Office of the Secretary

For Immediate Release: April 9, 2001

Contact: Mark Pfeifle or
Stephanie Hanna (202) 208-6416

Interior Secretary Norton Announces Fiscal Year 2002 Budget
- Focuses on local flexibility, innovative partnerships, and protecting the environment -

(WASHINGTON) - Secretary of the Interior Gale Norton introduced a $10 billion Fiscal Year 2002 budget request today that she says "echoes the Interior Department's commitment to protecting our environment for our children and for future generations."

"The Interior budget builds flexible and innovative environmental partnerships to conserve and protect wildlife and habitats at the local level, restore pride in Indian education, and restore the historical structures and natural resources in our national parks so we can extend the welcome mat for more American families," Norton said.

By the Numbers: The 2002 budget requests $10 billion for the Department of the Interior. This funding request is 16 percent higher than FY 2000 levels and 23 percent higher than FY 1999. In addition, permanent funding through existing legislation will provide an additional $2.8 billion, for a total budget of $12.8 billion.

"The FY 2002 budget reflects our commitment to fiscal responsibility along with strong support for the core missions and operations of the Department of the Interior and its bureaus," said Norton. Although the FY 2002 budget request is $345.7 million below the historically high, unprecedented FY 2001 appropriated level, most of the 20 percent increase in the FY 2001 level represented one-time funding increases and a catastrophic wildfire season.

When compared to historic levels, the FY 2002 budget request continues funding for Interior's programs at a rate of growth that is substantially higher than the rate of inflation or the rate of growth in discretionary funding generally. The budget maintains historically high levels of funding for the operation of national parks, wildlife refuges and public lands. The FY 2002 budget is $361.9 million or 13 percent higher than FY 2000 funding for operational accounts in the National Park Service, Fish & Wildlife Service and Bureau of Land Management.

Innovative Partnerships with States: The FY 2002 budget makes good on President Bush's historic pledge for full funding of the Land & Water Conservation Fund. This fund, derived primarily from offshore oil and gas receipts in federal waters, will provide $900 million, divided equally between federal agencies and state governments.

States will receive $450 million with more flexibility to target funds to local priorities. This budget request represents an increase of $359.7 million from FY 2001. Grant funds may be used for traditional recreational land acquisition, as well as endangered and threatened species conservation, and wetlands restoration.

"This historic commitment represents the highest level of funding ever requested for grants to states and tribes," said Norton. "President Bush offers more flexibility to meet the individual needs of states. Funds may be used for conservation of endangered and threatened species, wetland restoration and conservation, and for conservation of habitats for migratory birds and other non-game species of fish and wildlife."

Incentives for Private Landowners: For the first time, the FY 2002 budget request includes funding for two grant programs that will provide incentives to encourage private landowners to conserve habitat and become partners in restoring threatened, endangered and at-risk species.

The Landowner Incentive Program provides $50 million for matching grants to states, tribes, and territories. These funds can be used on a competitively awarded, cost-share basis to provide technical and financial assistance for landowners who voluntarily participate in the protection of habitat for federally listed or at-risk species on private or Tribal lands. Landowners could also continue in traditional land use practices, while protecting species and habitat.

An additional $10 million would be used to create a Private Stewardship Grant Program to assist individuals or groups involved in the voluntary protection or conservation of habitat for wildlife on private lands.

"These innovative partnerships will help erase the conflict that too often paralyzes efforts to save threatened species. Farmers, ranchers and other landowners are often the best stewards of the land. We can achieve more by working with them - and capitalizing on their intimate knowledge of the land they depend on - and the land they love," said Norton.

Restoring pride in Indian education: The FY 2002 budget funds Bureau of Indian Affairs school construction at $292.5 million, including funds to replace six schools, and repairs at a number of other schools. This funding will enable the Department to fulfill President Bush's goal to eliminate the backlog in replacement, repair and maintenance of Indian schools by FY 2006.

BIA is responsible for 185 schools, educating more than 50,000 students in 23 states. Funding for the operation of BIA schools will be increased by $9.1 million over FY 2001. Overall, the FY 2002 budget request for Indian education is $543.1 million, an increase of $16.6 million over FY 2001. There will also be a $1 million increase in funding to operate tribal community colleges.

"Our budget ensures that more Native American students have access to safe schools, computers, textbooks and other critical learning tools," said Norton. "We're making good on President Bush's promise to 'Leave no child behind.'"

Science in the National Parks: The FY 2002 request includes a $20 million increase to a funding level of $49.5 million for the third year of the Natural Resource Challenge program. This will allow the National Park Service to foster innovative natural resource partnerships, increase the collection of resource data, conduct inventories and monitoring of threatened and endangered species, and control threats posed by non-native plant and animal species.

"We must preserve and protect the natural resources in our national parks," said Norton. "Our proposal to increase funding for the Natural Resource Challenge by 67 percent reaffirms our commitment to developing the best science possible and then applying that science to meet natural resource needs in the National Parks."

Eliminating the National Park Service Backlog: The National Park Service manages 384 park units receiving nearly 300 million visitors per year. Funding to maintain an aging park infrastructure has failed to keep pace with critical needs, causing a $4.9 billion backlog, that includes $2.2 billion in non-road needs.

"The FY 2002 budget makes good on President Bush's pledge to eliminate the maintenance backlog over five years," said Norton. The budget request includes $439.6 toward the elimination of the maintenance backlog - a 30 percent increase over maintenance funds in FY 2001. NPS will dedicate $100 million from the Recreation Demonstration fee program and Concession fee receipts toward these priority deferred maintenance projects.

Wildland Fire Management: The FY 2002 budget funds wildland fire management at more than double historical levels at $658.4 million - an increase of $367.5 million over FY 2000. The funding builds on a continuation of FY 2001 levels for wildland fire suppression, the hazardous fuels program and assistance to rural fire programs.

Wildland fire readiness is funded at $252 million, more than $89.4 million over FY 2000. Fire suppression activities are increased to $161.4 million, and an $8.3 million increase over FY 2000 and consistent with operational needs based on a 10-year average.

Almost $200 million of the reduction in overall wildland fire funding from FY 2001 levels is due to a different funding mechanism for emergency fire suppression in FY 2002. President Bush has proposed a $5.6 billion National Emergency Reserve to be available to meet higher than average wildland fire costs in upcoming wildland fire seasons.

Reforming Management of Indian Trusts: The FY 2002 budget includes an increase of $12 million to strengthen the Bureau of Indian Affairs' trust services programs and continue ongoing reforms. This will increase total trust reform funding to $118.4 million.

BIA has a trust responsibility for managing resources on nearly 56 million acres of trust lands. This proposed increase will continue the commitment to reforming the management of trust resources and revenue-generating lands. New trust management systems are currently being implemented for land records, probate, land titles, leasing and real estate.

Indian Land and Water Settlements: Five land and water settlements are included in the FY 2002 budget, an increase of $23.5 million, for a total funding level of $60.9 million to implement settlements in California, Colorado, Michigan, New Mexico and Utah.

The funding increase will provide $8 million for the Colorado Ute/Animas La Plata Settlement in Colorado; $6 million for the Torres-Martinez Desert Cahuilla Indians Claims Settlements in Colorado; $5 million for the Shivwits Band of Paiute Indian Tribe water settlement in Utah; $2 million for the Santo Domingo Pueblo Land Claims Settlements; and $6.25 million for the remaining commitment for the U.S. v. Michigan agreement. In addition, $24.7 million continuing funding will be made available for the Ute Indian Rights Settlement Act, and $7.95 million in continuing funding for the Rocky Boys Water Settlement.

Energy for Tomorrow: The FY 2002 budget provides increased funding for energy resource programs in the Mineral Management Service (MMS) and the Bureau of Land Management (BLM).

MMS oversees oil and natural gas production in the Outer Continental Shelf and BLM is responsible for oversight of oil and gas production on federal lands. Cumulatively, oil and natural gas production from federal lands and waters comprise about 31 percent of domestic oil production and about 37 percent of domestic natural gas production.

The FY 2002 budget proposes a program increase of $15 million for BLM to expand energy and mineral activities including energy resource surveys, coalbed methane permitting preparation, preparation for lease sales in the National Petroleum Reserve-Alaska and planning for leasing in the 1002 area of the Arctic National Wildlife Refuge, should such leasing by authorized by Congress. An increase of $14.7 million is requested for MMS to meet increased workload brought about by OCS program services and to implement a royalty-in-kind program.

Good Government: The FY 2002 reflects President Bush's request that the government become more responsive to taxpayers and Secretary Norton's strong interest in implementing the four C's: consultation, communication and collaboration - all in the service of conservation.

"The Interior Department provides strong support for the men and women who carry out our core missions and on-the-ground operations. At the same time, there will be expanded use of partnerships, contractual services, and streamlining to eliminate extraneous management positions that are not needed for program delivery at the local level. The 21^st Century opens enormous opportunities for the Department of the Interior to excel in the stewardship of this nation's most precious cultural treasures and natural resources," concluded Norton.