|
Tuesday, March 18, 2025
Department Report
Timber
- Attachment: Trust Land – Timber Sales
- Timber Sales:
- Five endowment timber sales and one Good Neighbor Authority (GNA) timber sold at auction.
- All the endowment sales that sold had competitive bidding. The net sale value represents a 69% increase over the appraised price.
- One endowment timber sale did not sell at auction on its third attempt.
- Over 12 million board feet sold at an average price of $293 per thousand board feet.
- Additional 2.5 million board feet sold at $67.69 per thousand.
- 35 million board feet under appraisal, valued at $7.6 million.
- 151 contracts, 439.8 million board feet under contract, valued at $123 million.
- Current price per thousand board feet at $280, exceeding the three-year average of $267.
- Revenue:
- Fiscal year-to-date revenue: $67.7 million.
- Expected revenue: $6.3 million in March, seasonal decrease in April-May, recovery in June.
- Fiscal 2025 Program:
- 220 million board feet sold, advertised, or under review, 67% of the 320 million target.
- Exceeding past policy limits due to program growth.
- Market Trends:
- Lumber prices and storage revenues increasing.
- February 2025 six-month average price: $282 per thousand vs. $228 in February 2024.
- Price increases more due to supply curtailments than demand growth.
Legislative Summary
- Attachment: Legislative Summary
- Legislative Rules: 7 dockets of rules passed through House and Senate committees.
- Budget Updates:
- Budget set on March 14.
- JFAC made a net-zero technical correction, now included.
- Key Bills:
- House Bill 129 (Land Bank Extension): Passed House, pending possible amendment in Senate.
- Senate Bill 162 (State Land Leasing): Passed Senate, awaiting House committee hearing.
- House Bill 226 (Mines & Mining Tax): Passed both House and Senate, adjusts abandoned mine lands fund.
- House Bill 389 (Fire Nuisance Declaration): Passed House committee, allows state intervention for wildfires.
Endowment Fund Investment Board
- Attachments:
- Market Volatility: February saw fluctuations due to tariffs and consumer confidence concerns.
- Fiscal Year Returns:
- February return: -0.1%, bringing fiscal year return to 6.2%.
- March decline: -1.5%, reducing fiscal year-to-date return to 4.6%.
- Market Influences:
- Ongoing trade and tariff negotiations affecting confidence.
- Weakening consumer confidence, reduced spending, and labor market challenges.
- AI competition, with Chinese firms promoting cheaper alternatives, impacting tech stocks.
- Markets seeking clarity; volatility expected to continue.
- Positive Developments:
- European industrial rebuilding, military spending, and real estate showing strength.
- Real estate sector has posted positive quarters.
- Investment Management:
- Clearwater Advisors hired as a local investment manager, they also manage a portion of the State Insurance Fund investments.
Consent Agenda
Timber License Plate Fund
-
Timber Plate Funds:
- Generated from sales, transfers, and renewals of Idaho’s timber license plates.
- Funds designated for education and reforestation.
-
Proposed Fund Allocation:
- Expend $100,500 on educational efforts for calendar year 2025 (current balance: ~$117,000).
- Funding requests include:
- Arbor Day and reforestation education.
- Teacher tour to educate educators about forestry.
- Opinion leader tour for lawmakers and decision-makers.
- New $20,000 request for workforce development education in the timber industry.
-
Support & Feedback:
- Superintendent praised the teacher tour as well-received and impactful.
Regular Agenda
Modernizing Wildland Fire Operations Facilities: Seek Concurrent Resolution
- Attachment:Modernizing Wildland Fire Operations Facilities: Seek Concurrent Resolution
- No action taken
-
Proposal Details:
- Conceptual design: Pre-engineered metal buildings.
- Estimated cost: $45–$50 million.
- Locations: High-need districts (not on endowment land).
- Partnership with Idaho State Building Authority (ISBA) for site-specific agreements.
-
Legislative Process:
- Requires a Concurrent Resolution from the Idaho Legislature to begin discussions with ISBA.
- Resolution does not commit funds but allows for planning and cost estimation.
-
Challenges & Concerns:
- Timeline: Legislative session is close to wrapping up so the focus shifts to next year.
- Board members expressed concerns about prioritization, alternative funding, and borrowing such a large sum.
- Need for a site-by-site prioritization of facilities.
- Consideration of partnerships with local fire departments.
-
Outcome:
- Proposal not rejected but requires more details and prioritization.
- Further discussion planned, with an updated fire strategic plan to be presented next month.
Information Agenda
Executive Session
Adjournment
|
|
|
|
