Special Revenue

Revenues

The DNR will deposit an estimated $83.9 million for fiscal years 2004 and 2005. Receipts are generated from sources that include iron ore rents and royalties; timber sales on state-owned land; fees for firefighting; sales of nursery stock; cooperative agreements; merchandise and consumables sold in state parks; goods and services sold at the Douglas Lodge complex; sales of documents and publications; and cross country ski passes.

The DNR, acting in a fiduciary capacity, manages forests and mineral resources on state lands. Proceeds from the extraction and harvest of resources generate significant revenue to the funds associated with the land classification. For example the Permanent School Trust Fund, which helps fund K-12 education, benefits from timber and mineral revenues generated on school trust lands.

Expenditures

Authorized spending from the Special Revenue accounts is for purposes directly related to how revenues will be generated. For example, the DNR is planning to spend

• The amount received under the terms of numerous cooperative agreements for purposes outlined in these contracts.
• From the Douglas Lodge account for operations at the Douglas Lodge complex at Itasca State Park.
• Donations received under the RIM program to buy land for habitat and the protection of plant and animal species.
• The receipts from nursery stock sales to continue operating the forest nursery.

The difference of $4.3 million is a reduction of 9.6% in the proposed budget from spending in the current two-year period.