Natural Resources in Economic Recovery

Natural Resources Stakeholder’s Summit
February 11, 2009

Thank you for coming here today and taking the time to listen, and to share the benefit of your experience as we set out to solve the economic challenges facing Ohio’s natural resources. I hope that what you hear today will help prove the value of what we are all entrusted with preserving.

The department is now barely two-thirds the size it was in 1992. There are many reasons for this, but I work from the most obvious one; the work the department does was seen as a low priority. When choices are made, Ohioan's first priority is to their families and jobs. In the past, natural resources took a back seat. I guess that belief made sense at one time. But it is the failure of this belief, this mindset mired in the past, that we are here to dispel.

At its heart, at its most basic, the job of every ODNR employee is the same as every other public servant; it is to put Ohioans back to work, to make Ohio a better place to live, work and raise a family.

To get to where we want Ohio to be, we need to first accept that tomorrow's jobs, tomorrow's workers, will be different than today’s. To attract and hold them, we have to set aside the mis-perception that we can have progress, or we can save our environment, but we can never do both. Not only is this inaccurate, it is dangerous to recovery. Competition for jobs requires us to set new priorities. Any development that is good for Ohio will occur in cooperation with natural resources, not at their expense. One part cannot succeed without the other. Anytime we diminish one, we diminish both.

The value of resource management will grow as competition for resources grows. When businesses relocate, their decisions are based on dozens of variables. Families too, make their choices based on dozens of variables. You’ve seen the lists of criteria. On none of those lists, under qualities desired, does it mention dying streambeds, leafless trees, sewage overflow, traffic jams or dust.

I never saw any of those things on any of those lists. What I saw, what business and workers both want, is what ODNR is fighting for. Access to green space. Proximity to open land. The opportunity to interact with nature; clean water and air, and the promise of a future where these things will never be taken away.

Simply put, Ohio’s economic and social health will not be separated, for long, from the health of our air, water and soil. Natural resource issues are jobs issues. Environmental issues are health care issues. Access to nature is an education issue. The development projects of the future will go to those states with the most enlightened conservation policies. Sound resource management can provide new workers and new businesses with what they are searching for. ODNR is ready to serve this community, and assure that all growth factor in sustainability and conservation.  In this light, a strong argument can be made that this is exactly the time for a strong state DNR. 

Beyond simple job creation, ODNR makes us competitive by fulfilling the quality of life component of economic growth.

Applied to our schools, access to nature means decreased social problems and increased test scores. The education link is documented by Richard Louv in his book “Last Child in the Woods” and in research conducted by The Trust for Public Land and others. Their work shows that free play in nature increases children’s cognitive flexibility, emotional capacity, critical thinking, problem solving, creativity, use of imagination, self-esteem and self-discipline. Top-tier education is a regular component of any competitive site selection bid.

The link with public health lies in the areas of prevention and rehab, in short, all the essential parts of good health that don’t require a doctor, a prescription, a hospital or an insurance claim. Improved health means lower costs, another competitive plus.

If ODNR is given the resources we need to be full partners in education, health and development… to play our part in improving these three key responsibilities of state government, we will all be able to look back on our time here with no regrets.

And just as important, looking ahead, when we deal with nature,  the decisions we make…it is not enough that they be defensible today. They must also be defensible tomorrow and the next day…they have to be defensible in terms of what is best for Ohio for as far ahead as we can see from where we stand.

Our job is to find ways to use Ohio’s natural resources to create the most opportunity, for the most people, in the most ways, for the longest time possible.

In terms of state government, if the Department of Development is about creating jobs as soon as possible, then the Department of Natural Resources is about creating jobs for as long as possible.

So that is why, at this critical time, as we’re all trying to do what’s best for Ohio…… best right now and in the months ahead... that is why we are asking for the tools to act aggressively, and for this department to re-gain a priority in proportion to our promise.

Through this budget, we will continue to expand on the work being done.  We will expand our role in creating a state where people want to live, work and raise a family.  We will prove that sustainability means jobs. We will show that the sound management of our resources is not only morally and aesthetically right; it is economically imperative.

Thank you.

Conservation Policy in Turbulent Times

Miami Valley Planning and Zoning
December 5, 2008

You can’t imagine how surprised I was to open the newspaper Monday and find that the National Bureau of Economic Research announced that we are in a recession.

I think most of us had already figured that out.

So I’d like to take a few minutes today to talk about the changes that this economy will bring to natural resource management, what we might expect, and what we can do about it.

One good part in all this is that we no longer have to debate which is better, big government or small government. We don’t have a choice this time. We are getting less government, and sooner, rather than later.  

(So) If it is your job, as is the case with most of us here today, to find the best ways to balance the use of our resources with their protection, then a smaller government with fewer tools is a sobering thought.

We recognize that the old ways will change. The silver lining, if there is one, is that we can choose what will replace them.
Our history is full of examples of times we came out of a time of crisis stronger than we went in. When we face cutbacks, we can redefine our procedures and find new ways to cooperate. We can choose what is necessary and what is not. We can use this opportunity to focus more clearly on our priorities. We can decide whether or not the months ahead will represent an ending… or the start of a new beginning. And there is an urgency to get it right.
I’d like to read a quote from John Kennedy from 1958, addressed to an agricultural conference in Kansas. I think it captures the kind of perspective I hope our land use community can take on.
“My intent (he said) is not to just recognize your importance to the land, but to recognize your importance as citizens -- citizens who are interested in more than issues of the land, are motivated by more than profits and convinced by more than promises -- citizens

who act not as a bloc but as thoughtful individuals, not with your wallets but with your heads and your hearts. In this way, and only in this way, can that complicated, vulnerable, sometimes discouraging political machinery which we call democracy produce a better world for ourselves and for our children.”

What I think he was trying to say was two things; the first was to remind us that our individual well-being cannot be separated, for long, from our collective well-being. And second, that anyone who judges the land use community as motivated by little more than simple self-interest, was missing something important about their character.

I read that quote today because, if we want our conservation programs to survive budget cutbacks and recessionary economics, those are the two messages we have to speak with one voice, and they represent the two qualities we have to encourage in ourselves and in our government.

The first rule of conservation is that everything is connected to everything else. At no time is this more apparent than during tough times. Therefore, as advocates for natural resources, if we want our voices to be heard, we have emphasize how what we do is directly connected to Ohio’s economic recovery… how what we do is key to any broader strategy to make Ohio a place people want to
move to, live in, work, build businesses and raise families.
Ohio’s competitive position, our economic and social health, cannot be separated from the health of our air, water and soil. If our effectiveness is to be judged, I hope we will be judged on how well we prove that any development good for Ohio will happen because of conservation and in cooperation with it. Natural resource issues are jobs issues. Environmental issues are health care issues. Access to nature is an education issue.
We have to see this for what it is. Creating a stronger, healthier Ohio is a competition. We are in competition for jobs; we are in competition for entrepreneurs, for families, for fast growing business, in competition for caring teachers, and for bright ambitious students.

I am talking about competition, and I am talking about winning. Winning used to mean proximity to markets and transport, cheap power, cheap money and low-cost labor.
The old debate told us you could save your environment, or you could have progress, but you could never have both.

Starting now, we have to put old ideas like those back on the shelf where they belong, and let them gather dust.

This is about competitive advantage, getting a step ahead of the pack and staying there, taking the lead and building on it, and the changes that are coming sooner, not later.

It doesn’t take much of a crystal ball:

Despite what the gas pumps say today, energy prices will go back up. They are going to stay up. As a result, energy efficiency will play an expanded role in our ability to compete.

Greenhouse gasses are going to be controlled. No matter what form the control will take, carbon regulation is coming. We have to learn to manage our carbon. How well we do it, who does it first and who does it best, will separate winners and losers.

Water shortages are hitting parts of the U.S. and the world. Expect this to continue. A few months back, the Governor of Georgia shed tears and prayed for rain on the steps of the Georgia statehouse.
Consider the message that sends to investors and site selectors…
Our water gives Ohio a huge advantage, if we can keep it.

The recently enacted Great Lakes Compact is our most potent weapon for holding our advantage, and a powerful statement on our ability to connect business, government and conservationists for shared benefit. The compact is an excellent example of the competitive power of the cooperative spirit.

As information increases, so does public scrutiny of business. This is where recycling can play a big part. Environmental standards we once applied only to big business are now being applied to small business. How well we learn to manage our waste is a necessary part of a competitive edge.

Green products are changing consumer behavior. Between 3 and 10 percent of consumers pay extra for green products. This percentage is an edge, and it is growing; another opportunity to pay close attention to.

Money managers now measure environmental practice. Bankers, insurance companies, stock analysts, venture capitalists… the people that measure risk, that look at long-term profitability, (they) see lower risk in companies with sound environmental management. When these people think it’s important, it is something we need to get ahead of.

And maybe most important, students today, the new employees of tomorrow….. they care a lot. The best employees, the ones who want more than just a paycheck, the ones who drive innovation, the ones we all want in Ohio, they think these things are important. They will question environmental policy and choose employers based on where they stand.

So… even if some people still don’t think the environment is important, our stakeholders do. Our customers do. Our neighbors do. Our bankers do. Our employees do.

In short, the people that make up our competitive edge, those people care about the environment.

Public interest in these issues is not going away. Instead, it is growing. By most standards it is growing fast. The first to figure out how to turn it to their advantage will have an automatic leg up, a competitive edge. And the dividends of being first will grow.

Longer term, there will be new markets and new ways to sell solutions to those who fell behind… tech transfer, intellectual capitol, talent, software and more.

This crystal ball clearly shows that our future links conservation with competition. I could make the same case linking conservation with better education and with better health.

The education link is documented by Richard Louv in his book “Last Child in the Woods” and in research conducted by The Trust for Public Land and others. Their work shows that free play in nature increases children’s cognitive flexibility, emotional capacity, critical thinking, problem solving, creativity, use of imagination, self-esteem and self-discipline. Applied to our schools, access to nature means decreased social problems and increased test scores.

The link with public health lies in the areas of prevention and rehab, in short, all the essential parts of good health that don’t require a doctor, a prescription, a hospital or an insurance claim. Improved health means lower costs, another competitive plus.

Viewed from any of these perspectives, our competitive position, our economic and social health cannot be separated, for long, from the health of our air, water and soil.

The kind of development that is best for Ohio will happen because of conservation and in cooperation with it. Broken all the way down, sustainability means growth, wisely and carefully managed over time… the creation of the most progress, for the most people, in the most ways, for the longest time possible.

So, in the months ahead, as we address cut-backs and study what is important and what is not, I encourage you to make sure that our natural resources are considered in this larger perspective.

The next time any of us are asked to justify support for any of our state parks, our nature preserves, our wildlife areas, our forests, our lake and river shoreline, I hope you will encourage that support not just for what they mean to you, but for the competitive value they add to our economy and our communities.

It is hard to imagine a more efficient use for a public dollar.  

In closing, I’d like to ask that as we make the decisions we have to make to pull ourselves out of this recession, we remember the lessons of the watershed, and the extent that we are all affected by the actions of those around us, and that we all live downstream from someone else.

A smaller government will prove a benefit to all of us if it leads us to recognize our interdependence, the first lesson of conservation. As we go forward, the lessons of the watershed are the first ones we should remember, and as the changes come, the last ones we should forget.

Thank you.

FY 2008-2009 BUDGET TESTIMONY

HOUSE AGRICULTURE AND DEVELOPMENT SUBCOMMITTEE ON FINANCE
April 5, 2007

Chairman Core and members of the committee, I am Sean Logan, the new Director of the Department of Natural Resources. Thank you for the opportunity to testify today concerning the department's diverse programs and activities for the FY's 2008 and 2009.

To a department that is barely two-thirds the size it was in 1992 a flat budget is a good budget. I hope that we can move beyond the numbers and figures on the pages in front of us, and prove the value to Ohio taxpayers of the support we are asking you to entrust us with.

How ODNR Advances Local Economic Development Across industries: building, energy, manufacturing Provide groundwater maps for water supply. Provide water supply data and research for industrial site selection and well drilling estimates. Provide floodplain maps for flood hazards to structure site locations. Provide access to canal water for industrial use. Protect businesses from losing water supply from new large scale water users. Protect industries from unintentional endangered flora and fauna costs. Respond to emergencies flood, weather, Homeland security. Provide water supply to local Wilmington, Delaware County, etc., businesses. Agriculture industry Technical and financial assistance to implement efficient management practices. Provide technical assistance to private woodlot owners to maximize long-term profits and tax benefits. Provide best management practices to reduce erosion and maintain productive soils. Provide management assistance to reduce non-point source pollution. Building industry Provides geologic hazard maps for building site selection landslides, soft spots/bogs, and bedrock. Provide underground mine maps for site selection homes, industry and roads. Assist dam owners with construction and safety needs to protect against liability. Capital projects provide contracts to architects, engineers and contractors. Provide customized GIS mapping layers on the web and by request to counties and others for development potential and decisions. Emerging industries Recycling market development grants help with new technology implementation. Recycling and scrap tire marketing insures a supply of material for re-use and manufacturing. Energy industry Provide mineral location and volume data to mining companies oil and gas, coal, industrial minerals. Provide bedrock and other geologic structure information for deep wells injection and carbon sequestration. Mine safety education and inspections keep employees safe, reduce liability concerns. Protect adjacent property value from blast fly-rock damage. Provide 24/7 security protection on Ohio River and Lake Erie at the two nuclear power plants during heightened alert levels. Food industry Agricultural best management practices encourages long-term productive farms. Deer management insures long-term and consistent deer harvest for butchers. Fish management provides sustainable resource for commercial fishing industry on Lake Erie. Insurance industry Provides seismic data and information to insurance companies for risk assessment and businesses for structure site selection. Provide floodplain maps for flood hazards. Niche industries Deer management ensures long-term and consistent deer harvest for taxidermists (trophy deer). Provide maps of shipwrecks for recreation dive shops. Retail industry Game management supports local sporting goods retailers of guns, bows, rods and specialty clothes and accessories. Hunting and fishing POS terminals draws business to retail outlets with POS terminals. Recreational Boating industry Provide dredge funds to keep public harbors open for use by boat owners. Provide efficient watercraft registration for boat dealers. Provide access and docks. Timber industry Manages large-scale timber lots for consistent and sustainable harvest, supplying timber to master loggers and sawmills for paper, construction, furniture and other wood products. Provides urban forestry technical assistance to local governments. Tourism industry Parks provide demand for lodge and concession businesses. Hocking Hills Region a literal cottage industry of rental cabins and B&B's drawn to Hocking Region parks, forest, and natural areas. Park marinas on Lake Erie provide access for sport fishing industry. Provide low interest loans to watercraft businesses for capital improvements. Fish management provides sustainable resource for sport fishing on Lake Erie. Scenic rivers provide market advantage to canoe liveries. Deer and turkey check-in stations bring business into local small businesses. Inland lake management provides demand for local bait stores, boat dealers, canoe and kayak sales. Sustain the historical and recreational aspects of the Ohio & Erie and Miami & Erie Canals. ODNR has partnered with local government and private partners to improve the canal towpaths and develop multiuse recreational trails on department-owned canal sections. Ensure safe dams to prevent catastrophic failures and provide the surface water resources necessary for water supply and recreation.

While parks and hunting and fishing come to mind when we think about natural resources, these things are actually secondary. What comes first is broader in scope: what comes first is how this department is making Ohio a better place to work, live and raise a family.

Under this bright light, we know that our job is not to turn Ohio into a pristine nature preserve. Our job is to keep Ohio working and growing while recognizing that our land, water and air can only give so much, and can only recover so quickly.

Therefore, we are managers. And as the competition for resources grows the importance and impact of what we do will grow.

At question in everything we do is the relationship between conservation and development. I like to think that it is the difference between making progress quickly and making progress recklessly.

We see our role as providing the tools and foresight to create the most progress for the most people, for the longest time possible. This department will never be against progress. But, we will act appropriately against short-sighted, short-term progress.

ODNR's relation to Ohio's future can even be compared to that of a cofferdam; it keeps it from all rushing recklessly forward at once and leaving all of Ohio like a clear-cut forest or a stripped-down hillside. Creating short-term profit but leaving nothing, with nothing at all left for future generations. Leaving us in a place where there is scarcity without demand the exact opposite of wise use.

Even further, looking ahead, if this department's effectiveness is to be judged, I hope it will be judged on its ability to show that any sound development, any development that is good for Ohio, will not happen at the expense of conservation, it will happen because of conservation and in cooperation with it.

Beyond the existing budget items to be discussed, we are also planning on finding new ways to coordinate with the Office of Travel and Tourism to market Ohio both inside and outside the state.

As part of this, we will enlist the department's parks and preserves in the fight against childhood obesity, we will promote ecotourism, encourage activities for entire families and help build a new recognition of the bond between access to green space and Ohio's overall quality of life.

Other new initiatives will be pursued in the rapidly changing field of energy, and especially, carbon energy resource management. In the new arena of renewable, sustainable energy, we believe Ohio is in a unique position to serve as a leader and beneficiary, and we have no intention of being left behind.

Through the budget in front of you, we will continue to expand on the work already being done. We will increase the role of the department in making Ohio a better place to live, work and raise a family. The resource management provided by ODNR is as essential to development as is the health of our land, our water, and our air. We will show that the sound management of our resources is not only the right thing to do morally; it is the right thing to do economically.

Proposed Budget Background

The Executive Budget proposal recommends a General Revenue Fund budget of $129.7 million in FY 2008 and $129.4 million in FY 2009. Over the biennium, these figures equate to a flat budget, when including debt service, for the department when compared to FY 2007.

As proposed, this budget provides adequate funding to maintain existing programs and services. This is an advancement considering the department's recent funding history. Further, it is unrealistic to expect additional funding cuts not to be noticed by the public.

For example, between 2000 and 2007, the department's effective GRF funding was reduced 12.8% including debt. Similarly, the Department's staffing levels have decreased 17.3% during that same time period.

Certainly, this reduction has led to more innovation and efficient management while continuing to meet the public's expectations of our department. To date, the department has done an excellent job at absorbing the funding cuts in ways that the public would not immediately recognize.

Simply stated, though, the department cannot sustain additional budget reductions and remain responsive to the public it serves. Furthermore, additional budget reductions would stunt the ability of the department to help the state move forward with local economic development efforts, find new energy sources, and provide recreational opportunities to draw outsiders back into the state. The following is a summary of ODNR's budgetary highlights and impacts. The budget, as proposed, will allow ODNR to continue providing services and programs that improve the quality of life for all Ohioans, and further cuts would not meet the public's expectations.

Economic Development Initiatives

Central Support: The lynchpin of the department's proposed budget is the increased level of Central Support funding (ALI 725-401). The Executive Budget proposal turns what has often been an item of contention into a positive for the department. In the past, department stakeholders have assailed Executive Budgets for not providing enough Central Support funding. In turn, these stakeholders launched strong legislative lobbying campaigns to ensure the Legislature found the funding.

Additionally, the stakeholders who pay for watercraft licenses, camping and dock fees, tree seedling sales and similar revenue generating items want to see that revenue go directly towards programs and services that benefit the user.

It pleases me to state before you today that this Executive Budget fully covers the traditional GRF portion of Central Support and protects the integrity of user generated revenue collected across the department.

By doing so, the proposed Central Support funding makes an investment across all divisions towards building new energy strategies for the state, enhancing our visitors and users experiences, and strengthening the department's ability to provide economic decision makers with ready access to crucial data. This investment will allow the divisions to absorb salary increases without losing the personnel necessary to make the department responsive to its public and industrial customers. Through this line item, the amount that each division pays with dedicated funds for Central Support will be reduced by approximately 25 percent, and at the same time, we have taken steps to reduce Central Support costs.

For example, we project the Division of Mineral Resources Management to save over $160,000 in each year of the biennium in Central Support costs. This will allow Mineral Resources Management to meet the objectives established in last year's HB 443 without losing staff and continue to be timely in permit turnaround and innovative in providing new electronic tools for industry to use in advancing their businesses.

Similarly, State Parks would save over $550,000 each fiscal year to help manage the large deferred maintenance backlog it has across the state. Now estimated at approximately $300 million dollars, this backlog prevents our parks from providing the ever increasing demands the public has for our facilities, and in some cases poses health and safety risks. This budget proposal helps to address these items in a fiscally manageable way for the state right now.

Ethanol, IGCC, & Synfuel

The Division of Geological Survey recently announced a new test well for carbon sequestration. Research conducted at this site will aid the development of more ethanol plants, Integrated Gasification Combined Cycle power plants, and synfuel plants (e.g. coal-to-liquid). Those industries generate pure streams of carbon dioxide, a greenhouse gas that will most likely be required to be sequestered in some manner. By learning how Ohio can develop deep well sequestration technology, the state will be positioned to establish new plants and possibly generate revenue from carbon credit trading. Further, the Division of Water will help these projects identify and safely use reliable sources of large quantities of high quality water necessary for production.

Other key ways the Central Support funding helps advance economic development:

• Division of Forestry would save over $116,000/year to help individual landowners manage their forest properties for long-term health and revenue, and establish Forest Stewardship Council/Sustainable Forestry Initiative certification to make Ohio timber more marketable.

• Division of Geological Survey would save over $30,000/year to take a leading role ensuring Ohio's energy future through new or under-utilized technologies like carbon sequestration and enhanced oil recovery.

• Division of Watercraft would save over $130,000/year to improve boating access across the state to help develop recreational tourism for local communities.

• Division of Real Estate and Land Management would save over $50,000/year to ensure timely local grant delivery.

• Division of Soil & Water would save over $50,000/year to deliver technical assistance to local districts.

House Bill 443: While this omnibus legislation affected a broad array of the department's work, most notably it changed many coal mining related programs. The Division of Mineral Resources Management is currently working with stakeholder groups to implement these changes. This stakeholder process will be similar to that pioneered by the division for the implementation of recent urban gas well drilling legislation, generally regarded as successful by all stakeholders. I mention this not only to provide an update on this process, but also to emphasize, again, the importance of the proposed Central Support line item funding. Without the Central Support funding, it will be difficult to implement the coal mining rule changes in a timely manner, slowing down an industry critical to Ohio's energy production and economic development.

Division of Recycling & Litter Prevention: In the previous biennial budget bill (FY 2006-07), the General Assembly moved forward with significant changes to the Division of Recycling & Litter Prevention. While there was certainly a transition period for the division, it is beginning to fill a strong need for the state. No longer is the emphasis of its efforts long-term local education and prevention programs. Rather, the division is focused on providing value to short-term individual, innovative projects. You may be familiar with the division's support of emerging new technologies like reusing used scrap tires to resurface roads, or diverting organic waste from landfills for profitable development as mulch. Advances like these can help move Ohio forward environmentally and economically.

Building Local Economies: The department administers more than 30 separate grant programs that provide financial assistance to local governments, educational institutions and community-based organizations as well as private citizens who commit to good conservation practices on their lands. In many instances, these grants directly add to a community's economic development, or fit into a community's plan to leverage their natural resources for other economic opportunities.

	Hancock & Marion Counties
	SWCD local match will help the state continue to work with local SWCD partners to implement the state's three Conservation Reserve Enhancement Programs: Lake Erie, Big Walnut, and Scioto River. These voluntary CREP programs help landowners address water quality protection in 50 counties, including the Maumee Watershed in Hancock and Marion Counties, among others.

Protection & Restoration Initiatives

Soil & Water State Match: The Executive Budget also addresses this important local grant program. Soil and Water Conservation Districts exist in all 88 counties of the state. These local Districts are key "foot soldiers" in providing clean water to the citizens of Ohio through landowner conservation practices.

Through the state grant, local districts match county funding to meet their obligations. The Legislature worked hard during the last biennium to provide additional resources from the state for this matching grant.

This proposed budget further increases the available state funding for match by almost $700,000, or 6.7%, from FY 2007.

Factoring in the expected increase in the amount of local match applied for across the state, this funding will equate to an 84.6% match rate in FY 2008 and 81.1% in FY 2009 if no earmarks are added.

State Parks = Economic Impact

Visitors to Ohio State Parks contribute a significant level of spending in Ohio's economy, mainly through local community businesses food; gas; supplies; sporting and recreational equipment; local souvenirs, crafts, antiques; historic sites and museums; canoeing, skiing, horseback riding and other area activities and attractions. According to a 2004 Ohio State University study, people visiting Ohio State Parks contribute an estimated $1.1 billion to Ohio's economy annually. Meanwhile, Ohio State Parks are the third most visited park system in the nation with about 50 million visitor occasions per year. According to a 2002 Ohio Poll conducted by the University of Cincinnati, more than 83 percent of all Ohioans have visited at least one state park at sometime. And 42 percent of Ohio households visited at least one state park during the previous year according to the 2004 OSU study. Recognizing that the better maintained a park is, the more visitation it will generate, the Division of Parks & Recreation intends to use its Central Support savings on projects in its maintenance backlog. Parks such as Buckeye Lake, Cleveland Lakefront, East Fork, Indian Lake, Van Buren, and Hueston Woods all have maintenance needs.

Private Action for State Facilities: As mentioned during the FY 2006-07 budget bill deliberation, the Division of Parks and Recreation is benefiting from the private action of many "Friends of Parks" groups across the state. These groups of dedicated volunteers have taken on increasingly beneficial projects throughout the State Park system. Many parks have directly benefited in capital improvements, park user access improvement, and even private fundraising.

The concern, by both department personnel and the friends group volunteers, is that if the state continues to cut personnel for maintaining State Park facilities, the volunteers would be providing more than just special amenities. As volunteers take on more of this work, not only can they become worn out, but they begin to question the state's commitment to these areas. It becomes increasingly difficult for a volunteer to justify spending his or her private time and expense on a resource he or she does not perceive the owner to properly care for.

So while we are endlessly thankful to the friends groups, we want to ensure their continued involvement and dedication to our facilities by providing a level of support worthy of their enthusiasm.

State Park Energy Efficiency: Though not a part of the Executive Budget, I feel it necessary to add that the department, for the first time, is seeking federal funding opportunities to update our State Park lodges and facilities to address our maintenance backlog and increase the older buildings' energy efficiency, which would add up to long-term utility savings for the state. While this first attempt may not prove successful, I mention this as a demonstration of our effort through as many avenues as possible to address the state parks maintenance issues. We fully expect to pursue this, and other options, in the future.

Division of Natural Areas & Preserves: DNAP is one of two divisions slated to receive a minimal funding increase under the Executive Budget. This heavily GRF dependant division has seen more proportional cuts under recent budgets than most. This division provides an extensive database of rare and endangered species, called the Natural Heritage Database, that has aided in the planning and development of countless infrastructure, housing, and retail development projects. The Heritage Database helps avoid conflicts with species before it becomes expensive for a project to mitigate the damage. To avoid a darkening budgetary imbalance, and a severe reduction in service, the Executive Budget allows the division to cover collective bargaining costs over the biennium.

Ashland County Economic Recovery

Communities and businesses along the Mohican River had great support for the Division of Natural Areas & Preserves' designation of the Mohican River as a State Scenic River. In the summer of 2006, severe flooding damaged the canoe and camping industry along the Mohican River near Loudonville. These local businesses hoped to use the "Scenic River" label to market the river as healthy and safe for tourists to come and enjoy the region's fishing, camping, canoeing, and hiking. That December, those businesses received assistance from the Division of Travel & Tourism to publish material promoting the Mohican as a Scenic River.

Lake Erie Drilling Ban: Not long ago, Lake Erie was considered a dead lake. A tremendous amount of work from a diverse set of public and private partners have brought the Lake back to become an economic and recreational engine for the State of Ohio. The sport fishery alone contributes approximately $700 million to the state economy. Multiply this impact by the number of recreational boats, jetskies, waterskies and the like, plus the restaurants, hotels, and tourist destinations centered on Lake users, and it is clear why the Lake is vital to the state's economy.

There may be legitimate reasons to consider oil and gas drilling under Lake Erie. However, the risks outweigh the benefits, and just one accident could be devastating to both our economy and to one of Ohio's greatest natural resources.

Therefore, to protect the Lake's ecology and economy from any accidents, the Governor has proposed language mirroring federal law banning oil and gas drilling under Lake Erie. This will allow the state to control this natural resource should Congress change its mind. Furthermore, changing the law in this manner would be an extension of Governor Bob Taft's Executive Order banning Lake Erie drilling, which expired at the end of his term.

So, we propose adopting this ban to secure the state's lake economy, and the state's tax revenues from it, for future generations.

Technical Changes

Division of Geological Survey/Lake Erie Group: A shift is contained in the Executive Budget to merge the Lake Erie Group (misnamed "Office of Coastal Management") back into the Division of Geological Survey. While this merger is not expected to change budgetary figures for either Geological Survey or the Lake Erie Group it does explain the perceived increase in the Division's GRF appropriation and zeroing out of the Group's GRF.

Building Membership: As the department looks to enhance our stakeholders' recreational requests, we would like to establish niche membership groups to meet these requests and build youth education programming for the next generation of natural resource users. Language additions in the Executive Budget enable the establishment of such voluntary membership groups.

Conclusion

The department's mission is to carefully balance the state's protection and wise use of its bountiful natural resources. I believe the Executive Budget before you presents a positive way forward to meet those goals. It is a carefully crafted proposal that will allow our agency to aid key energy industry advances, enhance local economic development, and provide families with affordable recreational opportunities.

Your guidance and support in implementing our initiatives are necessary and welcomed. My staff and I look forward to working with you in finalizing the Department of Natural Resources' FY 2008 2009 biennial budget. I would be more than happy to respond to any questions you may have, or provide any desired written follow-up information after today.