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Plan hurts SFI goals, By LAUREL BEAGER, Editor


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Pawlenty plans to cap state payments to Forest Capital Partners and other land owners

A plan by Gov. Tim Pawlenty to cap payments made by the state to Forest Capital Partners and other large land owners could jeopardize public access and the company’s recreational lease program.

The payments are made through the Sustainable Forest Incentive Act, which was passed by the Minnesota Legislature in 2001. The act allows annual payments to be made to enrolled owners of forested land as an incentive to practice long-term sustainable forest management.

Forest Capital Partners has 262,000 acres enrolled in the program and receives the minimum $7-per-acre payment. The minimum was set through legislation passed last year.

Pawlenty, before the Legislature met this session, proposed to cap those payments at $100,000 per claimant, which would reduce the payments to Forest Capital to 38-cents per acre.

The cap is a part of the governor’s unallotment plan, which he may begin implementing Wednesday, the start of the state’s fiscal year.

Craig Halla, Forest Capital Partners regional manager, said the plan to cap payments made through the program is not wise.

The incentive requires landowners to follow certain requirements, including creating and following a sustainable forest management plan. It also requires public access to the property for owners of more than 1,700 acres.

“The cap represents a huge loss in revenue,” said Halla. “We’re made up of investors and with any kind of business, when there is a loss in revenue, we have to make it up somewhere or try to replace it.”

While Halla wouldn’t predict what ramifications the cap would have to the company’s property, he said the company is analyzing what measures it might take to replace the lost revenue.

The loss will be magnified, he said, by low market prices for timber.

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“Currently, 100 percent of our lands are public,” he said. “Currently, we have an affordable rec lease program. Currently, we have approximately 100 miles of summer all-weather roads open to the public. Currently, we have approximately 60 miles of snowmobile trails crossing our property. We do not receive a penny for the roads or the trails. And through the rec lease program, we get an annual payment, but payments are affordable for lease holders.”

Halla met about the proposal to cap the SFIA payments with state and local leaders during the recent legislative session. The Koochiching County Board and International Falls City Council supported the company’s contention that the cap should not be implemented.

County Board Chairman Mike Hanson called Forest Capital Partners a large landowner, large taxpayer and a significant constituent of the county.

“As chairman of the county board, I worry about the impact on them, and of parcelization, if they had to sell,” he said, referring to the selling of small parcels of property from the larger acreage. Parcelization could bring gates to properties, close off public access, and the potential to lose some recreational leases, Hanson said.

The governor’s office notes in documents on the proposal that the cap would only impact four of the 1,100 enrollees in the program.

“But what they fail to tell you is it’s a large percentage of the acres — it’s effecting about half a million acres of industrial land,” Halla said.

“Keeping checkerboard ownership open to access is key to northern Minnesota timber and recreation,” said Halla.

International Falls City Councilor Tim “Chopper” McBride said the program has encouraged open access, which has preserved the ability to cut timber from Forest Capital Partners’ land and adjacent land and preserved the ability to recreate on the properties.

“If they were not reimbursed for that, it might be gone,” he said. “If they don't get reimbursed for setting the land aside, it may cause them to cause to reconsider how their land is used.”




What options do we have...

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What options do we have here. I read what Plawlenty is going to do. As residents of this fine state and also a lease holder What can be done to divert this tragedy.... I heard of a company who's CEO is working for free the next year freeing valuable money to prevent layoffs. Maybe people in the Govenor's office should cap their wages or give up part of them to put the money back into this state. Then if cuts needed to be made they could justify them. Thanks for letting me vent....


Submitted by IFalls85 on June 29, 2009 - 12:38pm.

I warned people about this...

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I warned people about this earlier this year and advised that everyone contact their legislators. Since our wonderful politicians in St. Paul can't agree to what color the sky is, a state budget was never agreed upon by all. Instead they played games until the last second and, as usual, us citizens take it in the shorts. Craig Halla has been in our corner as lease holders but he can't hold the corporate wolves at bay too much longer. Hopefully full SFI payments will be restored in the next session. To get that done people need to contact their legislators. Hopefully local city and county politicians can get the ear of the state politicians. There's a lot more at risk here than just access to hunting areas.

Maybe we'll see you this weekend Doorsman.


Submitted by Blackbay on June 29, 2009 - 2:39pm.

I have been an opponent of...

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I have been an opponent of this whole unallotment process from day one, mainly because it allows an ideologue to determine the state spending priorities, but fail to see that this is the most disastrous of the unallotments -- certainly not a tragedy. The human tragedies are those involving medical assistance and child-care and issues involving the "weakest among us." Two point seven billion dollars disappeared and we are complaining because things around here are starting to feel like Mississippi. Welcome to upper Mississippi.


Submitted by Thomas L. Johnson on June 29, 2009 - 4:18pm.

It really is to bad the...

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It really is to bad the state (does not have money) to pay for this, but keep blaming Mr. P for trying to keep us out of red, while your precious Obama puts us underground with debt.


Submitted by shway21 on June 29, 2009 - 6:13pm.

TPAW is now fighting his...

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TPAW is now fighting his fourth 2 year budget crisis in an 8 year administration. If we're to blame Obama, we better find out how an Illinois State Senator screws up the Minnesota budget.

Better yet, maybe we should look at the real legacy of how "Mr. P ... has kept us out of the red": he simply kicks the problem into someone else's lap. And that someone is county and city government. And maybe that does have some appealing elements: local benefits/decisions drive local consequences.

What is not appealing is the simple fact that the local guys will solve the problem by cutting as much as they dare and then raise local revenue to make up the difference. And while TPAW's state revenue raising tool box (otherwise known as TAXES) has 20 drawers with every tax and fee known to man, the local guy has a tote tray tool box that has essentially your property taxes inside it. And that is where we get pounded time after time because TPAW is afraid of his tools and the local guys have no choice but to use the only one they own.

I really hope when I am 75 and retired I can live in the house I now live in. Our kids were born and raised here, we're comfortable here, this is home. Solving every revenue problem by forcing another property tax increase reduces the ability of most Seniors to stay in their houses

Yes; but, TPAW looks good for that 2012 Presidential run. This is one bad and cynical Governor who thinks he can do for the whole country what he has done for us.


Submitted by bayside on June 30, 2009 - 12:22am.

I have read a lot of...

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I have read a lot of approaches to this but none as eloquently stated as that by bayside in this short piece. The analogy of the drawers is it exactly. While the state has to balance the budget -- something the nation almost never does -- it has more tools to do the job.

Those of us lucky enough to pay property taxes in two counties are now unlucky enough to be seeing those taxes rise to reflect the ideology of Tim. George H. W. Bush got into trouble when he went back on his "read my lips" promise, but in the long run, he valued the people he governed more than his narrow ideology. I think that is why he is rising in stature as an excellent one-term president. We have a two-term governor whose lips we read over and over again. That is who he is and now that Mark Sanford has elected to throw himself under the bus, he has the potential to be the republican governor of choice for 2012. Sad.


Submitted by Thomas L. Johnson on June 30, 2009 - 10:20am.

Excellent bayside and to all...

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Excellent bayside and to all the comments. I know that it is more important to feed and care and nurture and teach the human animal and sometimes that is financed by all of us but this issue is a microcosmic example of our Gov and his way of seeing things. This issue not only benefits the selfish few who have leases, or as my good blogger friend roj would say, shacks, it benefits the economic vitality of northern Minnesota pumping millions into someones coffers and nurtures the human spirit in the role as free and easy recreation. Yes, streets, health, education are important but so is sanity in the north land. Again, bayside, excellent statement. Black bay, you should have ok weather at the estate.Chopper


Submitted by Doorsman 54 on June 30, 2009 - 9:23am.

Doorsman, Keys words in your...

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Doorsman,

Keys words in your above response that fit into this "topic of discussion" (must stay on topic), are "shacks" and "estate"!! This waste of taxpayer money appears to be equivalent to paying Farmers not to farm their land. So, let me figure this out; some of the "good ole boys" buy up lots of land and put a "shack" on there, and Uncle Sam will pay you lots of money to let us mere mortals hunt Bambi on your "estate". But, now Gov TPAW wants to save some money and limits how much your handout will be, and you are upset. What happened to "all of us" sacrificing for the good of the State and our Country. The way I look at this, is that we are going down the tube very quickly, by out of control spending and more and more entitlement programs. Face it, these programs are just a way of shoring up the "voter base". I'm sure some of you Land Barons and bleeding hearts will set me straight on this subject. I've got to go for now. The Devil called and said the water down there froze over yesterday, and beginning at 1:00 PM today, it's a "free skate" down below!! TPAW 2012..........


Submitted by roj2000 on July 1, 2009 - 10:11am.

Twist it in whatever way you...

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Twist it in whatever way you want, Just remember 20 years from now your kids and their kids will be paying for what your president is doing today, Think its bad now? hah we got it easy! we can make it really difficult or a little easier by just going back to spending on the basics.

Its like losing your job and being on a really tight budget, you might have to lose the cable tv, the vacation you had planned, eating out, new vehicles. You just have to sink back to the basics, food, water, housing. Find a new job and then you can afford to get some of those things back.

Or lets just play dumb, wine wine wine, Our debt will never catch up to us. For now atleast.

Sorry it might seem like I'm explaing something to a 3rd grader....

Sometimes it just feels like I am


Submitted by shway21 on June 30, 2009 - 7:14pm.

Sorry for your frustration...

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Sorry for your frustration shway21.

Maybe this can help take the sting off of things:

"Paul, Deficits don't matter. Reagan proved that"

Vice President Richard Cheney to Treasury Secretary Paul O'Neil, 2002.

Maybe we can at least agree that Richard Cheney has the logic and reasoning of a third grader?


Submitted by bayside on July 1, 2009 - 7:32am.

Our kids are paying right...

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Our kids are paying right now -- don't get us worried about 20 years from now. My underinsured [2000 deductible] twenty-something paid more in medical bills this year than his parents and their uninsured dog. Next, he is starting graduate school where tuition has risen to almost $30,000 per year [as it is also doing in Minnesota due to reduced state support of education], so he will have major debts to repay after graduation. I see the current generation being hurt by a terrible healthcare system and the increasing costs of everything.

The children of my friends in the "socialized" countries of Europe don't worry about health care disasters or massive educational loans. I helped one of them set up his trucking firm in his mid 20's; this kid is loan-free, married, and entrepreneurial. He will bear a higher tax burden than most of the American equivalents, but he is not been hit in his 20's with incredible debt.

Public debt is shared by all; private debt is individual and causes the defaults and bankrupcies that are so much the reality for the younger generation of Americans. There is a correlation between taxation and standard of living. Remember, Denmark is the happiest place on earth: http://abcnews.go.com/2020/Story?id=4086092&page=2.


Submitted by Thomas L. Johnson on July 1, 2009 - 12:34pm.

Well this thread sure has...

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Well this thread sure has gotten off track. We went from a topic of a major reduction in SFI Act payments to how spending nearly 65% of the budget on K-12 ed and health and human services isn't enough. Now we're onto how happy the Danes are. Maybe they'd be even happier if they had public areas where they could pick berries, hike and hunt if they so desired. They could temporarily forget that they pay an income tax rate of about 50% plus an additional 25% value added tax. I know those places make me much happier.


Submitted by Blackbay on July 1, 2009 - 2:06pm.

First of all, everyone have...

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First of all, everyone have a good 4th, remember what it means and pray for all in harms way who help keep the memory of freedom alive. Now to my good blogger buddy roj. I know I am not going to change your mind about how Minnesotans have spent too much on education, health, family assistance programs, roads, street lights, law enforcment, fire protection,and much much more. Yes, some of what is spent on programs and pork is frivolous, just plain wrong, and needs to be questioned and cut regarding taxpayer expenditure. That is where Timmy and the legislature fails, not attempting to work together to finance the right programs at the right price. Everyone is wrong and it is not just Minnesota. My problem with our Governor is that he is not doing his unilateral cuts for the betterment of our state, rather he is trying to prove his staunch conservative values in his quest for the 2012 nomination. If potential republican candidates keep girl and boy friends on the side, and squeaky clean Tim stays the course, he just may get a consideration from the delegation at the convention. Again, it's his unilateral decisions that drive me crazy and I am not happy with the legislature and how it is more interested in not getting along instead of doing their job and do what is best for us, their constituents. Now to my selfish wish to keep funding programs like SFI. Don't mess with it. This is where I am selfish. Yes I have a cabin on the lake and a cabin(shack) in the woods and I like both of them. The cabin is safe because it is mine, the shack is mine but it is on a lease and because of the loss of the SFI program, large land barons as you call them will close off access and sell and parcel out tracts of land. The majority of these tracts will be purchased by large hunting groups and organizations like the wilderness society and the sierra club. That is scary roj. Have a good holiday everyone. Chopper.


Submitted by Doorsman 54 on July 2, 2009 - 9:29am.

AHA!!! Unilateral decisions...

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AHA!!! Unilateral decisions hmm sounds familiar, Remind you of anyone? Like Palosi and her cronies with their unilateral spending, they mise well just skip the whole voting process, she can just nod her head like a genie and its done and she does. If we can manage to hang on to the SFI program good that is if the state can afford it.

Chopper I would imagine you feel greatful to have a cabin on the lake and a hunting shack I suppose you still have those things because you can afford them?

The state should act as a family on a fixed income buy what you can afford, or what your predicted future income will be, I hardly think that this state will have the same ammount of revenu coming in next year as this or the year after that, If there is a deficite now its only going to get worse, Just wait till it comes time for Obama to pay back his loans, ahh screw it just print some more.

I keep thinking I'll wake up and this dream will be over but every time I fall asleep I get up and its worse than the day before! I have tried this over 100 times so far and it has yet to work, How does everyone else deal with it?

Roj i just think those with stiff left foot have grown up expecting these things and take them for granted, What can our Gov't do for us today?!?!? TPAW 2012


Submitted by shway21 on July 3, 2009 - 6:21pm.

21, first of all, happy...

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21, first of all, happy freedom day to you and all. It is great to be an american. 21, yes, I am forturnate to have the things I have and am lucky in the way I have them. I have received a few good breaks and also the huge loss of my parents gave me some of these gifts. Mom and Dad are my benifactor's and also a bit of roll the sleeves up sacrifice and a great wife have given me new life. I do agree with you that some in the federal and state govt' scare the he-- out of me and I too wonder where this will end. We will see but I don't think we are on the same path of societial destruction as the Romans, Inca's or Greeks,at least I hope. I am going to end this and just say that I have been at the bottom of the food chain and now I am in the middle. I am willing to pay my fair share of taxes to get services I need and enjoy and I am also willing to pay a bit more for the well-being of my fellow compatriates, the poor, the middle class and yes, even Al Franken. Happy 4th. Chopper


Submitted by Doorsman 54 on July 4, 2009 - 8:13am.


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