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Er~viro n~ent ~ Agrcultu~'e The Environment and Agriculture budget provides funding for the Pollution Control Agency (PCA), the Department of Natural Resources (DNR), the Department of Agriculture, the Office of Environmental Assistance, the Board of Soit and Water Resources and other small agencies. Their mission is to protect and enhance the quality of the environment, and human and animal health. The state invests in this area to balance the many interests of Minnesota citizens. Preserving our natural heritage for future generations while also providing quality trails, water access sites, and fishing, hunting, and camping resources for the recreation of a growing population is a major responsibility. At the same time, the state manages its forest and mineral resources for the economic benefits of citizens, communities, and industries, it also spends money to support the production of ethanol, promote agricultural products, and protect consumers through the regulation and inspection of products for human and animal consumption. Funding in this area is complex, with 40 percent of spending coming from the general fund, and 60 percent from a wide variety of user fees. Enirronment & Agriiculture'Bi11 funding` Percent FY 2002-03 FY 2004-05 Chanae General Fund 486 419 (14)% All Operating Funds 1,180 1,137 (4)°~6 The Govemor's general fund budget for Environment and Agriculture totals $419 million - a 14 percent decrease from the current biennium. The budget for all funds totals $1.1 billion, a decrease of 4%. Key Elements of the Budget Recommendations The Governor recommends a reduction in funding for the Ethanol Development program. The Department of Agriculture is also being asked to review the program and provide recommendations for changes that will help ensure the long-term financial viability of the state's investment in the ethanol industry. • The Governor is recommending an environmental. fund simplification that will enhance the Minnesota Pollution Control Agency's ability to direct resources toward environmental priorities. This proposal will restructure the Environmental Fund and create a new Remediation Fund. The proposal will also rename the solid waste tax to the "environmental tax" to reflect the broader purposes for which the revenue is spent. The proposed budget includes general fund reductions for the Department of Natural Resources. The budget includes broad based reductions across all programs, with the exception of Forestry, where the Department will make a smaller reduction to ensure its continued contribution to forest health, fire protection, and rural and state economies, and to maintain timber sales. Services will be reduced in State Parks, but all parks will remain open. The DNR will continueto work to refine the details for specific reductions • A limited number of fee increases for the Department of Agriculture, the Department of Natural Resources, and the Pollution Control Agency are included in the budget. These increases are necessary for the agencies to recover the cost of the programs and activities being supported by fees. • Governor's 2004-05 Budget 16