SUSTAINABLE FUNDING FOR IOWA'S NATURAL RESOURCES ...

SUSTAINABLE
FUNDING FOR
IOWA’S
NATURAL
RESOURCES
A Summary of
Work by the
Sustainable
Funding Advisory
Committee

House File 2797
(FY 2007 Standing Appropriations Act)
Sustainable Natural Resources Funding Study
• Passed by House & Senate, signed by
Governor in 2006 session.
• Created Advisory Committee to study issue.
• Report to be delivered to General Assembly
by Jan. 10, 2007, at beginning of session.
• Named agencies and organizations to be
represented (amended to add more before
passing).

House File 2797
Organizations Named by Legislature,
Appointed by Governor
• Secretary of Agriculture
• Iowa Natural Heritage Foundation
• Ducks Unlimited
• Pheasants Forever
• Iowa Association of County
Conservation Boards
• Iowa Farm Bureau
• Iowa Farmers Union
• The Nature Conservancy
• Iowa Environmental Council
• Iowa Renewable Fuels Association
• Sierra Club of Iowa
• Izaak Walton League of Iowa
• Conservation Districts of Iowa
• Iowa Department of Natural
Resources

House File 2797
Members Named and Appointed by Legislature
• Director, Iowa DNR: Rich Leopold (replaced Jeff Vonk)—
serves as Committee Chairperson
• Iowa Senate: Dick Dearden (Dem., Des Moines)
• Iowa Senate: Mary Lundby (Rep., Marion)
• Iowa House: Henry Rayhons (Rep., Garner)
• Iowa House: John Whitaker (Dem., Hillsboro)

To be Included in Report to Legislature
(but not limited to):
• 1. Information on what surrounding states have done to
provide sustainable funding for natural resource
conservation.
• 2. Outline of a conservation funding initiative agreed
upon by the advisory committee.
• 3. Outline of the amount of revenue needed and what
would be accomplished if the conservation funding
initiative is implemented.
• 4. Analysis of Iowa Citizens’ willingness to pay for
identified conservation funding initiative.

HF2797 #1: Provide information on what surrounding
states have done to provide sustainable funding for
natural resource conservation.
• What Some Midwestern States Have Done to
Provide Natural Resource Funding
• Dedicated fractional percentage of sales tax
(constitutionally protected)--MO, AR
• Percentage of lottery revenue—MN (constitutionally
protected), NE
• In-lieu-of tax on lotto tickets—MN
• Real estate transfer taxes—IL, AR

HF2797 #2: Provide an outline of a conservation
funding initiative agreed upon by the advisory
committee.
Definition of Natural Resources
Committee agreed that for
purposes of this funding
initiative “natural resources”
would be categorized as:
• Fish, Wildlife, and
Natural Areas
• Parks and Trails
• Soil and Water

Parameters that mechanisms would
need to meet for consideration:
• All Iowans will benefit and should share the funding responsibility
(This parameter is also supported by responses in the Willingness to
Pay survey.)
• The funding source should have statewide appeal and be politically
viable.
• The source of funds should be easy to administer.
• New funds, when possible, should be leveraged.
• Each mechanism must raise over $5 million annually to be
considered. .
• Each mechanism must conform to all state and federal commerce
regulations.
• The funding mechanism(s) should be "new money" and not a
replacement of existing resources.
• The funding mechanism(s) should be stable, protected, and
dedicated.
• The new funding must unite, rather than divide, conservation
agencies and organizations.

Committee’s Top 5 Funding Mechanisms
to Recommend and Survey the Public
• 1. Gaming/Gambling Revenues
• 2. Fractional Sales Tax Increase, that is constitutionally
protected
• 3. Lottery (A dedicated portion of the state lottery profits)
• 4. Tax Incentives/Credits for Conservation
• 5. Bonding
Over 40 funding ideas were discussed by the committee
In addition to these 5 mechanisms, 18 others
remain open for further exploration

Other Funding Possibilities Considered
by Committee
• Dedication of existing sales tax, reallocation of existing
infrastructure funds, real estate transfer tax, bio-fuels
severance tax, water tax on large users, expanded use
of underground storage tank remediation funds, gas tax,
state excise tax on outdoor recreational equipment, park
user fee increases, bottle bill expansion, tax on those
who adversely affect the environment, tax on out-ofstate
users of water, bottled water tax, severance tax on
all water-based exported products, severance tax on all
energy producers, fossil fuel tax (including natural gas
and coal), tax on storm water run off that adversely
affects the environment, recreational vehicle registration
fee allocation, etc., etc.

HF2797 #3: Provide an “outline of the amount of
revenue needed and what would be accomplished if
the conservation funding initiative is implemented.
$150 M in Revenue Required
Annually for at least 10 years
(in addition to current conservation spending)
• REAP (fully fund at authorized level): $20 M
• (revision–requesting $20M in addition to $20M authorized level)
• Local Conservation Partnership Program (counties, cities, conservation
organizations): $20 M
• Watershed Protection (multi-agency): $20 M
• Lake Restoration (multi-agency): $10 M
• Dept. of Natural Resources: $35 M
• Dept. of Ag & Land Stewardship: $30 M
• Trails: $15 M
These funds could be used to leverage $50-100
million or more in federal and other partner dollars.

Revenue Required, in Millions
Trails
$15
REAP
$20
DNR
$35
$20
Local Conservation
Partnership Program
$20
Watershed Protection
$30
IDALS
$10
Lake Restoration

Estimated Portion of $150 Million
Relating to Water Quality
REAP - $10 M
LCPs - $10 M
IDALS- $5 M
DNR - $20 M
Trails - $15 M
REAP - $10 M
LCPP - $10 M
Watershed
Protection - $20 M
Lake Restoration -
$10 M
IDALS - $25 M
DNR - $15 M
Water quality
related = $90 M
(60%)
Other needs =
$60 M (40%)

HF2797 #4: Provide an “analysis of Iowa's citizens'
willingness to pay for identified conservation funding
initiative.
Public Participation and Input
1. Committee deliberations open to the public:
• The public was encouraged to attend SFC meetings.
Meeting summaries can be located at the Sustainable
Funding website:
www.iowadnr.gov/sustainablefunding/meeting.html
2. Website created
• The committee proposed a website be created to provide
information to the public.
www.iowadnr.gov/sustainablefunding/index.html. This
site was also used as a tool to receive public comments.

Public Participation and Input (cont’d)
• 3. ICN public information and input meeting
• November 9, 2007
• 14 sites across Iowa
• 270 individuals signed in
• 213 written comments received
• 195 noted general support for sustainable
funding
• 65 indicated support for a “tax” (4 opposed)
• 162 volunteers to support and promote the
concept of sustainable funding.

Public Participation and Input (cont’d)
4. Telephone survey of Iowans’ willingness to pay
• 800 adult Iowa residents were surveyed
from 11/27/06-11/30/06.
• Analysis of responses Iowans gave include:
• Issues related to water quality, including agricultural runoff,
are among Iowans' top environmental concerns.
• Iowans share strong beliefs that protecting the environment
is a shared responsibility and benefits the economy.
• 77% of Iowa residents support dedicating additional public
funds to protect Iowa's land, water, and wildlife, and most
are willing to pay $10 - $25 in additional taxes each year for
that purpose.
• The final survey report is located at:
www.iowadnr.com/sustainablefunding/files/topay.pdf

In principle, Iowans overwhelmingly
support additional funding
for natural resources…
Would you support or oppose dedicating additional public funding to
programs to protect Iowa’s land, water, and wildlife?
Strongly support
Somewhat support
35%
42%
Total
Support
77%
Somewhat oppose
Strongly oppose
9%
9%
Total
Oppose
18%
Don't Know/NA
5%
0% 10% 20% 30% 40% 50% 60%
7. Would you support or oppose dedicating additional public funding to programs to protect Iowa’s land, water, and wildlife?

A plurality of Iowans are willing
to pay $25 a year in additional
taxes for conservation.
Very Will. S.W. Will. S.W. Unwill. Very Unwill. DK/NA
$100 per year
12%
20%
19%
46%
3%
$75 per year
12%
20%
20%
43%
5%
$50 per year
17%
23%
17%
39%
4%
$25 per year
24%
25%
13%
33%
5%
$10 per year
34%
22%
11%
29%
4%
0% 20% 40% 60% 80% 100%
11. More generally, would you be willing to pay _________ in additional taxes if it were dedicated to programs to protect land, water and wildlife in Iowa?

SFC Report Status
• A “Preliminary Report” was submitted 01/10/07 with an
extension request to submit a “Final Report” 03/01/07
which included consideration from the General Assembly
and newly elected Governor (request granted and Final
Report submitted 03/01/07).
• Summary of recommendations included:
• Reauthorize current SFC to continue their work to:
• Further explore the benefits of SF
• Further analyze Iowans willingness to pay
• Provide information identifying economic impacts

Legislative Status – SR-50
• Legislative interest resulted
in new legislation: Senate
Resolution 50 was adopted
04/27/07.
• SR50 requested the
Legislative Council
establish a Sustainable
Natural Resource Funding
Interim Study Committee to
work with the Sustainable
Natural Resource Advisory
Committee.

Legislative Status – IC approved
• The Legislative Council approved an Interim
Study Committee’s (IC) charge for SF at their
06/13/07 meeting:
• Study how best to provide for sustainable
funding for natural resource needs. Cooperate
with the members of the Sustainable Natural
Resource Funding Advisory Committee
established in 2006 Iowa Acts, chapter 1185,
section 43, and other interested persons in
performing the study. Members: 5 Senate/5
House; Meeting Days: Up to 8.

Legislative Status – IC Members
The Interim Study
Committee members are:
• Senate
• Dick Dearden (D,District 34),Co-chair
• Dennis H. Black (D, District 21)
• David Johnson (R, District 3)
• Mary Lundby (R, District 18)
• Dr. Joe M. Seng (D, District 43)
• House
• Paul Bell (D, District 41) ,Co-chair
• McKinley Bailey (D, District 9)
• Dan Rasmussen (R, District 23)
• Henry Rayhons (R, District 11)
• Dick Taylor (D, District 33)

Legislative Update – IC/SFC
• On 08/13/07, members of the SFC presented to
the Interim Study Committee (IC).
• History of the SFC was given.
• Proposal for an economic study was presented.
• The IC supported this study. The Legislative Council
approved funding and CARD will be preparing the report.
• Proposal for a peer panel was presented.
• The IC supported peer discussion. The Legislative Council
approved funding and panel members are being coordinated.
• The next IC meetings are currently scheduled
for 11/01/07 and 11/02/07.

Exciting News!
• The reauthorization of the SFC and
appointment of the Interim Study Committee is
exciting and encouraging news!
• The SFC is currently coordinating their efforts
and providing information to assist the IC in
their evaluation and decision making process.
• The SFC continues to encourage public
presence at the meetings and upcoming
dates/locations are posted on the SF
webpage
(www.iowadnr.com/sustainablefunding/meeting.html)

You ask, “What Can I do?”
• Stay informed.
• Understand your
local natural
resource issues.
• Support your
legislator.
• Spread the word!

SFC Organizations
and their Current Representation
• Sec. of Agriculture—Ken Tow, Dir., Div. of Soil Con., IDALS
• Iowa Natural Heritage Foundation—Mark Ackelson, President
• Ducks Unlimited—Jon Kruse, IA DU Board Member
• Pheasants Forever—Dave Van Waus, Regional Biologist
• IACCB—Dan Cohen, Director, Buchanan Co. Cons. Board
• Iowa Farm Bureau—Barbara Finch, Story Co. Farm Bureau
• Iowa Farmers Union—Marvin Shirley, Board Member
• The Nature Conservancy—Lola Lopes, IA TNC Board Member
• Iowa Environmental Council—Marion Gelb-Riggs, Director
• Iowa Renewable Fuels Association—Owen Shunkwiler (SFC retired)
• Sierra Club of Iowa—Jane Clark, Vice Chair
• Izaak Walton League of Iowa—Pauline Novotny, IA Board Member
• State Conservation Districts of Iowa—Deb Ryun, Exec. Director
• Iowa Dept. of Natural Resources—Rich Leopold, Director – SFC
Chair

Sustainable Funding Webpage
www.iowadnr.gov/sustainablefunding/index.html
SF Committee Support Staff:
Ken Herring, DNR
Diane Ford-Shivvers, DNR
Doug Harr, DNR
Kim Rasler, DNR
Peter Fritzell, DNR
Deb Kozel, LSA
Duane Sand and staff, INHF
Angela Grover, TNC
And thanks to all others who have
supported the cause!

STAY
TUNED…
…THIS IS
ONLY THE
BEGINNING!
A Summary of
Work by the
Sustainable
Funding Advisory
Committee