DNR Annual Report 2019 by Washington State Department of Natural Resources

2019 Annual Report

2019 DNR ANNUAL REPORT

Contents

04 31 36 37

FISCAL MANAGEMENT DATA*

TIMBER MANAGEMENT DATA*

BOARDS AND LEADERSHIP

CONTACT INFORMATION AND DNR REGIONS MAP

For copies, or for disabled persons needing this information in an alternate format, contact: DNR Communications and Outreach Mail Stop 47003 Olympia, WA 98504-7003 Email information@dnr.wa.gov Phone 360-902-1000 TRS: 711 This document is available in PDF format at: dnr.wa.gov Cover Photo Columbia Falls Natural Area Preserve. Photo by Joe Bettis

Hilary S. Franz Commissioner of Public Lands * Fiscal and timber pages account for the revenues DNR generated, collected, and expended during Fiscal Year 2019â&#x20AC;&#x201D;July 1, 2018 to June 30, 2019. This report was prepared by the Washington State Department of Natural Resources (DNR). It provides information required by the following statutes: RCW 79.10.010, RCW 79.64.100 and RCW 79.64.030

FISCAL DATA

TIMBER DATA

STATE GR ANT L ANDS 8 Resource Management Cost Account (RMCA) 9 State Grant Lands 10 RMCA Upland 11 General Distribution of Revenue from Upland State Grant Lands 12 Common School, Indemnity and Escheat Grants 13 University Grants Original and Transferred (UW) 14 Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) 15 Capitol Building Grant 16 Normal School Grant (EWU, CWU, WWU and TESC) 17 Scientific School Grant (WSU) 18 Agricultural College Trust Management Account (ACTMA) 19 Agricultural School Grant (WSU) STATE FOREST L ANDS 20 Forest Development Account (FDA) 21 General Distribution of Revenue from State Forest Lands 22 State Forest Lands STATE AQUATIC L ANDS 24 Aquatic Resources and RMCA—Aquatic 25 General Distribution of Revenue from State-Owned Aquatic Lands 26 FISC AL NOTES 30 State Trust Lands Management Fund Accounting Report

◗ These pages account for the revenues DNR generated, collected and expended during Fiscal Year 2019 (July 1, 2018 – June 30, 2019). ◗ Most revenues DNR generated are from activities on upland state trust lands and aquatic lands. Distribution of revenue is governed by statute and varies according to trust and revenue source. ◗ DNR manages 2.1 million acres of forestlands that generate revenue for state trusts, mostly from timber sales. On pages 31 to 34, DNR provides data on timber management activities on forested state trust lands, as required by RCW 79.10.010(3).

◗ Fiscal information is presented as a combination of tables, pie charts, and notes. The notes provide context for the tables. ◗ Underlined bold numbers are totals or subtotals. ◗ Some pages show dollars in thousands. Totals may not add exactly due to rounding. ◗ There is no individual page for the Community College Forest Reserve Trust. (See Fund Activity, page 7). ◗ These pages include data for federally granted trust lands and for legislatively established trust lands, including State Forest Lands (formerly known as Forest Board lands). Trusts are listed individually. ◗ Counties that contain State Forest Lands, but are not listed for an activity, did not have that activity during Fiscal Year 2019.

Management

ABOUT THESE PAGES

Fiscal Data

OVER ALL AGENCY OPER ATIONS 4 Total Revenue 5 Total Expenditures 6 DNR-Administered Funds 7 Funds Administered by Other Entities

FISCAL DATA

2019 D N R A N N UA L R E P O R T 4

TIMBER DATA

Total Revenue | FY 2019 REVENUE BY SOURCE

Source

F Y 2019

FY 2018

Total Funds

Sales Timber sale removals Timber sales-related activities Forest road assessments Nursery seedling sales Miscellaneous Leases Agriculture Aquatic Commercial real estate Mineral and hydrocarbon Communication sites

$222,903

$196,470

223

12,400 3,779

14,021 4,920

534 $239,838

462 $215,929

$24,420

$25,471

35,501 10,202 1,620

36,902 10,917 2,925

4,907

4,730

1,494 2,703 $80,848

1,230 2,706 $84,880

Other Revenue Interest income

$1,814

$903

Fire assessments and cost reimbursement Grants and contributions Permits, fees and related charges

15,047 26,252 4,275

29,436 38,769 3,846

22,662 $70,050 $390,736

9,895 $82,848 $383,657

$2,948 125 $3,073

$5,198 1,505 $6,703

$393,809

$390,360

Rights-of-way Miscellaneous

Miscellaneous Total Revenue from Operations Other Activity

Land transfers 3 Land bank 4 Total Revenue Total Totals may not add due to rounding. Amounts reported in thousands of dollars

Amounts are reported in thousands of dollars. â&#x2013; About This Page Revenues are shown for two years for comparison. Differences between the years reflect changes in market conditions, legal requirements, availability of resources, and other factors.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 5

TIMBER DATA

Total Expenditures | FY 2019 EXPENDITURES BY PROGRAM2

F Y 2019

FY 2018

Operating

Amounts are reported in thousands of dollars.

$113,532

$94,597

48,332

40,434

■ About This Page

27,244 21,091

23,798 22,535

Agency Support

22,614

20,044

Forest Practices Engineering Services Aquatic Resources Interagency Payments Asset & Property Management Administration

19,688 17,550

17,227 14,609

19,358

14,992

Expenditures are shown for two years for comparison. Differences between the years reflect changes in the programs, legal requirements, salaries and benefits, inflation, and other factors.

11,996 7,901 6,264

11,971 7,418 6,171

5,283 1,674 1,630

5,297 1,614 1,380

$324,156

$282,090

14,178 4,936

12,180 23

Puget Sound Corps Forest Health Miscellaneous 2

3,340 6,498 2,906

2,687 1,824 1,266

Recreation & Natural Areas

3,741

589

274 3,909 141 39,924

236 69 840 19,714

364,080

301,804

Fire Suppression Product Sales & Leasing Resource Protection Land Management

Geology & Earth Resources Agricultural Resources Law enforcement services Total Operating Expenditures Capital Real Estate and Property Acquisition Facilities & Roads

Aquatic Resource Forest Practices Trust Land Transfers Total Capital Expenditures Total Expenditures Total 2 Amounts reported in thousands of dollars. See accompanying notes. Totals may not add due to rounding.

DNR’s expenditures reflect the Department’s diverse work. Land management activities, funded by trust land revenue, are investments in the long-term benefits and productivity of the resources. Other activities, funded by non-trust revenue sources, support regulatory, assistance and resource protection programs, as well as agency operations. Capital expenditures include land acquisitions on behalf of state trusts and natural areas.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 6

TIMBER DATA

DNR-Administered Funds – Revenue and Expenditures | FY 2019 Fund Title

Beginning Balance 7/1/18

Revenue

Expenditure

Ending Balance 6/30/19

$3,965 31,799

$26,684 57,752

$(23,453) (51,201)

$7,197 38,350

12,539 7,913 11,346

40,418 246 17,089

(36,278) (1,946) (12,977)

16,679 6,213 15,458

450

1,356

(1,425)

381

$36,214

$85,792

$(76,079)

$45,927

$8,317 384

$12,559 168

$(13,674) (30)

$7,202 523

N/A

20,975

(10,933)

N/A

1 84 297 8,487

15,539 56 23 19,417

(15,539) (1) (226) (17,986)

1 139 94 9,918

N/A (0) N/A

68 972 59

(1,082) (453) (5,825)

N/A 518 N/A

12,165 3,864

10,475 17,390

(13,177) (9,435)

9,462 11,819

798

638

(738)

698

18 4,270

4 816

0 (6,661)

21 (1,575)

142 N/A N/A 11,447 13 2,117 643 979

40 0 304 (1,024) 0 3,788 1,945 994 $105,206

0 (3,378) (2,366) (1,301) 0 (4,408) (1,321) (955) $(109,490)

181 N/A N/A 9,122 13 1,497 1,268 1,018

$190,998

$(185,568)

Trust Management Accounts* Forest development (FDA) 3 Resources management (RMCA) Total RMCA-Uplands subtotal RMCA-Land Bank subtotal 4 RMCA-Aquatics subtotal 4

Agricultural college (ACTMA) Other DNR-Administered Funds 14 Access road revolving Aquatic lands dredged material Aquatic lands enhancement 7 Clarke-McNary Community forest trust Conservation areas stewardship Contract harvesting revolving Derelict vessel removal 8 Federal lands revolving Forest and fish support 9 Forest fire protection assessment Forest health revolving Forest practice application Geothermal Landowner contingency forest fire Marine resources stewardship ORV and nonhighway vehicle 6 Park land trust revolving 10 3, 17 Real property replacement See Fiscal Notes, pages 54-58. Totals may not add due to rounding. Spec forest products outreach/edu State forest nursery revolving Surface mining reclamation Surveys and maps

Total DNR-Administered Funds 14

See accompanying notes. Totals may not add due to rounding. Amounts reported in thousands of dollars.

Amounts are reported in thousands of dollars. ■ About This Page DNR’s fiscal activity includes generating revenue for a variety of funds and accounts, some of which benefit state trust beneficiaries and some of which fund state programs, including DNR’s own. DNR’s fiscal activity also includes expenditures supporting its work. Some of the accounts that receive revenue from DNR or that fund DNR’s expenditures are managed by DNR; others are managed by other agencies. * These accounts fund DNR’s management of state trust lands. Revenue may be carried over from year to year. As a result, any given year’s expenditures do not necessarily correlate to that year’s revenue.

** The RMCA trust balance includes $6,213,183 dedicated by law (RCW 79.19) to Land Bank purchases of lands that replace previously sold trust lands. See pages 8, 18, 20, and 24 for more detailed accounting. FDA and RMCA are funded through revenue generated from the lands whose management they support. ACTMA is not funded through such revenue, but instead, through a legislative appropriation from the State General Fund. N/A = not applicable

FISCAL DATA

2019 D N R A N N UA L R E P O R T 7

TIMBER DATA

Other Funds â&#x20AC;&#x201C; Revenue and Expenditures | FY 2019 Fund Title

Revenue

Expenditure

Net Fiscal Activity

$64,300

Community college forest reserve

1,072

WSU bond retirement

1,389

UW bond retirement 19 CEP&RI EWU capital projects CWU capital projects

1,345 2,718 27 27

0 0 0 0

1,345 2,718 27 27

27 9,842 72,726

0 0 0

27 9,842 72,726

$153,501

$4,063 2,947 703 5,408

$0 0 0 0

$4,063 2,947 703 5,408

665 $13,786

0 $0

665 $13,786

$33,260

$(84,523)

$(51,264)

391 2,444

(197) (42,342)

194 (39,898)

(1,184)

1 0

0 (9,329)

1 (9,329)

0 0 0 20 592 $35,524

(60) (546) (1,620) (32,732) (7,162) $(178,511)

(60) (546) (1,620) (32,712) (6,570) $(142,987)

$202,811 $393,809

$(178,511) $(364,080)

$24,300 $29,729

Trust Current Funds 13 Common school construction

WWU capital projects TESC capital projects Capitol building construction Forest board counties 16 Trust Permanent Funds 13 Agricultural college (WSU) Normal school (EWU, CWU, WWU, TESC) Common school (K-12) Scientific (WSU) State university (UW) 19 Other Funds General fund Air pollution control Budget stabilization Cleanup settlement 17 Developmental disabilities community trust Disaster response Environmental legacy stewardship Nova program Pension funding stabilization State building construction State toxics control Total Activity - Other Funds 14 Total All Funds and Activities

See accompanying notes. Totals may not add due to rounding. Amounts reported in thousands of dollars.

Amounts are reported in thousands of dollars. Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 26-30. â&#x2013; About This Page All revenue for the Community College Forest Reserve Trust was generated from leases. DNR expenditures from the fund were to purchase land for the trust.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 8

TIMBER DATA

Resource Management Cost Account (RMCA) | FY 2019 EXPENDITURES

REVENUE

Source Beginning Balance (July 1, 2018)

$31,798,548

RMCA Revenue Uplands Aquatics

40,663,903 17,088,522

Total revenue

57,752,425

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales and Leasing Land Management Law Enforcement

1,648,597 1,322,807 12,180,810 8,886,986 851,115

Correctional Camps Administration Interagency payments Agency support

473,996 1,604,366 4,800,272 6,517,433

Aquatic resources

8,989,678

Engineering services Total Operating Expenditures Total Capital Expenditures Total Expenditures RMCA Fund Balance (June 30, 2019)*

Totals may not add due to rounding.

â&#x2013; About This Page The Resource Management Cost Account (RMCA) funds DNRâ&#x20AC;&#x2122;s Land Management activities on state grant lands. DNR deposits a portion of the revenue it generates from these lands into the account, and the legislature appropriates funds from the account to DNR for expenditures. The RMCA can be used only for land management expenses (e.g., reforestation, preparing timber sales, or managing aquatic leases) that support federally granted state lands. * RMCA fund balance includes $6,213,183 in upland trust reserved for Land Bank sell-first purchases. See page 10 for details.

1,979,033 49,255,093 1,946,000 51,201,093 $38,349,880

FISCAL DATA

2019 D N R A N N UA L R E P O R T 9

TIMBER DATA

State Grant Lands | FY 2019 REVENUE

DISTRIBUTION

Grand Total All Funds

Trust Current Funds 13

Trust Permanent Funds 13

Resource Management Cost Account 15

$90,780,960

$49,909,834

$14,119,084

$26,752,042

74,469 0 125,000

46,322 0 0

4,914 0 0

23,233 0 125,000

$90,980,429

$49,956,156

$14,123,998

$26,900,275

Leases Agriculture Dryland

$5,472,158

$3,428,572

$377,978

$1,665,609

Irrigated

17,823,671

11,566,652

817,335

5,439,685

1,063,238 35,502,697 2,035,606 10,196,928 1,873,392 1,247,151 3,050,485

699,808 19,549,129 1,317,088 6,960,792 1,070,723 589,751 1,833,750

39,514 0 89,079 76,748 111,835 127,351 202,161

323,915 15,953,567 629,439 3,159,388 690,834 530,049 1,014,574

211,187 $78,476,513

116,649 $47,132,914

29,506 $1,871,507

65,031 $29,472,092

$1,028,486 977,288

$267,623 601,753

$30,237 0

$730,626 375,534

113,590 640,714 $2,760,078

2,718,091 2,110 $3,589,577

(2,718,091) 478,296 $(2,209,558)

160,308 $1,380,059

$172,217,019

$100,678,647

$13,785,947

$57,752,425

Source Sales Timber Sales 11, 15, 19 Timber Sales-Related Activities 1 Trust Land Transfer Program Land Sales (Includes Land Bank) 4

Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 12 Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

113,590

â&#x2013; About This Page State grant lands (upland and aquatic) were granted to Washington at statehood by the federal government. Each upland parcel is assigned to a specific state trust dedicated to financially supporting a specific beneficiary (e.g., the Common School Trust supports construction of K-12 schools). The aquatic lands are designated as a public trust to benefit the public as a whole. Income from state grant lands is divided among trust beneficiary accounts and the RMCA, which DNR uses to manage the lands.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 10

TIMBER DATA

Resource Management Cost Account (RMCA) Upland | FY 2019 Source Beginning Trust Balance (July 1, 2018) Upland Revenue

Granted Trusts

Land Bank

Total Uplands

$12,538,690

$7,913,342

$20,452,032

Operating Revenue Total Upland Revenue

40,418,061 40,418,061

245,842 245,842

40,663,903 40,663,903

Less: Expenditures 2 Agricultural Resources

1,648,597

Asset & Property Management

1,322,807

12,180,810 8,886,986

0 0

12,180,810 8,886,986

Law Enforcement Correctional Camps Administration Interagency Payments Agency Support

851,115 473,996 1,123,056 3,030,470 4,781,433

0 0 0 0 0

851,115 473,996 1,123,056 3,030,470 4,781,433

Engineering Services

1,979,033

36,278,303 0

0 1,946,000

36,278,302 1,946,000

36,278,303

1,946,000

38,224,302

$16,678,448

$6,213,184

$22,891,632

Product Sales & Leasing Land Management

Total Operating Expenditures Total Capital Expenditures Total Expenditures Ending Trust Balance (June 30, 2019)

Totals may not add due to rounding.

About Next Page Generally, by law, each beneficiary of the granted land trusts receives 70 percent of the revenue earned from its lands, and the remaining 30 percent goes to the RMCA to fund DNR’s management of the lands. This chart shows the combined distribution in Fiscal Year 2019, with each trust beneficiary’s share proportional to its share of the total revenue earned, and with the RMCA share divided among DNR’s expenditures from the account for upland management activities. Expenditures are appropriated by the legislature and are ongoing investments to keep the lands productive and to generate future income for the trusts. * This chart is based on statewide averages. Detailed breakdown of DNR programs contain examples only, not a complete listing. This chart does not include revenue from the Agricultural School trust lands because 100 percent of revenue from those lands is distributed to the trust. ** Per Board of Natural Resources Resolution #1472, the management fund deduction of revenues from granted lands was established at 31 percent, effective 8/18/15.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 11

TIMBER DATA

General Distribution of Revenue from Upland State Grant Lands* | FY 2019 Learn more about general distribution of revenue from Upland State Grant Lands on page 10.

7.2% Land Management ❙ Reforestation, Pre-commercial Thinning, Fertilization, and Vegetation Mgmt. ❙ Genetic Improvement of Seedlings ❙ Forest Nursery ❙ Scientific Support ❙ Data Stewardship ❙ Landscape Planning

N SCHOOLS 5 0.4 % O C EFICIAR BEN IES T S 6 U DISTRIBUTED TO TRUST BENEFICIARIES 69%

D 3 1%

O MM

RESOURCE MANAGEMENT COST ACCOUNT (RMCA) UPLAND 31%**

2.1% Institutions and Prisons

1.6% Engineering Services ❙ Resource Mapping

4.9% WA State University (Scientific Trust only)

7.6% Capitol Buildings

0.9% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services ❙ Legal Affairs 1.6% Capital Investments ❙ Land Bank

*** Expenditures from Land Bank.

9.9% Product Sales & Leasing ❙ Presales Activities ❙ Oil, Gas, and Commercial Site Leasing ❙ Rock and Gravel Sales Assessments ❙ Right-of-Way Granting and Acquisition ❙ Contract Administration ❙ Leasing 0.4% Special Employment ❙ Correction Camps Program

1.6% Univ. of Washington

2.4% Normal Schools (WWU, EWU, CWU, and TESC)

1.1% Asset & Property Management ❙ Asset Planning ❙ Land Transactions ❙ Public Use ❙ Recreation ❙ Natural Areas ❙ Natural Heritage

3.9% Agency Support ❙ Finance ❙ Personnel and Equipment ❙ Data Systems Management and Support ❙ Geographic Information Systems ❙ Region Administration ❙ Facilities ❙ Environmental Analysis

1.3% Agricultural Resources ❙ Agricultural and Grazing Leases ❙ Weed Management ❙ Permits 2.5% Interagency Payments 0.7% Law Enforcement ❙ Investigative Services

FISCAL DATA

2019 D N R A N N UA L R E P O R T 12

TIMBER DATA

Common School, Indemnity and Escheat Grants | FY 2019 REVENUE

DISTRIBUTION

Total Funds

Common School Construction

Common School Permanent

Resource Management Cost Account 15

Timber Sales 11, 15

$56,436,846

$38,964,974

$17,471,872

Timber Sales-Related Activities 1 Trust Land Transfer Program Land Sales (Includes Land Bank) 4

54,370 0 125,000 $56,616,216

37,263 0 0 $39,002,237

(0) 0 0 $(0)

17,107 0 125,000 $17,613,979

$4,407,980 16,710,930

$3,041,506 11,530,541

$0 0

$1,366,474 5,180,388

987,666

681,489

306,176

0 1,842,286

0 1,271,171

0 0

0 571,115

10,077,303 163,808 225,326

6,953,339 3,129 40,722

0 109,899 114,752

3,123,964 50,781 69,851

2,286,920 119,981 $36,822,199

1,561,428 82,787 $25,166,112

0 0 $224,651

725,493 37,194 $11,431,435

$279,500 193,454 49,955 587,958 $1,110,867

$131,337 0 0 0 $131,337

$151 0 0 478,296 $478,447

$148,012 193,454 49,955 109,662 $501,083

$94,549,281

$64,299,686

$703,098

$29,546,498

Source Sales

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral And Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 15 Permits, Fees, and Miscellaneous 1

Totals

Totals may not add due to rounding.

â&#x2013; About This Page Income from these state grant lands and escheat lands (those with no known heirs) supports construction of state public kindergarten through 12th grade schools. The beneficiaryâ&#x20AC;&#x2122;s share of income is distributed to the Common School Construction Account and the Common School Permanent Account, which generates perpetual interest for the support of school construction. This distribution varies by activity and is governed by law.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 13

TIMBER DATA

University Grants Original and Transferred (UW) | FY 2019 REVENUE

Source 19 Sales Timber Sales 11 Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 12, 17, 19 Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

DISTRIBUTION

Total Funds

UW Retirement Bond

State (UW) University Permanent

Resource Management Cost Account 15

$2,520,250 162

$0 0

$1,750,370 0

$769,880 162

0 $2,520,412

0 $0

0 $1,750,370

0 $770,043

$211,847 0 26,030

$0 0 0

$145,438 0 17,961

$66,409 0 8,069

13,397 103,472 0 1,325

0 0 0 0

9,244 71,396 0 914

4,153 32,076 0 411

0 18,522 $374,593

0 0 $0

0 12,780 $257,733

0 5,742 $116,860

$27,005 5,763 (16,332) 201 $16,637

$2,170 0 1,342,927 0 $1,345,097

$107 0 (1,342,927) 0 $(1,342,820)

$24,728 5,763 (16,332) 201 $14,360

$2,911,642

$1,345,097

$665,283

$901,262

â&#x2013; About This Page Income from these state grant lands supports construction of buildings for the University of Washington. Some of these lands were acquired at the time of statehood, and some lands were transferred to this trust from the CEP&RI trust by the legislature in 1893. The beneficiaryâ&#x20AC;&#x2122;s share of income is distributed to the University Permanent and UW Bond Retirement accounts. This distribution varies by activity and is governed by law.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 14

TIMBER DATA

Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) | FY 2019 REVENUE

Source Sales Timber Sales Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

DISTRIBUTION

Total Funds

CEP & RI Account

Resource Management Cost Account 15

$1,905,257

$1,314,628

$590,630

3 0 $1,905,261

0 0 $1,314,628

3 0 $590,633

Leases Agriculture Dryland

$460,537

$317,770

$142,766

Irrigated Grazing and Other Aquatic Lands

3,783 12,684 0

2,610 8,752 0

1,173 3,932 0

Special Use Commercial Real Estate

6,556 11,150

4,523 7,694

2,032 3,456

1,119,115 73,140 302,727

772,189 50,466 207,716

346,926 22,673 95,011

33,346 $2,023,037

23,009 $1,394,730

10,337 $628,308

$44,960 8,101 0 3,257 $56,318

$9,120 0 0 0 $9,120

$35,839 8,101 0 3,257 $47,197

$3,984,615

$2,718,477

$1,266,138

Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

â&#x2013; About This Page Income from these state grant lands is used to establish and maintain institutions managed by the Department of Corrections (such as prisons) and the Department of Social and Health Services (such as the Western State Hospital). The beneficiaryâ&#x20AC;&#x2122;s share of income is distributed to the CEP&RI Account.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 15

TIMBER DATA

Capitol Building Grant | FY 2019 REVENUE

DISTRIBUTION

Source

Total Funds

Capitol Building Construction

Sales Timber Sales 11, 15

$13,943,878

$9,630,233

$4,313,645

12,895 0 $13,956,773

9,059 0 $9,639,292

3,836 0 $4,317,481

$46,130 0 5,335

$31,830 0 3,681

$14,300 0 1,654

22,664

15,638

7,026

(349) 5,811 78,648 93,633 13,824 $265,696

(241) 4,009 54,267 64,607 9,539 $183,331

(108) 1,801 24,381 29,026 4,286 $82,366

$136,719

$19,725

$116,994

29,275 19,046 834 $185,875

0 0 0 $19,725

29,275 19,046 834 $166,150

$14,408,345

$9,842,348

$4,565,997

Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue Operating Transfer 1, 15 Permits, Fees, and Miscellaneous 1 16

Total Revenue

Totals may not add due to rounding.

Resource Management Cost Account 15

â&#x2013; About This Page Income from these state grant lands supports construction of state government office buildings at the Capitol Campus in Olympia. The beneficiaryâ&#x20AC;&#x2122;s share of income is distributed to the Capitol Building Construction Account.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 16

TIMBER DATA

Normal School Grant (EWU, CWU, WWU and TESC) | FY 2019 REVENUE

Source Sales Timber Sales 11, 15

DISTRIBUTION

Total Funds

EWU, CWU, WWU, TESC Capital Projects

Normal School Permanent

Resource Management Cost Account 15

$4,235,959

$2,951,752

$1,284,207

Timber Sales-Related Activities 1

(21)

Land Sales (Includes Land Bank)

0 $4,235,979

0 $0

0 $2,951,794

0 $1,284,185

$54,297 48,551 8,529 0

$37,465 33,500 5,885 0

$0 0 0 0

$16,832 15,051 2,644 0

37,326

25,755

11,571

0 0

(7,640) 0 1,906 $142,969

0 0 1,315 $103,921

(5,272) 0 0 $(5,272)

(2,368) 0 591 $44,320

$40,253 9,207

$4,544 0

$0 0

$35,709 9,207

60,920 1,660 $112,040

0 0 $4,544

0 0 $0

60,920 1,660 $107,496

$4,490,988

$108,465

$2,946,522

$1,436,001

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way 17 Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 15 Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

■ About This Page Income from these state grant lands supports construction at Eastern Washington University, Central Washington University, and Western Washington University (regional universities). These three universities were originally called ‘normal schools.’ The Evergreen State College (TESC) was added to this trust by the legislature to begin receiving revenue after July 1, 1995. The beneficiary’s share of income is distributed to the Normal School Permanent Account and capital project accounts for each university. This distribution varies by activity and is governed by law.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 17

TIMBER DATA

Scientific School Grant (WSU) | FY 2019 REVENUE

Source Sales Timber Sales Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue Operating Transfer 12 Permits, Fees, and Miscellaneous 1 16

Total Revenue

Totals may not add due to rounding.

DISTRIBUTION

Total Funds

WSU Bond Retirement

Scientific Permanent

Resource Management Cost Account 15

$7,489,702

$5,167,894

$2,321,808

6,820 0 $7,496,522

0 0 $0

4,674 0 $5,172,568

2,146 0 $2,323,954

$189,765 784,106 4,644

$0 0 0

$130,938 541,033 3,205

$58,827 243,073 1,440

108,199

74,657

33,542

0 0 15,589 532,399 22,199 $1,656,901

0 0 0 0 0 $0

0 0 10,756 367,356 15,317 $1,143,262

0 0 4,832 165,044 6,882 $513,639

$125,238

$9,399

$26,973

$88,867

18,876 0 2,670 $146,785

0 934,484 0 $943,883

0 (934,484) 0 $(907,511)

18,876 0 2,670 $110,413

$9,300,208

$943,883

$5,408,319

$2,948,007

â&#x2013; About This Page Income from these state grant lands supports construction of buildings at Washington State University. The beneficiaryâ&#x20AC;&#x2122;s share of income is distributed to the Scientific School Permanent and the WSU Bond Retirement accounts. This distribution varies by activity and is governed by law.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 18

TIMBER DATA

Agricultural College Trust Management Account (ACTMA) | FY 2019 EXPENDITURES

REVENUE

Source Beginning Fund Balance (July 1, 2018)

$449,813

Revenue Operating Revenue * Interfund Transfer from General Fund 5

3,684 1,352,000

Total Revenue

1,355,684

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps Administration Interagency Payments Agency Support Engineering Services Total Operating Expenditures Total Capital Expenditures Total Expenditures and Other Charges

ACTMA Fund Balance (June 30, 2019)

*Includes treasurer’s interest. See accompanying notes. Totals may not add due to rounding.

45,254 30,194 587,724 294,680

■ About This Page This account funds DNR’s management of the Agricultural College trust lands. The ACTMA is funded through an appropriation from the state General Fund. (As of July 1, 1999, Agricultural College trust lands do not contribute to the RMCA, which supports DNR’s management of other state grant lands.) *Includes treasurer’s interest. See accompanying notes on pages 6-10.

23,001 15,222 49,770 90,434 207,090 81,402 1,424,772 0 1,424,772

$380,725

FISCAL DATA

2019 D N R A N N UA L R E P O R T 19

TIMBER DATA

Agricultural School Grant (WSU) | FY 2019 REVENUE

Source Sales Timber Sales

DISTRIBUTION

Total Funds

WSU Bond Retirement

Agricultural College Permanent

$4,249,067

Timber Sales-Related Activities 1

199

Asset Transfer/Loan Repayment Land Sales (Includes Land Bank)

0 0 $4,249,266

0 0 $0

0 0 $4,249,266

$101,602 276,301 18,349

$0 0 0

$101,602 276,301 18,349

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites 17 Special Forest Products

Other Revenue Interest Income Non-Trust Revenue Operating Transfer 12 Permits, Fees, and Miscellaneous

Total Revenue

Totals may not add due to rounding.

5,178 5,352

0 0

5,178 5,352

1,936 6,200 (165,195) 1,409 $251,133

0 0 0 0 $0

1,936 6,200 (165,195) 1,409 $251,133

$7,848

$4,842

$3,006

0 0 0

0 440,680 0

0 (440,680) 0

$7,848

$445,522

$(437,674)

$4,508,248

$445,522

$4,062,726

â&#x2013; About This Page Income from these state grant lands supports construction of Washington State Universityâ&#x20AC;&#x2122;s buildings. All revenue from these lands is income for the trust and is divided between the Agricultural College Permanent Account and the WSU Bond Retirement Account. This distribution varies by activity and is governed by law.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 2 0

TIMBER DATA

Forest Development Account (FDA) | FY 2019 EXPENDITURES

REVENUE

Source Fund Balance (July 1, 2018)

$3,965,416

Revenue Operating Revenue

26,683,825

Total Revenue

26,683,825

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps

4,216 336,396 7,873,338 7,617,912 259,604 492,773

Administration Interagency Payments

788,199 1,538,607

Agency Support Engineering Services Total Operating Expenditures Capital Expenditures Total Expenditures and Other Charges

FDA Fund Balance (June 30, 2019)

See accompanying notes. Totals may not add due to rounding.

About Next Page By law, revenue from State Forest Lands (formerly known as Forest Board Lands) goes to the county in which the land is located, the state general fund for the support of Common Schools, and to the FDA to fund DNR’s management of the lands. Distribution differs for Transfer lands and Purchase lands—see the small pie charts. The large pie chart shows the combined total distribution for Fiscal Year 2019, with the FDA share divided among DNR’s expenditures from the account. Expenditures are appropriated by the legislature and are ongoing investments to keep the lands productive and to generate future revenue.

3,288,896 1,252,775 23,452,716 0 23,452,716

* This chart is based on statewide averages. Detailed breakdown of DNR programs contains examples only, not a complete listing.

$7,196,525

** Per Board of Natural Resources Resolution No.1408, the management fund deduction for FDA was increased to 25% effective 7/2/13. Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 26-30. Purchase lands, see definition on page 22. Transfer lands, see definition on page 23.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 21

TIMBER DATA

General Distribution of Revenue from State Forest Lands* | FY 2019 PURCHASE LANDS 80,217 acres FU

0.3% Law Enforcement ❙ Investigative Services

A 50 %

State General Fund 23.5%

1.4% Engineering Services ❙ Resource Mapping

Counties 26.5%

NTIES 7 1 OU

COUNTIES

FOREST DEVELOPMENT ACCOUNT (FDA)

A portion goes to the State General Fund Counties also redistribute revenue to junior taxing districts, bond retirement, road funds, and other obligations. These vary by county. Learn more about general distribution of revenue from State Forest Lands on page 22.

UNTIES

DIRECT CONTRIBUTION STATE GENERAL FUND 1.8%

TRANSFER LANDS ** 537,797 acres

8.6% Land Management ❙ Reforestation, Pre-commercial Thinning, Fertilization, and Vegetation Mgmt. ❙ Genetic Improvement of Seedlings ❙ Forest Nursery ❙ Scientific Support ❙ Data Stewardship ❙ Landscape Planning

0.9% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services ❙ Legal Affairs 1.7% Interagency Payments

3.7% Agency Support 0.6% ❙ Finance Special ❙ Personnel and Employment Equipment ❙ Correctional ❙ Data Systems Camp ❙ Management Program and Support ❙ Geographic Information 0.4% 8.8% Systems Asset and Product Sales ❙ Facilities Property & Leasing ❙ Region Management ❙ Presales Activities Administration ❙ Asset Planning ❙ Oil, Gas, and ❙ Environmental ❙ Land Commercial Analysis Transactions Site Leasing ❙ Public Use ❙ Rock and Gravel ❙ Recreation Sales Assessments ❙ Natural Areas ❙ Right-of-Way ❙ Natural Heritage Granting and Acquisition ❙ Leasing ❙ Contract Administration

FISCAL DATA

2019 D N R A N N UA L R E P O R T 2 2

TIMBER DATA

State Forest Lands | FY 2019 REVENUE

CONTRIBUTING LANDS

Source

Total Funds

Transfer Lands

Purchase Lands

Sales Timber Sales Timber Sales-Related Activities 1

$93,985,388 148,602

$88,227,848 148,083

$5,757,540 520

$94,133,991

$88,375,931

$5,758,060

$303,306 122,015 (253,213)

$255,212 83,911 (253,213)

$48,094 38,105 0

Leases Agriculture/Minor Forest Products Commercial/Special Use Mineral and Hydrocarbon 16, 17 Rights-Of-Way Communication Sites

Other Revenue Interest Income 1 Permits, Fees, and Miscellaneous 1 Treasurer’s Revenue FDA Non-Trust Revenue 16 18

Totals

N/A—not applicable. Totals may not add due to rounding.

237,659

220,918

16,741

1,841,987 $2,251,754

1,472,460 $1,779,287

369,528 $472,467

$138,118

$133,773

$4,344

4,199,841

4,199,773

88,991 423,181 $4,850,130

N/A N/A $4,333,546

N/A N/A $4,413

$101,235,875

$94,488,764

$6,234,939

■ About This Page and Next Page Income from these lands is distributed to the counties in which the lands are located, the state general fund for the support of common schools, and the Forest Development Account (FDA) for DNR’s Land Management expenses on these lands. There are two categories of State Forest Lands (formerly known as Forest Board Lands): Purchase lands and Transfer lands. Purchase lands were given to the state or purchased by the state at low cost. The FDA receives half the income from these lands. The other half is divided between the respective county and the state general fund for the support of common schools. N/A: Not applicable.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 2 3

TIMBER DATA

State Forest Lands | FY 2019 REVENUE

Recipient County Clallam Clark 16 Cowlitz Grays Harbor Jefferson King Kitsap Klickitat Lewis Mason Okanogan Pacific Pierce Skagit Skamania Snohomish Stevens Thurston Wahkiakum Whatcom Treasurer's Revenue 18

Total Funds

CONTINUED CONTRIBUTING LANDS

Transfer Lands

Purchase Lands

$5,440,008

941,637

937,400

4,236

6,237 1,420,157

111 502,204

6,125 917,953

3,750,734 2,212,194

3,750,186 2,212,194

549 0

624,733 (218)

615,673 (218)

9,061 0

11,388,236 5,261,409 1

11,329,309 5,260,736 1

58,928 673 0

4,233,954

4,211,234

22,720

1,211,751 15,360,883 5,010,495 7,138,780 105,278

768,127 15,360,883 4,968,060 7,138,780 105,278

443,624 0 42,435 0 0

3,986,921 3,074,095 1,469,292

3,559,724 3,074,095 1,454,253

427,198 0 15,038

88,991 $72,725,570

N/A $70,688,039

N/A $1,948,541

$25,174,156 1,086,489 0 423,181 $26,683,825 $1,826,482

$22,716,497 1,084,231 N/A N/A $23,800,728 $0

$2,457,659 2,258 N/A N/A $2,459,917 $1,826,482

$101,235,877

$94,488,766

$6,234,939

Forest Development Account Trust Activity Permits, Fees, & Miscellaneous 1 Treasurer's Revenue FDA Non-Trust Revenue 16 General Fund - State Total Revenue

N/Aâ&#x20AC;&#x201D;not applicable. Totals may not add due to rounding.

Transfer lands were forfeited to the counties in which they were located when the private landowners failed to pay property taxes, primarily in the 1920s and 1930s. The counties turned the lands over to the state. DNR now manages these lands and distributes at least 75 percent of the income to the counties and up to 25 percent of the income to the Forest Development Account (FDA). N/A: not applicable.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 2 4

TIMBER DATA

Aquatic Resources | FY 2019 REVENUE

DISTRIBUTION

Source

Total Funds

Aquatic Lands Enhancement

Aquatic Resources Activities Leases

Resource Management Cost Account 15

$35,502,697

$19,549,129

$15,953,567

Mineral and Hydrocarbon

582,722

291,396

291,326

Rights-Of-Way Interest Income 1

854,565 366,962

444,295 86,486

410,269 280,477

712,611 44,135

601,753 2,110

110,858 42,025

$38,063,692

$20,975,169

$17,088,523

Non-Trust Revenue 16 Miscellaneous 1 Total Revenue Totals may not add due to rounding.

RMCA | AQUATIC EXPENDITURES

REVENUE

Source Trust Balance (July 1, 2018)

$11,346,516

RMCA Aquatic Revenue Less Expenditures 2 Aquatic Resources Administration Interagency Payments Agency Support Total Operating Expenditures Total Capital Expenditures Total Expenditures Trust Balance (June 30, 2019)

See accompanying notes. Totals may not add due to rounding.

17,088,522

About Next Page By law, revenue from state-owned aquatic lands goes to the Aquatic Lands Enhancement Account (ALEA) for aquatic resource enhancement and to the RMCA to fund DNR’s management of state aquatic lands. Distribution differs for different types of aquatic land — see the small pie charts. The large pie chart shows the combined total distribution, with the ALEA share divided among state agency expenditures from that account, and the RMCA share divided among DNR’s expenditures from the RMCA. Expenditures are appropriated by the legislature and are ongoing investments to keep the submerged lands productive. * This chart is based on statewide averages. Detailed breakdown of DNR programs contains examples only, not a complete listing. ** The ALEA portion of revenue from harbor areas in fourth-class towns is redistributed to those towns twice each year. See fiscal note #7, page 26.

8,989,678 481,310 1,769,802

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 26-30.

1,736,001 12,976,791 0 12,976,791 $15,458,247

FISCAL DATA

2019 D N R A N N UA L R E P O R T 2 5

TIMBER DATA

General Distribution of Revenue from State-Owned Aquatic Lands* | FY 2019

1.0% Department of Health 3.3% Recreation and Conservation Funding Board 2.5% University of Washington

5 ALEA

ALEA

C %

3.5% Department of Agriculture

AQUATIC LANDS ENHANCEMENT ACCOUNT (ALEA) 55.1% RESOURCE MANAGEMENT COST ACCOUNT (RMCA) AQUATIC 44.9%

0.5% State Parks and Recreation Commission

CA . 9%

2.3% Puget Sound Partnership

Learn more about general distribution of revenue from state-owned aquatic lands on page 24.

31.1% Aquatic Resources ❙ Nearshore Habitat ❙ Geoducks ❙ Port Management ❙ Contaminated Sediments ❙ Operations, Administration, and Policy Development

27.3% Department of Natural Resources

1% 5.

5 0%

5 14.7% Department of Fish and Wildlife

HARBOR AREAS ** Effective 2/6/06

5 0%

ALEA

SECOND CLASS TIDELANDS & SHORELANDS

ALEA

FIRST CLASS TIDELANDS & SHORELANDS

BEDS OF NAVIGABLE WATERS

1.7% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services 6.1% Interagency Payments 6.0% Agency Support ❙ Finance ❙ Personnel and Equipment ❙ Data Systems ❙ Management and Support ❙ Geographic Information Systems ❙ Facilities ❙ Region Administration

2019 D N R A N N UA L R E P O R T 2 6

Fiscal Notes These numbered notes provide context and explanations for data in the tables on the fiscal pages that follow, where they are referred to by numerical superscript. A note may apply to more than one page. Although similar to notes in prior reports, these notes apply only to this report (FY 2019). AC R O N Y M S ACTMA Agricultural College Trust Management Account AFRS Agency Financial Reporting System ALEA Aquatic Lands Enhancement Account CEP&RI Charitable, Educational, Penal, and Reformatory Institutions Trust COLA Cost of Living Adjustment CWU Central Washington University EWU Eastern Washington University FDA Forest Development Account FY19 Fiscal Year 2019 (July 1, 2018 – June 30, 2019) K-12 Kindergarten to 12th grade schools RMCA Resource Management Cost Account TESC The Evergreen State College UW University of Washington WSU Washington State University WWU Western Washington University

1 | REVENUE SOURCES

For reporting purposes, DNR follows the modified accrual basis of accounting per Generally Accepted Accounting Principles (GAAP). Under this measurement focus, revenues are recognized and recorded when they become both measurable and available, i.e., when invoiced. Timber sales include removals from Contract Harvesting Revolving Account and Forest Health Revolving Account sales. For Contract Harvesting Account sales, allocation to the trusts happens at the time of distribution, generally at the end of the sale. Timber sale-related activities include contract extensions, slash disposal, trespasses, and default settlement payments. Miscellaneous sales include publications, GIS data, honor camp activities, surveys, and maps. Miscellaneous leases include special use and special forest products. Interest income includes interest on contracts, interest assessed for late payments, and interest earned from account (treasurer’s interest). Permits, fees and related charges include surface mining permits, log patrol licenses, aquatic lands dredged material disposal site fees, forest practices damage assessments and permits, survey records recording fees, application/assignment fees, burning permit fees, and local government assessments. Operating transfers include transfers attributed to prior period revenue. Miscellaneous other revenue includes prior period adjustments, recoveries of prior biennium expenditures, miscellaneous treasurer transfers, as well as revenue from the ORV & Nonhighway Vehicle and Natural Resources Conservation Areas Stewardship accounts. 2 | EXPENDITURE CATEGORIES

Administration includes Executive Management & Operations, Internal Audit, Communications & Outreach, Policy & Governmental Operations, Budget & Economics, Legal Compliance and Environmental Review. Interagency payments are payments made to other state agencies (the Attorney General, State Auditor, Financial Management, Enterprise Services, Secretary of State, etc.) and various telecommunication vendors for services they provide to the department.

Agency support includes the following programs: Human Resources (personnel, safety and training), Financial Management (accounting, payroll, risk management and purchasing), Information Management (IT), Geographic Information Systems, Facilities, Region Administration and Environmental Analysis. Miscellaneous capital projects for Fiscal Year 2019 include the Firewise Grants and Fire Communications Base Stations and Mountain Top Repeaters, and the Public School Seismic Safety Assessment. Total Expenditures of $364,079,606 for Fiscal Year 2019 excludes the interfund transfer from General Fund to the Agricultural College Trust Management Account in the amount of $1,352,000 (see footnote #5). 3 | LAND TRANSFERS

Real Property Replacement: During Fiscal Year 2019 a total of $449,800, an amount equivalent to the property value, was received from (1) transfers to other government entities, (2) resolution of trespass violations, or (3) transfers in lieu of condemnation. This money is used to acquire replacement trust lands. Encumbered State Forest Land: During Fiscal Year 2019, the Encumbered State Forest Land, a program enabled by Second Substitute House Bill 1484 (2009 session), resulted in distributions from timber value in the amount of $1,049,550 to the Forest Development Account and $3,148,650 to Skamania County.

5 | AGRICULTURAL COLLEGE TRUST MANAGEMENT ACCOUNT

Per RCW 79.64.090 the revenue on Agricultural College trust lands is distributed 100 percent to the agricultural college permanent fund or WSU bond retirement account. The management of the agricultural college trust lands is funded from the Agricultural College Trust Management Account. This account is dependent on legislative appropriation for funding. Currently, the legislature appropriates the money for this purpose from General Fund under a proviso. For Fiscal Year 2019 the total interfund transfer from General Fund was $1,352,000. 6 | ORV & NONHIGHWAY VEHICLE ACCOUNT

This account provides for acquisition, planning, development, maintenance, and management of ORV recreation facilities, non-highway roads and non-highway road recreation facilities; education and law enforcement programs related to non-highway vehicles; and construction and maintenance of campgrounds and trailheads. DNR, the Department of Fish and Wildlife and the Parks and Recreation Commission spend from the account in support of these functions. The Department of Licensing collects revenue for the account from taxes, licenses, permits and fees. DNR administers the account according to Legislative appropriations. See Figure 1 for the account’s total fiscal activity for Fiscal Year 2019.

4 | LAND BANK

DNR uses the Land Bank program (RCW 79.19) to reposition trust land assets for better future income production. Through the Land Bank, state trust lands are auctioned to private buyers. Land bank transactions are accounted for by trust within each of DNR’s management funds. Revenue from Fiscal Year 2019 sales, existing contracts and interest was $245,842 to the RMCA. A total of $6,213,183 in the RMCA’s fund balance is reserved to acquire property to replace trust property previously sold through the the Land Bank program. The beginning balances for Granted Trusts and Land Bank in the RMCA Upland table were corrected for Fiscal Year 2019. Upon review and reconciliation of the Land Bank balance, the following are the corrected numbers for the prior fiscal years. See Figure 7.

7 | AQUATIC LANDS ENHANCEMENT ACCOUNT

This account provides for the purchase, improvement and protection of aquatic lands for public purposes. DNR, the Department of Fish and Wildlife, the Department of Agriculture, the Parks and Recreation Commission, the Recreation and Conservation Funding Board, the Department of Health and the Puget Sound Partnership spend from the account for these purposes. DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 2 for the account’s total fiscal activity for Fiscal Year 2019.

2019 D N R A N N UA L R E P O R T 27

Figure 1

Figure 4

ORV & Nonhighway Vehicle Account

Forest and Fish Support Account

Beginning Balance

$1,439,198

Revenue Licensing Fish and Wildlife

4,324,421

Dept of Revenue

Natural Resources

(5,824,560)

(411,456) (215,957)

Net Fiscal Activity

(4,005,664) 318,757

Ending Balance

(1,861,511)

Ending Balance

(3,378,251)

Fish and Wildlife

$1,757,954

$3,809,929

Figure 5 Park Land Trust Revolving Account Beginning Balance

$2,662,146

Revenue

Figure 2

Parks and Recreation* (Discover Pass)

Aquatic Lands Enhancement Account

2,059,681

Natural Resources

Beginning Balance

$13,168,118

Revenue

267,429

Treasurer's Deposit Income

37,061

2,364,170

(2,365,673)

Expenditures 20,952,686

Natural Resources Net Fiscal Activity

22,483

Agriculture

Parks and Recreation

Fish and Wildlife

Treasurer's Transfer*

3,963,050

Net Fiscal Activity

Parks and Recreation

Distribution to Fourth-Class Towns

59,079

Expenditures 4,324,421

Expenditures

Treasurer's Deposit Income

3,903,971

Natural Resources

Natural Resources*

$5,671,439

Revenue

Parks and Recreation

Natural Resources

Beginning Balance

$2,660,643

*Includes operating transfer.

Figure 6

(57,179) (820,000)

(1,503)

Ending Balance

20,097,990

FDA/RMCA Loan Repayment

Expenditures Natural Resources

Common School Construction Account

(10,932,667)

Capitol Building Construction Account

FY 2019

Total-To-Date

$295,255

$27,137,524

112,551

10,344,826

Fish and Wildlife

(5,937,712)

Agriculture

(1,424,647)

Normal School Permanent Account

360,287

33,214,741

Recreation & Cons. Funding Board

(1,318,340)

State University Permanent Account

142,468

16,355,771

Total Trust Funds

$910,561

$87,052,863

$98,521

$9,045,097

University of Washington

(1,006,641)

Puget Sound Partnership

(931,607)

Resource Management Cost Account

Health

(399,622)

Common School Trust

Parks and Recreation

(201,913)

Net Fiscal Activity Ending Balance

(22,153,150)

Capitol Building Trust

37,585

3,451,132

(2,055,159)

Normal School Trust

119,925

11,009,946

$11,112,958

*Includes operating transfers. Treasurerâ&#x20AC;&#x2122;s transfers include $620,000 loan repayment to the Clean-Up Settlement account (15H) and $200,000 for the Geoduck Aquaculture Research .

Figure 3

Beginning Balance

$1,275,469

Revenue Licensing

733,046

Dept of Revenue

145,064

Treasurer's Deposit Income

Licensing Net Fiscal Activity Ending Balance

5,451,925 $28,958,100

Figure 7

67,807 43

945,960

(1,082,426) (13,096)

*Corrected 12/13/19

FY17* Beginning Balance Revenue (incl. interests) Expenditures

Expenditures Natural Resources

47,490 $303,521

RMCA Upland/Land Bank Ending Balances

Derelict Vessel Removal Account

Natural Resources

University School Trust Total RMCA

(1,095,522) (149,562) $1,125,907

Ending Balance FY18* Beginning Balance Revenue (incl. interests)

Granted Land Trusts $14,322,051 33,913,172 (38,959,308) 9,275,915

Land Total Bank Uplands $2,090,465 $16,412,516 7,792,290 41,705,462 (2,572,316) (41,531,624) 7,310,439

16,586,354

9,275,915

7,310,439

16,586,354

41,916,010

1,593,903

43,509,913

Expenditures

(38,653,237)

(991,000) (39,644,237)

Ending Balance

$12,538,690

$7,913,342 $20,452,032

2019 D N R A N N UA L R E P O R T 2 8

8 | DERELICT VESSEL REMOVAL ACCOUNT

This account provides for costs and reimbursements to authorized public entities for the removal of derelict and abandoned vessels. DNR spends from the account for these purposes and the Department of Licensing spends from the account for the purpose of administering the collection of revenue for the fund. DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 3 for the account’s total fiscal activity for Fiscal Year 2019. 9 | FOREST AND FISH SUPPORT ACCOUNT

This account was created in 2007 to provide for activities pursuant to the state’s implementation of the forests and fish report as defined in chapter 76.09 RCW and related activities, including, but not limited to, adaptive management, monitoring, and participation grants to tribes, state and local agencies, and not-for-profit public interest organizations. DNR spends from the account for these purposes and the Department of Revenue spends from the account for the purpose of administering the collection of revenue for the fund. Sources of revenue for this account include surcharges on timber and wood product manufacturers, extractors and wholesalers per RCW 82.04.260 (12). DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 4 for the account’s total fiscal activity for Fiscal Year 2019. 10 | PARK LAND TRUST REVOLVING ACCOUNT

This account is used for acquiring real property as a replacement for the property transferred to the State Parks and Recreation Commission in order to maintain the land base of the affected trusts, and to receive voluntary contributions for the purpose of operating and maintaining public use and recreation facilities. This account may also be used to hold funding for future acquisition of lands for the community forest trust program, or

to purchase replacement forest land. In May 2011, the Governor signed the Discover Pass into law (see also RCW Title 79A) intended to provide revenue to maintain recreation access to state lands and meet the increasing demand for outdoor recreation. Effective July 1, 2011 the Discover Pass was required for vehicle access to recreation lands which include state parks, boat launches, campgrounds, heritage sites, wildlife and natural areas, trails and trailheads. DNR’s portion (8%) of this revenue is transferred to this account by the State Parks and Recreation Commission. DNR’s recreation program spends from this portion of the account. DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 5 for the account’s total fiscal activity for Fiscal Year 2019. 11 | FDA /RMCA LOAN REPAYMENT

The Board of Natural Resources resolution #635 in 1990 and #756 in 1992 authorized settlement of the FDA debt to the RMCA by transferring timber-cutting rights on State Forest Purchase lands to the Common School, Capitol Building, Normal School and University granted trusts. A onethird interest in assets (timber cutting rights) of the FDA on 35,625 acres was transferred to these trusts. The value of these transfers eliminated the debt between FDA and RMCA. A total of $1,214,082 was distributed to the trusts from timber harvested during Fiscal Year 2019. The RMCA received $303,521 from this activity. Since this is repayment of a loan, the transactions are recorded as an operating transfer rather than current period revenue. The values from the harvest activity by fund as well as RMCA trust for Fiscal Year 2019 and in total since the adoption of resolution 635 in 1990 are in Figure 6. 12 | OPERATING TRANSFERS

According to the Office of Financial Management’s interpretation of generally accepted accounting principles, debt service funds (funds used to pay off debts), such as the UW or WSU Bond Retirement accounts, cannot receive revenue directly. Instead, revenue to

these two funds are recorded to the respective permanent funds, and then an operating transfer is made to the appropriate debt service fund. 13 | TRUST FUNDS – CURRENT AND PERMANENT

Trust Current Funds are funds that individual trust beneficiaries can draw from. Trust Permanent Funds are endowments, which generate interest that can be transferred to the Current Funds. 14 | FISCAL ACTIVITY FOR OTHER TYPE FUND(S) ADMINISTERED BY DNR

Natural Resources Equipment Account (411): Total other fiscal activity does not include funds classified as internal service funds. The Natural Resources Equipment Account is DNR’s only internal service fund. This fund is used to maintain, replace and provide equipment to the Department’s programs on a rental basis. In Fiscal Year 2019 this fund had revenue of $24,783,645 and expenses of $20,885,259. Miscellaneous Program Account (759): Total other fiscal activity does not include program account 759. This account is used to record the activity and balances of local accounts used by property management companies responsible for managing commercial real estate properties managed in trust by the department. In Fiscal Year 2019 this fund had revenue of $399,127 and expenses of $571,603. 15 | RMCA PORTION OF TRUST LAND REVENUE

The Resource Management Cost Account received 31 percent on most transactions and the trusts received 69 percent of revenue from trust lands during Fiscal Year 2019. Also, some revenue transactions are subject to different distribution ratios. These transactions include aquatic resources, miscellaneous nontrust revenue, interest earnings, land sales transactions and interfund loan repayment, the last of which affects the Common School, University, Capitol Building and Normal School trusts. Figure 8 (a,b,c) reflects trust activity with Forest Board Repayment activity. Refer to footnote #19 for trust activity related to University Trust.

16 | NON-TRUST REVENUE AND OTHER MISCELLANEOUS

Non-trust revenue cannot be attributed to a specific trust. Activities include forest road assessments, miscellaneous services, manuals and publications, prior period recoveries and adjustments, application fees and interest income. Fiscal Year 2019 Forest Board Transfer (fund 999) under Clark County is understated by $560,091.59 due to a prior period county recovery correction. This offsets the overstated figure reported for Fiscal Year 2018. 17 | NEGATIVE REVENUE

Any negative revenue reflects accounting adjustments (such as baddebt write-offs, credit memos) from a prior fiscal year. Fiscal Year 2019 negative revenue in Cleanup Settlement account reflects accounting of loan repayment from the Aquatic Lands Enhancement and State Toxics Control accounts, and negative revenue in the Real Property Replacement account includes a reversal of $1.7 million transaction from prior year that was not finalized. 18 | TREASURER’S REVENUE

Due to the schedule for distributing revenue, revenue from State Forest Lands may earn interest before it is distributed to the appropriate county. Interest earnings cannot be attributed specifically to Transfer Lands or Purchase Lands. This revenue is accounted for as treasurer’s revenue and is distributed to the appropriate county. 19 | UNIVERSITY TRUST – ORIGINAL , TRANSFERRED, REPAYMENT

The accounting for the University Trust combines activity from original University trust lands, lands which have been transferred to the trust, and the University trust’s share of interfund loan repayment as described in footnote #11. See Figure 9 for the breakdown of the different elements contributing to the information for University Grants for Fiscal Year 2019.

2019 D N R A N N UA L R E P O R T 2 9

Figure 8a Common School / Escheat Trust Trust Activity Timber Sales Timber Sales-Related Leases Misc Interest Income Fees / Service Charges Operating Transfer-In Subtotal

Total Revenue

Com. School Construction

Com. School Permanent

RMCA

$56,043,071

$38,669,719

$17,373,352

54,370

37,263

(0)

17,107

36,822,198

25,166,112

224,651

11,431,435

88,609

60,899

151

27,559

109,662

393,776

295,255

98,521

93,511,686

64,229,248

224,802

29,057,636

443,731

(393,776)

Forest Board Repayment Sales Operating Transfer-Out Subtotal

49,955

93,561,641

64,229,248

224,802

29,107,591

STO Interest

190,892

70,439

120,453

Land Sales / Trust Land Transfer

125,000

Other Revenue

671,750

478,296

193,454

Total Non-Trust Activity

987,642

70,439

478,296

438,907

$94,549,283

$64,299,687

$703,098

$29,546,498

Total Trust Activity Non-Trust Activity

GRAND TOTAL

Figure 8b

Figure 8c

Capitol Building Trust Activity Timber Sales

Normal School Total Revenue

Cap. Bldg. Construction

RMCA

$13,793,742

$9,517,682

$4,276,060

12,895

9,059

3,836

265,697

183,331

82,366

12,940

8,929

4,011

Fees/Service Charges

834

Operating Transfer-In

150,136

112,551

37,585

14,236,244

9,831,552

4,404,692

Timber Sales-Related Leases Late Interest

Subtotal

Operating Transfer-Out Subtotal Total Trust Activity

169,183

(150,137)

19,046

14,255,290

9,831,552

4,423,738

123,779

10,796

112,983

29,275

153,054

10,796

$14,408,344

$9,842,348

142,258 $4,565,996

Non-Trust Activity STO Interest Other Revenue Total Non-Trust Activity GRAND TOTAL

Timber Sales Timber Sales-Related Leases Late Interest Fees/Service Charges Operating Transfer-In Subtotal

Total Revenue

Capital Projects

Normal Sch. Permanent

RMCA

$3,755,748

2,591,466

$1,164,282

(21)

142,969

103,921

(5,272)

44,320

523

355

168

1,660

480,212

360,287

119,925

4,381,133

104,276

2,946,523

1,330,334

541,132

(480,212)

Forest Board Repayment Sales

Trust Activity

Operating Transfer-Out Subtotal Total Trust Activity

60,920

4,442,053

104,276

2,946,523

1,391,254

39,729

4,188

35,541

9,207

48,936

4,188

44,748

$4,490,989

$108,464

$2,946,523

$1,436,002

Non-Trust Activity STO Interest Land Sales / Trust Land Transfer Other Revenue Total Non-Trust Activity GRAND TOTAL

2019 D N R A N N UA L R E P O R T 3 0

Figure 9 University Trust Trust Source/Activity

Total Revenue

Bond Retirement

20 | STATE TRUST LANDS MANAGEMENT FUND ACCOUNTING REPORT

University Permanent

RMCA

University-Transferred Timber Sales Timber Sales-Related Leases Misc-Trespass Late Interest Sale of Property-Other Fees/Service Charges Operating Transfer-In Operating Transfer-Out Total

$1,276,620

$880,868

$395,752

237,785

163,335

74,450

(0)

155

100

162

1,438,405

1,248,447

(1,248,447)

142,468

47,490

(1,248,447)

1,704,680

1,248,447

(61,676)

517,909

1,053,671

727,033

326,638

136,809

94,398

42,411

University Original Timber Sales Leases Fines & Forfeits Late Interest Fees/Service Charges

Operating Transfer-In

94,480

Operating Transfer-Out Total

(94,480)

1,190,530

(94,480) 94,480

726,959

369,091

173,626

162

University-Repayment Timber Sales Timber Sales Related Late Interest Operating Transfer-Out Total

(189,958)

(16,170)

26,839

2,170

24,669

Non-Trust Allocation STO Interest Non-Trust Revenue Allocation Total GRAND TOTAL

5,763

32,602

2,170

30,432

$2,911,642

$1,345,097

$665,283

$901,262

Figure 10 RMCA/FDA Debt/Loan Accounting For Fiscal Year 2019 Grant Lands

State Forest Lands

2019 Trust Charges

Beginning Balance

$51,201,093

$23,452,716

RMCA Expenditures

$51,201,093

$23,452,716

FDA Expenditures Cumulative Debt/Loan

Fiscal Year 2019 Management Fund Debt Status As of June 30, 2019, no debt exists between the State Forest Lands (Forest Development Account) and the Grant Lands (Resource Management Cost Account).

Statutory Authority and Requirements: Subject to legislative appropriation, the Department of Natural Resources is authorized by RCWs 76.12.110 and 79.64.030 to use funds from the Resource Management Cost Account (RMCA) and Forest Development Account (FDA) interchangeably in the management of State Grant Lands and State Forest Lands. The law also states, however, that an annual accounting will be kept of payments made by one fund on behalf of another. For example when RMCA funds are used to pay for activities on State Forest Land, it shall be considered a debt against the FDA. RCW 79.64.030 also requires that the results of the accounting be reported to the legislature at the next regular session. Accounting Procedures Beginning with fiscal year 1996, the following Cost Allocation System accounting procedures have been used to calculate any debt or loan between the management funds: A. All operating program expenditures that can be determined to benefit a particular land category are directly charged to that land category. B. Expenditures for majority of the department’s operating programs for which the benefiting land category cannot be determined (indirect expenditures) are allocated to land categories based on staff month percentages derived from personnel time charged directly to those land categories or by Western Washington forested acres. C. Capital outlay expenditures that benefit particular land categories are determined in advance then charged by land category in the ratio set by appropriations. D. Agency Administration and Support costs are allocated to land category based on agency work plans for the year as established during the budget process. E. Direct charges and indirect charges are totaled by land category within the Cost Allocation System. Expenditures paid from the RMCA and FDA accounts are compared to these total charges for Grant Lands and State Forest Lands to determine how much of the charges were paid from one account on behalf of the other. If RMCA funds were used to pay State Forest charges, a debt principal is incurred in that amount. If State Forest funds were used to pay RMCA charges, the debt principal is reduced by that amount. Funding adjustments may be made periodically during the fiscal year to align expenditures by fund with total charges for Grant Lands and State Forest Lands to prevent the accumulation of any new debt in the year. F. As required by law, interest is charged on the debt incurred. A full year’s interest is charged on cumulative debt carried from the previous year. One half year’s interest is calculated on the change in the debt principal occurring during the current year. G. Cumulative debt from the preceding year, plus new principal and interest charges are totaled to determine the new cumulative debt. See Figure 10.

Timber Data

Management

PHOTO BY JACOB HARVEY

FISCAL DATA TIMBER DATA

FISCAL DATA

2019 D N R A N N UA L R E P O R T 3 2

TIMBER DATA

Timber Volume | Sold and Harvested | FY 2019 Trust / Beneficiaries

Acres Sold

Timber Volume Sold (mbf) b

Timber Vol. Harvested c (mbf) b

STATE FOREST TRANSFER

(FORMERLY KNOWN AS FOREST BOARD TRANSFER LANDS)

Clallam Clark Cowlitz Grays Harbor Jefferson King Kitsap Lewis Mason Pacific Pierce Skagit Skamania Snohomish Thurston Wahkiakum Whatcom Subtotal Transfer

490 556 24 0 0 219 0 696 493

19,246 14,005 577 0 9,072 11,009 0 29,941 12,399

28,381 5,218 96 1,924 9,459 4,750 1,426 27,902 9,893

325 0

8,811 0

9,367 2,946

1,034 54 1,036 358 125 312 5,722

30,185 1,252 34,159 16,040 5,579 7,298 199,573

39,455 15,469 23,646 8,757 5,393 5,844 199,926

STATE FOREST PURCHASE

Subtotal Purchase

Acres Sold

Timber Volumea Sold (mbf) b

Timber Vol. Harvested c (mbf) b

Common School, Indem. & Esch. Agricultural School University Transfer CEP and RI Capitol Building Normal School

5,360 570 23 231 780 812

133,581 14,243 558 7,541 25,070 8,078

146,370 15,703 4,570 3,853 37,710 8,910

Escheat Scientific School

0 723

0 17,669

45 18,538

University Original Comm. Coll. For. Res. Administrative Sites University Repayment Forest Board Repayment King County Water Pollution Forest Health Treatments (multiple trusts) f

0 40 0 0 430 0

0 833 1 0 20,212 0

2,500

6,211

57,380

42,719

Subtotal

578

8 123 0 85 0 0 0 73 314

299 4,935 453 2,658 0 0 0 2,564 11,487

54 0 2,786 0 813 10 2,900 861 629 8,053

285,166

297,056

5,722

199,573

199,926

314

11,487

8,053

21,216

496,226

505,035

Subtotal Purchase Statewide Total f

Timber volume sold per acre depends on site-specific conditions and harvest method. b

mbf: thousand board feet

Volume harvested is estimated for sales partially harvested. e

Includes University Repayment data. f

Forest health commercial treatments are conducted on multiple federal trusts in Eastern Washington and those volumes and acres are combined.

3,191 21 1,441 9,475 2,010

15,180

Subtotal Transfer

â&#x2013; About This Page

(FORMERLY KNOWN AS FOREST BOARD PURCHASE LANDS)

Clark Cowlitz Grays Harbor Jefferson Lewis Pacific Pierce Skamania Thurston

Trust / Beneficiaries

not occur in the same fiscal year. Revenues are generated when timber is harvested. Market conditions can influence number of sales and volume sold. Sales which contain more than one trust and/or beneficiary, report estimated acres and volumes for each specific trust. Sales which benefit more than one trust, distribute revenues proportionally by value based on percentage of area. Numbers may not add due to rounding.

Notes

Source

Timber is sold before it is harvested. Timber sale contracts are typically two or more years in length, with most timber harvest schedules determined by individual purchasers. Sale and harvest of timber may or may

FY19 NaturE report TSC 311 run on 2/26/2020.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 3 3

TIMBER DATA

Timber Acres Harvested a | FY 2019 Trust / Beneficiaries

Acres Commerc. Thinned Small Wood b

Acres Partially Cut/Older Stand Thinning c

Acres Regeneration Harvestd

Total Acres

Aver. Year of Regen. Cut Stand

856

1,712

1961

231

247

1941

1935

The Department tracks harvest method information in ten categories; for purposes of this report, per RCW 79.10.010, the data are aggregated into three harvest methods. b

STATE FOREST TRANSFER

Clallam Clark Cowlitz Greys Harbor

â&#x2013; About This Page a

1939

182

194

376

1926

King

113

121

1949

Kitsap

1957

Lewis

625

630

1938

Mason

362

363

1945

Pacific

378

1932

Pierce

260

291

1941

Skagit

547

927

1,474

1946

Skamania

181

517

698

1949

Regeneration harvests refer to any removal of trees intended to assist natural tree regeneration or create space for replanting.

Snohomish

193

663

856

1948

â&#x2013; Notes

Thurston

242

1956

Wahkiakum

100

1930

179

192

1966

2,260

5,503

7,767

1944

Clark

1955

Grays Harbor

1942

Harvested acres shown are Fiscal Year 2019 activities only; acres are reported again in the future if additional harvest activities occur. Acres harvested are estimated for sales partially harvested. Timber volume harvested per acre depends on site-specific conditions and harvest method.

Jefferson

Whatcom Subtotal Transfer STATE FOREST PURCHASE

Lewis

1966

Pierce

1947

1950

Skamania Thurston Subtotal Purchase Comm. School, Indemn. Total

1966

231

290

1954

2092

4,337

6,463

1952

Agricultural School Total

310

561

871

1941

University Transfer Total

154

225

1947

140

145

1960

Capitol Building Total

522

1,023

1,547

1948

Normal School Total

134

262

397

1959

1974

100

472

476

1,127

1959

CEP & RI Total

Escheat Total Scientific School Total University Original Total

1947

109

148

1972

University Repayment Total

1946

Forest Board Repayment Total

239

240

1948

Comm. Coll. Forest Res. Total

King Co. Water Poll. Ctrl Dist T Subtotal Statewide Total

142

3359 5,756

509 514

7,469 13,203

11,416 19,473

Commercial thinning/small wood generates revenue, promotes growth of the remaining trees, and creates desired future forest conditions. c

Partial cuts/older stand thinnings generate revenue and help achieve desired future forest conditions. d

Sales which contain more than one trust beneficiary report estimated acres harvested for each specific trust. Sales which benefit more than one trust distribute revenues proportionally by value based on percentage of area. Acres do not include forest improvement treatment (FIT) and Forest Health (FH) sales. Numbers may not add due to rounding. Source TSC 348 FY19 NaturE report run on 2/26/2020.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 3 4

TIMBER DATA

Silviculture a | FY 2019 Trust / Beneficiaries

Acres Planted b

Stems per Acre c

Other Trusts / Beneficiaries

Precommercially Thinned Acresd

Agricultural School Capitol Grant Charitable/Educational/ Penal & Reformatory Instit. Common School and Indemnity Community Forest Trust Escheat Normal School Scientific School

STATE FOREST TRANSFER

(FORMERLY KNOWN AS FOREST BOARD TRANSFER LANDS)

Clallam Clark Cowlitz Grays Harbor Jefferson King Klickitat Lewis Mason Pacific Pierce Skagit Skamania Snohomish Thurston Wahkiakum Whatcom Subtotal Transfer

554 187

329 388

403 181

200 39 274 72 0 386 421 144 21 1,054 265 451 418 175 200 4,861

385 342 353 362 0 347 313 336 400 323 373 271 332 372 322 335

101 0 50 0 4 0 0 3 0 232 0 24 156 4 80 1,238

STATE FOREST PURCHASE

(FORMERLY KNOWN AS FOREST BOARD PURCHASE LANDS)

Cowlitz Grays Harbor Lewis Pacific Pierce Thurston Subtotal Purchase

242

556

341

206

95 89 0.1 266 1,011

317 320 400 345 340

0 18 0 170 394

Acres Plantedb

Total - All Trusts

â&#x2013; About This Page These data are included in the 2019 Annual Report to Trust Beneficiaries per RCW 79.10.010 a

Silvicultural activities are forest management practices. Implementation of silvicultural practices varies according to site-specific conditions and availability of management funding. b

Acres planted include all planting processes and all tree species. c

Average per acre. (Stems per acre planted depend on site-specific conditions and anticipated survival rates).

Precommercially Thinned Acresd

919

337

567

482

348

123

3,997 116 0 67 612

332 245 0 374 325

5,379 612 4 778 1,049

University - Transferred Other Trust Total

Stems per Acre c

449

266

331

6,982

330

8,960

12,855

333

10,592

Pre-commercially thinned acres increase yield rate per acre by selectively decreasing overcrowding of saplings. Numbers may not add due to rounding. Source *Data from LRM on 10-20-2020.

FISCAL DATA

2019 D N R A N N UA L R E P O R T 3 5

TIMBER DATA

Deferrals | FY 2019 Trust / Beneficiaries

No Deferral Acres

FORMERLY KNOWN AS ACRES OFF-BASE FOR HARVEST

Short-Term Def. Acres

Long-Term Def. Acres

STATE FOREST TRANSFER

Trust / Beneficiaries

Short-Term Def. Acres

Long-Term Def. Acres

Agricultural School

43,166

2,421

8,229

Capitol Grant

74,782

2,732

21,750

882,142

37,387

165,564

1,132

47,890

Clallam

64,452

242

24,160

Clark

21,360

2,040

1,776

Cowlitz

8,625

1,554

249

Grays Harbor

1,805

389

Jefferson

11,696

2,229

CEP&RI Comm. School, Indenmity & Esch. Community College Forest Reserve

King

17,303

716

3,420

Community Forest Trust

Kitsap

No Deferral Acres

6,642

528

Escheat

4,669

197

663

18,834

213

Normal School

44,942

1,085

9,578

Lewis

33,228

550

4,539

Scientific School

53,885

2,283

10,003

Mason

24,500

2,133

University Original

3,732

187

553

40,769

363

12,033

Pacific

10,114

342

3,903

Pierce

6,796

5,101

357

993

126,909

Subtotal

1,155,313

46,718

403,545

Total – All TRUSTS

1,661,119

57,422

517,824

Klickitat

Okanogan

1,696

Skagit

60,327

1,003

19,669

Skamania

27,443

844

8,104

Snohomish Stevens Thurston Wahkiakum Whatcom Subtotal Transfer

Trust / Beneficiaries

49,318

214

10,321

127

15,915

264

2,635 2,781

8,450

910

20,988

7,125

407,932

8,824

95,876

No Deferral Acres

Short-Term Def. Acres

Long-Term Def. Acres

STATE FOREST PURCHASE

Clallam Clark Cowlitz Grays Harbor

135

2,326

153

1,209

189

23 5,115

22,586

Jefferson

Kitsap

Klickitat Lewis

2,708

140

Mason

503

Pacific

5,372

502

1,915

Pierce

3,100

133

Skamania

3,038

1,379

Snohomish

1,630

18,055

4,359

658

291

60,460

989

14,647

Stevens Thurston Whatcom Subtotal Purchase

University Transferred Water Pollution Control Division Trust Land Other Lands*

■ About This Page These data are in the 2016 Annual Report to Trust Beneficiaries, per RCW 79.10.010. With the adoption of the 2004 Sustainable Harvest Level, DNR no longer classifies lands as “off-base” or “on-base,” but instead designates deferral status. Long-term deferral approximates “offbase.” Deferral status is determined by whether the silviculture and land management activities, including harvest, are permitted or deferred for a period of time. Short-term deferrals represent forestlands anticipated to be deferred from harvest in the next 10 years. Longterm deferrals represent forestlands anticipated to be deferred from harvest beyond 10 years and forestlands managed for non-timber harvest revenue objectives. Acres are designated as deferrals because they are inoperable, are low site, contain permanent research plots, are upland wildlife management areas, are timber gene pool reserves, are on unstable slopes in riparian buffers, are located in a northern spotted owl nest patch, contain a northern spotted owl site center, are identified as marbled

murrelet habitat, are included in the Olympic Experimental State Forest deferral areas, or are the result of the Settlement Agreement reached in 2006, or the 2006 Policy for Sustainable Forests Old-Growth Policy (all of these decisions were included in the 2007 sustainable harvest adjustment for Western Washington State Trust forestlands). A site can be deferred due to one or more factors. Deferral classifications are not permanent designations. DNR may change the classification as specific forest stands or sites are re‑evaluated. Acreage updates and changes can occur over time due to technological refinements in data gathering and analysis. Numbers may not add due to rounding or potential double counting. *Other lands include: Administrative Site, Land Bank, Milwaukee Road Corridor, Natural Area Preserve, Natural Resources Conservation Area, Tidelands—2nd-Class, Trust Status Not Applicable or Unknown. Source: Deferral Status of State Forestlands DNR Forest Resources Division, LDO v20190717, 2019.

2019 DNR ANNUAL REPORT

BOA R D O F N AT U R A L R ESOU RC ES (2 019) Hilary S. Franz, Chair, Commissioner of Public Lands Jim Cahill, designee for Governor Jay Inslee Dr. Dan Brown, Director, School of Environmental & Forest Sciences, College of The Environment, University of Washington Chris Reykdal, Washington State Superintendent of Public Instruction AndrĂŠ-Denis G. Wright, Dean, College of Agricultural, Human & Natural Resource Sciences, Washington State University Bill Peach, Clallam County Commissioner D N R M A N AG EM E N T (2 019) Hilary S. Franz, Commissioner of Public Lands Josh Wilund, Department Supervisor Stephen Bernath, Deputy Supervisor, Forest Practices Angus Brodie, Deputy Supervisor, State Uplands Amalia Walton, Deputy Supervisor, Aquatics and Geology George Geissler, Deputy Supervisor, Wildfire and Forest Health, and State Forester Brule Burkhart, Deputy Supervisor, Administration and Information Technology Brooke Hamilton, Division Manager, Human Resources Lislie Sayers, Director of Business Operations Lauren Burnes, Director of Organizational Change Management Joanna Eide, Legislative Director Joenne McGerr, Director of Tribal Relations Lenny Young, Executive Policy Advisor Dan Stonington, Executive Policy Advisor Ann Nelson, Executive Policy Advisor Tom Bugert, Senior Strategic Advisor Carlo Davis, Communications Director F O R ES T P R AC T I C ES BOA R D (2 019) Stephen Bernath, Chair, Commissioner of Public Landsâ&#x20AC;&#x2122; designee Lisa Janicki, Elected county official Carmen Smith, General public member and independent logging Bob Guenther, General public member and small forest landowner Ben Serr, Department of Commerce Tom Laurie, Department of Ecology Patrick Capper, Department of Agriculture Jeff Davis, Department of Fish and Wildlife Noel Willet, Timber Products Union Tom Nelson, General public member David Herrera, General public member Brent Davies, General public member Paula Swedeen, General public member

NORTHWEST REGION

SEDRO WOOLLEY

COLVILLE

FORKS

NORTHEAST REGION

ENUMCL AW

OLYMPIC REGION

SOUTH PUGET REGION

OLYMPIA SOUND

ELLENSBURG

CASTLE ROCK

PACIFIC CASCADE REGION SOUTHEAST REGION

PACIFIC CASCADE REGION 601 Bond Rd. PO Box 280, Castle Rock,  WA 98611-0280 360-577-2025

NORTHEAST REGION 225 S. Silke Rd. Colville, WA 99114 509-684-7474

OLYMPIC REGION 411 Tillicum Lane Forks, WA 98331-9271 360-374-2800

NORTHWEST REGION 919 N. Township St. Sedro-Woolley,  WA 98284-9384 360-856-3500

SOUTH PUGET  SOUND REGION 950 Farman Ave. N. Enumclaw, WA 98022-9282 360-825-1631 SOUTHEAST REGION 713 Bowers Rd. Ellensburg, WA 98926-9301 509-925-8510

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DNR Workforce In June 2019, the Department of Natural Resources had 1,339 permanent, year-round employees DNR is an equal opportunity employer.

Contact

OLYMPIA HEADQUARTERS 1111 Washington St. SE MS 47000 Olympia, WA 98504-7000 360-902-1000

dnr.wa.gov

DNR Annual Report 2019

Articles inside

General Distribution of Revenue from State-Owned Aquatic Lands

DNR-Administered Funds

Funds Administered by Other Entities

Total Expenditures

Resource Management Cost Account (RMCA

Agricultural College Trust Management Account (ACTMA