Arizona Game & Fish Heritage Fund O&M Resolution Workgroup Meeting Summary, 08/06/14

nazsr_landscapephoto_600webArizona Game & Fish Heritage Fund O&M Resolution Workgroup Meeting Summary, 08/06/14

Attendees: Bob Vahle, Bill McLean, Josh Avey, Beth Woodin, Allen Taylor, Jim Unmacht, Jim deVos, Jim Hinkle, Jorge Canaca, Pat Barber, and Marianne Cox. Not attending: Bob Hernbrode Location: AGFD Headquarters

Meeting Summary:

  • Review of agenda, identification of additional agenda items including:
    • Addition of crowd funding to agenda for discussion
    • Clarification of the agenda: ‘discuss mechanisms/ability/guidance for Commission to consider regarding removal of non-historical structures properties that…’
    • June 16 meeting summary correction to incorporate suggestion to seek repayment of Heritage Fund funds previously swept by legislature to the list of approaches considered.
  • Group reviewed summary of Fiscal Year 13, 14, and 15 costing (budgeted and expenditure) as well as anticipated deferred maintenance costing for Heritage Fund acquired properties.
  • Discussion and agreement amongst group to allow recommend changing recommended modification to 17-298 whereby the Heritage Fund acquisition portion of the fund would change from 40% to 35% to allow for funding Heritage Fund acquired property operation and maintenance costing from the non-acquisition portion of the fund.
  • Discussed recommending amendment of Commission Policy to require annual Commission approval for use of Heritage Fund grant funds towards Heritage Fund acquired property operation and maintenance costing.
  • Discussed the need to utilize an open comment process to identify support for the recommendation to reduce the Heritage Fund acquisition portion from 40% to 35%; it was noted that this work group was established with membership intended to represent stakeholders on this issue and that the expectation is that work group membership should be providing information regarding recommendations to the Commission, expressing positions to the work group and serving as liaisons and conduits of information in support of public process and transparency.
  • Discussed approach and recommended modification to 17-298 such that acquisition may include fee simple title, or any possessory or non-possessory interest in land.
  • Disposal of property that does not carry the Heritage Fund value is already possible albeit cumbersome.
  • Structure removal on existing or future properties was discussed as a suitable recommendation.
  • Recommendation to minimize acquisitions that have structures that would have regular operation and maintenance costs.
  • Discussed approaches and feasibility for use of endowments (long term) and crowd funding and corporate sponsorship approaches in building a privately held endowment fund.

A suite of options to present to the Commission at the September Commission meeting was developed that entail: 1) long term funding generation/savings (solutions), 2) Short term funding generation/solutions, and 3) Legislative changes. See list of options below.

Work group reviewed the objective and tenets put forth by the Commission and determined that they met those objectives to the extent possible. No further meetings are needed.

Action Items:

  • Send list of recommendations for Commission consideration – Marianne Cox
  • Present options developed by workgroup to Commission for consideration at September Commission meeting – Jim deVos

Adjourn

 

Arizona Game & Fish Heritage Fund O&M Resolution Workgroup Recommendations List for Commission Consideration, August 6, 2014

Long Term Funding Generation/Savings (solutions)

  • Endowment – held by 501(c)3
  • Divest of non-sensitive species value properties (those portions that no longer meet intent of purchase)
  • Remove non-value-added (non-historic) structures from properties
  • Investigate the economic potential of new programs such as a wildlife watching Heritage Fund stamp
  • Modify Heritage Fund language to change acquisition fund percent from 40 – 35% so 5% ends up in IIPAM from where O&M expenditures can be made
  • Modify Heritage Fund language to allow for acquisition via non-possessory language and the divestiture of these properties using same
  • Seek corporate sponsors
  • Develop an O&M assessment with each new property being considered for purchase

Short Term Funding Generation/Solutions:

  • Minimize acquisitions that have structures that need O&M
  • Crowd funding for specific O&M actions
  • Seek legislative refunding of funding swept by prior legislature in 2003 – $10 million from Heritage Fund acquisitions fund

Legislative Changes:

  • Change percentage in Heritage Fund Acquisition fund from 40% to 35% so extra 5% ends up in IIPAM from where O&M expenditures can be made
  • Allow for non-possessory acquisition such as conservation easement and disposal of property or portions of properties by “conservation buyer” under a conservation easement

Bring back the state parks Heritage Fund

[Source: William C Thornton, Arizona Republic Opinion] – As negotiations continue between Gov. Jan Brewer and legislative leaders, questions remain about what will or will not be included in the new budget. One thing is certain. The budget will not contain a dime of new funding for State Parks nor will it restore the parks Heritage Fund.

The people of Arizona are the big losers.

Enacted by voters in 1990, the Heritage Fund directed $20 million in Lottery money to be divided equally each year between State Parks and the Department of Game and Fish. The $10 million for parks often served as seed money for matching grants. The total yearly impact was typically $20 million or more.

Heritage Fund grants developed new parks, and built and improved trails, campgrounds, picnic facilities, boat docks and ramps. Historic restoration grants helped preserve important parts of our rich cultural heritage such as the Riordan Mansion in Flagstaff, the Tombstone Courthouse, Mission San Xavier del Bac in Tucson and the historic Yuma Crossing.

If you hunt, fish, hike, camp, boat, picnic or share my love of Arizona history, the parks Heritage Fund benefited you.

Even if you’ve never visited a state park or historic site. you’ve benefited from the Heritage Fund-fueled economic engine that brings dollars and supports jobs. A 2007 study estimated that 224 jobs were directly supported by parks Heritage Fund grants.

State parks and historic sites attract more than 2 million visitors, about half from out of state, who add $266 million to our state’s economy each year. These visitors support an additional 3,000 jobs, mostly in rural areas heavily impacted by the economic downturn.

In response to the economic downturn and a decline in tax revenue, the Legislature swept the state parks allocation into the general fund in 2010 and, inexplicably, eliminated the fund in July 2010.

Thanks to former Rep. Russ Jones and Rep. Ethan Orr, bills to restore the parks Heritage Fund were introduced in three consecutive legislative sessions. In each case the bill was voted out of committee with unanimous bipartisan support only to die in the House Appropriations Committee.

If Arizona legislators and business leaders are serious about attracting companies such as Tesla Motors, they may want to think about the message we send when we fail to invest in our parks. Low taxes aren’t the only consideration when companies decide where to locate a new facility. Outdoor recreational opportunities consistently rank near the top of quality of life issues that attract high-paying jobs, and our parks play a major role.

As the legislative session winds down, House Speaker Andy Tobin’s proposed monument to the 19 Granite Mountain Hotshots who died fighting the Yarnell Hill Fire seems certain to pass. It should.

The question of how to pay the estimated $500,000 cost must be addressed. A restored parks Heritage Fund could have been the solution. Let’s bring it back.

William C. Thornton is a second-generation Arizonan and member of the Arizona Heritage Alliance Board.

Story Highlights

  • The Heritage Fund provided $10 million to state parks until the Legislature eliminated the program
  • The fund supports the sort of quality of life that helps attract high-paying jobs
  • The Legislature should restore the fund

Free state parks from Legislature

[Source: Bill Meeks, Arizona State Parks Foundation, Arizona Republic Opinion] – When the Parks Heritage Fund was eliminated, the Legislature didn’t touch the $10 million Game & Fish Heritage Fund. Why? Because the hook and bullet crowd — the state’s 390,000 licensed fishermen and hunters — are a fearsome adversary.

In contrast, parks and open space advocates are almost invisible to lawmakers. More than 2 million people visit state parks every year, but we don’t know who most of them are or how to reach them.

So, how do we solve the disconnect between lawmakers and Arizona’s heritage?

We should eliminate it by vesting responsibility for today’s parks system and future open space needs in a state parks district not subject to legislative largesse. We can’t plan, build and operate a parks system the way we do now, lurching from one financial crisis to another.

Never mind the details now. Today, the Legislature probably would not refer such a measure to the voters. Getting it on the ballot as an initiative is a million-dollar proposition.

In the meantime, parks supporters need to seek out parks-minded legislative candidates by nailing down their views and commitments during the primary elections. The Arizona State Parks Foundation can assist in this process.

For its part, the foundation is working to vastly improve its social media capabilities in order to attract and motivate a larger corps of supporters and donors.

We are also working to establish a strong interface with the statewide business community. State parks are an economic engine contributing more than $260 million to the Arizona economy. They would contribute much more if they could operate on all cylinders.

Bill Meek is president of the non-profit Arizona State Parks Foundation headquartered in Phoenix.

Hands off the Heritage Fund, lawmakers

[Source: Arizona Republic Editorial Board] – Lawmakers, show some respect for voters.

In 1990, Arizonans overwhelmingly approved the Heritage Fund, directing $10 million a year in Lottery revenue each to the Arizona Game and Fish Department and the Parks Department. This reflected a deep commitment to some of Arizona’s greatest resources: a rich history, diverse wildlife and dazzling natural landscapes.

The Legislature took the state parks’ share during the recession, and has unwisely rejected a number of efforts to restore that funding.

Now some of the Game and Fish share is at risk.

A portion of Game and Fish Heritage money is supposed to be spent on acquisition of land as habitat for threatened and endangered species. A strike-everything amendment to a House-passed bill would allow it to be used for operation and maintenance.

This goes against the “heart and soul” of what voters intended when they passed the Heritage initiative, says Beth Woodin, member of the Arizona Heritage Alliance and former Game and Fish commissioner.

What’s more, it’s sneaky.

This is a stealth effort to do something the public probably would not approve.

To that point, the altered bill was held in a Senate committee last week after it began to attract attention and opposition. It should disappear entirely.

If the Game and Fish department needs more money, let it ask for the funding. Then invite the Heritage Alliance and others who respect the spirit of this voter-approved law to be part of a discussion about what changes make sense.