Conservation Funding Guides

Check out the most recent FEDERAL FUNDING sources

Two new reports were recently released by The Wilderness Society detailing sources of funding for open space protection.

Conservation Capital: Source of Public Funding for Land Conservation describes public funding at federal, state, and local levels as well as notable innovative projects. Citizen's Guide

Though public funding provides the majority of support for land protection, Conservation Capital: Sources of Private Funding for Land Conservation reveals how to look beyond the obvious, stretch available public funds, and tap into many different sources of funding. Citizen's Guide

Strategy

Benefits

Drawbacks

Bond Issue

Local government borrows money through the issuance of bonds, which are repaid with interest over a certain time period.

Bond issues must be approved through a public referendum vote.

~ Large amounts of funds can become available within a relatively short (1 year or less) time frame.

~ Acquisition costs are spread out over a long time period.

~ Commonly used financing tool.

~ Requires intensive political and public relations campaign.

~ Bond interest repayment costs included in the costs of acquisition.

~ Uses local government debt capacity; make conflict with other capital needs.

Strategy

Benefits

Drawbacks

General Fund Appropriation

Local government allocates funds from the annual budget for land acquisition.

~ Earmarks funds for priority acquisitions.

~ Paying entire purchase price eliminates interest costs.

~ Subject to approval of annual budget - can become political issue.

~ Amounts may be too small to finance needed acquisitions.

~ Other programs may compete for same funds.

Strategy

Benefits

Drawbacks

Revolving Fund

Creation of a pool of capital reserved for preservation and acquisition. 

Revolving fund programs encourage use of funds on revenue-generating projects that can reimburse the fund.

Could be used for acquiring resource lands with eventual resale to conservation buyers.

~ Replenishing fund can help lower acquisition costs.

~ Agency or nonprofit with a revolving fund can often respond quickly to acquire threatened properties.

~ May not provide full funding - recipient may be required to contribute financially.

~ Emphasis on revenue generating projects may have limited use for protecting open space.

Strategy

Benefits

Drawbacks

Preferential Tax Assessment

Provides financial incentive to owners of preserved land by assessing property at its conservation, rather than development value.

Similar to the resent Use Value Program for agricultural land.

May include a penalty requiring repayment of back taxes if property is converted to another use.

~ Tax break for preserved farmland/open space may be cost-effective, since conservation land demands fewer local public services.

~ Voluntary incentive program may provide attractive financial option for landowners.

~ Penalty payments can be dedicated to a fund for acquiring resource lands.

~ Requires statewide legislative approval.

~ Owner participation is voluntary.

~ Ineffective as a permanent preservation measure.

~ Amount of tax savings may not outweigh sale income for development.

~ Reduces tax revenues, which may necessitate tax increase.

Strategy

Benefits

Drawbacks

Real Estate Transfer Tax

A percentage of the local tax on real estate transfers is allocated to a resource acquisition fund.

~ Funds are generated and used within the local community.

~ Sizeable funds can accumulate in fast-growing communities.

~ Fund amounts can fluctuate based on the real estate market.

~ Can increase real estate prices, thereby raising costs for land acquisitions.

~ Requires legislative approval; would probably meet strong opposition from development and real estate lobby.

Strategy

Benefits

Drawbacks

Development Impact Fees

Impact Fees are intended to pay for a development's proposed impact on public infrastructure; Impact Fees are frequently assessed for roads, schools, parks, and fire protection.

~ Funds are generated and used within the local community.

~ Development activity directly contributes to open space acquisition funding.

~ Revenues generated cannot adequately compensate for loss of farmland/open space.

~ Requires legislative approval; proposal would meet strong opposition from development and real estate lobby.

Strategy

Benefits

Drawbacks

Other Taxes and Fees

Funding for resource protection lands can come from a variety of sources.

These may include state income tax return check-off, user fees, sales taxes, document recording stamp taxes, dedicated commodity taxes, gasoline, cigarette, and vending machine taxes.

Fees, such as resource exploitation and specialty license plate fees, are also used to fund acquisition and historic preservation activities.

In some states, lottery or gambling proceeds provide major funding for resource protection, conservation, and historic preservation activities.

~ Relatively consistent funding source targeted specifically for acquisition and management of resource protection lands.

~ Intense competition for these funds; amounts may be inadequate to meet the need.

~ Establishing new taxes is politically unpopular.

~ Portion of funds needs to be allocated to managing the lands and resources that are acquired.

~ Legislative approval required for most proposals for new taxes and fees.

Strategy

Benefits

Drawbacks

State and Federal Grants

Several state and federal programs provide grants to support local government or nonprofit acquisition of farmland/open space.

Federal Grant Programs

State Grant Programs

County Programs

~ Grants reduce acquisition costs to local communities and nonprofits.

~ Matching fund requirements encourage local involvement and commitment to the acquisition project.

~ Local governments and nonprofits may be required to match funds.

~ Competition for funding is intense - some worthwhile projects may be excluded.

~ Contributions to grant program from state or federal government may vary from year to year.

~ Grant management may increase administrative costs.