This week, the Senate passed legislation aimed at supporting state and local parks, funding recreational projects and needs throughout the state, and creating more flexibility in the use of funds. The package includes a Joint Resolution and three Senate bills that would alter the way revenue to the Michigan Natural Resources Trust Fund (MNRTF) and the Michigan State Parks Endowment Fund (MSPEF) may be used. By making this change, the bill sponsors hope to increase the ability to address demands and opportunities in the state’s recreational areas. “As tourism continues to skyrocket in Michigan, government leaders are ensuring our state’s great natural resources remain some of the top in the nation,” stated Matt Sowash of MLC.

The MNRTF is supported by interest earned on funds generated from the development of state-owned oil, gas, and mineral rights. The fund includes constitutional restrictions that at least 25% of the total spend be used for land acquisitions and no more than 25% be used for recreation development. The resolution seeks to change the disbursement to say that not less than 25% should be used for recreation development.

Currently, until the MSPEF reaches $800 million, half of the annual revenue is credited back into the principal of the MSPEF. The remaining funds may be spent on operations, maintenance, and capital improvements at state parks and for the acquisition of land or rights in land for state parks. Under the legislation as passed by the Senate, the distribution would be changed to the following:

• 30% directed to the principal of the MSPEF
• 55% towards state park operation and infrastructure
• 15% to a new local development projects grant program

Changes to the funding structure would apply beginning January 1, 2020, and would be further increased as the funds continue to mature. Once the MSPEF reaches $800 million, oil and gas royalties would return to the MNRTF and up to 50% plus interest and earnings could be spent each year.

The legislation has been referred to the House Appropriations Committee for consideration. Because it amends the state constitution, if the Senate Joint Resolution passes the House, it would be placed before Michigan residents on the ballot this November.

The MNRTF was established in 1976 and provides a source of funding for public outdoor recreation and the public acquisition of lands for resource protection. This fund is constitutionally protected and any changes would have to be made through a constitutional amendment.

The MSPEF was established in 1994 for the operation, maintenance, and capital improvements of the Michigan state parks.

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