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Friday, October 15, 2010

Federal Land Management Agencies’ Mandatory Spending Authorities

Ross W. Gorte, Coordinator
Specialist in Natural Resources Policy

Carol Hardy Vincent
Specialist in Natural Resources Policy

M. Lynne Corn
Specialist in Natural Resources Policy


The four major land management agencies have numerous special funds and trust funds that have mandatory spending authority, with the money available to be spent without further action by Congress. The four agencies have 81 accounts with mandatory spending authority, averaging $2.7 billion in annual budget authority for FY2005-FY2009, more than a quarter of annual agency funding. Most accounts are funded with receipts from the sale or lease of federal lands and resources; other sources include excise taxes, licensing fees, import duties, donations, and more. Many accounts fund agency activities; others compensate state and local governments for the taxexempt status of federal lands; still more are grants, allocated by fixed formulas or competition.

Advocates of mandatory spending desire the predictability of funding that results from avoiding the annual congressional appropriations process. However, others are concerned about limited oversight, alleged rewards for environmentally damaging behaviors, and the adequacy of compensation for the tax-exempt status of federal lands. This report reviews agency-level mandatory spending accounts for the four agencies.

The Bureau of Land Management has mandatory spending authority for 31 accounts, averaging $824 million annually in FY2005-FY2009 budget authority (44% of BLM funds, excluding wildfire funding). Many are small; 12 exceeded $5 million in average annual budget authority, and the largest had average annual budget authority of nearly $400 million. Nine accounts ($198 million in total average annual FY2005-FY2009 budget authority) compensate local governments for lost tax revenues from the tax-exempt public lands. The other 22 ($626 million in total average annual FY2005-FY2009 budget authority) fund agency activities.

The National Park Service has mandatory spending authority for 17 accounts, averaging $335 million annually in FY2005-FY2009 budget authority (12% of NPS funds). Like the BLM, many are small; seven exceeded $5 million in average annual budget authority, and the largest account averaged $162 million in annual FY2005-FY2009 budget authority. Two accounts (less than $1 million in average annual FY2005-FY2009 budget authority) compensate local governments for tax-exempt federal park lands. The other 15 fund agency activities.

The Fish and Wildlife Service has 10 accounts with mandatory spending authority, averaging $798 million annually in FY2005-FY2009 budget authority (36% of FWS funds). Five of the accounts exceeded $5 million in average annual budget authority. The two largest (together $729 million in average annual FY2005-FY2009 budget authority) are funded mostly with fuel and excise taxes, and primarily provide grants to states allocated by formula. One, funded from receipts (44%) plus annual appropriations (56%), compensates local governments for the taxexempt federal wildlife refuges. The others fund land acquisition and agency activities.

The Forest Service has mandatory spending authority for 23 accounts, averaging $764 million annually in FY2005-FY2009 budget authority (22% of agency funds, excluding wildfire appropriations). Many accounts are relatively large, with 13 exceeding $5 million in average annual budget authority, and most are funded from agency receipts. Three (totaling $375 million in average annual FY2005-FY2009 budget authority) compensate local governments for taxexempt national forests and grasslands. The other 20 (totaling $390 million in average annual FY2005-FY2009 budget authority) fund agency activities. 
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Date of Report: October 5, 2010
Number of Pages: 43
Order Number: RL30335
Price: $29.95

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