Caltroutdfgtransfer5-26-09

May 26, 2009 Hon. Denise Moreno Ducheny, Chair Senate Budget Committee State Capitol, Room 5035 6026 Sacramento, CA 95814 Subject:

Hon. Noreen Evans, Chair Assembly Budget Committee State Capitol, Room Sacramento, CA 95814

May Revise proposal affecting Dept of Fish and Game - $30 million transfer of hunting and fishing license fees to the General Fund

Dear Senator Ducheny and Assembly Member Evans: On behalf of the thousands of sport anglers and hunters represented by California Trout (CalTrout) and the California Outdoor Heritage Alliance, (COHA) we are writing to express our opposition to the Governor’s may Revise proposal to transfer $30 million in hunting and fishing license fee revenue from the Fish and Game Preservation Fund to the General Fund for the reasons described below. However, we are also offering an alternative for you to consider. We question whether there is in fact that much of a “surplus“ that can be transferred without causing major harm to core programs and operations of the Department of Fish and Game (DFG). The $30 million is equivalent to nearly one-half of the total revenues DFG collects in a single year from the sale of hunting and fishing licenses. We understand that the transfer would also jeopardize an additional $42 million in federal funds for which the $30 million provides state matching funds, resulting in a potential net loss of $72 million to DFG programs and operations. This is because hunting and fishing licenses revenues are annually used as matching funds to garner federal funding via the Wildlife Restoration (Public Law 415 (Wildlife Restoration Act of 1937)) and Sport Fish Restoration (Public Law 681 (Sport Fish Restoration Act of 1950)) Programs. Since federal law effectively requires states to keep their hunting and fishing licenses revenues from being diverted for non-fish and wildlife purposes in order to receive these funds (which California has recognized via Sections 400-401 of the Fish and Game Code), your proposal puts these valuable federal monies in jeopardy. Hunting and fishing license fees are the financial backbone for the Department of Fish and Game. Virtually all of these fees are annually indexed for inflation and can be raised administratively by DFG without

legislative approval or enactment of a statute. Currently, a sport fishing or hunting license costs about $40.20, making it the most expensive fishing or hunting license in the United States. We cannot see how it would be equitable or fair for DFG to continue raising the cost of license and permit fees to hunters and anglers if the Legislature is going to allow these revenues to be diverted to Hon. Denise Ducheny/Noreen Evans May 26, 2009 Page Two the General Fund and cause significant harm to the core DFG programs, such as hatchery operations and law enforcement (i.e., fish and game warden staffing). In March, the San Diego Union Tribune reported that DFG has been “dumping” thousands of fingerling trout from its hatcheries due to inadequate funding for hatchery operations. (“Budget Cuts Spur DFG to Dump Trout,” March 6, 2009). According to an DFG spokesman quoted in the story, this was caused by a dramatic drop in revenues from fishing license sales which are down considerably due to the current economic crisis. Also, earlier this year the Governor issued lay-off notices to 90 DFG wardens, nearly one-half of DFG’s beleaguered warden force, presumably because of funding shortfalls. As an alternative, if (a) it can be demonstrated that DFG losing the $30 million would not cause major harm to its core programs and operations (esp. warden staffing), and (b) it would not jeopardize receipt of $42 million in federal funds, you may still want to consider the option of a “loan” to the General Fund. However, we would oppose such a loan unless it is tied to budget trailer bill language (TBL) freezing all existing hunting and fishing license fee rates to 2009 levels, and specifically barring further increases until the loan is fully repaid with interest.

Thank you for allowing our organizations the opportunity to express our shared views on these important matters. Sincerely,

THOMAS J. WESELOH California Trout

BILL GAINES California Outdoor Heritage Alliance

cc:

Hon. Darrell Steinberg Hon. Karen Bass Hon. Sam Blakeslee Hon. Dennis Hollingsworth