Illinois Department ofNatural Resources

FY2010 Budget and Historical Budget Issues

1

IDNR Operating Budget: Where Money Comes From, Where It Goes

2

FY09

$210,678,000 $210,678,000

*General Office, Museums, Architecture, Engineering & Grants, Public Services & Special Events

FY09 Operating Budget by Object Code

Total General Revenue Fund

3

Federal FundsOther State Funds

$210,678,000 $50,873,000

$146,347,000 $13,457,000

4

FY09 Operating Budget by Program Area

5

FY08 Operating Budget by Source of Revenue

27%

15%

4%

1%8%31%

14%

Licenses and fees

Federal government

Rental

Sales

Other Revenue

General Revenue Fund

Transfers

$211,769,361.00

IllinoisDepartmentOf Natural Resources

FY10 BUDGETBILLS

as of May 31

Comparative Appropriation Summary - Operating Budget

(in 000s)

FY08 FY09 FY10

General Revenue Funds 66,802.1 50,873.4 56,293.5

Other State Funds 131,801.5 146,347.0 184,830.9

Federal Funds 14,331.9 13,457.8 16,727.9

TOTAL 212,935.5 210,678.2 257,852.3

• $47.1M overall increase in FY09 budget. 18.29% increase over FY09 levels.

• Scientific Survey spending for FY08 has been backed out – for “apples to apples” comparison. Does not include HPA funds.

6

Total IDNR Operating Budget

Millions

*After declines from 2001-2005 the IDNR operating budget is up to about its prior level in nominal dollars. But adjusted for inflation, the IDNR operating budget is still below where it was in the early part of the decade.

7

Some of the FY2010 budget appropriations are not “usable”

Flexible General Revenue Funds declined, replaced by use of IDNR’s Other Funds

Those fund balances are being dangerously depleted – and may soon run out

Rising costs, especially for personnel, mean purchasing power has declined significantly

Major new capital programs not staffed

Apparent recent increases in IDNR’s budget are not all what they seem:

8

GRF OSF FED TOTALAppropriations based on proposed fees, not passed/implemented

0.0 14,100.0 0.0 14,100.0

Appropriations for spending Stimulus Funds/Unlikely to receive

0.0 4,000.0 3,5000.0 7,500.0

Reserve due to deficit in overall State budget

? ? ? ?

FY2010 IDNR Operating Budget is Not All Available to Spend

9

Summary Trend of GRF Appropriations – All Agencies

AG_NAMEFY06

NET_APPR_AMTFY07

NET_APPR_AMT % Change from Prior Yr

FY 08 NET_APPR_AMT % Change from

Prior Yr

FY09 NET_APPR_AMT % Change from

Prior Yr

STATE UNIV RETIREMENT SYS 3,392,000.00 56,469,511.00 1564.79% 4,740,200.00 -91.61% 146,000,000.00 2980.04%STATE BOARD OF ELECTIONS 50,262,800.00 10,501,450.00 -79.11% 8,389,650.00 -20.11% 19,021,131.00 126.72%COMPREHNSIVE HLTH INSURANCE BD 220,000.00 22,523,000.00 10137.73% 19,212,000.00 -14.70% 28,985,000.00 50.87%IL CRIMINAL JUSTICE INFO AUTH 3,013,600.00 3,195,900.00 6.05% 2,470,957.00 -22.68% 3,599,165.00 45.66%COMMISSION ON HUMAN RIGHTS 1,400,200.00 1,445,000.00 3.20% 1,694,400.00 17.26% 2,405,100.00 41.94%VETERANS' AFFAIRS 2,882,200.00 41,958,400.00 1355.78% 54,674,400.00 30.31% 73,047,500.00 33.60%GENERAL ASSEMBLY RETIRE SYS 4,157,000.00 5,220,300.00 25.58% 6,809,800.00 30.45% 8,847,000.00 29.92%STATE'S ATTYS APPELLATE PROSEC 7,609,300.00 7,837,800.00 3.00% 7,981,043.00 1.83% 10,289,842.00 28.93%JUDGES RETIREMENT SYSTEM 29,189,400.00 35,236,800.00 20.72% 46,872,500.00 33.02% 59,983,000.00 27.97%MILITARY AFFAIRS 136,015,400.00 15,146,700.00 -88.86% 15,112,005.00 -0.23% 19,051,000.00 26.07%COURT OF CLAIMS 1,196,100.00 55,016,638.00 4499.67% 52,653,169.00 -4.30% 62,533,230.00 18.76%AGING 365,496,700.00 426,465,300.00 16.68% 459,741,185.00 7.80% 538,535,950.00 17.14%GUARDIAN & ADVOCACY COMM 1,281,300.00 8,681,000.00 577.52% 9,109,078.00 4.93% 10,427,000.00 14.47%DEAF & HARD OF HEARING COMM 42,393,103.00 668,300.00 -98.42% 703,900.00 5.33% 788,800.00 12.06%STATE BOARD OF EDUCATION 8,039,875.00 1,803,767,422.00 22335.27% 2,393,798,444.00 32.71% 2,601,487,393.00 8.68%CORRECTIONS 19,730,200.00 1,126,120,200.00 5607.60% 1,236,088,780.00 9.77% 1,328,106,600.00 7.44%NORTHEASTERN IL UNIVERSITY 39,247,700.00 40,026,300.00 1.98% 40,770,700.00 1.86% 43,401,900.00 6.45%JUDICIAL INQUIRY BOARD 701,700.00 722,751.00 3.00% 738,925.00 2.24% 778,600.00 5.37%IL ARTS COUNCIL 7,080,200.00 19,799,300.00 179.64% 15,205,400.00 -23.20% 15,958,900.00 4.96%PRISONER REVEIW BOARD 2,156,000.00 1,321,058.00 -38.73% 1,436,900.00 8.77% 1,500,200.00 4.41%ENVIRONMENTAL PROTECT AGENCY 13,172,114.00 1,229,100.00 -90.67% 1,581,600.00 28.68% 1,644,600.00 3.98%IL MATHEMATICS & SCIENCE ACAD 16,322,900.00 17,652,900.00 8.15% 17,652,900.00 0.00% 18,341,400.00 3.90%SUPREME COURT 264,526,400.00 272,507,400.00 3.02% 282,475,828.00 3.66% 291,343,400.00 3.14%AUDITOR GENERAL 6,301,100.00 6,490,100.00 3.00% 7,704,700.00 18.71% 7,936,335.00 3.01%UNIVERSITY OF ILLINOIS 697,901,100.00 710,630,500.00 1.82% 722,256,500.00 1.64% 743,419,700.00 2.93%WESTERN IL UNIVERSITY 56,391,100.00 57,213,400.00 1.46% 58,287,500.00 1.88% 59,919,600.00 2.80%EASTERN IL UNIVERSITY 47,609,500.00 48,282,800.00 1.41% 49,189,200.00 1.88% 50,566,500.00 2.80%SOUTHERN IL UNIVERSITY 217,653,700.00 223,159,200.00 2.53% 227,192,250.00 1.81% 233,317,000.00 2.70%ILLINOIS STATE UNIVERSITY 80,452,000.00 81,457,500.00 1.25% 82,986,800.00 1.88% 85,096,430.00 2.54%REVENUE 108,087,341.00 154,226,100.00 42.69% 158,437,130.00 2.73% 162,347,600.00 2.47%GOVERNORS STATE UNIVERSITY 25,986,100.00 27,673,800.00 6.49% 27,659,400.00 -0.05% 28,324,400.00 2.40%STATE POLICE 46,492,800.00 200,193,200.00 330.59% 216,991,400.00 8.39% 221,406,200.00 2.03%HUMAN SERVICES 5,633,900.00 3,997,555,500.00 70855.39% 4,134,201,473.00 3.42% 4,208,661,000.00 1.80%NORTHERN IL UNIVERSITY 102,974,900.00 103,927,100.00 0.92% 105,867,700.00 1.87% 107,431,100.00 1.48%PUBLIC HEALTH 179,735,600.00 149,215,994.00 -16.98% 159,623,910.00 6.98% 161,409,700.00 1.12%COMPTROLLER 102,307,298.00 104,116,189.00 1.77% 109,798,605.00 5.46% 110,755,500.00 0.87%PROPERTY TAX APPEAL BOARD 3,048,440.00 2,156,000.00 -29.28% 2,260,800.00 4.86% 2,280,200.00 0.86%HUMAN RIGHTS 3,843,611,700.00 7,737,900.00 -99.80% 9,747,800.00 25.97% 9,821,800.00 0.76%HEALTHCARE & FAMILY SERVICES 133,824,150.00 7,764,780,200.00 5702.23% 8,117,376,021.00 4.54% 8,148,250,800.00 0.38%JUVENILE JUSTICE 1,173,278,500.00 116,646,650.00 -90.06% 126,283,965.00 8.26% 126,371,400.00 0.07%GENERAL ASSEMBLY 46,802,974.00 48,807,495.00 4.28% 48,727,289.00 -0.16% 48,727,289.00 0.00%ILLINOIS POWER AGENCY 12,523,900.00 0.00 -100.00% 1,250,000.00 100.00% 1,250,000.00 0.00%GOVERNOR'S OFF OF MGT & BUDGET 385,000.00 2,821,400.00 632.83% 2,930,700.00 3.87% 2,930,700.00 0.00%

10

Summary Trend of GRF Appropriations – All AgenciesOFFICE OF INSPECTOR GENERAL 370,400.00 6,705,100.00 1710.23% 6,931,315.00 3.37% 6,931,315.00 0.00%E ST. LOUIS FINANCE ADVIS AUTH 8,070,400.00 240,000.00 -97.03% 240,000.00 0.00% 240,000.00 0.00%STATE UNIV CIVIL SERV MERIT BD 1,253,600.00 1,271,200.00 1.40% 1,273,220.00 0.16% 1,273,220.00 0.00%GOVERNOR 7,706,900.00 7,711,900.00 0.06% 8,003,500.00 3.78% 8,002,800.00 -0.01%STATE POLICE MERIT BOARD 78,290,000.00 857,150.00 -98.91% 931,400.00 8.66% 930,900.00 -0.05%IL COMMUNITY COLLEGE BOARD 347,192,600.00 353,933,500.00 1.94% 357,709,500.00 1.07% 355,630,500.00 -0.58%SECRETARY OF STATE 131,365,200.00 131,365,200.00 0.00% 143,553,804.00 9.28% 142,619,900.00 -0.65%OFF OF THE STATE APPELLATE DEF 20,367,500.00 21,228,725.00 4.23% 21,880,677.00 3.07% 21,570,895.00 -1.42%CHICAGO STATE UNIVERSITY 38,660,300.00 41,160,000.00 6.47% 42,857,200.00 4.12% 42,112,000.00 -1.74%CIVIL SERVICE COMMISSION 7,000,000.00 403,100.00 -94.24% 456,200.00 13.17% 448,050.00 -1.79%SW IL DEVELOPMENT AUTHORITY 1,682,391,490.00 3,503,094.00 -99.79% 3,602,611.00 2.84% 3,515,300.00 -2.42%IL LABOR RELATIONS BOARD 910,400.00 1,856,500.00 103.92% 1,912,835.00 3.03% 1,850,000.00 -3.28%CHILDREN AND FAMILY SERVICES 810,616,400.00 775,892,500.00 -4.28% 896,822,394.00 15.59% 864,986,305.00 -3.55%TEACHERS' PENS & RETIRE SYS, C 74,921,700.00 10,242,000.00 -86.33% 10,218,000.00 -0.23% 9,800,000.00 -4.09%UPPER IL RIVER VALLEY DEVEL AU 571,045.00 300,905.00 -47.31% 307,200.00 2.09% 292,500.00 -4.79%PROCUREMENT POLICY BOARD 192,000.00 300,000.00 56.25% 313,000.00 4.33% 298,000.00 -4.79%LEGISLATIVE AUDIT COMMISSION 250,300.00 257,800.00 3.00% 277,125.00 7.50% 263,275.00 -5.00%COMM GOVT FRCSTING & ACCNTBLTY 1,323,440.00 1,368,143.00 3.38% 7,436,850.00 443.57% 7,065,075.00 -5.00%IL LEGISLATIVE PRINTING UNIT 2,341,000.00 2,411,000.00 2.99% 2,504,275.00 3.87% 2,379,075.00 -5.00%LEGISLATIVE ETHICS COMMISSION 315,000.00 328,900.00 4.41% 328,900.00 0.00% 312,455.00 -5.00%ARCHITECT OF THE CAPITOL 709,900.00 1,581,200.00 122.74% 1,628,100.00 2.97% 1,546,695.00 -5.00%JOINT COMMITTEE ON ADMIN RULES 1,130,500.00 1,157,300.00 2.37% 1,237,200.00 6.90% 1,175,330.00 -5.00%LEGISLATIVE REFERENCE BUREAU 2,654,500.00 2,734,100.00 3.00% 2,926,200.00 7.03% 2,779,850.00 -5.00%LEGISLATIVE INFORMATION SYSTEM 6,177,900.00 5,513,200.00 -10.76% 5,855,700.00 6.21% 5,561,700.00 -5.02%EXECUTIVE ETHICS COMMISSION 627,700.00 370,000.00 -41.05% 363,000.00 -1.89% 344,470.00 -5.10%EMPLOYMENT SECURITY 6,932,600.00 15,298,300.00 120.67% 15,120,500.00 -1.16% 14,242,700.00 -5.81%IL LEGISLATIVE RESEARCH UNIT 2,943,900.00 3,142,200.00 6.74% 3,217,250.00 2.39% 3,017,850.00 -6.20%LABOR 7,490,871,100.00 6,105,500.00 -99.92% 7,269,850.00 19.07% 6,814,700.00 -6.26%CENTRAL MANAGEMENT 96,964,400.00 106,380,600.00 9.71% 83,920,254.00 -21.11% 75,652,700.00 -9.85%IL VIOLENCE PREVENTION AUTH 262,000.00 3,013,600.00 1050.23% 4,013,600.00 33.18% 3,513,600.00 -12.46%LIEUTENANT GOVERNOR 2,315,800.00 2,291,100.00 -1.07% 2,343,300.00 2.28% 2,001,250.00 -14.60%AGRICULTURE 44,669,550.00 47,261,400.00 5.80% 49,219,200.00 4.14% 41,869,700.00 -14.93%TREASURER 23,524,000.00 23,624,000.00 0.43% 23,672,750.00 0.21% 19,658,823.00 -16.96%HISTORIC PRESERVATION AGENCY 3,317,800.00 14,151,264.00 326.53% 15,018,963.00 6.13% 12,388,200.00 -17.52%ATTORNEY GENERAL 42,505,300.00 48,142,400.00 13.26% 48,914,873.00 1.60% 40,000,000.00 -18.23%IL EDUCAT LABOR RELATIONS BD 0.00 1,432,200.00 #DIV/0! 1,457,200.00 1.75% 1,075,650.00 -26.18%STATE EMPLOYEES' RETIRE SYSTEM 1,933,850.00 211,600.00 -89.06% 207,300.00 -2.03% 148,300.00 -28.46%STATUTORY TRANSFERS 5,461,538,399.00 5,947,050,096.00 8.89% 8,718,470,855.00 46.60% 6,094,523,670.00 -30.10%NATURAL RESOURCES 83,973,391.00 86,027,749.00 2.45% 84,628,502.00 -1.63% 50,873,400.00 -39.89%COMMERCE AND ECONOMIC OPPORTUN 80,096,600.00 106,066,800.00 32.42% 123,406,779.00 16.35% 62,667,400.00 -49.22%IL EMERGENCY MANAGEMENT AGCY 220,450.00 7,594,495.00 3345.00% 20,525,350.00 170.27% 10,306,900.00 -49.78%BOARD OF HIGHER EDUCATION 41,757,900.00 44,192,300.00 5.83% 34,492,300.00 -21.95% 10,377,856.00 -69.91%TRANSPORTATION 19,799,300.00 118,972,084.00 500.89% 133,545,843.00 12.25% 16,720,513.00 -87.48%IL STUDENT ASSISTANCE COMM 390,299,800.00 400,969,800.00 2.73% 429,204,800.00 7.04% 28,855,000.00 -93.28%MEDICAL DISTRICT COMM 1,336,287.00 184,400.00 -86.20% 37,033.00 -79.92% 0.00 -100.00%

11

IDNR Operating Budget by Fund

*General Revenue contributes a smaller portion to the IDNR budget than ten years ago. Other State Funds are heavily tapped.

Millions

12

IDNR Major Fund BalancesAgency Proposed Fees to Replenish Funds that Support Core Activities

*IDNR has already tapped major fund balances, and if trends continue, several funds will reach zero within a couple of years.

Millions

13

OSLAD/NAAF Revenue History/Projections

Revenues into some other funds are down, with the economy – OSLAD & NAA rely on Real Estate Transfer Tax. 14

Largest fund reductions include:

OSLAD (Open Space Land Acquisition Development) - $54.8m

C2000 - $25.1m Parks and Conservation - $14.4m Natural Areas Acquisition - $13.7m State Boating Act - $11.1m State Parks - $6.6m

*Includes sweeps (net of returned sweeps), chargebacks, statutory diversions, and small charges for Workers Comp., Professional Services, audit, facilities and IT consolidations.

Fund Sweeps, other measures* have taken over $167million from IDNR funds, operating and capital, FY2003 - 2009

15

Example FY2001(12/31)

FY2009(12/31)

%CHANGE

Average salary, State Park Staff $38,202 $52,410 +37.19%

Average salary, Conservation Police Officers

$52,065 $72,798 +39.82%

Group Insurance Costs (varies with plan, # dependants)

$4,953 - $10,481

$9,673 - $21,212

+83.48%-121.80%

Retirement Contribution, % of salary – Employer pays

13.94% 21.05% +112%

Cost of Services (Mainly people, especially benefits) is Up (each dollar buys less – even if funding is steady, services would be reduced)

16

-Inflation Index/CPI: +22.4%

IDNR Total On-Board HeadcountAs of January 1

*Early retirement programs, layoffs, and lack of hiring to backfill attrition have severely decreased staffing levels in a short period of time.**does not include Surveys

Thousands

17

0

0.2

0.4

0.6

0.8

1

1.2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

General Revenue

Other State Funds

Federal Funds

On-board Headcount by FundAs of January 1

*Other State Funds have been heavily tapped to pick up staffing as General Revenue has declined.

Thousands

18

Capital Bonded Appropriations for IDNR Permanent Improvements

21 Year Avg 15 Year Avg 10 Year Avg 5 Year Avg0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

13,474.6 14,812.0

11,727.5

2,833.6

15,560.3 16,002.2

18,548.3

19,090.0

1990 - 2010 Averages

Approped to DNR

Approped to CDB1.

0 =

$1,

000

Do

llars

*1994 final year for bonds backed by Parks & Conservation Fund-these were used for improvements at IDNR facilities & some land acquisition in earlier years*1999 $30m for IDNR headquarters*2000-2004 $40m/year for four years (w/$5m in final yr) for Open Land Trust-part land acquisition for IDNR, part to locals*2004 $29m for World Shooting & Recreation Complex at Sparta. During this time, many projects appropriated in earlier years were “frozen” if they had not yet started construction*2007 appropriation-unable to process due to GA restrictions on appropriations 19

Backlog of IDNR capital facility investment needs

Currently $691,530,900 known

985 known projects needed as of July 2009

Includes roof replacements, building renovations, sewer repairs/upgrades, wells & water systems electrical, HVAC, bridges, trails and boardwalks, historic structures, campgrounds, ADA upgrades, vault toilet installation, parking lots and roads, shelter repairs, playgrounds, docks and piers, dam repairs, etc.

20

Amount of land owned by IDNR9% increase in 7 years

21

2001 = 342,524 acres

2008 = 373,409 acres

Capital Grants v. DNR Permanent Improvements(Appropriations)

More capital dollars go to other entities as grants, than go to IDNR facilities. That difference is increasing over time.

21 Year Avg 15 Year Avg 10 Year Avg 5 Year Avg

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Permanent Improvement Approps PI Approp Trend Grant Approps Grant Approp Trend

Fiscal Year

Th

ou

sa

nd

s o

f D

oll

ars

22

1990 - 2010

Examples (FY2001) (FY2009) % change

# State Park Staff (Dec. 31) 653.5 448.5 -31.4%

# Conservation Police Officers (Dec. 31)

178 152 -14.6%

# Education Staff (Dec. 31) 20.5 11 -46.3%

State Acres Enrolled Annually, Conservation Reserve Enhancement Program

19,806 0 -100%

C2000 (Partners in Conservation) Grants

$5.4m $0 -100%

Consequences of IDNR Funding Cuts for Natural Resources & for Constituents

23

Starved Rock State Park has a Visitor’s Center with no Interpreter

IDNR has lost many key scientific staff including its Turkey Biologist, and staff to the Endangered Species Protection Board, and have not been able to replace them.

Illinois Beach, the most-visited site of the Illinois Department of Natural Resources, has had its staff reduced from 21 to 7, not adequate to accommodate the two million visitors annually to the site. Illinois Beach, for instance, had two Site Interpreters several years ago and now has none.

The number of Site Security Officers at IDNR parks has been cut almost in half.

More consequences of IDNR funding cuts

24

Words from the Partners in Conservation coalition from 1987 hold true today…

“The Department of Conservation differs from most State agencies because its constituents generate a substantial proportion of annual revenues through fees and in that it is responsible for preserving and managing natural resources which require long-term stewardship.” “Natural resource conservation and outdoor recreation opportunities cost more in Illinois than in other states. Illinois’ natural resources are scarce and land costs are higher.” “Stable, long-term funding is critical to protecting this sizable public investment.”

25