DNR Fee Increase Backfires
Politicians of all stripes are rooting around for fresh money to fulfill past, present, and future promises lately, figuring that the economy is so hot that their depredations will go unnoticed and have no consequences.
Let’s take a look at a Michigan example: the increase in license fees for hunting and fishing which the Legislature authorized in 2013 and which took effect in 2014.
The most popular hunting and fishing license prices doubled under the new fee schedule, although a direct comparison is not possible because the licenses were restructured to ‘simplify’ the license schedule. Governor Snyder’s goal for these increases was to raise an additional $ 18.1 million dollars annually for the DNR.
The Senate Fiscal Agency benchmarked the anticipated annual increase at $ 19.7 million.
...So how did this work out?
Not well.
Instead of $ 11.7 million, the DNR’s revenue increase was only $ 7.8 million in the first license year.
Sales of expensive (and thus very lucrative) nonresident fishing licenses were down 40%.
Overall fishing license sales were down 5%.
...Now for the really bad news which our mathematically challenged government and journalists missed. Or maybe just did not want to spell out for you.
Sport fishing is a $ 2.5 billion economic contributor to the Michigan economy according to the DNR and, if the 5% decline in 2014 fishing license sales accurately reflects reduced sport fishing related expenditures, the DNR just cost the Michigan economy $ 125 million dollars to achieve a $ 7.8 million revenue increment.
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