Summary:
North Carolina needs an infrastructure of protected open space, forests and farmland to match our unprecedented population growth and economic development, while maintaining our high quality of life. In 2000, the Governor and General Assembly committed the State, over the next 10 years, to preserve an additional 1 million acres of farmland; forests; natural areas; local parks and greenways; state parks, game lands, and coastal reserves; riparian buffers; floodplains; and wetlands. Natural resources trust funds and the conservation tax credit help the State meet its million acre goal, while protecting air and water quality, natural heritage, cultural heritage, wildlife and quality of life. In order to reach this goal there must be dedicated sources of funding for the existing natural resources trust funds.
Current Status of Land Conservation in NC:
As
a result of NC's rapid growth and development, government officials realized
the need to establish an infrastructure of protected open space, forests and
farmland. In 1999 Governor Hunt created
the Interagency Task Force on Smart Growth, which determined that open space
preservation was important to NC’s citizens.
The Governor made his million acre challenge to the NC Smart Growth
Commission meeting on
In June 2000, the General Assembly
codified the million acre goal in Session Law 2000-23, NCGS § 113A-241:
The
State of North Carolina shall encourage, facilitate, plan, coordinate, and
support appropriate federal, State, local, and private land protection efforts
so that an additional one million acres of farmland, open space, and
conservation lands in the State are permanently protected by December 21, 2009.
¨ 1,416,865 people moved into NC during the 1990s—the 6th largest increase of any state during that period
¨ NC’s population grew at a rate of 21.4% during the 1990s, well beyond the national average of 13.2%
¨ NC’s population density of 165.2 persons per square mile more than doubles the national average of 79.6
¨ The current population of 8 million is expected to grow 35% by 2020, adding nearly 3 million residents
¨ NC ranked 6th in the US for total acres developed from 1992-1997—developing 277 acres per day and increasing urban areas by 88%
¨ Only 2.9 million acres of land are preserved in NC (just over 9% of the total land area)
¨ NC contains some of the most biologically diverse ecosystems in the world but more than 50% of NC’s designated Significant Natural Heritage Areas are unprotected
¨ NC has a greater diversity of amphibians than any other state, and over 22% are at risk
¨ 34% of coastal wetlands have been altered and can no longer fulfill their function of protecting water quality, thereby threatening drinking water
¨ Urbanization (i.e., increased pavement) and floodplain development contribute to runoff and water pollution
¨
3 of the 25
¨ The agricultural industry, NC’s number one economic engine, provides $46 billion to the State’s economy and employs 22% of the workforce
q NC ranks last in preserving farm acreage
q Farmland in NC was developed at a rate of 11.6 acres per hour between 1992-1997
¨ The tourism industry, NC’s number two economic engine, generates $11.9 billion to the state’s economy and directly supports 196,400 jobs as over 43 million people visit NC annually
q Visitors
list NC’s natural resources as the primary attraction
The Clean Water Management Trust Fund (CWMTF) has helped protect 1,682 miles of riparian buffers and 155,224 acres of land which help protect water quality. Since 1996, CWMTF has awarded an impressive 314 grants totaling $258,660,845. Unfortunately, during this same period, CWMTF has had to refuse another 461 applications because of insufficient funding. CWMTF was slated to receive $70 million for the ‘02-’03 fiscal year, and needs at least this amount to satisfy the demands on the fund. The Governor in his recent recommendations to the legislature has recommended that the CWMTF receive only $40 million, the amount it was granted for the current year.
The Natural Heritage Trust Fund (NHTF) has awarded, since it was established in 1987, over $85 million to help protect 153,792 acres for State parks and preserves, wildlife conservation areas, coastal reserves, natural and scenic rivers, and historic properties and has enabled 40 county natural area inventories. Of the 350 grant applications NHTF has received, it has only been able to award 256. NHTF is funded by part of the receipts from the sale of personalized license plates and 25% of the state’s share of the deed stamp tax.
The Parks and Recreation Trust Fund (PARTF) has funded 166 development/ renovation and acquisition projects for state parks and has added 10,927 acres to the park system. Since it was established in 1994, PARTF has awarded nearly $84 million. Based on the current plan by the park system, an additional $113 million in land acquisition and $310 million in capital improvement is needed. PARTF is funded by 75% of the state’s share of the deed stamp tax. PARTF also promotes local parks and beach access through a grant process.
The Farmland Preservation Trust Fund (FPTF) has awarded $2.4 million for conservation easements to protect rural areas near urban growth, waterways, and environmentally sensitive areas. An additional $25 million has been leveraged from other sources: a 1:10 ratio of state money to matching funds. Only 4275 acres of NC’s 9.2 million acres of farmland has been protected and NC ranks last in farmland protected. FPTF is funded by general appropriations.
The Conservation Tax Credit was established by the General Assembly in 1983 and provides tax credits to individuals and corporations in exchange for the donation of real property interests for conservation purposes. As of August 15, 2001, about 365 individual and corporate property owners had donated 82,000 acres of land for conservation worth an estimated $165 million at a maximum cost to the State of $26 million.
|
Distribution Mechanism |
Primary Use of Funds |
Funding Source |
Avg. Annual Collection/Distribution |
Land & Easement Management Agency |
|
Natural Heritage Trust
Fund (est.
1987) |
Protection of land of
outstanding natural or cultural value |
Portion of Vanity
License Plate Fee
25% of the 2nd dollar of the Deed Excise Stamp Tax |
From 1/1/00 -
12/31/00, @
$12.9 M was received. |
DENR Wildlife
Resources Commission
Dept. of Agriculture & Consumer Services Dept. of Cultural Resources |
|
Parks & Recreation
Trust Fund (est. 1993) |
Support for state
parks, local parks, and recreation and beach access |
75% of the 2nd
dollar of the Deed Excise Stamp Tax |
$24 M/yr with @ $6 M for permanent
acquisition -65% to State Parks
System -30% to local
governments -5% to
Coastal & Estuarine Water Beach Access Program -£3% for DENR operating |
Local Governments Division of Parks &
Recreation Division
of Coastal Management |
|
Clean Water Management
Trust Fund (est.
1996) |
Protection of riparian
buffers, greenways, and watersheds; storm-and wastewater projects |
General fund
appropriation |
For FY01-02, @ $ ??? million appropriated, with ½ used for
land conservation |
State Agencies Local Governments Qualified Non-profits |
|
Farmland Preservation
Trust Fund (est.
1986) |
Farmland conservation,
education & promotion, administration, & program development |
General fund
appropriation |
For FY 00-01, $1.5
million non-recurring appropriation |
Local Governments Non-profit Land Trusts |
|
Conservation Tax
Credit (est. 1983) |
Used to encourage
private land owners to conserve their property |
Up to 25% income tax
credit for donations of land or easements for conservation purposes |
For FY 00-01, $ ??
million in tax credits |
State Agencies Non-profit Land Trusts |
Table
1: Current sources of
funding for land conservation in NC
The Million Acre Plan called for DENR and
the UNC Environmental Finance Center to conduct an assessment of the various
funding source combinations that could be used to reach the million acre
goal. According to the January 2001
financial analysis, present funding
levels protect between 43,000 & 63,000 acres per year. There is a gap of an additional 37,000 to 57,000 acres/year that must be
protected over the next 10 years at an estimated
additional cost of $125 million per year.
The State's role in the Million Acre
Initiative should be to support existing
programs and facilitate coordination rather than create new ones. It
should also work to infuse capital into
existing trust funds and support
operational costs for management &
coordination.
Short-term goals:
·
Protect and increase funding to the Clean
Water Management Trust Fund.
·
Protect and increase funding to the
Farmland Preservation Trust Fund.
·
Protect and increase funding to the Parks
& Recreation and Natural Heritage Trust Funds.
·
Identify dedicated funding sources of
state & local revenue to fund land conservation & open space protection
and preserve water quality (see Table 2).
Long-term
goals:
·
Create new sources of funding for land
conservation (see Table 2).
·
Create funding mechanisms flexible enough
to allow for purchasing and maintaining a variety of lands, such as farmland;
forestland; local parks & greenways; State parks, forests, & gamelands; coastal reserves; riparian buffers; floodplains
and wetlands
·
Provide a long-term mechanism for proper
land management.
·
Initiate a public relations and education
campaign to garner public, private, and government support for increased
funding.