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Is Outsourcing Parks A Key To Solving The National Park Service's Financial Woes?

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Would it make sense to turn management of Bryce Canyon National Park entirely over to a business?/Kurt Repanshek

With a park system that is being strangled by its maintenance backlog and operating costs, would the National Park Service, and the system, be better off if the agency outsourced entire parks?

That isn't necessarily a ridiculous idea on its face. Already the Park Service contracts with others to manage its lodgings, restaurants, and many campgrounds, and it relies heavily on volunteers to cope with visitors. So why not go all in? Would it make a stronger, more efficient, and better managed park system if individual units were treated, say, as franchises that were independently managed? 

The idea was raised last month in Bozeman, Montana, during a three-day workshop the Property and Environment Research Center held on the next century of the National Park Service. The topic certainly is timely, as the Park Service's centennial arrives on August 25, 2016, and, at least outwardly, more emphasis so far has been placed on how to celebrate the agency rather than what can make the agency better going forward.

Understandably, with a maintenance backlog estimated at more than $11.5 billion, congressional appropriations relatively flat, and unwieldy concession operations, fiscal fitness should be a key aspect of any long-range planning by the agency.

From the perspective of one of the workshop's presenters, Holly Fretwell, the Park Service appears to be an inefficient agency that likely could benefit by placing the day-to-day operation of some, if not many, of its units into the hands of the business community.

'œTo me, if we thought about this from some sort of economic perspective, the point of the National Park Service, the reason that you would want sort of that umbrella entity, is to lower the transaction cost of having these parks function," Ms. Fretwell, a research fellow at PERC and an adjunct economics instructor at Montana State University, said in a follow-up interview. "If it'™s not doing that, if it'™s actually increasing the transaction costs, then it'™s not serving its purpose. And I think at this point it might be increasing those transaction costs."

Whether the Park Service's staggering fiscal morass is due to managerial pitfalls or congressional underfunding has been, and will continue to be, debated. By placing some units under outside managers -- franchisees could be one descriptor -- not only could lead the units to become economically viable, but also help control Congress's appetite for creating park system units that might not quite fit the mold.

Would a First State National Monument be any less if a non-profit organization ran it, much like the Mount Vernon Ladies Association runs George Washington's home? Should $8 million-$26 million in tax dollars be spent in the coming years to fund the proposed Blackstone River Valley National Historical Park in Massachusetts and Rhode Island, or should an outside group step forward with a plan to raise those funds on its own and operate such a park under the NPS umbrella?

'œWhy do we have a National Park Service anyway? What is the NPS, and what is it doing for us?" questioned Ms. Fretwell. "Is it providing a great service and helping us lower the transaction costs for us to have these wonderful parks, or is it not?"

There still would be a need for a Park Service, she went on, to manage park units that don't quite fit a business model but which we as a society still want preserved, either for their historical significance or natural resources. Units that might fit that description could include Buck Island Reef National Monument in the U.S. Virgin Islands, Mojave National Preserve in California, or St. Croix Island National Historic Site in Maine.

"I have a concern for these areas that are worthy of protection, but they can'™t pay for themselves. I don'™t want to cut those out and say everybody should be able to run as a franchise and everybody should be self-sufficient and everything'™s fine and dandy," Ms. Fretwell explained. "I do think that there are places worth protecting that will not be financially self-sufficient. I do think there are places for protecting that we do want people to recreate in that, sort of as a general populace, if they were privately run and managed the fees to go in there would be so high that most of us wouldn'™t be able to go.

"... I guess my big goal is to try to say how can we manage for those that can be better managed as a private sector or as public entity with sort of this franchise idea, because I don'™t think it'™s politically feasible or even politically appropriate at this time to say privatize them. I think that just turns too many people off. We'™re not going to get anywhere that way."

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Buck Island Reef, which protects "one of the finest marine gardens in the Caribbean Sea," might not lend itself to private management/National Park Foundation

While she sees possibilities for creating "franchises," if you will, Ms. Fretwell also believes prospective units of the park system could be better evaluated than they currently are if they had a groundswell of support and also met a currently undefined set of standards or parameters for being a "national park."

"If there'™s a big enough group that says we really should be protecting this because it'™s a wonderful recreation area and we don'™t want it to be developed ... in that sense then we should be able to make it reasonably self-sufficient and then by golly let'™s create a business plan," she said. "The way that you get into the National Park System now is you create a business plan and you figure out how you'™re going to manage this, and you apply for a franchise."

That approach already can be seen, to a certain extent, across the country. The Nature Conservancy manages many of its own properties, and even owns the majority (nearly 11,000 acres) of the Tallgrass Prairie National Preserve in Kansas and co-manages it with the Park Service. The Audubon Society owns and runs the Wellfleet Bay Wildlife Sanctuary on Cape Cod. These non-profits have developed successful business plans to operate lands that would seem natural additions to the National Park System.

"If it really is worthy to be there, then people need to see it'™s worthiness and its value for the long-term period, and you need to be able to generate revenues for it to cover the costs for the long-term," said Ms. Fretwell.

While the "national park" cachet is potent, and has led to efforts to rebrand units of the park system as "national parks," Ms. Fretwell doesn't fear that a unit operated by a business rather than the National Park Service would lose its drawing appeal.

'œIn my mind, it'™s still going to be a national park. It'™s under the National Park Service, and if you'™ve gotten that franchise then you've said, 'I am worthy and this area is worthy of National Park System status,'" she said. 

'œIs it (the NPS) helping us, helping the parks be more functional today, or is it making them more costly? I don'™t have an answer to that, it'™s sort of a rhetorical question. But I think it needs to be addressed.'

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Comments

 

The tight budgets and dearth of new national parks in recent years is due to a lack of political will, not available funds. The National Park Service budget is about $2.6 billion a year, or a mere 1/15 of 1 percent of the total federal budget. The average American household pays only $2.56 in taxes annually for the operation of our park system — a little more than a cup of coffee at Starbucks. 

 

The public supports adequate funding for the National Park Service: 90 percent of respondents in a 2012 bipartisan opinion survey said they support maintaining or increasing the National Park Service budget. This is because the agency's spending priorities are in line with those of the American people. About 85 percent of of the National Park Service budget goes directly to park protection, education, and recreation programs. In contrast, only 40 percent of the U.S. Fish and Wildlife Service budget is allocated to the National Wildlife Refuge System, 6 percent of the Forest Service budget goes to protection, education, and recreation programs, and 6 percent of Bureau of Land Management funding is devoted to the National Landscape Conservation System. 

 

The National Park Service budget could be expanded by reallocating federal funds from unpopular and questionable programs. Examples include annual subsidies of $8 billion to the nuclear industry, $16 billion to the fossil fuel industry, $17 billion to industrial agriculture, and $20 billion for the problem-plagued F-35 Joint Strike Fighter plane. The budget of any one of these extravagant programs could fund the National Park Service many times over. 

 

 

 

We can also afford to expand our National Park System. Most potential parks are already administered by other federal agencies, which have operating budgets that can be transferred with the land. Parks authorized to encompass private lands can be acquired through the federal Land and Water Conservation Fund, landowner donations, and private contributions. 

 

For major sites and landscapes of national significance, National Park System designation is usually more protective than state, local, or private ownership. Some state parks and municipal lands provide robust safeguards and excellent programs, yet the vast majority of these lands allow a variety of damaging industrial uses and have budgets that are far more limited than national parks. Private landowners and nonprofit organizations have preserved many important places, but they cannot offer the permanency of public ownership and — with the exception of a few high-profile sites — are chronically underfunded.

 


Thank you, Mr. Kellett, for a fine post.

There are just two problems with it.

It's true.

It makes sense.


Sorry about that.


Sorry Zeb. Evaluating the quality and motives of a source of information is not an ideological prism; it's a valid and necessary tool of scholarship.


We all know what other government programs COULD fund. However, chronic underfunding of the national park system was a problem long before the twentieth century, let alone the twenty-first. The railroads stepped in because they had to. Uncle Sam would not fund the parks.

What about American culture explains the phenomenon? Giving up an extra Starbucks for the parks is fine, but that is exactly the point Kurt is making. Given that Americans have never thought that way--and the parks are allegedly struggling to make ends meet--how would you convince the American public to make the investment, again, an investment they have never fully made?

Deep within our heart of hearts, we don't believe in the investment, either, as was pointed out at the conference. How many of us pay extra at the gate? How many of us are willing to dispense with our senior pass? Now 67, I have not paid an entrance fee at any national park for all of the past five years. PERC is asking us to put our money with our mouth is. That is what the article is all about.

Granted, our military obligations are out of control. And just wait until Ebola hits our pocketbooks. Then is there no merit in fanchising some of the parks? We essentially already do that with park concessions. Again, if you can convince America to give up a cup of Starbucks for the national parks, I'm with you. But you can't even convince wealthy seniors to give up their pass. So where does that leave us--still with no money for the parks. What I would like to know is how we solve that problem without blaming everyone else for being "frivolous."


The average American household pays only $2.56 in taxes annually for the operation of our park system

Michael, if I am not mistaken I think you are off by a factor of 10.  I think it is closer to $25 per household.  The latest figures I could find were for 2013 estimated number of households at 122,459,000


"What was not transparent was who funds PERC."

Three guesses...

http://www.sourcewatch.org/index.php?title=Property_and_Environment_Rese...

NPS budget: http://www.nps.gov/aboutus/budget.htm

According to Third Way, in 2011 my tax dollars sent $8.23 to NPS. $397 went to Iraq and Afganistan operations. I wish I could reverse that.

http://www.thirdway.org/taxreceipt

 

 


Hi wild,

Thanks for your comment. That was a 2013 figure from National Parks Conservation Association.

http://www.npca.org/news/media-center/press-releases/2013/new-infographi...

It also appeared in a number of publications.

/2013/11/npca-releases-new-graphic-support-calls-better-funding-national-parks24318

I have contacted NPCA and asked then for a citation for their figure.


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