Plan requires fund be used as intended, to support sound forest management

State Rep. Greg Markkanen testifies in support of his plan today before the House Natural Resources and Outdoor Recreation Committee.

A plan introduced by state Rep. Greg Markkanen would protect the state’s Forest Development Fund and ensure the money cannot be raided to fund other state programs, like it was during the mid- to late-2000s.

Markkanen, of Hancock, said revenue from the management and sale of timber on state land goes into the Forest Development Fund. The fund is used to pay job providers who harvest timber from state land, plant new trees and support other sustainable forestry practices. The fund can also be used for other forestry related programs, such as purchasing equipment to fight forest fires.

“Everyone in the Upper Peninsula knows how important it is to ensure our forests are managed in a proper and scientific manner,” Markkanen said. “Not only do many of our residents rely on jobs in the forest industry to support their families, we also live, work and raise our children in communities surrounded by state and national forests. A small wildfire can quickly grow out of control in a dense forest that isn’t properly managed – putting our families, homes and livelihoods at risk. It’s critically important for this fund to be used for its intended purpose.”

Markkanen said the Forest Development Fund was raided during the Granholm Administration to help balance the state budget. By 2012, the fund balance had shrunk to just $500,000.

The Michigan economy and the Forest Development Fund have done well since 2012. Currently, about $33 million in revenue is collected by the fund each year, and about $30 million is spent on forestry operations. The current fund balance is about $22 million.

Markkanen’s plan, House Bill 5333, protects the Forest Development Fund by clearly stating that money in the fund can only be used for:

• Forest management operations and practices;
• Obtaining and maintain certification of sustainable forestry standards in state forests;
• Administration and enforcement of the registered forester program; and
• Providing principal and interest payments on any bonds or notes of the Michigan Forest Finance Authority.

The proposal clarifies that money in the fund cannot be used for administrative costs outside of those needed to ensure proper forest management.

“The goal is to make sure this account cannot be raided to fill holes in other areas of the state budget, as past administrations have done,” Markkanen said. “Under this plan, the money will be reserved for things like harvesting, reforestation and forest management – including forest thinning, pest and disease control and other management practices that reduce the likelihood of a large-scale wildfire occurring in Michigan.”

The plan remains under consideration in the House Natural Resources Committee.

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