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Michigan Ballot Initiative: Proposal 1 – Opportunity to Expand the Natural Resources Trust Fund

| General Government Relations

On November 3, Michigan voters will vote on Proposal 1 – an initiative supported by NMMA, which would make changes to how revenue in the state’s park-related funds can be spent. Proposal 1 will impact the state’s National Resources Trust Fund (MNRTF) and the State Parks Endowment Fund (SPEF).

Since 1976, the MNRFT has provided more than $1.1 billion in grants for projects for natural resource protection and outdoor recreation through royalties from private industry. Oil, gas, and mining industries are required to pay royalties on the minerals they extract from public land. The MNRTF ensures the dollars received are invested into Michigan’s natural resources and outdoor spaces.

Each year, project and grant recommendations are made by the MNRTF board to the legislature for final approval. Projects include examples like the Flat Rock Boat Launch Improvement – which included new parking lot for passenger vehicles and vehicles with boats as well as an accessible kayak launch or Belle Isle Park South fishing pier renovation. However, under current law MNRTF has a ceiling as to how much funding it can receive, and it has now reached that cap.

If Proposal 1 passes (by voting “yes”), the following changes would be made:

  • Allow the MNRTF to receive revenue from the royalties on oil, gas and mining operations on state-owned land once the SPEF reaches its cap asset of $800,000,000.
  • Require at least 25% of MNRTF disbursements be made for development, renovation and the redevelopment of public recreation facilities, and at least 25% for land acquisition and protection.
  • Allow up to 50% of MNRTF annual revenue, plus interest and earnings, to be expended each fiscal year.
  • Require at least 20% of the money expended from SPEF go towards capital improvements at state parks.

Proposition 1 ensures that all future royalties are dedicated to conservation and recreation – removing the cap for good. Additionally, it allows for flexibility to fund and update trails, accessible boat launches, playgrounds and more in communities across Michigan while prioritizing land conservation and protection. Finally, Proposition 1 would safeguard a stream of conservation and recreation funding granted to Michigan communities annually, while saving for the future.

For more information, please contact NMMA Great Lakes policy and engagement manager, Jill Sims at [email protected].