Reforestation of Timberlands Board Meeting Minutes -
DOF Central Office, Charlottesville, VA
September 23, 2003

Phil Grimm called the meeting to order at 10:00 a.m. Board members present were: William Pepper, Macy Fox, Thomas Jefferson, Edward Zimmer and Ann Duff. Department of Forestry personnel in attendance were John Carroll and Phil Grimm.

Minutes of the March 26, 2003 Board meeting were reviewed and approved as submitted. Mr. Grimm made a change to a word on page 4, paragraph 7, line 4 of the minutes. The word "attentively" was corrected to read "tentatively".

In regard to election of officers, the Board consensus was to delay election of President and Vice-President until the March 2004 meeting when hopefully a full Board will be present.

Mr. Grimm reviewed the annual report for fiscal year 2002-03, practice accomplishments and financial report for the fiscal year, and the budget for 2003-04. In a discussion of the financial report he stated that of the $134,938 carried forward as a cash balance to 2003-04, approximately $60,000 has been allocated to projects carried over from the previous fiscal year. He stated that many of these projects that involved prescribed burning were postponed in the summer of 2002 due to severe drought conditions and could not be completed during the year. The remaining funds in the carry-over will cover the escrow requirement.

He also stated the expenditure of $881,622 in incentive payments to landowners was 81% of the $1,083,126 budget for incentives. As anticipated the projected revenue for the fiscal year of $1,287,768 actually came in at $1,134,373, a $153,395 shortfall. With incentives reduced by the amount of the shortfall, expenditures were 95% of the actual amount available.

In discussion of the 2003-04 budget, Mr. Grimm stated the forest products tax figure of $1,401,768 is extracted from the budget bill passed by the General Assembly. However, the Department based on recent year's tax receipts has reduced revenue figure in the amount of $241,522. This figure is entered in the budget as a projected revenue shortfall.

Forest Products Tax

As a follow-up to discussion at the March 2003 Board meeting concerning forest products tax, Mr. Grimm stated that the Tax Department had declined in invitation to attend the current Board meeting to discuss the tax as there is no one on staff with a background in forest products tax policy. He also stated that the Tax Department reported reluctance to enter into a discussion of adding an additional person in the Department to be a liaison with the forest products industry due to current budgetary constraints.

In discussion as to how best to reach the forest industry regarding its responsibility for payment of the tax and benefits of the tax, Mr.Grimm stated that approximately four years ago the Tax Department developed an informational flyer on the tax and sent it to industry representatives including loggers on the mailing list of Professor Robert Shaffer at Virginia Tech. Ms. Duff offered, in her capacity as Chair of the Sustainable Forestry Initiative Committee within the Virginia Forestry Association, to again mail the flyers to all loggers on the SHARP Logger training listing. Mr. Grimm agreed to supply her a copy of the flyer.

Mr. Pepper inquired as to whether the Department is knowledgeable of the acreage of timber harvested yearly in Virginia. Mr. Zimmer added for the benefit of new Board members the ongoing concern about continuing decline in tax receipts in light of possible increases in timber harvesting. After further discussion it was agreed that the Department will examine its Best Management Practices field inspection data and forest inventory analysis data for the possibility of developing trendlines in harvesting to address these questions.

Mr. Pepper suggested the Department include the forest products tax flyer in communications with loggers concerning results of BMP inspections.

Ms. Duff suggested a news article be prepared for the VFA magazine and for rural newspapers on the topic of losing General Fund appropriations in the RT Program and impact on the reforestation efforts as a result. Mr. Grimm will follow up with news article development.

Ms. Duff inquired as to proposed legislation for the purpose of reinstating the General Fund appropriations for the RT Program. Mr. Carroll stated the Department would copy the Board with any bills that result from this effort.

Services to Landowners

Mr. Grimm reviewed the Department of Forestry Services to Landowner brochure developed partially in response to the Board's desire to educate landowners about cost-share availability. He stated this brochure would be inserted in correspondence with landowners concerning BMP inspection results on harvesting operations. In further discussion of this brochure Ms. Fox referred to the paragraph concerning conservation easements. She suggested the Department contact the Virginia Outdoors Foundation to ensure the Foundation's commitment to allowing forest management activities to continue on easements which it holds. Mr. Grimm agreed to take this concern to J. Michael Foreman, the Department's contact with VOF.

State Forester's Report

Mr. Carroll reported on several issues and activities. He stated the Joint Legislative Audit and Review Commission, in its task of reviewing possibilities for consolidation of Boards and Commissions, voted to retain the RT Board rather than consolidate it with the Board of Forestry. Mr. Carroll stated that he, Board of Forestry Chairman Harrell Turner and former RT Board Chairman Gary Youngblood testified on the importance of retaining both Boards. He stated that the requirement for representation on the RT Board of various segments of forest industry not found on the Board of Forestry has a major consideration in the vote not to consolidate.

He stated the Department is hiring ten (10) new field positions in October 2003, one Forest Engineer and one Human Resources Director.

He stated that in assessing damage from Hurricane Isabel to the Tree Improvement Program orchards, some damage to tree root grafts was sustained. There is also damage to the Augusta Nursery from flooding.

He stated this is the last year during which loblolly pine will be grown at the New Kent Nursery. The entire pine crop will then be grown at the Garland Gray Nursery. The New Kent Nursery will be retained for the third generation orchard development. He stated the production of loblolly pine would continue at about 27 million seedlings this year.

He also handed out a brochure developed by the Board of Forestry to be shared with legislators and others concerning the issues of importance of the Department of Forestry.
The Board set a tentative date for its next meeting to be held on March 23, 2004.

There being no further business, the meeting was adjourned at 12:20 p.m. for lunch. Following lunch John Scrivani, Director of the Department of Forestry Applied Research activities, provided information on the installation of plots to measure growth and yield of loblolly pine plantations in Virginia. The slides of his presentation are attached to these minutes.

James W. Garner, State Forester

Last modified: Friday, 07-Mar-2008 19:13:48 UTC