1. LAB Report on Forestry Account Darrell Bazzell, Secretary Paul DeLong, Deputy Forestry Administrator Department of Natural Resources February 19, 2002

2. 2 Comparisons with Neighboring States

3. 3 Forestry and SE Wisconsin The sixteen counties in SE Wisconsin are home to 47% of state’s forest products sector jobs. These counties account for 52% of the payroll associated with those jobs statewide. Represents jobs and employee compensation in region as illustrated in the table:

4. 4 DNR Administrative Costs n Subject to certain limitations in state statutes and federal grants (i.e. Federal Indirect Rate) n Legislative Audit Bureau studies of the Forestry Account (2002) and Fish and Wildlife Account (1998) utilize a unique study-specific definition. n 1999 Act 9 implemented a standard definition and method for Fish and Wildlife Account. [s. 25.29 (3m)]

5. 5 Administrative Costs Limit Statutory Language From s. 25.29 (3m) of the Wisconsin Statutes: (a) The total amount that the department may expend for a given year from the fish and wildlife account of the conservation fund for administrative costs may not exceed 16% of the expenditures from that account for that fiscal year. (b) For purposes of par. (a), administrative costs consist of the costs incurred in the administration of the department and its divisions and in providing support services for the department.

6. 6 FY 2000-01 Account Expenditures Using Statutory Definition

7. 7 Examples of Forestry Administration Program Policy and Development - establish and direct policies that advance forestry across the state. Forestry expenditures for Program Policy and Development for 2001 totaled $249,000. n Partnering With External Constituencies - foresters across the state working on projects designed to develop and strengthen relationship with external groups. Forestry expenditures for Partnering Efforts for 2001 totaled $215,900. n Forest Resource Planning - development of the Statewide Forestry Plan. Forestry expenditures for Forest Resource Planning for 2001 totaled $70,000

8. 8 Basic Program Services Expenditures and time that indirectly benefit multiple Forestry activities. Forestry expenditures for BPS in 2001 totaled nearly $3 million.  Meetings with personnel and supervisor  Day-to-day employee supervision  Monthly and annual reports  Processing e-mails and mail  Meeting with customers who stop by the office  Time on the telephone talking with internal and external customers  Mileage for Forestry activities that do not have an unique activity code  Minimum monthly fleet payments for forest fire equipment  And the grouping of small amounts of time that represent a variety of projects. This grouping of small amounts of time simplifies the completion of the biweekly time report.

9. 9 Comparison: Table 9 and Administrative Expenditures with Statutory Definition

10. 10 Comparison of Expenditure Trends, FY 1997-98 and FY 2000-01

11. 11 DNR Positions for Administration and Support (All Funds) -- Trends Note: Does not show 47.6 FTE positions deleted in 1995-97 biennial budget from DNR Administrative Services program

12. 12 DNR Positions Funded by Forestry Account, FY 1996-97 to FY 2003-04

13. 13 DNR Administrative Positions Using Statutory Definitions, FY 2000-01