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Rep. Markkanen: Improper use of state forest fund hurts northern Michigan communities
RELEASE|March 4, 2020

House approves plan ensuring fund is used to support sound forest management

The Michigan House today unanimously approved state Rep. Greg Markkanen’s plan to protect the state’s Forest Development Fund and ensure the money cannot be raided to pay for 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 intended 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.

“Sustainable forest management is critically important, especially in northern Michigan and the Upper Peninsula where we live, work and raise our families in communities surrounded by state and national forestland,” Markkanen said. “Our workers depend on jobs in the forest industry to support their families, and our communities depend on proper forest management to reduce the risks on a catastrophic wildfire. There’s too much at stake to allow the Forest Development Fund to be raided for other purposes.”

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 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 maintaining 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 plan now advances to the Michigan Senate for further consideration.

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