Frequently Asked Questions About Proposal 2

Q: What is Proposal 2?

Proposal 2 is a statewide ballot question that asks voters to amend the State Constitution to improve Michigan's state and local parks and to protect our lakes, streams and wildlife.

Q: When will the vote be held?

Proposal 2 will appear on the August 6, 2002 statewide Primary Election ballot.

Q: What changes will Proposal 2 make?

Proposal 2 will allow certain permanent and endowment funds to be invested as provided by law and increase allowed spending for state parks, local parks and outdoor recreation. Specifically, Proposal 2 will make the following changes:

  • Allow certain permanent and endowment funds, including Natural Resources Trust Fund, State Parks Endowment Fund and Veterans Trust Fund, to be invested as provided by law, eliminating prior restriction on investing in stocks.

  • Increase Natural Resources Trust Fund cap on assets from $400 million to $500 million.

  • Allow the Natural Resources Trust Fund to continue to annually expend up to 33-1/3% of Fund royalties or other revenues, up to a new asset cap of $500 million.

  • Increase allowed State Parks Endowment Fund spending to include interest and earnings and up to 50% of funds received from Natural Resources Trust Fund.


Q: Will Proposal 2 raise my taxes?

NO. Proposal 2 does not raise taxes and has no affect on personal or business taxes because it makes changes to state trust funds and endowment funds.

Q: How will Proposal 2 affect me?

Many local park and recreation projects depend on the Michigan Natural Resources Trust Fund (MNRTF), for financial support and will directly benefit from Proposal 2. Over the past 25 years the MNRTF has provided more than $540 million for more than 1,290 projects in every county of Michigan. Future funding for a number of important local park projects will be jeopardized unless the voters approve the changes in Proposal 2. For example, the MNRTF has distributed more than $90 million in the tri-county area (Wayne, Oakland and Macomb) and $41 million for west Michigan (Kent, Ottawa and Allegan) for park development, urban greenways and rails-to-trails projects.

Q: What will Proposal 2 do for outdoor recreation?

Hundreds of millions of dollars from the MNRTF have been spent on state and local parks, natural areas, lakes and beaches, fishing piers and boat ramps, trails and recreation facilities. The Fund has also been used to purchase many in holdings, especially in southern Michigan, to create large tracts of land for wildlife and hunting opportunities.

There are already more requests for these outdoor recreation projects than is available from the MNRTF. In 2001, there were $92 million in requests and only $38 million available in grants. Without the investment changes in Proposal 2, a mere $12 million will be available.

Recreational opportunities at state parks will also be affected by Proposal 2. The State Park Endowment Fund helps pay for state park improvements and upkeep. By allowing additional spending on state park improvement projects, Proposal 2 will help make Michigan's state parks world-class recreation destinations.

Q: How does Proposal 2 help protect Michigan's environment?

Proposal 2 helps protect Michigan's environment by making more monies available for grants through the Natural Resources Trust Fund. One of the purposes of the Trust Fund is to protect land because of its environmental importance or scenic beauty. A recent example of this type of expenditure from the Fund is the purchase of 6,275 acres of Lake Superior lakefront at the tip of the Keweenaw Peninsula.

Q: How will these various Funds be invested under the changes being made by Proposal 2?

Proposal 2 will provide the State Treasurer with the authority to invest these funds in a multitude of ways including real estate, diversities, and stocks to name a few. Proposal 2 does not mandate these investments, but allows the State Treasurer to have those options if he/she believes they will be beneficial.

Q: Will Proposal 2 take state funding away from other worthy programs?

NO. Proposal 2 does not take funding away from other programs. Proposal 2 has no effect on other state programs because it makes changes to state trust funds and endowment funds that are supported by oil and gas royalties from state-owned land or other restricted revenue. In fact, Proposal 2 will make more dollars available for counties, cities, villages and townships.

Q: Who supports Proposal 2?

MI United Conservation Clubs, MI Chamber of Commerce, MI Recreation & Park Association, The Nature Conservancy- MI Chapter, MI Oil & Gas Association, MI Municipal League, MI Chemistry Council, MI Environmental Council, Trout Unlimited-Michigan Chapter, Brandon Township Board of Trustees, Grand Traverse Regional Land Conservancy, Headwaters Land Conservancy, Leelanau Conservancy, MI Karst Conservancy, North Oakland Headwaters Land Conservancy, The Conservation Fund, Outdoors for All Foundation, Public Sector Consultants

Q: Who opposes Proposal 2?

There is no known opposition to Proposal 2.

(Paid for by Funds for the Future Committee)


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Michigan Environmental Council
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Copyright 2002 Michigan Environmental Council