A report from the Legislative Audit Division has found that landowners in Montana are paying a small share of wildfire protection costs, leaving the state to cover an annual subsidy of over $30 million.
According to the Daily Montanan, the audit focused on the Wildfire Assessment Program administered by the Department of Natural Resources and Conservation (DNRC) and recommended major funding reforms.
The report said landowners currently pay about 10% of wildfire-related costs, while best practices suggest they should be paying over 90%.
Between 2002 and 2023, the state spent more than $500 million on fire suppression.
In 2023 alone, Montana spent $23.1 million on suppression, $13.5 million on readiness, and $4.5 million on mitigation.
The Legislative Audit Division recommended redefining cost responsibilities so that landowners in high-risk fire areas pay a greater share.
It stated that the current system categorizes landowner contributions within readiness efforts, not suppression or mitigation.
The report argued that this leads to inefficiencies and underfunding of key fire response activities.
DNRC Director Amanda Kaster responded in a letter that the audit challenges the program’s philosophical and statutory framework.
Kaster said: “The Montana Legislature and stakeholders have confirmed and reinforced this distinction since the creation of the fire suppression fund in 2007, which is designated primarily for wildland fire suppression activities.”
She continued: “In contrast, the program base budget for wildland fire protection work has been widely understood to be intended for conducting work related to preparedness.”
Kaster added: “The audit report fails to recognize this distinction and risks misrepresenting the DNRC’s efforts to comply with statute.”
She further stated that decisions about funding models should be made by the Legislature, not the DNRC.
According to the audit, landowners paid $4.3 million in wildfire protection fees in 2023, with contributions limited to readiness spending.
The report said that aligning landowner contributions with total wildfire costs would bring their share to about 33%.
Best practices cited by the audit call for private landowners to pay 92% of wildfire costs, including suppression, readiness, and mitigation.
The DNRC has excluded suppression efforts from its definition of wildfire protection.
Governor Greg Gianforte signed House Bill 421 earlier in 2025, raising forest land fire fees from $50 to $58.70, and increasing per-acre fees from $0.30 to $0.49 for parcels over 20 acres.
The audit found that the fee collection system is outdated and understaffed.
One full-time DNRC employee, two support staff, and a seasonal intern manage the assessment process.
The report noted technical gaps in software understanding and a lack of updated property data.
It said: “Department staff spend significant time manually reviewing and updating information as part of the fee assignment process.”
It added: “Department staff stated they cannot determine if a fee should be assigned to over 2,000 properties each year due to a lack of time to review the properties and a lack of updated property data.”
The audit criticized the use of a 1958 national study by the Battelle Memorial Institute to set cost-sharing models.
The report said the model was never designed to apply to Montana specifically.
It recommended updating funding ratios based on state-specific wildfire risk and cost data.
An October 2024 presentation from the Legislative Fiscal Division noted that 63% of Montana homes are in the wildland urban interface, though only 1.5% of the land falls within this area.
The DNRC is directly responsible for 5 million acres and shares responsibility for 55 million more.
Federal agencies manage wildfire response on 33 million acres of Montana’s land.
The Legislative Audit Division released a report stating that Montana landowners pay only 10% of wildfire protection costs.
The report said the state provides an annual subsidy of over $30 million for wildfire efforts.
It recommended updating the funding structure and fee distribution.
Landowner contributions currently fund readiness but not suppression or mitigation.
In 2023, landowners paid $4.3 million in wildfire protection fees.
Montana spent $41 million on wildfire-related costs in 2023.
The DNRC said its current funding structure excludes suppression from wildfire protection.
Governor Gianforte signed HB 421 to raise fire protection fees for forest landowners.
The audit said the current fee system is outdated and understaffed.
Montana’s model is based on a 1958 national study not specific to the state.
The DNRC manages wildfire protection across 5 million acres and co-manages another 55 million.
Federal agencies handle fires on 33 million acres in Montana.
The audit called for revised funding ratios and clarified statutory definitions.
