Increased revenue in DNR Fish and Wildlife Account shows money is flowing – but to where?

Last year, representatives with the Wisconsin Department of Natural Resources (DNR) came forward and said they were expecting a $16 million deficit in the Fish and Wildlife Account for the 2025-26 biennium. While some called for higher license fees, sighting fewer people taking part in pursuits such as deer hunting, and a lack of increase in these fees in over 20 years as the reason for the shortfall, legislators such as Senator Rob Stafsholt (R – New Richmond) called for an audit of the expenditures from that account before they would accept an increase.

Although the Fish and Wildlife Account has seen steady revenue growth, up roughly 23.6 percent since FY 2019-20, there has been a need to shore up shortfalls in the account. Indeed, just last year, $25 million was allocated from the Forestry Account to cover the predicted shortfall. This has led some to question whether the fund was on shaky footing without structural fixes. 

In FY 23-24 the Fish and Wildlife Account included $92.9 million in state revenues and $33.3 million in federal revenue. Both the Pittman-Robertson Act and the Dingell-Johnson Act contribute back to the state. Pittman-Robertson funds come from an excise tax on firearms, ammunition and archery equipment. These funds are used to support wildlife restoration, conservation and hunter education and safety programs. Dingell-Johnson is the Sport Fish Restoration Act. This program provides financial assistance for state fish restoration and management activities. 

The audit looked at how state revenues were allocated and used, and some highlighted the fact that 49.8 percent of state revenues directly benefited hunters and anglers. That number was down from the last audit in 2006, which showed 57.3 percent of state revenues directly benefited those sporting groups. The audit included, among other things, game species management, law enforcement for fishing and hunting activities, game species research and license administration in this total

It was also found that 39.5 percent, or $36.7 million was spent for activities that benefited hunters, anglers and other users. This category included items such as non-fish and game project administration and planning, wildlife habitat improvement and conservation activities, facilities and property management, wildlife abatement and claims and conservation warden supplies and training.

 It was also found that 0.3 percent, or $0.3 million was spent for activities not directly benefiting hunters and anglers. These activities included law enforcement activities listed as “other,” and non-game and protected species activities.

By statute, only 16 percent of the Fish and Wildlife Account can be used for administrative costs, and the audit found that, in FY 2023-24, only 10.3 percent of funds from the Fish and Wildlife Account were used for those costs. Administrative costs totaled $9.6 million. These were split between department administration (8.3 percent) and division administration (2.0 percent).

Recommendations

In the end the audit did have some recommendations to the department as far as transparency in documenting how licenses dollars are used and clarifying what counts as direct benefits as well as standardizing time-card rules and refreshing cost-sharing protocols. The department is to report to the Joint Legislative Audit Committee by March 16, 2026, on the status of its efforts to implement all of the following recommendations:

The audit called for the department to establish a clear methodology for allocating expenditures across all accounts in the Conservation Fund, including the Fish and Wildlife Account. It also instructed the department to include requirements that would specify how often this methodology would be reviewed, and by whom.

Auditors also directed the department to “ensure that it consistently follows its methodology for allocating Fish and Wildlife Account expenditures and revenues when preparing its financial report in FY 2024-25 and subsequent fiscal years.” The department was also directed to manually adjust their FY 2023-24 financial report used to summarize the Fish and Wildlife Account expenditures and revenues. The department, the audit stated, should also conduct appropriate reviews to determine that the automated process and any subsequent manual adjustments would be made accurately and completely. 

The department should also provide additional information pertaining to expenditures from that account in its biennial report to the legislature. This should be done in accordance with state statutes under s. 29.035, Wis. Stats.

The audit also recommended the department establish written policies that would require supervisors to assess whether staff time should be charged to activities on their time sheets. There was also a recommendation to, where appropriate, provide more training on submitting and approving timesheets so as to ensure correct allocation of staff activities and time.

In a letter to Joe Chrisman, state auditor, DNR Secretary Karn Hyun thanked auditors for the heavy lift of conducting the thorough audit, and stated she was glad to see that the state Fish and Wildlife Account funds were being spent in accordance with the state statute, pointing to the fact that over 89 percent of the funds from that account were benefiting hunters and anglers as well as others. She also noted that the 10.3 percent of the Fish and Wildlife Account funds that were covering administrative items was significantly below the 16 percent allowed by statute. 

“We appreciate the added transparency that an audit like this brings, and it serves as another opportunity to solidify the public’s confidence in the DNR’s financial management of the Fish and Wildlife Account,” Hyun’s letter said. “This audit makes it clear that the revenue from the sale of hunting, fishing, and trapping licenses is being spent in accordance with state statute and for the benefit of hunters, anglers, and other outdoor recreationists.”

She also addressed and accepted the recommendations made in the audit stating that while these measures would not necessarily move the needle in the Fish and Wildlife Account balance, the department would correct their reporting as recommended and provide the Joint Legislative Audit Committee with their report by March 16, 2026.

Beckie Gaskill may be reached via email at [email protected].