Management Audit Committee Representative Randall Luthi, Chairman Senator Hank Coe, Vice Chairman Senator April Brimmer Kunz Senator Grant Larson Senator Mike Massie Senator Carroll Miller Senator Bill Vasey Representative Ross Diercks Representative Alan Jones Representative Tom Lockhart Representative Jane Warren Report Staff Barbara J. Rogers Program Evaluation Manager Polly Callaghan Program Evaluator Kelley C. Pelissier Program Evaluator Kimberley Taylor-Beer Program Evaluator EXECUTIVE SUMMARY State Parks and Historic Sites Purpose The Management Audit Committee directed program evaluation staff to undertake an evaluation of the State Park and Historic Site Fee Program. The Committee asked if the fee program was operating at a net gain, how Wyoming’s fees compared to surrounding states, and if there were additional benefits the fee program could produce. Background The Division of State Parks and Historic Sites (SPHS) within the Department of State Parks and Cultural Resources is responsible for operating Wyoming’s state parks and historic sites. W.S. 36-4-121 authorizes daily-use and camping fees at 16 SPHS locations that were phased in between 1991 and 2000. Before initiating the phase in, the Legislature studied the feasibility of collecting fees and conducted a pilot project. In order to enhance the fee program’s effectiveness, the Legislature also provided more seasonal law enforcement for parks and sites. Prior to 2000, all fee revenue was returned to the General Fund. Now, 80 percent of fee revenue goes to an enterprise account that pays for capital construction projects at the parks and sites, while 20 percent is returned to the General Fund. The fee structure requires non-residents to pay higher fees than residents. It is a two-tiered system distinguishing between parks and sites. Parks charge each vehicle a daily-use fee and also collect camping fees. Historic sites do not collect camping fees but charge each visitor a daily-use fee. Annual permits for daily-use and camping override the two-tiered system by allowing unlimited use of all SPHS locations. The fee program is carried out through a combination of seasonally-staffed fee stations at the busiest entrances, and honor-system canisters at less popular entrances. Some parks have stand-alone fee booths with drive-through lanes where visitors stop and pay. Historic sites typically have a staffed entrance at a visitor center or museum desk. Some locations rely entirely on canisters for fee collection. During its decade-long phase in, the fee program has undergone constant change. Further statutory changes will take effect in 2002. Results in Brief The SPHS fee program currently generates more in revenue than the general funds allocated for its operation. Additionally, through the enterprise account, SPHS will be able to enhance park and site recreational opportunities by improving capital facilities. However, the Legislature’s purposes for creating the fee program have resulted in a fee structure that differs from those in other states. While costs to residents have been minimized, fees have brought in less revenue than they might have. Further, the fee structure does not permit the flexibility that other states have in managing visitor use. Although the fee program has been beneficial, there are opportunities to make better use of it to manage overcrowding in some consistent high-use parks. Some of Wyoming’s parks are facing increasing pressure on their resources and will need greater ability to manage visitor use. The Legislature may wish to consider the National Park Service fee statute as a model: Congress sets upper limits for fees, thus preserving legislative intent, but also allows the agency some managerial flexibility to vary fees among locations. Principal Findings The fee program has operated at a net gain, meaning revenues exceed expenditures, both in aggregate and when the 16 locations collecting fees are considered individually. The program has netted nearly $2 million over the last four fiscal years. For calendar year 2000, the first year of full implementation, each of the 16 locations collecting fees operated the program at a net gain. SPHS has carefully managed fee collection to ensure these results, as the Legislature intended. However, the fee structure itself limits the ability of parks and sites to generate more revenue. Further, annual permits may be limiting revenue since visitors pay once for unlimited annual use. SPHS needs to gather more data regarding permits, compliance with fees, and fee program staffing to inform future management decisions. The Legislature’s primary purpose in authorizing a fee program has been to provide quality recreational experiences for residents. Several policies support this priority: residents pay lower fees than non- residents; annual permits provide a financial advantage for frequent users; and most fee revenues are dedicated to capital improvements in Wyoming parks and sites. Statutes require that fees be uniform throughout the system, regardless of the popularity of, or amenities provided at, a particular park or site. In surrounding states, park systems use fee revenues for operations and can vary fees to reflect different camping experiences. We recommend the Legislature consider other states’ usage of fee structures and their potential for enhancing park management. The fee program’s primary direct benefit has been improved communication with visitors at those locations with staffed fee stations. Indirectly, through increased law enforcement, the program has helped protect SPHS natural resources. Other states manage visitor camping use by connecting camping fees to designated campsites, something SPHS does not do. SPHS reports that overcrowding has led to resource degradation and the potential for compromised visitor safety in some consistent high-use parks. SPHS should develop a pilot project proposal for Glendo State Park, incorporating fee program changes and related park management approaches, to address problems resulting from overcrowding. The Legislature and SPHS strategically developed the fee program, including an enterprise account that provides a stable source of capital funding to improve park facilities. This enables SPHS to do long-term planning and address maintenance backlogs that plague other park systems nationally. Further, SPHS pools fee revenues and distributes them according to system-wide priorities. The initial list of enterprise account projects is consistent with the capital improvements users have indicated they want. However, since such projects can increase operating costs, SPHS and the Legislature need to be vigilant that facility improvements remain proportionate to funding for operations. Agency Comments The agency is in agreement with the three recommendations made in the report. However, the director noted potential impacts from limiting camping to designated campsites, such as increased operating costs and decreased fee revenues. The agency also raised related policy issues, outside of the scope of this report but related to park and site fees, for further discussion with the Legislature. The full report is available from the Wyoming Legislative Service Office and on the Wyoming Legislature’s website at legisweb.state.wy.us Recommendation Locator Finding Recommendation Party Agency Number Summary Addressed Response 2 SPHS has operated the fee program at a net gain, but it can State Parks Agree improve the program by tracking and analyzing information and related to annual permit use and visitor compliance with fees. Historic Sites Division 3 As the state’s park system continues to evolve, the Legislature Legislature Agree may want to consider modifications to the fee structure to enable SPHS to better manage the parks and sites for higher quality recreational experiences. 4 SPHS should develop a pilot proposal that will allow it to better State Parks and Agree manage visitor camping at consistent high-use parks and seek Historic Sites legislative approval to implement it. Division 5 SPHS and the Legislature must keep capital facility Legislature Agree improvements made with enterprise account funds in proportion State Parks and with SPHS operations capacity. Historic Sites Division INTRODUCTION Scope and Methodology Scope W.S. 28-8-107(b) authorizes the Legislative Service Office to conduct program evaluations, performance audits, and analyses of policy alternatives. Generally, the purpose of such research is to provide a base of knowledge from which policymakers can make informed decisions. In October 2000 the Management Audit Committee directed staff to undertake a review of the State Parks and Historic Sites (SPHS) fee program. The fee program is established by W.S. 36-4-121, which authorizes daily-use and camping fees at 16 SPHS locations. The Committee requested an analysis focusing on the following questions: How are the fee collection sites operating individually, and as a whole? How do the fees charged in Wyoming compare with surrounding states? How will revenue from the statutorily created enterprise account be used? What have been the results of the policy the Legislature has established? Are there additional benefits the fee program could produce? Methodology This evaluation was conducted according to statutory requirements and professional standards and methods for governmental audits. The research was carried out from January through March 2001. In order to compile basic information about the fee program, we reviewed relevant statutes,