DNR Letterhead

BILL ANALYSIS

BILL NUMBER:	HOUSE BILL 4956 (AS INTRODUCED)
TOPIC:	Waive park entry fees for 4 weekends per year
SPONSOR:	Representative Horn
CO-SPONSORS:	Representatives Crawford, Haines, Stamas, Kowall, Moss, and Knollenberg
COMMITTEE:	Tourism, Outdoor Recreation and Natural Resources
Analysis Done:	June 2, 2009

POSITION

The Department of Natural Resources (DNR) opposes this legislation.

PROBLEM/BACKGROUND

Various research indicates a general societal trend away from engaging in outdoor recreational activities. A recent national parks study indicates a decline in national park attendance of nearly 25 percent in the past 15 years. Books such as "No Child Left Inside" and "Last Child in the Woods" document a significant decline in outdoor play by the youth of America. Causal factors include the significant rise in the use of computer games, the internet, and other "screen-based" activities coupled with parental fears regarding child abductions and other perceived dangers. The average child today spends less than 45 minutes per week engaged in unstructured outdoor play. Clearly, there is a need to re-introduce an entire generation to the benefits derived from engaging in outdoor recreational pursuits. Additionally, changes in the structure of the Michigan business economy and the decline in manufacturing jobs have elevated the need to encourage tourism throughout the state.

DESCRIPTION OF BILL

House Bill 4956 modifies MCL 324.74117 to require the DNR to waive the park entry permit requirement for four weekends (Saturday and Sunday) each year, one weekend in each of the four seasons.

SUMMARY OF ARGUMENTS

Pro

This bill may encourage additional state park visitation by non-traditional users and boost local economies through tourism.

Con

The majority of funding for the operation and maintenance of state parks and recreation areas is derived from the sale of Motor Vehicle Permits (MVP) and camping fees. Since FY 2004, when the Parks and Recreation Division lost all General Fund support ($9 million at that point in time), the revenue derived from these two sources has become absolutely critical to the continued operation of the system. A "typical" July weekend will generate approximately $320,000 in MVP sales. Although free park entry during the other three seasons would have less financial impact, factoring an anticipated summer weekend loss of this magnitude into the annual operating budget would result in reductions significant enough to negatively impact park visitors throughout the year.

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a) Department

Budgetary:

Costs incurred by increased utility use and the need to increase staffing in order to serve larger crowds may exacerbate the operational funding problem brought about by the anticipated loss of revenue.

Revenue:

Annual revenue loss from the offer of free entry on four weekends in a year could exceed $375,000.

Comments:

This free entry mandate will erode the Department’s ability to provide quality services throughout the year. While encouraging additional use of state parks is certainly within the mission of the Department, programs designed to boost tourism or generate interest in the outdoors should not be “funded” by the agency providing the services, especially if the agency is virtually self-funded. The revenue that will be lost by implementing a program to waive park entry permit requirements for four weekends will serve as a significant impediment to the Department’s efforts to sustain current levels of service and support for the continued operation of the park system.

(b) State

Budgetary:

N/A

Revenue:

N/A

Comments:

None

(c) Local Government

Comments:

None

OTHER STATE DEPARTMENTS

N/A

OTHER PERTINENT INFORMATION

This bill is virtually identical to HB 6203 of 2008.

The Department suggests that the goals of encouraging additional tourism, reducing barriers to non-traditional users and encouraging healthy outdoor recreation are laudable. However, the Department would encourage a cost-recovery mechanism be built into this concept to avoid reductions in service to visitors who will be paying for entry during the rest of the year, thus, subsidizing the effort.

Passage of the Recreation Passport bills (SB 388 & 389, HB 4677 & 4678) which eliminate the need for a MVP would make this legislation unnecessary. Additionally, this bill does not address the current sunset date of the MVP Act due to expire on December 31, 2009, nor does it provide for the increases to the MVP fees that were proposed in the FY 2010 Executive Recommendation.

ADMINISTRATIVE RULES IMPACT

Rules can be promulgated to provide for administration of the act.

_______________________________

Rebecca A. Humphries

Director

_______________________________

Date

PRD/BSS