A Statistical Report of America's State Parks

Table of Contents

  1. Introduction
  2. State Park Areas
  3. State Park Facilities
  4. State Park Visitation
  5. State Park Finances
  6. Conclusions

5. Finance

Definitions for Financing

Expenditures are reported in two general categories: Operating expenditures includes only those expenditures for operation and maintenance of the state park system per se; excluded are other related expenditures for such things as grants-in-aid to other entities, debt service on bonds, etc. Fixed capital outlay expenditures are restricted to those expenditures for land acquisition, park construction, etc.

State park fiscal operations are major enterprises. In fiscal year 1994-1995 state park agencies had available over $1.5 billion for operating and fixed capital expenditures (see Tables 21 and 22) and generated over $500 million in revenue through a variety of sources. By any comparison, state parks is big business.

Expenditures for Financing

Operational budgets provide state park agencies with the ability to accomplish their day to day operations and long-term missions and the size of it is depicted in Table 21. Monies available for state park operations come from a variety of sources. The vast majority of these sources are state generated. Federal funds account for only 1.13% of all state operating budgets. The single largest source of funding comes from state general funds (48.7%) and is followed by appropriated revenues (money generated by state park operations) (28.4%), dedicated funds (9.1%), and unappropriated revenues (8.7%). The remaining sources constitute 5.1% of state park operating budgets.

Table 21: Sources of State Park Funds by Region
Sources of Funds
Region
Total Operational Expenditures
Unappropriated Revenues
Appropriated Revenues
General Funds
Dedicated Funds
Federal Funds
Other
Western$100,019,446 $9,424,906$32,194,706 $43,391,631$8,246,780$1,778,076 $4,983,347
Pacific$259,501,805 $0$100,976,125$104,498,840 $26,587,503$3,206,337 $24,233,000
Southern$370,965,380 $68,664,397$126,246,078 $126,306,341$38,726,730$878,869 $9,032,675
Northern$514,416,443 $29,679,873$94,745,649 $332,587,601$39,322,479$8,169,231 $5,872,129
Total$1,244,903,074 $107,769,176$354,162,558 $606,784,413$112,883,492$14,032,513 $44,121,151
% of Total100.0% 8.7%28.6%48.9% 9.1%1.1%3.6%

Between 1992 and 1996 the state general fund contributions to state park budgets declined from 52.4% to 48.7% of the total operating budget, although the actual number of dollars allocated increased by $35.4 million dollars. Also declining as a share of the total operating budget was appropriated and unappropriated revenues, but in each case by .6% or less. Dedicated funds increased from $68.6 million to $112.9 million or 64.6%. Federal funds increased by 43.6% or $4.3 million over the same period. Ranking third in increases was the "Other" category, accounting for an increase of $9.7 million (28.2%) to $44.1 million annually.

Table 22 illustrates the fixed capital outlay expenditures. The expenditures are restricted to land acquisition, park construction and the like and do not report expenditures for debt services on bonds sold for capital improvements. Funds committed to capital expenditures declined by $150 million between 1992 and 1996. A 5 year trend analysis shows that funds for capital improvements have decreased an average of 9.9% a year. The $426 million allocated in 1992 is the highest amount, while the 1996 amount is the lowest allocated during the period. The average was $343 million over the 5 year period.

Table 22: State Park's Share of State Expenditures by Region
Source of Funds

Region
Total FCO Expenditures
Unappropriated Revenues
Appropriated Revenues
General
Fund
Dedicated Funds
Bonds
Federal
Funds
Other
Western$36,911,457 $14,957$2,491,660$4,666,972 $12,867,312$4,212,974 $11,538,327$1,119,255
Pacific$35,085,260 $0$1,686,029$12,954,964 $9,516,470$8,442,000 $826,157$1,659,640
Southern$68,972,228 $1,684,790$2,670,772 $15,737,815$10,550,359$37,135,727 $576,858$555,907
Northern$134,801,989 $3,661,870$20,896,257 $9,044,782$20,017,125$23,683,435 $53,628,544$3,869,976
Total$275,710,934 $5,361,617$27,744,718 $42,404,533$52,951,266$73,474,136 $66,569,886$7,204,778
% of Total100.0% .8%3.3%19.3% 26.0%43.1%5.3% 2.3%

Bonds are the largest single source of funds for fixed capital improvements (26.7%). Federal funds, in 1996, were the second largest source of income. Federal funds, however, can be highly variable. In 1992 the Federal funding of state park capital improvements was 5.3%. To illustrate, between 1992 and 1996 Federal funding declined in two regions, increased by 404.4% in the Western region ($2.3 million to $9.3 million) and 465.2% in the Northern region from $9.5 million to $44.1 million. In the Pacific and Southern regions Federal contributions to capital expenditures were less than $1 million each.

Dedicated funds are monies from earmarked sources committed to capital improvements and were the third largest source of income, although this has traditionally been the second largest source of income for state park capital improvements. During the 1992 to 1996 reporting period the amount decreased by 52.1% or $57.7 million. An equally dramatic decline occurred in the allocation of general fund appropriations. The general fund appropriations declined by $39.9 million or 48.5%. Twenty-nine states did not allocate any general funds for capital improvements in 1996. This is an increase of 6 over the 1992 data when 23 states did not receive funding from the general fund. This depicts the continuing shift away from general funds as a key source for support of the state parks, in both operating and capital expenditures.

Appropriated revenues showed the largest increase in financial contributions, following Federal funds, between 1992 and 1996. Appropriated revenues share of the capital expenditures grew by 6.7% and $18 million. This reflects the continuing increase in expectations for parks to go further towards becoming more fiscally supportive of their operations.

Table 23 shows the impact of state park budgets on the total state budget. The left side of the table depicts totals by region. The right side depicts means by state. State park agencies average .22% or less than one-quarter of one percent of the state's operating budget. This figure does not include the expenditure of fixed capital outlay, but even if it was included it would change the results only negligibly. The highest percentage of operating expenditures occurs in the Pacific region while the lowest occurs in the Northern region. State park agencies share of state budgets has not changed since 1992. The sources of funds for operating budgets, however, did shift and is anticipated to continue shifting.

Table 23: State Park's Share of State Expenditure by Region
Totals by Region
Means by States within Region
Region
Total State Expenditures
State Park Operating Expenditures
Proportion
Total State Expenditures
State Park Operating Expenditures
Proportion
Western$40,376,445,000 $99,720,652 0.25% $3,364,703,750 $8,310,0540.25%
Pacific$93,399,564,000 $259,501,805 0.28% $18,679,912,800 $51,900,3610.28%
Southern$148,207,086,000 $362,713,252 0.24% $11,400,545,077 $27,901,0190.24%
Northern$273,052,996,000 $507,137,784 0.19% $13,652,649,800 $25,356,8890.19%
Total$555,036,091,000 $1,229,073,493 0.22% $27,751,804,550$61,453,675 0.22%

Revenue for Financing

Table 24 depicts the status of revenues within the state parks. Revenue in the reported categories was up 9.9% over the 5 year reporting period. Golf showed the greatest revenue increase at 36.3%. It represented 7.9% of the total revenue in 1996. The largest single source of revenue is camping. In 1992 in represented 24.9% of the total revenue versus 28.4% in 1996. Revenue increased $28.3 million over the 5 year period. The increase in revenues represents changes in fees. As reported elsewhere, the total number of campers between 1992 and 1996 actually declined by over 700,000. Three areas showed a decline in income from 1992 to 1996: Concessions (-1.1%), beaches and pools (-.2%), and other (-6.7%).

Table 24: Sources of Revenue Totals by Region
Total Revenue Generated from:
Region
Entrance

Fees
Camping
Cabins/ Cottages
Lodges
Concessions
Beaches/ Pools
Golf
Other
Total All Operations
Western$16,077,503 $11,418,162$2,728,344 $7,474$3,975,157$577,003 $997,148$16,018,134$53,024,022
Pacific$27,983,531 $37,237,508$136,228$99,681 $8,258,722$0$477,000 $6,203,331$80,350,054
Southern$21,992,699 $36,654,770$22,802,137 $32,000,648$8,253,218$2,347,759 $18,655,143$31,456,243 $208,251,395
Northern$47,974,193 $55,434,370$11,651,272 $7,736,321$12,007,537$1,960,315 $18,861,714$33,719,078 $194,059,154
Total$114,027,926 $140,744,810$37,317,981 $39,844,124$32,494,634$4,885,077 $38,991,005$87,396,786 $535,684,625
% of Total23.0% 28.4%7.5%8.0% 6.6%1.0%7.9% 17.6%

Entrance fees are the second largest source of income for state parks accounting for 23% of the total revenues. Between 1992 and 1996 this amount grew by 19.8% or $18.8 million. During this period actual use of the state park estate grew by 25 million visitors. While entrance fees may have increased in some areas, it would appear their increase has been minor and the majority of the increase in revenue has come from higher visitation rates.

Golf and Lodges are growing areas within the state park systems. Golf revenues increased by 36.3% and lodges by 23.9%. Golf courses are most dominant in the Northern and Southern regions, accounting for over 96% of all golf revenue generated. The Northern region showed almost a $6 million growth between 1992 and 1996. As in golf operations, lodges are predominantly a Northern and Southern region feature accounting for 99% of the revenue. The Southern region is particularly dominant with 80% of the revenue generated there.

Trends in Financing

State general fund appropriations are diminishing as a primary funding source for state park operations. It remains the single largest source of operating budget funds for state parks, but the importance of revenues and dedicated funds is increasing steadily. State park agencies are becoming, of necessity, more entrepreneurial. For example, state park support groups are growing. In 1996, 22 states had system wide support groups and 8 had system wide endowed funds. More importantly, individual parks are beginning to acquire support groups. The 1996 NASPD AIX reported 45 states with individual park support groups covering 626 parks.

Fixed capital outlay expenditures illustrated some of the same issues as depicted in the operating budget. The general fund is a key source of funds, but not the primary source of funds, accounting for less than 20% in 1992 and 15.3% in 1996. States are continuing to shift commitments away from general funds to other sources of revenue for all operations.

The sources of revenue operations are of continuing importance to the state park operating budgets. As has already been suggested, these sources of revenue will continue to have an even greater importance in the future.


Table of Contents
IntroductionInventoryFacilitiesVisitationFinancesConclusion
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