Home > Watchdog Archives > Watchdog Alerts 2004, Number 19
State Parks -- Public or Private?

South Carolina Governor Mark Sanford's 2004-05 budget proposal contained provisions to turn some state park operations and services over to private contractors. The plan has environmentalists and state park fans concerned as to whether private management companies will offer the same quality of service that state employees provide in maintaining historic structures, and ensuring park environmental quality. With private companies seeking to make a profit replacing a state service concerned with breaking even, it is unclear what kinds of changes will be made to existing services. Park officials concede that it may be more beneficial to relinquish control of state-owned golf courses, restaurants, and stores, and direct state resources toward other more critical aspects of park management. Overall, the governor's plan claims that roughly $1.4 million can be saved by privatizing Hickory Knob and the campgrounds at Myrtle Beach State Park. However, this estimated savings does not account for loss of revenue from camping and lodging fees as well as the loss of jobs for state employees. Additionally, some provisions may limit the amount of taxes paid by private firms while operating state parks under lease agreements. Georgia adopted similar state park privatization plans. However, a few years into the program, the private companies sued to dissolve the leases with the state, claiming that the maintenance provisions made the parks unprofitable. Complaints were also registered by a variety of environmental and consumer groups claiming that environmental conditions at the parks were deteriorating. Similar proposals have been introduced in Alaska, New York, Oklahoma, and Tennessee with varying results. It is unclear what role, if any, privatization should play in the state park system. States should continue to support and fund state parks as they are a valuable public asset and need to be preserved for future generations. Privatization may make the protection of valuable open space and other precious land less accessible by increasing costs, depleting remote areas of jobs, and neglecting the necessary infrastructural maintenance and improvements to ensure environmental quality. Although the South Carolina legislature did not adopt the governor's state park proposals, as financial problems continue to plague state governments, park privatization may become increasingly popular and such proposals should be monitored closely.

Ran 7/12/04


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