October 2012
Funding:Where Are We and What’s Left?
I can’t tell you how many times over the summer months when the conversation has turn to trails, grooming and last season that people have said, “We didn’t have much snow, so nobody was grooming. There should be a ton of money left in the snowmobile trail improvement program for this season’s trails.”
While there wasn’t a lot of riding going on last season because of the weather, trail permit sales were also down. No one was riding, and no one was buying trail permits.
During the 2011-12 season, 124,287 trail permits were sold. During a fairly good winter in Michigan, there is usually 175,000 trail permits sold.
The snowmobile program was down 50,713 permits. Of each $45 permit sold, $43.53 goes out to the trail. That means $2,207,536 was not available to go out on the trails.
Now you are probably still saying that we didn’t ride and didn’t groom, so we should not have spent that much snowmobile program money.
The answer is yes and no. A lot of things still had to be done in anticipation of the season. There was less grooming done last season, except for the west end of the Upper Peninsula. However, keep in mind, all snowmobile trails still had to be brushed and signed in preparation of the season. The 69 grant sponsors are reimbursed around $100 a mile for signing and brushing.
Also, there were trails that had to be graded because ATVs and 4-wheelers ripped them up during the summer. Trails have to be signed, brushed and if needed graded no matter what type of winter we have.
All 69 grant sponsors still had to pay for commercial liability insurance policies. Coverage must consist of $1million for each occurrence and $2 million aggregate
If trails are located on private property, grant sponsors still had to secure leases, and in some cases landowners were paid a stipend for the lease. This is paid even when we don’t have a good winter, and even if there isn’t a lot of grooming going on.
Special maintenance projects are also paid for through the snowmobile program. Those projects consist of culverts, bridge repairs, trail reroutes, and any restoration damaged cause from previous year. There are also unexpected major equipment repair costs that are cost- shared between the grant sponsor and the snowmobile program
In June, we also look to see what program money is left and determine how many pieces of equipment (groomers and drags) can be purchased.
Tractors run from $150,000 to $225,000 each. Drags cost around $25,000. We usually know how much is left by now and usually purchase from 12-15 pieces of equipment. We will only purchase five pieces of equipment this year.
A Quick look at the Budget
Of the $12 million 2011-12 snowmobile program budget, $10 million was budgeted for the ground and $2 million was slated for sheriffs and law enforcement.
Preliminary numbers show that trail permit and registrations brought in $5.5 in revenue and gas tax monies brought in another $2 million in revenue. As you can see revenue was down!
By now, you are probably asking what the exact numbers are. Well, we don’t have exact numbers yet. Our program representative at the Department of Natural Resources (DNR) in Lansing has been off on a medical leave, so numbers are late in being released. When MSA gets those numbers we will share them with you, the user.
We do know that a lot of preparation goes into this budget and snowmobile trail permits will remain at $45 through 2016.
The State’s Budget Process
Another cold hard fact is that snowmobile registration numbers have dwindled in Michigan. The state budgets five years in advance and budgets are based on registration estimates from 2007.
Since 2009 Michigan has lost more than one million jobs. A percentage of those people who held those jobs recreated on snowmobiles, boats and ATVs. Those people left the state because of their job loss, and no longer continue to recreate in Michigan. Consequently, the snowmobile program has had less money coming in from registrations. Snowmobile registrations dropped by 30,000 in 2009. Because of the lack of snow last season, registrations dropped another 30,000.
Again the state, budgets five years in advance. Snowmobile program numbers are based on pre-2007 registrations. Of course none of us could foresee 2009. We don’t think we will get that full 30,000 lost in 2009 back.