BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1589 (Huffman) - State parks: sustainability and protection.
Amended: July 6, 2012 Policy Vote: NR&W 9-0, G&F 8-0
Urgency: Yes Mandate: Yes
Hearing Date: August 6, 2012
Consultant: Brendan McCarthy
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1589, an urgency measure, requires the
Department of Parks and Recreation to develop a plan to increase
revenues at state parks. The bill appropriates $10 million in
Proposition 84 general obligation bond funds for the
installation of revenue collection equipment and other
improvements at state parks. The bill authorizes taxpayers to
voluntarily contribute to the state park system through the
income tax system.
Fiscal Impact:
One-time costs to the Department of Parks and Recreation
prepare a report on revenue generation possibilities. The
Department has hired a consultant to conduct a study on
similar topics at 50 state parks, at a cost of about
$200,000. The Department indicates that expanding that study
or contracting for an additional study will result in costs
up to $800,000 (California State Park Enterprise Fund).
One-time costs of $10 million (Proposition 84 general
obligation bond funds) for projects to enhance revenue
collection and other projects to improve state parks.
One-time costs to the Franchise Tax Board of about $50,000
(General Fund) to modify tax forms and computer systems to
allow taxpayers to donate to state parks when they pay their
state income taxes.
Ongoing loss of tax revenue to the state in the tens of
thousands of dollars, based on the Franchise Tax Board's
experiences with other similar programs to allow tax-free
donations to state programs (General Fund).
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Unknown revenues to the State Park System from donations
through the tax system (California State Park Enterprise
Fund). Because this is a new program, the Department does
not have an estimate of the potential revenues the program
may generate. It is important to note that the bill requires
the Department to provide an annual day use parks pass to
taxpayers that donate an amount in excess of the cost of
such a pass (currently priced at $195). To some extent,
people who would otherwise have purchased an annual pass may
do so through the tax system, in which case donations
received by the Department will be offset by reduced fee
revenues.
Background: The Department of Parks and Recreation manages 279
units of the state park system. The Department charges fees for
the use of some parks, based on visitor demand, efficiency of
collecting fees, and amenities offered at a specific park. For
the most part, fees are paid for parking at state parks, rather
than actual entrance fees.
The 2011-12 Budget Act reduced General Fund support for the
state park system by $11 million with an additional reduction of
$11 million planned for 2012-13 (adopted in the current year
budget). In response to these proposed reductions, the
Department developed a plan to close up to 70 state parks to
achieve those savings. Although the Department's original
proposal to begin closing parks was set to commence on July 1,
2012, to date there are no plans to close any parks in the near
term. In part, this is because the Department has been able to
partner with the federal government and private organizations to
secure funding or partnerships to keep certain parks open. Also,
as the Department has further developed its plan for closing
parks, it has become apparent that there are significant costs
associated with closing parks and providing ongoing law
enforcement protection of closed parks.
Under current law, the state allows taxpayers to voluntarily
contribute money to one or more of fifteen voluntary
contribution funds on their state income tax return. Such
contributions may be claimed as a charitable deduction in the
following year. Under current law, voluntary contributions
remain on tax forms until they are repealed, or until the total
revenue generated does not meet a minimum contribution amount -
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currently set at $250,000 per year.
Proposed Law: AB 1589 makes several changes to state law, with
the overall intention of providing additional revenues to
support the state park system.
Specially, the bill would:
Require the Department of Parks and Recreation to develop a
plan to generate additional revenues at state parks, with
specific revenue generation strategies (such as better fee
collection technology, demand-based pricing, and offering
more fee-funded amenities at state parks). The report would
be due to the Legislature by July 1, 2013.
Create a new special fund, to be used to support the
installation of new park fee collection infrastructure and
make other improvements to the state park system.
Appropriate $10 million in Proposition 84 bond funds for
the above purposes.
Specify that revenues generated at a park under the
management of a nonprofit organization, that are in excess
of the revenues needed to operate the park, may be used for
the support of other parks.
Create a new program to allow taxpayers to voluntarily
contribute to the state park system, through the income tax
system.
Require the Department to provide a free annual park pass
to a taxpayer who makes a contribution in excess of the
price of an annual parks day use pass.
Provide that a taxpayer is only eligible for a charitable
income tax deduction for the amount contributed in excess of
the price of a park pass received.
Require the Franchise Tax Board to remove the contribution
line from income tax forms if the annual revenues from the
program fall below $250,000 (adjusted for inflation).
Related Legislation: SB 1018 (Committee on Budget and Fiscal
Review, Chapter 39, Statutes of 2012), the 2012-13 resources
budget trailer bill includes language creating a new special
fund and appropriating bond funds for purposes similar to this
bill.
Staff Comments: Under the bill, the only costs that may be
incurred by a local agency relate to crimes or infractions.
Under the California Constitution, such costs are not
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reimbursable by the state.