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Warren Knowles-Gaylord Nelson Stewardship Program

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Warren Knowles-Gaylord Nelson Stewardship Program Warren Knowles-Gaylord Nelson Stewardship Program Prepared by Erin Probst Wisconsin Legislative Fiscal Bureau One East Main, Suite 301 Madison, WI 53703 TABLE OF CONTENTS Introduction.........................................................................................................................................................1 Program Funding and General Requirements ...............................................................................................3 Stewardship 2000 and 2007 Act 20 Extended Stewardship Program (Stewardship 2010)……………...6 Land Acquisition Subprogram ..................................................................................................................7 Property Development and Local Assistance Subprogram.................................................................14 Recreational Boating Aids Subprogram.................................................................................................16 Baraboo Hills Subprogram.......................................................................................................................16 Bluff Protection Subprogram ...................................................................................................................17 Current Subprogram Allocations………………...……………………………………………………..17 Grants to Nonprofit Conservation Organizations .......................................................................................17 Public Access on Stewardship Lands ............................................................................................................20 Stewardship Earmarks.....................................................................................................................................24 Stewardship Program Oversight....................................................................................................................26 Stewardship Debt Service................................................................................................................................28 Appraised Versus Assessed Value.................................................................................................................29 Aids in Lieu of Property Taxes.......................................................................................................................31 Conservation Reserve Enhancement Program.............................................................................................33 Appendices........................................................................................................................................................33 Appendix I Warren Knowles-Gaylord Nelson Stewardship Program Expenditures by Fiscal Year (Fiscal Years 2000-01 through 2009-10)...............35 Appendix II DNR Land Acquisitions Under Stewardship by County as of September 30, 2010....................................................................................................36 Appendix III DNR Land Acquisitions Under Stewardship with Purchase Price > $5 million...38 Appendix IV DNR Grant Program Activity Under Stewardship by County as of September 30, 2010 ..................................................................................................41 Appendix V Stewardship Major Property Development Projects.................................................43 Appendix VI Stewardship Development Expenditures by State Property, 1990 - June 30, 2010..................................................................................................45 Warren Knowles-Gaylord Nelson Stewardship Program Introduction activities that existed prior to the stewardship ini- tiative and others were newly-created programs. Wisconsin's first stewardship program was cre- 1993 Act 343 renamed the stewardship program ated in 1989 Act 31 for the purpose of acquiring the Warren Knowles-Gaylord Nelson Stewardship land to expand recreational opportunities and pro- Program. tect environmentally sensitive areas. The Depart- ment of Natural Resources (DNR) administers the The stewardship program was reauthorized in stewardship program. Under the program, DNR 1999 Act 9 (the 1999-01 biennial budget) as the acquires land and provides grants to local units of Warren Knowles-Gaylord Nelson Stewardship government and non-profit organizations for land 2000 Program. Under that act, the state could con- acquisition and property development activities. tract public debt in an amount not to exceed $460 The state generally issues 20-year tax-exempt gen- million. The annual bonding allotment was set at eral obligation bonds to support the stewardship $46 million from fiscal years 2000-01 to 2009-10. program. General obligation bonds are backed by Under 2001 Act 16, the bonding authorization was the full faith and credit of the issuing government increased from $46 million to $60 million annually, (in this case the state), and the government is re- beginning in fiscal year 2002-03 and continuing quired to use its taxing power if necessary to repay through 2009-10. This increased the total general the debt. Annual debt service payments for princi- obligation bonding authority of the reauthorized pal and interest on stewardship bonds are primar- program to $572 million ($803 million in total ily funded from general purpose revenues (GPR), bonding was authorized for the 20-year program). with a portion paid from the segregated (SEG) con- servation fund. The 2007-09 biennial budget act, 2007 Act 20, extended the stewardship program for an addi- In 1989 Act 31, the Legislature authorized $250 tional 10 years to fiscal year 2019-20 and increased million of general obligation bonding (reduced to the annual bonding authority from $60 million to $231 million in 1995 Act 27 to recognize $19 million $86 million beginning in 2010-11. This increased in anticipated federal funding) for the original the total general obligation bonding authority of stewardship program over a 10-year period, end- the stewardship program by $860 million, to ing in fiscal year 1999-2000. Through Act 31, the $1,663,000,000. While DNR has some discretion Legislature allocated funding among twelve cate- over the use of funds, the general allocations under gories of land acquisition and development pro- the stewardship program are shown in Table 1. grams. Some were extensions of land acquisition Table 1: Stewardship Program Allocations Stewardship Stewardship Original 2000 2010 Total % of Total DNR Land Acquisition $140,800,000 $341,750,000 $500,000,000 $982,550,000 59.1% State Property Development 45,000,000 65,000,000 100,000,000 210,000,000 12.6 Local Assistance (including NCO) Grants 45,200,000 158,750,000 235,000,000 438,950,000 26.4 Recreational Boating 0 6,500,000 25,000,000 31,500,000 1.9 Total Allocations $231,000,000 $572,000,000 $860,000,000 $1,663,000,000 100.0% 1 As of June 30, 2010, the Department of Natural servation easement purchases in its land acquisi- Resources (DNR) owned approximately 1.46 million tion activities. Fee title acquisition involves out- acres of land, which represents approximately 4.2% right purchases of land by the Department, allow- of the state's land area (34.76 million acres). The ing for complete DNR management of the parcel. DNR ownership represents approximately 25% of The Department pays aids in lieu of property taxes, the publicly-owned conservation land in Wiscon- primarily from state general purpose revenue sin. ($7,675,400 GPR in 2009-10) and also from the seg- regated forestry account of the conservation fund The Board of Commissioners of Public Lands ($3,690,000 SEG in 2009-10), on the land it owns. (BCPL) owns approximately 76,300 acres bringing total state-owned conservation land to approxi- Easements. An easement is a permanent, per- mately 1.54 million acres. Public conservation land petual agreement entered into by the landowner throughout the state of Wisconsin is estimated to and DNR in which the state purchases certain spe- include approximately 5.9 million acres (or 17% of cifically identified rights from the landowner. A the state's land area). The federal government conservation easement may provide for public ac- holds approximately 1.8 million (or 31%) of the 5.9 cess and recreational use, specify certain manage- million acres (the majority of which constitutes na- ment criteria (such as maintaining streambank tional forests), and county ownership (in the form habitat or sustainable forestry practices) or contain of county parks and forests) is estimated at ap- certain development restrictions. The uniform con- proximately 2.5 million acres (or 43%) of the total. servation easement act under s. 700.40 of the state In addition to the 1.4 million acres owned by DNR, statutes governs these transactions. The seller of the Department held easements on an additional the easement retains ownership of the property, as 201,800 acres on June 30, 2010. Table 2 summarizes well as the right to use the property subject to the public land ownership by governmental source. It restrictions set forth in the easement. In such in- should be noted that the acres listed as federal land stances, s. 70.32(1g) of the statutes directs assessors exclude land used for such purposes as office to consider the value of such easements in setting buildings or prisons. In addition, approximately taxable values. The owner of the property would 645,000 acres of tribal lands in the state are not in- continue to pay taxes on the property, but the tax- cluded in the table. Although these lands are held
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