DNR Administration costs questioned

[FinsnFur]

Legislative auditors raised concerns on Monday about a sharp slide in the balance of the state's fish and wildlife account - the multimillion-dollar fund used to finance stocking programs and fight chronic wasting disease.

 
The Legislative Audit Bureau also took issue with administrative costs of the $120 million program, which draws heavily on proceeds from resident and non-resident fishing and hunting licenses.

But the Department of Natural Resources defended its handling of the account, and noted that auditors found that 98% of money benefited hunters and anglers.

Secretary Scott Hassett noted that auditors made few recommendations, and he added if critics of the agency were looking for a " 'gotcha,' I don't think there is one there."

But both auditors and the DNR agreed that flagging interest among young people in hunting and fishing could harm the fund in future years.

Also, sales of deer hunting licenses have not recovered after the discovery of chronic wasting disease in the wild deer population in 2002.

The fish and wildlife account boasted a balance of $28.3 million in fiscal 2000-'01, but by 2004-'05, the agency had whittled it down to $1 million, auditors found.

"When we see expenditures are exceeding revenues, that's a concern," said State Auditor Janice Mueller.

Rep. Scott Suder (R-Abbotsford), one of the lawmakers who asked for the audit, said the report shows that the DNR is "overspending - they clearly need to do a better job at money management."

But Hassett said the balance in the fund fell for many reasons, and that 2000-'01 had unusual circumstances. That year, the fund benefited from a $12 million influx when its automated license system went into operation and sped up proceeds to the agency. It also was helped by a $5 million transfer of tribal gaming dollars.

Meanwhile, 17 wardens were shifted into the program and much of the state's chronic wasting disease program has tapped the fund.

"CWD is draining resources from the program," said Sen. Neal Kedzie (R-Elkhorn), chairman of the Senate Committee on Natural Resources and Transportation, underscoring complaints that the agency hasn't spelled out how it will solve the issue.

The DNR says its aggressive approach - killing as many deer as possible where the disease has been found - is necessary to control a disease that could wreak havoc on the state's deer population.

The fish and wildlife audit is one of three that the Legislature asked state auditors to conduct on the DNR. The others involve chronic wasting disease and the wetland permit program.

The fish and wildlife program was criticized by auditors in 1998 for running up administrative costs of more than 20% of its total expenditures. Those costs have declined to about 11%, but auditors said the DNR fails to include field staff managers and administrative costs associated with its automated licensing system.