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The DNR/DEQ Split
"Cost-Saving" Measure Costs Millions More

IMAGE imgs/glb-su.fa9811.gif

By Keith Schneider

With two agencies to manage, the split has increased the cost of
Michigan's environmental programs by $99.6 million per year.
There have been deep staff cuts for scientific and enforcement
jobs, but there are significantly more administrative workers.

In 1995, Gov. John Engler split the Department of Natural Resources and created a new state agency, the
Department of Environmental Quality, to assume the permitting and enforcement authority that once resided
with the DNR. The Governor cited as his reasons the need to reduce costs, provide business with better
service, and improve environmental protections.
In 1997, saying it was acting to reduce costs even further, the Administration completed an early retirement
"downsizing" program that removed 212 senior staffers from the DNR and 77 from the DEQ.
These actions were two of the most visible and dramatic examples of Gov. Engler's 1990 campaign
promise to make government smaller, more efficient, and less expensive. The Administration says the split was
a great success because it tamed a "bloated bureaucracy."
And Now for the Rest of the Story ...
Three years after the split, the numbers tell a different story:
•The budget for the DNR in fiscal 1995 was $522.1 million. The combined budget for the DNR and DEQ in
fiscal 1999 is $621.8 million. This means the cost of managing environmental programs in Michigan has
grown by $99.6 million since 1995, a 19% increase.
•The largest percentage increase occurred in administrative expenses for maintaining two agencies instead of
one. These expenses have soared 69%, from $13.8 million in 1995 to $23.4 million. There are 84 more
administrative employees now than there were in 1995.
•The rest of the budget increases were spread across other divisions in both agencies.
•Though budgets grew, the DNR sustained deep cuts in natural resource protection programs. Since 1995 the
fisheries division has 30 fewer staffers, the forestry division has 29 fewer, and the wildlife division is down 17.
•The enforcement staff was cut once it was transferred to the DEQ. Next year there will be 1,033 people to
enforce environmental laws, an 8% drop from the agency's first full year in 1996, when there were 1,124.
What Does This Mean?
The Governor's advisors say concentrating regulatory authority in the new DEQ has quickened the pace of
issuing new permits, and simultaneously increased Michigan's ability to attract new industries by improving
the state's "business climate."
Moreover, they say, focusing the DNR on a central mission of managing state-owned resources and
directing the DEQ to oversee environmental conditions has provided greater levels of protection. For instance,
they cite data showing that releases of toxic substances from businesses to Michigan's air, water, and land was
56.4 million pounds in 1996, a 45% decline since 1990, when Gov. Engler was first elected.
"You had a large bureaucratic organization that had even a hard time talking to itself, let alone citizens of
this state," said David Ladd, the Governor's environmental advisor. "You didn't have efficient government at
work. Now the permit turnaround is quicker. There are no backlogs on permits. This is one measurement of
improvement."
However conservationists note that:
•It is inaccurate for the Administration to take credit for the drop in toxic releases when it is largely the result
of a disclosure requirement under the federal Superfund law that created an incentive for companies to reduce
their pollution.
(continued on next page)



	The DNR/DEQ Split "Cost-Saving" Measure Costs Millions More

By Keith Schneider
		With two agencies to manage, the split has increased the cost of Michigan's environmental programs by $99.6 million per year. There have been deep staff cuts for scientific and enforcement jobs, but there are significantly more administrative workers.
In 1995, Gov. John Engler split the Department of Natural Resources and created a new state agency, the Department of Environmental Quality, to assume the permitting and enforcement authority that once resided with the DNR. The Governor cited as his reasons the need to reduce costs, provide business with better service, and improve environmental protections. In 1997, saying it was acting to reduce costs even further, the Administration completed an early retirement "downsizing" program that removed 212 senior staffers from the DNR and 77 from the DEQ. These actions were two of the most visible and dramatic examples of Gov. Engler's 1990 campaign promise to make government smaller, more efficient, and less expensive. The Administration says the split was a great success because it tamed a "bloated bureaucracy." And Now for the Rest of the Story ... Three years after the split, the numbers tell a different story: •The budget for the DNR in fiscal 1995 was $522.1 million. The combined budget for the DNR and DEQ in fiscal 1999 is $621.8 million. This means the cost of managing environmental programs in Michigan has grown by $99.6 million since 1995, a 19% increase. •The largest percentage increase occurred in administrative expenses for maintaining two agencies instead of one. These expenses have soared 69%, from $13.8 million in 1995 to $23.4 million. There are 84 more administrative employees now than there were in 1995. •The rest of the budget increases were spread across other divisions in both agencies. •Though budgets grew, the DNR sustained deep cuts in natural resource protection programs. Since 1995 the fisheries division has 30 fewer staffers, the forestry division has 29 fewer, and the wildlife division is down 17. •The enforcement staff was cut once it was transferred to the DEQ. Next year there will be 1,033 people to enforce environmental laws, an 8% drop from the agency's first full year in 1996, when there were 1,124. What Does This Mean? The Governor's advisors say concentrating regulatory authority in the new DEQ has quickened the pace of issuing new permits, and simultaneously increased Michigan's ability to attract new industries by improving the state's "business climate." Moreover, they say, focusing the DNR on a central mission of managing state-owned resources and directing the DEQ to oversee environmental conditions has provided greater levels of protection. For instance, they cite data showing that releases of toxic substances from businesses to Michigan's air, water, and land was 56.4 million pounds in 1996, a 45% decline since 1990, when Gov. Engler was first elected. "You had a large bureaucratic organization that had even a hard time talking to itself, let alone citizens of this state," said David Ladd, the Governor's environmental advisor. "You didn't have efficient government at work. Now the permit turnaround is quicker. There are no backlogs on permits. This is one measurement of improvement." However conservationists note that: •It is inaccurate for the Administration to take credit for the drop in toxic releases when it is largely the result of a disclosure requirement under the federal Superfund law that created an incentive for companies to reduce their pollution. (continued on next page)