Arizona State Budget

Brewer panel want to privatize the operation of Arizona’s State Parks

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[Source: Howard Fischer, Capitol Media Services, via East Valley Tribute]

A panel appointed by Gov. Jan Brewer to study government made its first recommendations Tuesday to turn more of it over to the private sector.

The initial report by the Commission on Privatization and Efficiency suggested the state pursue more opportunities to turn parks over to private companies or at least let them operate retail concessions. Members also want to push Congress to repeal laws that now prohibit the state from letting private firms set up shop in rest areas along interstate highways.

Mark Brnovich. (Photo Credit: AZ Dept of Gaming)

But state Gaming Director Mark Brnovich, whom Brewer named to head the panel, said this is only the first step. He said the nine-member commission, hand-picked by the governor, is predisposed to believe that if a government service can be privatized, it probably should be.

“Like the governor, members of the commission are strong believers in the free enterprise system and the free market,” Brnovich said in an interview with Capitol Media Services. “History has shown that the private sector is able to come up with innovative and, very often, cost-effective solutions to problems.”
Brnovich acknowledged that private companies, unlike government, have to make a profit. But he said commission members don’t see this as meaning higher costs for taxpayers.

“The free market system, capitalism works because folks are forced to come up with better ideas and create greater efficiencies and come up with new innovations,” Brnovich said. He calls it the “yellow book test.”

“If a function is available, if you can look at it and find it in the ‘yellow book,’ you should ask yourself, ‘should government be doing that?'” Brnovich said. “And if government is doing it, should it be done in conjunction through public-private partnership or can it be done in a better, more efficient way?”

Brnovich said this initial list of options includes those things that either already are underway or can be done relatively simply.

For example, the state contracted last year with the city of Yuma to operate the Yuma Quartermaster Depot State Historic Park. And the Arizona Parks Board has since worked out other deals with local groups to help keep parks open.

The commission, however, wants more, including giving private companies the opportunity to actually run the parks, collect all admission fees and pay the state a percentage. The report suggests this would be profitable for private companies by allowing them to sell food and other items and even operate lodging, as concessionaires do at Grand Canyon National Park, albeit with the federal government still running that one.

Brnovich said that, despite the bent of commission members toward privatizing, that doesn’t necessarily mean state agencies would be put out of business and employees laid off. He said these agencies could submit bids, just the same as private groups.

That concept, called “managed competition,” has been used in some communities to award contracts for trash collection.

He said that concept will be studied before the final report is issued at the end of this year.

But Brnovich said measuring costs and benefits is only part of any analysis of what to privatize.

“Additionally, you have to ask the question, is this something government should be doing and, if so, can it be done in a better way and can it be done in conjunction with the private sector or by the private sector?” he said.

Brnovich said there are certain “core government functions” that, political philosophy aside, probably should not be farmed out. That includes his own agency which oversees tribal gaming.

He acknowledged there are functions within his office that might, under other circumstances, lend themselves to outsourcing, such as audits of the books of tribal casinos. But Brnovich said the secrecy required in the contracts with tribes makes it more logical for all that work to be done “in house,” with employees who are subject to background checks.

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Arizona moving to use conservation money before vote

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[Source: Arizona Capitol Times, Paul Davenport] – Arizona parks officials and local governments in the Phoenix and Flagstaff areas are moving to spend up to $52 million of land conservation money that legislators envisioned being used instead to help keep the budget in the black.

The state Parks Board on Wednesday voted to award grants to Coconino County and the cities of Phoenix and Scottsdale for separate purchases of large parcels of state trust land for preservation as open space. The $52 million would come from a decade-old land conservation fund authorized by a voter-approved 1998 ballot measure that is now the subject of a new ballot measure that appears as Proposition 301 on the Nov. 2 general election ballot.

Under the Growing Smarter conservation program, public and private entities can get state funding for purchases of trust land for conservation purposes. The purchaser must provide a match to the state funding [to read the full article click here].

Prop 301 pits reeling state budget against preserving open space

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[Source: Arizona Capitol Times.  Article by Rebecca McClay, Cronkite News Service]

Sandy Bahr (Cronkite News Service Photo by Rebecca L. McClay)

Sandy Bahr envisions this expanse of land near the McDowell Mountains remaining just as it is: a picturesque scene of large saguaros and desert brush.

Thanks to $23 million from a fund Arizona voters created in 1998 to preserve open spaces, Scottsdale plans to add about 2,000 acres of state trust land here to the McDowell Sonoran Preserve. To Bahr, director of the Sierra Club’s Grand Canyon Chapter, it’s money well spent.

But it could be one of the last such purchases receiving money from the Growing Smarter fund if voters approve a ballot measure in November.

The Legislature referred Proposition 301, also called the Land Conservation Fund Transfer, to have voters decide whether $123.5 million in state funds will be kept for preservation projects or siphoned into the general fund to balance the budget.

Bahr is among those opposing the measure, saying money for buying state trust land should stay intact.

“By redirecting these dollars, they hurt the local communities that were trying to conserve the land and they hurt conservation all over the state,” Bahr said. “They should keep their hands off it.”

It’s one of two proposals on the Nov. 2 ballot in which voters will have a direct say in how to balance the state’s fiscal 2011 budget, which took effect July 1.

The budget passed based on the assumption that voters would approve both Proposition 301 and Proposition 302, which would eliminate the First Things First early childhood health and development program. State law requires voter approval because voters created both programs.

Bahr said other measures like closing tax loopholes or scaling back spending in other departments are her preferred alternatives to balancing the budget.

Proponents of eliminating the Land Conservation Fund say the consequences of not balancing the budget – including the state receiving a downgrade on its debt rating from Moody’s Investors Service – are too severe to ignore. The downgrade from a Aa2 to Aa3 in July makes it more expensive for the government to borrow money.

“We can’t afford it,” said Sen. Steve Pierce, R-Prescott, who called the founding of the fund “well intended.”
“We need the money many other places,” he said. “Buying open space is not high on the list of priorities.”

Rep. Rick Murphy, R-Glendale, said Arizona faces an unprecedented budget crisis.

“It is irresponsible to cut true necessities like public safety or basic K-12 education while continuing to spend money on non-essentials, no matter how good or important they might be,” Murphy said in an e-mail interview.

The Land Conservation Fund is administered by the Arizona State Parks Board. The money is allocated to communities on a dollar-for-dollar matching basis to purchase state trust land.

Proposition 301 opponents argue that the money, the only state funding source for land preservation, is critical for preserving the environment in the face of growth. They argue that unlike Proposition 302, Proposition 301 doesn’t have a provision that would require money taken from the fund to be used for a similar purpose.

Scottsdale has already received $3.3 million from the fund to help purchase a 400-acre parcel of land in the McDowell Mountain Regional Park, said Scottsdale Preserve Director Kroy Ekblaw, who didn’t take a position on the proposition.

“We have additional land we would like to acquire,” Ekblaw said. “If the revenue was available, we would certainly like to take advantage.”

Scottsdale could still purchase more land but not as much as if it had the matching funds, Ekblaw said.

Phoenix and Coconino County have also already applied to purchase state trust land parcels. According to a report from Arizona State University’s Morrison Institute for Public Policy, the applications could come to a halt if the measure passes.

Facts about Proposition 301 vote:

  • Key Provision: Would transfer to the general fund $123.5 million from Land Conservation Fund voters created in 1998 to preserve open spaces.
  • Trend: Along with Proposition 302, dealing with the First Things First early childhood development program, it would reallocate funds to shore up the state budget.
  • The Fund: Matches municipalities’ land conservation efforts dollar-for-dollar to purchase state trust land.
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Parks board still dreams of the future

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[Source: Payson Roundup, Peter Aleshire, 7-20-2010] – Get through the beating. But don’t stop dreaming.

That could serve as the motto of the Arizona State Parks system, reflected recently at a rare retreat and strategy session that brought the board to one of its most endangered treasures: Tonto Natural Bridge. The state parks board finds itself in the position of a scrawny kid getting punched out by a bully after his lunch money. The system is bruised, bloody and curled into the fetal position — but still making plans for college.

The world’s largest natural travertine arch formed an apt setting for the discussion, since the park system’s partnership with Payson to keep the Rim Country’s best known tourist attraction open served as a model to save other parks. As a result of the last-minute rescues by Payson and other counties and towns, the state parks board approved agreements to keep most of the sites in the 28-park system open — despite drastic reductions in its budget. [to read the full article click here].