Michigan State Parks and Recreation System

Ronald A. Olson, Chief Parks and Recreation Division Department of Natural Resources Desired Outcomes…

 Serve residents and non-resident tourists by providing affordable outdoor recreation experiences  Generate lifelong memories  Preserve a 92-year legacy of the Michigan system  Preserve and enhance public access to Michigan’s lakes & rivers  Preserve and protect the unique cultural, historical and natural resources found in the state parks Governor’s Blue Ribbon Panel on State Parks and Outdoor Recreation Recommendations:  Identify and protect important natural, cultural, historic, and prehistoric resources for the enjoyment and education of Michigan’s residents and visitors, and expand efforts to engender stewardship of those resources.  Diversify funding and use new criteria to target investments toward achieving the outcomes articulated in this report. Governor’s Blue Ribbon Panel Recommendations on State Parks and Outdoor Recreation  Make the development of statewide and regional systems of connected trail networks one of the state’s highest priorities for outdoor recreation investment over the next ten years.  Encourage greater connections between communities and their recreational assets to strengthen regional identities.  Use parks and recreation areas as a key tool for revitalizing Michigan’s core urban areas by creating four to five Signature Parks and integrating green infrastructure into Michigan’s urban redesign and redevelopment efforts. Governor’s Blue Ribbon Panel Recommendations on State Parks and Outdoor Recreation  Integrate tourism and economic development marketing in order to fully leverage the economic and social benefits that parks and outdoor recreation resources can provide.  Prioritize investment in the safety and maintenance of, and access to, parks and recreation spaces. Department’s Priorities

Four Priorities of the DNR:  Renewing our Emphasis on Customer Service  Building Strong Support for the Recreation Passport  Increasing Resident/Visitor Participation in Outdoor Recreation and Stopping the Decline in Hunting & Fishing  Fostering the Growth of Michigan's Natural Resource- Based Economy Why We Do It…

 Great states have great state parks  To preserve and enhance the quality of life in Michigan  To provide convenient access to recreation opportunities for Michigan citizens  all citizens are within a 1 hour drive of a state park  To partner with other recreation providers to boost tourism in Michigan and sustain & enhance the economy  state parks are attractive to businesses Who We Are…Parks and Recreation Opportunities

 101 diverse state parks and recreation areas  Host 24 million visitors annually in state parks  285,150 acres  14,173 campsites  1,085 miles of non- motorized trails, which includes 5 state park linear trails  12,500 mile trail system, which includes  Outdoor recreation in state forests (134 campgrounds) ORV and snowmobile trails Who We Are…Boating

 Michigan ranks among the top 3 states in the nation for registered boats  1,100 developed public launch sites  850 operated by the Recreation Division  63 Grant-in-Aid Harbors  17 State owned Harbors of Refuge  Harbor partners complete the Harbor of Refuge necklace around the Great Lakes Who We Are…Michigan Trails System

• Grant Applications • Acquire • Develop • Grant Administration • Recreation Improvement Fund • Recreation Trails Program • Manage Partnerships Pure Michigan Trails TheThe Trail Trail Partnership Partnership

Michigan Department of Transportation Michigan Department of Natural Resources National Park Service – Rivers and Trails Local Governments Mid-West Michigan Trail Authority The Meijer Foundation Fred Meijer Friends - River Valley and CIS Biking & Hiking (Non-Motorized)

Water Trails

ATV/ORV (Motorized)

Snowmobile (Motorized) How We Are Funded…

 Michigan State Parks  No general fund taxpayer dollars since 2004  Use Fees (camping, park entry, concessions)  Michigan State Parks Endowment Fund via mineral & gas royalties  Michigan Boating  Gas Tax (1.6% of gas tax)  Boat registrations  User Fees (boat slips, boat site entry, service fees)  Federal Funds  Trails and Outdoor Recreation in State Forests  Camping Fees  Snowmobile and ORV Permit Fees

(Source: FY2011 data) State Parks & Recreation System 2013 Estimated Revenue Sources Total Revenue = $134,624,600 (General Fund = 0.2%)

Waterways $21,721,800 Park Endowment 16% Sources: $52,072,600 Gas Taxes 61% 39% Boat Registration 23% Rec. Passport 5% Sources: Harbor Res. 4% Gas/Oil/Mineral Royalties Others 7% Available to spend: 43% Returned to Corpus: 43% Investment Earnings: 14%

Trails $16,092,500 12% Park Improvement $44,737,700 33%

User Fees: Snowmobile Permit 48% Camping 59% ORV Permit 20% Park Entry 39% Forest Recreation 11% Others 2% Snowmobile Registration 8% Others 13% State Parks and Recreation System 2013 Appropriations Total Appropriation = $123,532,600

Boating Access Sites, Harbors, State Parks and Recreation Program & Local Facility Grants, and Operations and Capital Improvements Capital Improvements

Waterways Park Endowment 25% 22% $31,351,100 $27,629,600

Trails Park 17% Improvement $20,525,000 36% $44,026,900

Operations, Programs, Grants, and Capital Improvements State Parks and Recreation Program & Operations and Capital Improvements Compared to Other States…

 Michigan State Parks  2nd in campground revenue generation  2nd in the number of campers (California #1)  10th in overall visitation  32nd in the number of full-time employees  47th in total capital infrastructure expenditures  Last in state tax funding support (zero)  Spending $2.11 per visitor to provide services, 43% below the national average of $3.70 per visitor*  Michigan Boating  3rd in Boat Registrations  Trails  #1 in Rail-Trail miles Economic Impact…

 Michigan State Parks  State Park operations (camping/day use) contribute $650 million annually to local economies  Each dollar spent to provide recreation opportunities in State parks returns $13 to local economies  In 2010, out-of-state residents represented 30% of daily entry permit sales and 10% of annual permit sales  Michigan Boating  Nearly 1 million registered boats  Recreational Boating contributes $2 billion annually to local economies Funding Change

 In 1976 = 70% general tax funds  In 2004 = 0% general tax funds  Ballot initiative to constitutionally restrict funds  Completed an updated strategic plan, “Sustaining 90 Years of Excellence”  Applying a public service business approach to operations and maintenance  To retain a fund balance-internally withheld $2.8 million of appropriation for 4 years  Reduced permanent staff 13.2% since 2000  Initiated market-based fee adjustments  Kept ALL state parks open  Guided by a citizens advisory committee  Initiated innovations and partnerships What is the Recreation Passport?

 On October 1, 2010, the Recreation Passport became the annual entry pass to state parks, boat launches for outdoor adventures ($10 vehicles, $5 motorcycles) • Non-Residents purchase daily ($8) or annual ($29) for park/BAS entry o Effective January 2013, the Recreation Passport increased to $11 based on the CPI; motorcycles remained at $5 • Non-Residents daily ($8.40) or annual ($30.50) o Provides funding for park infrastructure (50%), augments funding for park operations (30%), state forest campgrounds and recreation trails (7%), cultural/historic restoration (2.75%), and provides a new matching grant program for local park and recreation entities (10%)  Provides opportunity for Michigan vehicle owners to voluntarily participate in funding State Parks  Replaces state park and boat launch stickers, a 58% reduction in annual fee (was $24 annual and $6 daily) Where did the Recreation Passport concept originate?

 The Citizen’s Committee for Michigan State Parks was charged with finding a sustainable funding source for State Parks  Assessed numerous options and adopted the Montana model and submitted the idea to the Legislature  A series of 4 bills were introduced in a bi-partisan, bi-cameral approach and the Governor signed the bills into law on April 1, 2010  The program was launched by the Department of State through the Secretary of State vehicle registration program on October 1, 2010 Why the Recreation Passport? o Sustainable funding for infrastructure repair and replacement o One of the primary goals from the strategic plan o The State parks documented over 600 projects o Current cost of infrastructure projects is over $300 million o Less than 1% of infrastructure needs have been met annually Location: , Lake Macatawa Toilet/Shower Building Issue: Roof Leaking Through Light Fixtures Photo Date: 2008 1,345 Buildings23 System WIde Location: Ionia Recreation Area Issue: Deteriorated Road System Photo Date: 2007 468 Miles of Paved Roads & 43,092 Parking Spaces System Wide

24 Location: South Higgins Lake State Park Issue: Sanitary Sewer Manhole Collapse Photo Date: 2007 49 Wastewater Lagoons, 232 Septic Fields & 68 Sanitation Stations System Wide

25 Location: Tahquamenon Falls State Park Issue: Failing Foundation Footings at Observation Platforms Photo Date: 2008

26 Location: Issue: Failing Bridge27 Structural Support Photo Date: 2007 Location: Issue: Inadequate and Failing Electrical Service Photo Date: 2008 14,173 Campsites with Electrical Service System Wide

28 Location: Pinckney Recreation Area Issue: Seasonal29 Campsite Flooding Photo Date: 2007 Location: Issue: Outdated Concession and Beach House Buildings Photo Date: 200730 Infrastructure Prioritization

 Resolve health and safety compliance issues  Directly serve the public and enhance the visitor experience  Respond to core infrastructure needs (utilities, buildings, roads…)  Greatest positive impact to the public  Committed public/private partners with associated funding  Enhance the ability to generate or sustain revenue  Improve overall operational efficiency How it works in Michigan

Check “YES” on license plate renewal form and mail in

Purchase on Secretary of State website and in branch offices, or on-line at www.michigan.gov/sos How it works in Michigan

License plate tab and registration will indicate Passport has been purchased

33 Launching the campaign…

There are approximately 7.4 million registered motorists in Michigan…

~20% are active ~20% will see no outdoor need to support enthusiasts ~60% are occasional “state parks” patrons (and our greatest opportunity)

• More than 530 events statewide offered FREE, intro-to programs with all the gear, guides and good times included! • Volunteer instructors offering more than 50 different kinds of recreational programs • 15,000+ participants • More to come this year!

www.michigan.gov/recreationpassport Expanding Collaboration

• Fostering Family Fun – 4 events this year – Burt Lake, Sleepy Hollow, Proud Lake, Yankee Springs

• Cross promotion of materials – Posters/brochures for offices and billboards

• Torch Relay events – September 21 Positioning Parks and Trails as Part of a Healthier Tomorrow

• Basic • Participating • Blues Sharing Community information Challenge through TC • Member Marquette network K‐zoo • Physician Network

• Rec 101/202 • Partner • Fresh Air Fit networks • Park & Read rebrand Sets The Goal Provides the Resources Is the Destination • Part of the • Provides events, • Focused on family Governor’s programs and • Nutrition tips 4x4 plan other fitness • Healthy lifestyle • Lose 10% of opportunities guidelines your body • Inexpensive • List of Endorsed events weight options for • MDARD and MFF • Take the getting and • Steering Committee pledge for a staying active. healthier • Fitness can be tomorrow fun again! • MDCH • DNR and MRPA • Blue Cross Blue What if we all Shield worked together?! New Collaborations

• Great American Backyard Campout • The North Face Explore Your Park – June 22 Passes – Posters/brochures for offices and • Michigan Trails Week billboards – September 21‐28

– We get paid back for those redeemed! New Collaborations

• McDonald’s RV Tour – Healthy food options – Recreation Passport – Places to play outside Urban Outreach Summer Youth Employment Stepping Stones

 Offer urban youth outdoor experiences in a Michigan State Park setting  Offer fun, educational and introductory outdoor skills experiences to build confidence  Offer outdoor experiences in locations “close to home”  91% of our youth participants indicated that they would like to return to a Michigan State Park in the future! How did we do?

 24.7% participation in its first year, 27.3% in year 2  17% - Recouped previous sales of annual motor vehicle stickers  $600,000 available for community recreation grants – allowing for 16 benefiting agencies  Public awareness of the change and the program benefits is crucial for continued success  Working with businesses and other stakeholders will create a groundswell of support and provide additional resources Long Range Goal

50% participation will provide:  $25 million for park and forest campground improvements  $2.8 million for community recreation grants  Local economic benefit  Increased tourism and park visitation Partners Build Value

 Over 1,169 businesses statewide participate in the “Passport Perks” program

 Merrell Shoes (Michigan-based)  Outdoor Recreation 101 sponsor  Gander Mountain  “First-Time Camper” sponsor  Coca Cola  Milliken State Park funding  Blue Cross Blue Shield  MI Big Green Gym sponsor  Good Solutions Group  “Welcome Kit” sponsor  Odwalla Juice Company  $40,000 for tree replacements  Hudsonville Ice Cream 51  Official state park ice cream flavor Partners Build Value

 Local Park and Recreation Agencies  brought their programs to state parks as part of an urban outreach initiative  Over 50 park “Friends Groups”  Assistance with volunteers and special project funding  Over 450 local libraries  “Park and Read” program  Non-Profits such as Boys and Girls Clubs, and urban churches in Flint/Saginaw  partners in the urban outreach initiative Partners Build Value

 W.K. Kellogg Foundation  Grants for 7 universal access demonstration projects  Michigan United Conservation Clubs  Partnering to provide youth camp experiences  Michigan Department of Corrections  “Prison Grow” program to provide native plant materials  “Prison Build” partnered to construct state park camper cabins  Stewardship Volunteers  Over 4,000 hours of volunteer stewardship time was utilized to leverage federal grant dollars to support stewardship efforts statewide Partners Build Value

 “Spray By the Bay”  Friends of Bay City Recreation Area raised $300,000 & constructed a spray park  Addressed water quality issues at swimming beach  Fund raising now focused on an endowment Innovations Build Value….. Investing in Employees Ideas  Chief’s Challenge Program  Targets of Opportunity - encourages staff innovation by providing “seed” funding to develop initiatives attractive to new users  Energy – reinvestment in older buildings to reduce energy costs by funding new windows, doors, insulation, lighting, sensors, etc.  Alternative Lodging  broadens the scope of overnight stay opportunities to appeal to non- campers (yurts, lodges, cabins)  Camper Storage  Campers are able to leave their camp or boat trailers at parks between park visits at no charge saving gas & time  Saw Mill  Harvested diseased ash, oak and storm damaged trees to furnish the interior of the cabins and to construct furniture Innovations Build Value

 “There’s an app for that……”  Camping, boating and outdoor recreation locator  Available for BlackBerry, Android & iPhones  Includes: multiple types of searches, mapping, click-to-call phone numbers  Targets tech savvy users and younger generations  Its free! Say “Yes” to the Recreation Passport

For more information about the Recreation Passport, visit www.michigan.gov/recreationpassport57 or call 517-373-9900 Meeting the Challenge of Tough Times with Optimism

 Ask yourselves:  How many are better off today than 5 years ago?  Who has lost staff?  Whose budget is better off than last year?  Who has been reorganized?  How many of you are hiring staff?  How many have found the “magic solution”  Has the big box of money fallen from the sky? Objectives of Session

 How to achieve “Sustainable Contraction”  Provide proven tools and strategies Attitude

 The future is up to us! We need to create our own success!  Take personal responsibility for your actions  There is power in optimism so always be optimistic  Never surrender  Enthusiasm is infectious  Be an aggressive innovator  Be an open collaborator  Don’t allow the…. “but we’ve always done it that way”  Must reposition your approach Philosophy of “Good to Great”

 Preserving the CORE  Stimulate progress  Key to focus on outcomes Assessing Where You Are

 Understanding the finances  It is crucial to assess where you have been to present & forecast ahead (ex. money spent outputs metrics)  Benchmark with other agencies with simple metrics  Michigan state parks spend $2.11/visitor which is 43% less than the national average  Be able to articulate your outcomes/outputs. $ = X services  Value proposition  Economic value of what you do  Michigan State Parks generates $650 million in day trips and camp visits  $1 spent = $13 added to economy Assessing Where You Are

 Engage staff early by:  Survey them for their ideas and input  Be sure they know the story and that they can repeat it  Give them reasons to be optimistic  Focus on what you can control Outcome Based Focus

 Align scarce resources  Pick measures and deliverables related to the outcome  We manage what we can measure  Align the organization  Breakdown silos What’s Next

 Develop a strategic plan with a vision  Get advisory group out front  Reporting out and adapting Demonstrate

 Efficiency  Recreation Passport will allow redeployment of 200,000 hours of time  Innovate  Responsible approach to reductions  Market rate rationale to right sizing fee plan and cost to serve analysis  Invest vs. cuts strategy  Set aside resources to leverage employee and public ideas  Create Chief Challenge mechanisms - (20% return) (Energy ROI) Be Entrepreneurs (We can’t do it all ourselves!)

 Expand partnerships with non-traditional entities  NASCAR  Collaborate  Local, county and regional parks and recreation programs  Boys and Girls Clubs  Additional Partners  Non-profits  Community and faith-based organizations  Environmental groups and land conservancies Small Fiscal Tools (Charter or Constitutional)

 Establish restricted revenue funds  Pre-appropriate gift and partner accounts / funds  If collected then you can spend it!  Special millages for parks and environment preservation holds value with voters  Research and create business plans and institute them as common practice  Don’t wait to be told to “run like a business”……. Show that you can run like one! Diversity

 Have representative staff  Use non traditional recruitment tools  Require local supervisors to make five presentations to social service and faith-based agencies  Job corps, high schools, universities  Outreach to inspire new user groups  Offer easy entry level services  Rec. 101  First Time Campers  Affordable access to programs  Scholarships  Do-gooder groups assist Marketing & Visibility on the Cheap

 Find WOW – Events  To get media and community attention (free marketing)  Ribbon cuttings, grand opening and events……get the policy makers there  Social media  Facebook  Twitter  Mobile phone apps like the free “Oh Ranger” for park systems Don’t allow the…. “but we’ve always done it that way” Mentality

 Definition of insanity  Doing same old thing and expecting different result  Swipe great ideas  Get employees on the bus and even let them drive  Survey – Arm yourself with credible data  Hire talent with relentless enthusiasm Empower Your Staff

 Include them  Lead them with optimism  Strategize – method to the madness  Avoid micromanaging = empowerment  Benchmark so that everyone is on the same page  Encourage collaboration with other departments/governments  Challenge staff to develop five new partnerships/year  Tell your story consistently  Develop an elevator story Empower Your Staff

 Have good metrics and repeat them  Get your most engaging staff to tell the story (trust them)  Identify the best staff and let them do the schmoozing Economics

 Economic benefits beyond your own boundaries  Emerging trends – pay attention  Value Politics

 Understand what makes them tick  Be willing to compromise  Remember, policy is 51% of the votes  Don’t surprise the elected officials; keep them informed  Show and tell (pipe example)  Be sure advisory groups keep them engaged  Include them in them in planning process Politics Continued

 Get a variety of interest groups on board  Historic & cultural  All types of outdoor recreation & sports  Environmental  Don’t let the perfect get in the way of the good  To win the war, sometimes you must loose smaller battles  Lead or chase  Exceed expectations on the game  Focus on what you can do!  Don’t say “no” – Put positive spin  Get out in front or others will determine your destiny Avoid Paralysis by Analysis

 Trust your gut and go  Don’t stop staff creativity by overreacting to failed ideas  Be relentless  Don’t let the system beat your innovation  Find ways around bureaucratic obstacles  If the systems to get things done do not fit with the rules….. Find a way to get it done  Sponsorship and 72 page RFP  Find groups that seek a goal that we share  Healthy Life Styles  State Park System = the largest & cheapest health club  Find ways to avoid duplication of services – parks and rec agency Avoid Paralysis by Analysis

 Seek cross jurisdictional programs  Co-promote the same event with local communities = ½ the cost  Do what you can and find the balance  Host events others have produced  Small victories  Repurpose things that did not work or not used  Convert old park manager house to lodges  Renovate historic bathroom buildings or other structure into to a rentable unit to generate funding Build the Creative Partnership with a Big Bang

 Detroit Globe Building Budget Development

 Focus on results and outcomes  Focus on what you can do – not what you cannot  Offer options  Impacts w/measures  Do not cut the “Big Bang Program” to get attention  Seek balance  Get the public involved at multiple levels  Volunteerism  Leverage their help and measure what they do and value Budget Development Continued

 Use the advisory groups - to get out front  Be sure staff are involved from the first step  Don’t overlook obvious opportunities  Have “Hip Pocket” contingency plans so you are ready  Don’t forget revenue side and how funds are set so if you generate revenue, you can use it for programs/cost centers  Match your community partners  50/50 leveraging program for Friends Groups and 501C3s Budget Development Continued

 Be responsive to the process & meet deadlines, etc., and good things will come your way  Offer to collaborate – don’t wait  Refinance bonds  Stay on top of interest earnings on special funds  Know the investments details  Understand options  Enterprise funds  Special revenue funds, etc.  Get close to police and find ways to partner so they will assist you in the process  Contract for services Thank You!

For more information about Michigan state parks, recreation areas, boating facilities, motorized and non-motorized trails, and state forest recreation, visit www.michigan.gov/stateparks or www.michigan.gov/boating.