Where does my fishing license dollar go?

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Where does my fishing license dollar go?
(Released May 9, 2011)


When an angler buys a Minnesota fishing license, it usually lands in a wallet, purse or tackle box.But where does the angler’s money go? That’s the $18 million question.

“We’re glad to answer it,” said Dirk Peterson, fisheries chief for the Minnesota Department of Natural Resources (DNR). “In fact, we want anglers to know the source of our revenues and how we put them to work.”

According to Peterson, the DNR’s fisheries section has a yearly operating budget of about $35 million. About 50 percent of that amount - or $18 million - comes from anglers who purchase a fishing license or stamps. About 32 percent of the budget is derived from a federal tax on fishing gear. Minnesota State Lottery revenues account for 12 percent. And four other funds - clean water, water recreation, special revenue, and gift - round out the remaining 4-plus percent of operating budget revenues.

“Most of what we do is funded by the anglers who buy licenses and stamps,” said Peterson. “The state’s General Fund does not pay for fish management. Legacy Amendment tax revenues have yet to contribute in a significant way, either.”

Peterson said federal revenue the Fisheries Section receives, commonly known as federal aid reimbursement, is a critical component of the Fisheries Section’s budget. This program, though little known, was authorized under the Dingell-Johnson Act of 1950. Its revenues are derived by a 10 percent manufacturing tax on fishing rods, reels, tackle and other angling equipment, plus a 3 percent or less tax on electric trolling motors and other fishing-related items.

“When an angler buys a piece of fishing equipment, he or she doesn’t pay the tax at the checkout counter,” said Peterson. “Instead, manufacturers - companies such as Rapala, Water Gremlin, and Northland Tackle - pay an excise tax to the federal government. Ultimately, the Minnesota DNR receives a portion of those funds based on the number of anglers it licenses and the geographic size of the state.”

This apportionment is captured by DNR through fisheries-related program expenditures and a 75 percent reimbursement of those eligible expenses.

How does the DNR use its fisheries section budget?

The biggest slice of the budget pays for lake and stream surveys and assessments. This work is the foundation of all fisheries activities. It includes fish population surveys and other inventories of water chemistry and biological information. Without this data, fish manager would lack the critical information on which to base sound decisions. Other big expenditures include improving habitat and raising and stocking fish. Education, outreach, planning, and program support round out the remaining portion of the budget.

“I think what most anglers want to know is whether their license dollars are being spent on fishing -related activities,” said Peterson. “The answer is yes. This fact is confirmed regularly through legislative audits, federal audits, and a full review of our books each year by a citizen oversight committee.”

What follows are highlights of how the DNR allocates its Fisheries Section budget:

conduct 650-700 lakes surveys per year and 180 river and stream surveys
write 400 natural resource plans per year
collect about one-half billion walleye eggs per year that result in the stocking of some 390 million fry and 2.5 million fingerlings
stock about 1,000 lakes with walleye
operate 12 warm water hatcheries and five cold water hatcheries that provide walleye, trout, muskellunge and other species for lakes and rivers throughout the state
stock muskellunge in 59 lakes and the St. Croix and Mississippi rivers
improve five to eight miles of stream habitat per year
deliver aquatic and angling education programs to thousands of youth per year.