Land Board Hearing Recap - May 20, 2025

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Land Board Hearing Recap

Tuesday, May 20, 2025

All board members present
Review the Final Agenda
Download the Meeting Materials

Department Report

Timber

Attachment: Trust Land – Timber Sales
April Timber Sales:
- 7 endowment timber sales sold at auction.
- 5 sales had competitive bidding.
- $4.4 million upbid over appraised value.
- 33.5 million board feet sold for $11.6 million ($342.45 per thousand).
May Timber Sales:
- 7 sales, 34.6 million board feet offered.
- Valued at approximately $7.5 million.
Current Timber Contracts:
- 478 million board feet under contract.
- 164 active contracts valued at $132.7 million.
Fiscal Year to Date (FYTD):
- $73.8 million in timber receipts.
FY25 Timber Sale Program:
- 295 million board feet either sold or in process.
- 90% of the offered volume from sales plan completed.
Performance Metrics:
- Exceeding 3-year average for timber harvest receipts (107%).
- 104% of 3-year average for volume harvested.
Stumpage Prices:
- April stumpage price: $300 per thousand.
- April 2020 stumpage price: $235 per thousand.
Market Conditions:
- Tariffs impacting building material costs are mostly suspended.
- Market response to tariff suspension is being monitored.

Leases & Permits

Attachment: Trust Land – Leases and Permits
April Endowment Transactions:
- 18 instruments issued (leases, lease assignments, permits).
- 11 deeds issued for a cottage site sold at Priest Lake auction.
Leasing Revenue:
- $7 million in fiscal year-to-date revenue.
- On track with revenue projections, despite fluctuations in some categories.
- Disparity in grazing revenue due to processing and outstanding payments.
Permanent Fund Revenue and Royalties:
- Over $2.3 million deposited into the Permanent Fund this fiscal year.
- Tracking above the three-year average.

Pre-Season Fire Brief

Attachment: Pre-Season Fire Brief

Wildfire Outlook:
- May: Normal fire potential statewide.
- June-August: Increasing areas of above-normal fire potential, especially in northern Idaho.
- Above average temperatures and below average precipitation expected through September.
- Moderate drought conditions in northern Idaho and Idaho-Montana border may lead to an earlier fire season.
- Snowpack is above 75% of normal, but rapid snowmelt could reduce its mitigating effects.
Current Fire Activity (as of May 13):
- 43 fires, covering 40.7 acres, mostly from debris and grass burning.
- Idaho has already deployed resources to 8 other states.
IDL Resources:
- Aerial Assets: Type 1 helicopter contract in progress; 4 Single Engine Water Scoopers (SEWS) and 4 Single Engine Air Tankers (SEATs) stationed in the state.
- Ground Resources:
  - 20-person Type 2-IA Hand Crew (Teakean Crew).
  - 6-person Northern Idaho Suppression Module.
  - 50 engines (5 new strategic engines) with 26 fully staffed by start of the fire season.
  - Evaluating contracting additional engines to meet needs.
Eastern Idaho Fire Protective District (FPD):
- Fire Warden and Assistant Fire Warden hired.
- Recruiting for 3 vacant positions: Assistant Fire Warden, 2 Engine Captain positions.
- Seasonal crew of 8-10 firefighters hired.
- District boundaries defined, local agreements with federal partners being finalized.
Staffing & Readiness:
- 20 out of 29 Resource Foreman positions filled.
- 15 out of 19 Assistant Fire Warden positions staffed.
- All 13 Fire Warden roles filled.
- Some gaps remain in Engine Boss and Incident Commander Type 4 roles.
- 40-60% of engines fully staffed with seasonals and Resource Foremen; additional fire management support needed for 7-day coverage.
Strategic Plan:
- Recruitment and retention remain a focus.
- Non-fire IDL staff to assist in staffing engines as needed.
- Legislative support for wildland firefighter bonuses planned.

Endowment Fund Investment Board

Attachments:

Financial Report Overview:
- Fund up 0.7% for April, up 4% for fiscal year-to-date.
- Market volatility due to tariff announcements by President Trump.
- Markets saw a 10% jump following tariff news and agreements with China.
- Positive performance over the last two weeks.
Investment Performance:
- Small cap value manager underperformed, but performance improved in May (+12.6% and +6.4%).
- Outperformed in May, but still 6% off benchmark.
Asset Overview:
- Growth in assets driven by department's effective management and strategic reserve building.
- 4.6 billion overseen by EFIB
  - $3.3B: Land Grant Endowment
  - $1.1B: State Insurance Fund
  - Others: DEQ, Fish & Game, Parks & Rec, Idaho Dept. of Lands
- Reserves nearing 7-year target for all funds.
- Consistent distributions to fund beneficiaries with $110M approved for FY 2026 distributions.
School Bond Credit Enhancement Program:
- The program provides credit enhancement for schools issuing bonds for new construction.
- Less impact due to AAA state credit rating
- Currently, $475 million in loans with credit enhancements
- Saves districts ~$20K per $40M annually.

Regular Agenda

Timber Reclass: Benewah Parcels

Attachment:Timber Reclass: Benewah Parcels
Approved:4-1

Benewah County Parcels:

Proposal to reclassify land from asset class to residential, with intent to dispose of parcels.
Two parcels totaling 16.8 acres are proposed for reclassification from Timberland to residential. Both parcels are appraised at $75,000 each with a highest and best use of Rural Residential (details in Attachments 3 and 4).

- Pierce Creek: 8.3 acres, south and east of State Highway 3. Emerald Creek Garnet Co. is the neighboring landowner and previous lessee of the parcel.
- Wilson Mountain: 8.5 acres, north of State Highway 3; no leases; surrounded by rural residential/agricultural land.
Discussion about the fiduciary responsibility of the Land Board in managing land assets.
Plans and internal agency guidance provided for classification and investment of land parcels.
Attorney General:
- Asserts Idaho Code § 58-133(1) clearly prohibits the sale of certain classified lands (e.g., forestry, watershed).
- Believes statute is unambiguous and reclassification for sale is not permitted.
- Emphasizes constitutional duty must follow statutory limits unless changed by the legislature.
- Opposes the proposed reclassification for sale as outside current legal bounds.
John Richards (IDL General Counsel):
- Acknowledges statute is vague and subject to interpretation.
- Argues Land Board retains authority to reclassify lands, especially endowment lands, to meet constitutional trust obligations.
- Cites case law (e.g., Watershed II) suggesting the legislature cannot force the Board to act against the beneficiaries' interests.
- Suggests constitutional authority is "self-executing" when statute is silent on specific procedures.
Disagreement:
- AG and Richards differ on whether statute is ambiguous and whether constitutional obligations override the statutory restriction on sale.
- AG emphasizes reclassification is allowed, but not for the purpose of sale.
- Richards maintains that allowing reclassification including for potential disposition is a reasonable and legally supportable interpretation.
Other Officials’ Comments:
- Secretary of State:
  - Suggests the statute is procedural, not substantive, and may not lawfully restrict trustee duties.
  - Believes Legislature can’t override constitutional fiduciary duties to the endowment beneficiaries.
- Superintendent:
  - Questions historical precedent; Richards notes it's rare but not without precedent.
- Controller:
  - Raises operational concerns; suggests this could shift department philosophy.
  - Supports reclassification where it meets fiduciary obligations and best use of land.
- Jim Elbin:
  - Clarifies only ~0.4% of land may be reclassified.
  - Reiterates goal is not to diminish holdings but to improve and optimize them.
  - Describes reclassification as a last resort, with lease or exchange as preferred options.
- Dustin Miller:
  - Supports reclassification if it better serves endowment.
  - Notes that land use has changed, making traditional forestry harder to manage in some areas.

Information Agenda

None

Executive Session

None

Resolution for Carl Crabtree

Summary of Governor’s Tribute and Resolution Honoring Carl Crabtree:

Governor's Remarks:
- Paid tribute to former Senator Carl Crabtree, recognizing his extensive service to Idaho and the Land Board.
- Commended Debbie Critchfield for her memorial service speech.
- Described Carl as a model public servant, active in youth, agriculture, and legislative work.
Resolution Highlights:
- Carl Crabtree:
  - Born May 17, 1952; raised near Kooskia, ID.
  - Earned a Plant Science degree from the University of Idaho.
  - Had a long career in agriculture, education, and public service.
  - Managed 4-H programs for 27 years; active in the cattle industry.
  - Served as State Senator (2016–2022) for District 7.
  - Advocated for early literacy, all-day kindergarten, and dyslexia policy.
  - Honored by Idaho School Boards Association and Lewis-Clark State College.
  - Worked with Idaho's five tribes on Indian education.
  - Known for his humor, warmth, and resilience in fighting cancer.
Final Action:
- Land Board formally adopted the resolution by acclamation.
- Resolution to be recorded and shared with the Crabtree family.

Adjournment

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