The largest account in the State’s Conservation Fund is the Main Account which receives revenue from hunting, recreational freshwater fishing, and trapping licenses plus fines levied under the Fish and Game Law. Mr. Colvin briefed the Council on an impending deficit in this account and a proposal to restore the account to fiscal solvency. It is anticipated that at the end of the 1999-2000 Fiscal Year (ending 3/31/2000), the account will have an uncommitted balance of only $3,644,000. Most of the revenues to the Main Account arrive in late summer/early fall as the license "year" begins on 01 October. But expenditures out of the account persist monthly and the account is likely run short of funds in the next fiscal year. Mr. Colvin stated that this year’s Executive Budget addressed the problem by including increases in hunting and fishing license fees. The license fee increases are supported by the Conservation Fund Advisory Board, hunting associations, and substantial numbers of sporting and conservation organizations. Information was presented to the Council showing that New York hunting & fishing licenses cost well below national averages. The proposed increases would bring New York’s fees up to the national average and would buy an additional five to seven years of solvency in the Conservation Fund Main Account. The budget proposal includes a one-time appropriation from the General Fund to automate licensing, which should improve efficiency and therefore generate more revenue from increased renewals.

Mr. Colvin stated that, if these license fees were not increased, DEC would either have to obtain funding from alternative sources or reduce program expenditures by $3.6 million. He presented a list of programs developed by the Department’s Fish, Wildlife, and Marine Resources Management Team that have been targeted for reductions/elimination if the Main Account deficit was to be closed using program expenditure reductions. Within the Division of Fish, Wildlife, and Marine Resources, this contingency plan would eliminate 44 permanent jobs, 20 years of temporary service, and $1.1 in nonpersonnel service. This plan would eliminate seasonal and conditional shellfish certification programs and reduce habitat protection efforts. Mr. Colvin expressed the hope that the Legislature would act on the license fee increase proposals in the Governor’s budget and render this contingency plan moot. However, at the moment, the Assembly and Senate have developed separate budget resolutions, neither of which include the license fee increases.

Coincident with the developing fiscal problem in the Conservation Fund Main Account, an audit was conducted of the Department’s handling of the account. Mr. Colvin stated that the single most important conclusion of the audit was that DEC’s use of Conservation Fund monies was consistent with State law and regulations; there were no inappropriate charges. The auditors raised questions on the methodologies used by the Department in making cash flow projections for the account; the assumptions used in these methodologies were incompletely documented. The auditors accepted the finding that the point was approaching when either fees had to be raised or programs cut.

In discussing this issue, several Councilors took brief note of the lack of a marine recreational fishing license in New York State. Councilor McBride pointed out that, often, the leadership of sportmens organizations was "out ahead" of their membership on these issues. This, and the poor condition of the economy in several areas upstate, might explain why some rank and file sportsmen may not support the proposed license fee increases to the extent of their leaders.

Councilor Knobel observed that a number of the proposed program reductions on DEC’s contingency plan went to the heart of DEC’s responsibilities to protect the environment, and he suspected the list was prepared to develop political support for the license fee increases, a point Mr. Colvin denied. Mr. Colvin noted that not all DEC programs could be considered for reductions, as some were grant-funded and not dependent on the Conservation Fund Main Account, and some were required by law.

Mr. Knobel moved that the Council recommend to DEC that any program reductions necessary to close the budget deficit in the Conservation Fund Main Account maintain environmental protection as a priority. At Councilor Relyea’s suggestion, the motion was amended to recommend support for the proposed license fee increases contained in the Governor’s FY 2000-2001 budget; failing these increases, the deficit should be covered by an allocation from the General Fund. If the budget deficit is not dealt with completely from the revenue side, the Council recommends any that ensuing program cuts should avoid impacting environmental protection, particularly items 6-9 on the contingency list distributed by Mr. Colvin (inventory/mapping of rare species & habitats, forestry management of state wildlife areas, seasonal and conditional shellfish certification and other shellfish programs, and power plant impact review and monitoring. The Council adopted the revised motion; 8 in favor; 0 opposed; 2 abstentions.