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ISSUE: CONSERVATION FUNDING

Introduction

Many states have developed an impressive policy capacity to slow sprawl, including statewide growth plans, smart growth legislation, mapping out green infrastructure, and conservation financing. The following bills are examples of differing, yet effective approaches to conservation funding. While funding levels and mechanisms differ among states, all effective conservation funding legislation should:

  • Include provisions for matching funds;
  • Include an objective panel to review project proposals;
  • Allow for public access;
  • Provide options in the types of protection available; and
  • Make room for the expertise of local governments, nonprofit organizations and, sometimes, private citizens.

For each, the concept of long-term protection of critically identified areas is the foremost goal. Human life depends on healthy ecosystems. They purify our air and water, detoxify and decompose wastes, regulate the climate, regenerate soil fertility, and produce and maintain biodiversity, from which key ingredients of our agricultural, pharmaceutical, and industrial enterprises are derived. Conservation is not an investment that produces a quick profit; it’s a smart buy, with immeasurable, long-term rewards. And, if we do not invest in it today, we will miss out on those rewards, and cut off the very lifelines that insure our survival.

Existing State Laws

Arizona

In 1990, Arizona established the Heritage Fund, which uses proceeds from the state’s lottery to provide $10 million a year to preserve natural and cultural resources, and to promote environmental education.

California

In 1990, California voters approved the Wildlife Protection Act. This act created the Habitat Conservation Fund, which uses funds from the state’s cigarette tax to provide $30 million, over a 30-year period, for the acquisition and restoration of wetland, stream, and riparian habitat.

Colorado

Great Outdoors Colorado (GOCO)

Colorado has a heritage rooted in the outdoors. In the face of a rapidly growing population (34% between 1990 and 2001), both its citizens and politicians have made land conservation a priority. This priority is reflected in the accomplishments of Great Outdoors Colorado (GOCO). Between 1994 and April 2003, $338 million in GOCO funds were allocated to 1,800 conservation projects, including 361,145 acres of open space preservation and 47,041 acres of parks and wildlife areas. GOCO owes its success, in large part, to its unorthodox, yet highly stable funding source – half the state’s lottery proceeds are dedicated to GOCO. It received $46.5 million from lottery proceeds in FY 2002 alone. This invaluable source of cash is immune from cuts because it is separate from the state budget. GOCO gets an additional boost through a voter-approved bonding authority of up to $115 million per year. The 17-member governor-appointed, senate-approved GOCO board runs seven grant programs that require up to 50 percent matching funds from local communities.

Florida

From 1990-2000, Florida’s Preservation 2000 provided funds generated from bond revenue and a documentary stamp tax on real estate transfers for land acquisition programs. With the help of $3 billion over 10 years and provisions for local government matches to state funds, the program was instrumental in the preservation of over 1 million acres over a 10-year tenure. As the program came to an end, overwhelming bi-partisan support led to its successor program, Florida Forever.

Illinois

The Illinois Department of Natural Resources’ Open Space Lands Acquisition and Development (OSLAD) Program was created in 1985. Since its inception, $161 million in matching grants to local conservation authorities and organizations for 900 conservation projects have been allocated. This highly successful program is run by the state Department of Natural Resources, and is funded by the real estate transfer tax. Project proposals are based on how well they address state and local conservation issues identified in Illinois’ Statewide Comprehensive Outdoor Recreation Plan.

Indiana

The Indiana Heritage Trust was established in 1992 to ensure that Indiana’s rich natural heritage would be preserved and enhanced for present and succeeding generations. The trust acquires state interests in real property that are examples of outstanding natural resources and habitats; have historical or archaeological significance; or, provide areas for conservation, recreation, protection, or restoration of native biological diversity within the state of Indiana. The use of the power of eminent to carry out its purposes is expressly prohibited. In the past, the Indiana legislature has provided the Indiana Heritage Trust with about 25% of its funding. Proceeds from Environmental License Plates provides some 27% of IHT funds, with the remaining 48% coming from partnering organizations that are interested in protecting heritage. Due to the national recession, legislative appropriations have ceased.

Iowa

In 1989, Iowa established the Resource Enhancement and Protection Program (REAP). REAP utilizes a combination of funding sources including lottery sales, the general fund, and environmental license plate sales to acquire and manage public lands, upgrade public parks and preserves, and provide additional environmental education, monitoring, and research at a level upwards of $10 million a year with only one percent allocated to administrative costs.

Maryland

Created by the state legislature in 1969, Program Open Space provides funding for the acquisition of park land, forests, wildlife habitat, greenways, and natural, scenic, and cultural resources. Funded by the state real estate transfer tax, Program Open Space is an example of one of the first and longest running conservation funding programs.

Massachusetts

Community Preservation Act (CPA)

The Community Preservation Act (CPA) forges a strong bond between state and local authorities and conservation organizations. CPA funds provided $26 million in matching grants between 2000 and 2003 to municipalities that passed Community Preservation Trusts. The program is funding by charges on recording fees.

Minnesota

Minnesota boasts not just one comprehensive conservation policy, but an entire toolbox of conservation strategies and funding sources. The state’s use of general obligation bonds for conservation purposes is 46 percent above the national average. In addition to generous bond issuances, Minnesota uses lottery revenue, a cigarette tax, and fees from environmental license plates to fund conservation projects. Among Minnesota’s many notable conservation programs are its Environment and Natural Resources Trust Fund, and the Reinvest in Minnesota Reserve Program. The Environment and Natural Resources Trust Fund was approved by voters in 1988. The fund receives 40% of the revenue from state lottery sales (approximately $25 million annually) and is administered by a bipartisan joint legislative commission. The Reinvest in Minnesota Reserve Program authorizes the Department of Natural Resources to purchase conservation easements from willing landowners in exchange for landowners agreeing to specific actions, such as ending grazing or enhancing habitat.

New Jersey

Approved 2-1 in a 1998 ballot initiative, the Garden State Preservation Trust Act established a trust fund account of $98 million per year from bond sales and sales and use tax revenue. Funds are used for the preservation of open space, historic areas, agricultural lands, acquisition, park development, and maintenance.

New York

In 1993, New York established the Environmental Protection Fund, which is a permanent, dedicated fund for natural areas acquisition and other environmental programs. With a funding base of up to $50 million per year through the sale of “bluebird” license plates and real estate transfer tax, the program allows for purchase of fee-title land, conservation and agricultural easements, and agreements with nonprofit organizations to purchase specific parcels from them.

South Carolina

Starting in July 2004, the South Carolina Conservation Bank Act will allow the state to regularly issue grants to buy land or purchase development rights from landowners. The program will receive $9 million per year through a portion of the real estate transfer fee. Supported by a bipartisan coalition of business associations, outdoors groups, and environmental organizations, it will allow the state to spend millions of dollars to protect wildlands from development.

Pennsylvania

When signed into law in 1999, Pennsylvania’s Growing Greener Program planned to invest nearly $650 million over the following five years to preserve farmland and protect open space; clean up abandoned mines and restore watersheds; and, provide new and upgraded water and sewer systems.

This page was last updated on September 2, 2004.

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