SACRAMENTO - A state commission on Thursday rejected $1.1 million for operating far southeastern California's Imperial Sand Dunes Recreation Area, which draws 200,000 or more often rowdy off-road enthusiasts and party-seekers on holiday weekends. Denial of the funds "will have a significant impact" on the dunes and the more than 3 million people who visit there annually, said the federal Bureau of Land Management, which oversees the site. The money was to be used for visitor services including sanitation, trash removal and environmental monitoring. The BLM said it may have to raise fees, cut services, or divert money from other desert recreation areas. Thursday's decision was criticized by off-road advocates but praised by environmental groups that say the Algodones area's popularity threatens the desert habitat. The decision comes a month after the same state panel approved the entire $292,000 law enforcement budget the BLM sought for the site. The BLM has increased patrols and citations over recent holidays for frequent violations involving public nudity, riding in open truckbeds and organized parties. Over Thanksgiving 2001, activities culminated in a fatal shooting, several stabbings and more than 150 injuries, though a slightly smaller crowd was relatively more subdued last year. "It looks like public services are going to suffer and recreation is going to be impacted by this," said Don Amador, western representative of the Blue Ribbon Coalition, an off-road group. "It doesn't bode well for management of our public lands for off-road recreation." Under the Bush administration, however, the BLM is expected to release this spring or summer new rules opening 49,000 previously closed acres of the desert to a number of off-roaders with permits. The new land management plan includes no provision limiting the overall number of visitors to the dunes. Motorists can now freely roam 68,000 acres, or 106 square miles. Daniel R. Patterson, desert ecologist with the Center for Biological Diversity in Idyllwild, said a new environmental majority on the Off-Highway Motorized Vehicle Commission was concerned about the plan. The BLM's request was rejected on a 4-3 vote. The same panel last fall rejected a U.S. Forest Service request for $400,000 for winter recreation programs in the Lake Tahoe Basin and along California 88 both east and west of the Kirkwood ski resort and Carson Pass.