DEPARTMENT OF LEGISLATIVE SERVICES
OFFICE OF POLICY ANALYSIS
MARYLAND GENERAL ASSEMBLY
December 14, 2000
The Honorable Brian E. Frosh
7315 Wisconsin Avenue
Suite 800 W
Bethesda, Maryland 20814-3217
Dear Senator Frosh:
David Brewster contacted the Department of Legislative Services (DLS) on your behalf with questions about State payments to counties based on proceeds of sales of timber from State forests. Specifically, Mr. Brewster requested information on current proceeds from timber sales in State forests by county as well as refunds from timber proceeds by county. In addition, Mr. Brewster requested that DLS develop a formula that would distribute revenue from timber sales to counties based on the number of acres of State forest within a county. Mr. Brewster also requested that DLS provide information relating to the number of acres of State forests in each county. We hope that this letter is responsive to your request.
Current Law
All revenue received from State forest reserves and State parks is paid into the Forest or Park Reserve Fund (Fund) within the Department of Natural Resources (DNR). Each county in which a State forest or park reserve is located receives 15 percent of the revenue derived from the State forest or park reserve located in that county. If the State forest or park reserve in a county comprises 10 percent or more of the total land area in the county, that county receives 25 percent of the revenues derived from the forest or park reserve located in that county. Examples of revenues paid into the Fund include revenue from timber sales, park entrance fees, boat dockage fees, and hunting leases.
Timber Sales
Currently, only Allegany, Garrett, and Worcester Counties receive payments from the Fund as a result of timber sales. Other counties receive payments from the Fund as a result of other revenues. Exhibit 1 shows the proceeds of timber sales by county in fiscal 2000, and each county's fiscal 2000 refund.
Exhibit 1
|
County |
Proceeds from Timber Sales in State Forests | County Refund from Timber Sales |
| Allegany | $175,000 | $43,750 |
| Garrett | 2,028,761 | 507,190 |
| Worcester | 787,723 | 118,158 |
Source: Department of Natural Resources
The State's recent acquisition of the 58,783 acre Chesapeake Forest property on the Eastern Shore is likely to increase payments to Caroline, Dorchester, Somerset, Wicomico, and Worcester counties. Because the State acquired Chesapeake Forest in the middle of fiscal 2000, DNR is unable to estimate the revenues which will result from timber sales from that State forest and the resulting county refunds.
State Forests
When Chesapeake Forest is included, the State currently owns State forests in 13 counties. Exhibit 2 shows the distribution of acres of State forests and the additional acres acquired from the purchase of Chesapeake Forest.
Exhibit 2
| County | Acres of State Forests without Chesapeake Forest | Additional Acres from Chesapeake Forest |
|
Allegany |
41,292 | 0 |
| Anne Arundel | 152 | 0 |
| Caroline | 299 | 1,272 |
| Cecil | 3,316 | 0 |
| Charles | 3,965 | 0 |
| Dorchester | 0 | 11,552 |
| Garrett | 64,037 | 0 |
| Harford | 318 | 0 |
| Prince George's | 992 | 0 |
| Somerset | 0 | 17,178 |
| Talbot | 125 | 0 |
| Wicomico | 1,239 | 15,932 |
| Worcester | 14,329 | 12,849 |
Source: Department of Natural Resources
Distribution of Revenue from the Forest or Park Reserve Fund
Mr. Brewster indicated that you are interested in eliminating the link between timber sales in State forests and county payments from the Fund. He also explained that you wish to focus on revenues from timber sales and do not want any county's payment to be reduced, to the extent possible.
Based on data from fiscal 2000, an analysis of the current distribution of timber sales and the distribution of acres of State forests shows that Garrett and Worcester Counties receive a refund from timber sales equal to roughly eight times the number of acres of State forests within the county. Conversely, Allegany County's refund is almost equal to the number of acres of State forests within that county. Accordingly, a single formula linking county refunds to State forest acreage cannot be developed without providing a windfall to some counties and a penalty to others. In addition, because DNR was unable to provide refund data for a full fiscal year for Chesapeake Forest, a necessary component of the formula is unavailable at this time.
Further, if you link county refunds to acres of State forests rather than revenues generated by timber sales in State forests within each county, payments to counties could exceed the revenues generated. Thus, the State would have to compensate for the shortfall by using other funds.
We trust that this information proves helpful. For further information, we have also attached a chart that shows State forest timber sales by forest between fiscal 1996 and fiscal 2000. Should you have further questions, please call one of us at (410)9461(301)970-5510.
Sincerely,
Dea Whayland-Daly, Policy Analyst
Lesley Frymier, Policy Analyst
State Forest Timber Sales for FY 1996
|
Forest |
Acres |
Amount |
| Doncaster | 26.5 | $18,842.08 |
| Green Ridge | 233.8 | 105,867.00 |
| Pocomoke | 77 | 270,389.00 |
| Potomac Garrett | 194.5 | 318,047.00 |
| Savage River | 369.5 | 822,591.50 |
| Grand Total* | 874.8 | $1,516,894.5 |
*Grand totals only include State Forest figures
State Forest
Timber Sales for FY 1997| Forest | Acres | Amount |
| Green Ridge | 150.7 | $154,695.00 |
| Pocomoke | 68 | 245,278.00 |
| Potomac Garrett | 186 | 331,507.97 |
| Patapsco | 50 | 17,300.00 |
| Susquehanna | 3 | 2,300.00 |
| Savage River | 420.3 | 1,098,650.05 |
| Grand Total |
902.00 |
$1,856,134.0 |
*Grand totals only include State Forest figures
State Forest Timber Sales for FY 1998
| Forest | Acres | Amount |
| Doncaster | 20.0 | $11,000.00 |
| Green Ridge | 203.5 | 170,653.50 |
| Pocomoke | 98.6 | 505,651.00 |
| Potomac Garrett | 213.5 | 553,013.00 |
|
South Mountain |
5.0 | 2,575.00 |
| Savage River | 487.0 | 1,343,907.00 |
| Grand Total* | 1,002.6 | $2,573,224.50 |
*Grand totals only include State Forest figures
State Forest Timber Sales for FY 1999
| Forest | Acres | Amount |
| Green Ridge | 199.2 | $167,573.90 |
| Pocomoke | 55.8 | 344,280.00 |
| Potomac Garrett | 119.0 | 304,249.00 |
| Savage River | 417.5 | 1,447,619.63 |
| Black Walnut Point | 13.6 | 6,255.00 |
| Grand Total* | 791.5 | $2,263,722.53 |
*Grand totals only include State Forest figures
State Forest Timber Sales for FY 2000
| Forest | Acres | Amount |
| Cedarville | 22.0 | $12,400.00 |
| Fort Frederick | 8.0 | 11,600.00 |
| Green Ridge | 204.1 | 302,101.00 |
| Janes Island | 26.0 | 54,100.00 |
| Mt. Nebo | 5.0 | 0.00 |
| Pocomoke | 122.2 | 690,510.00 |
| Potomac Garrett | 147.8 | 450,217.65 |
| Savage River | 391.0 | 1,590,107.90 |
| Grand Total* | 865.1 | 3,032,936.55 |
* Grand totals only include State Forest figures