Extraordinary Repairs 60,204 39,501 20, % Capital Projects Vault Toilet at Twisted Oak 10,000 10,000 0 Building Improvements - Field Ofcs 40,000 20,939 19,061 Stoarge Bldg at Han's Bay 15,000 14, Storage Bldg at Botno Field Ofc 95,000 95,000 0 Total Capital Projects 160, ,519 19, % Total Capital Assets 220, ,020 40, % Sources of Capital Funding General Fund 180, , % Local Funds 40, , % Total Funding Sources 220, ,020 40, % NDSU is an equal opportunity university