House Bill 2362 (Fann, R - District 1): State Parks Revenue Fund

The State Parks system has been subject to periodic legislative fund sweeps dating back to 2003. Since 2007, staffing has decreased by 40% and operating funds have shrunk by half, to $19.5 million dollars this year.  Even some of the funds generated by the system itself ($15.5 million in park generated revenues since 2009) have been swept into the general fund.

HB 2362 is designed to protect the funds which are generated in the operation of parks. It establishes a State Parks Revenue Fund for operation, maintenance, improvement and park expansion. It provides:

• That monies received from the following sources will be deposited in the fund: designated gifts and donations, gift shop sales, legislative appropriations, park user, concession and reservation fees and other generated revenues;
• Continuous appropriation to the Parks Board;
• On notice from the State Parks Board the State Treasurer shall invest the fund and interest will be credited to the fund;
• Unspent monies will remain in the fund and not lapse to the general fund.

State Parks are facing partial closures and reliance on funding from local governments and nonprofits. There are also millions of unmet needs in deferred maintenance and capital improvements. While this legislation does not address all these issues, it provides some relief and incentivizes creative fund generation by the park system. It establishes the State Parks Revenue Fund as a non-appropriated fund which enables the Arizona State Parks Board to determine how those revenues will be spent. This provides some flexibility for the ASP Board to address park operations, maintenance and development (capital needs) of the park system.

Passage of this bill is critical for ASP to maintain and enhance the many parks on Bureau of Land Management land.  The BLM owns many of the parks that the agency manages (e.g. Buckskin, Cattail Cove, Homolovi, Lake Havasu, Lost Dutchman, Lyman Lake, Picacho Peak, Red Rock and Roper Lake). These parks were provided to the state at little or no cost. BLM requires that revenues generated by concession agreements at these parks must be spent on State Park purposes. This legislation is necessary to avoid loss of Federal leases and to expand private concession opportunities on BLM leases.

HB 2362 impacts:

• Among state government agencies, Arizona State Parks is uniquely equipped to re-invest earned revenues back into state assets toward operation, maintenance and capital needs of state parks.
• Non-appropriated, Arizona State Parks earned revenue will not be subject to sweeps or fund transfers thus enabling the agency to plan or budget annually with assurance that earned income will be available to support the park system;
• Privatization in our most visited, BLM – owned parks (Lake Havasu, Buckskin Mountain, Cattail Cove, Lost Dutchman, Lyman Lake, Picacho Peak, Red Rock and Roper Lake);
• Ability to maintain existing Partnership Agreements currently enabling the operation of 14 of 28 Arizona State Parks now open to the public.

Why Parks and Open Space Matter -
The Economics of Arizona's Natural Assets by Arizona Forward
Arizona Forward, a business-based coalition vested in enhancing the state's environmental quality, has developed a parks and open space primer to provide unbiased facts, background information and answers to frequently asked questions on this important topic.  A section of this primer is devoted to Arizona State Parks and confirms the economic benefits of our state parks to regional economies and the State of Arizona.  Link to the primer (.pdf) by clicking on the title above.

Economic Value of Arizona State Parks
The Arizona State Parks system is among the most threatened public park systems in the United States.  While the natural beauty and open spaces of Arizona are seen by citizens as our greatest asset*, many residents and government representatives do not recognize or understand the significant economic impacts (retail spending, tax revenue and jobs) that state parks have on the Arizona economy.

In an effort to inform park users and non-users of the economic value Arizona State Parks brings to our communities, counties and state, Arizona State Parks Foundation has developed Economic Impact Statements (.pdf) for each state park in the system.  These simple park by park statements are listed on our Impacts page alphabetically, by county and by voting district.

Arizona State Parks Foundation urges you to evaluate the EIS of your favorite state park and those within your county and voting district.  Our state parks contribute to the economic vitality of your community, county and the state, yet the state park system receives NO financial support from the state general fund for park operations and is repeatedly targeted by the Arizona State Legislature for fund sweeps and transfers of the revenue state parks earn at their entry gates and gift shops.

Your support is critical to Arizona State Parks ability to contribute to the aesthetic and economic value of Arizona.

Take our message to your mayor, your county supervisors, your chamber of commerce and your representatives in the Arizona State Legislature:
 
1) All fund sweeps and transfers must stop.
2) Support any legislation created to secure a stable and voter-protected funding source for the sustainability of Arizona State Parks.

* The Arizona We Want report was issued in 2009 by the Center for the Future of Arizona and developed from responses to the largest Gallup survey ever conducted in Arizona.

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As part of a responsible solution to the issues that challenge Arizona State Parks, the Arizona State Parks Foundation funded a highly regarded team of nationally known experts on park operations,
PROS Consulting of Indianapolis, Indiana to analyze privatization of Arizona State Parks and to develop a blueprint for an alternative model of operation for the Arizona State Parks system.

The result of this analysis is the study "Arizona State Park Privatization and Efficiency Plan."
Link here to download the full study.
Link here to download the Executive Summary.

ADDITIONAL RESOURCES:

The 2007 Arizona State Parks Economic Impact Study conducted by Northern Arizona University demonstrates the indisputable economic value of state parks.

2008 Arizona State Parks Visitation Estimates

Arizona State Parks Revenues FY2008-2011

Link here to Arizona State University's Morrison Institute for Public Policy
October 2009
"The Price of Stewardship: The Future of Arizona's State Parks"

This report lists the dangers facing Arizona's 31 state parks, in light of continued population growth and budget cuts.  It also offers solutions to the funding crisis, including potential revenue options to provide stable, sustainable funding for Arizona's state parks.