Arizona State Parks Foundation

Where Does Arizona’s Lottery Revenue Go?

by

(Source: Arizona Republic,  July 1, 2016) – The Arizona Lottery celebrates its 35th anniversary Friday.  And while that has meant 35 years of big dreams, winning tickets and some dashed hopes, it has also meant 35 years of increased revenue flowing into the state coffers.

Since  the Arizona Lottery’s launch on July 1, 1981, its sales revenue has totaled $11 billion, with nearly $3.5 billion of that directed back into state funds and programs. While a majority — and growing — portion of that money has gone into the general fund where the governor and Legislature canThis was the first Arizona Lottery ticket. spend it as they choose, about $1.8 billion has been returned to Arizona communities through grants and programs that help people who are homeless, victims of domestic abuse and children in the foster care system.

“Whenever you hear lottery, people always think about jackpots and what they’re going to do with the dollars,” lottery executive director Gregory Edgar said. “But for us, it’s drilling into the numbers and seeing the impact we can have in our community. The investment of $3.5 billion over 35 years is a pretty significant impact.

Changing agendas

  • 1980: Arizona voters approved the creation of the Arizona Lottery by a narrow margin. Ballot literature promised proceeds would “pay for law enforcement, health services, education and other vital programs.” But the original proposition wording required only that at least 30 percent of revenue go into the general fund.
  • 1990: Voters required that $20 million in lottery revenue a year go into heritage funds for Arizona State Parks and the Arizona Game and Fish Department.
  • 1993: Lawmakers required up to $23 million a year in lottery revenue to be put into a fund for local transit projects and up to $7.6 million a year to be divided among counties.
  • 1996: Voters required that $17 million in revenue be spent annually on specific health and social-service programs, including teen-pregnancy prevention, food assistance for infants and mothers, and disease research.
  • 2010: The Legislature borrowed against future lottery revenue, eliminated allocations to the counties and essentially cut in half lottery allocations to both the transportation fund and the heritage funds, sweeping nearly an extra $30 million a year into the general fund.
  • 2015: The Legislature allocated $900,000 a year in lottery revenue to the Internet Crimes Against Children Enforcement Fund, $100,000 to the Victims’ Rights Enforcement Fund and up to $160,000 a year to the tribal college dual enrollment program.

Where the money really goes.

An Arizona Republic analysis of 35 years of Arizona Lottery revenue and disbursements found that about $1.8 billion in lottery revenue has gone to the specific programs voters and lawmakers designated.

Local transportation projects got $782 million; economic development efforts got $201 million; the Game and Fish Department Heritage Fund, which supports outdoor recreation and protects critical wildlife, got $384 million; health and welfare programs like teen-pregnancy prevention and food assistance for children and mothers got $219 million; the Court Appointed Special Advocates program for foster children got $39 million; homeless shelters got $8 million; a state program for problem gamblers got $3.6 million; and a program to help law-enforcement agencies fight internet crimes against children got $2 million.

“The dollars touch every corner of the state,” Edgar said. “My dream as director would be that every time someone puts down that dollar, they’ve got the thought that I’m having some fun playing a game but also having some impact in our community.” As annual lottery revenue has grown over the years, the money allocated to these programs has remained relatively stagnant due to limits the Legislature and voters set.

Transportation programs got less in 2015 than they did in 1982. Counties for years got $7.6 million a year, but since 2011 have gotten nothing. The Game and Fish Department Heritage Fund got $10 million in 2015, compared with the $20 million a year it got during the 1990s and 2000s. Programs for economic development, health and welfare, foster-care advocates, homeless and gambling addiction have remained stagnant for decades.  The real winner in Arizona’s lottery game has been the general fund

Who really controls the money?

The lottery, overseen by a five-member, governor-appointed commission and an executive director, controls the marketing. But it’s the Legislature that has taken control of where the revenue is allocated.

As lottery revenue has grown and disbursements to specific programs have shrunk or remained stagnant, the Legislature has directed more money into the state’s general fund, where it is impossible to track how specific dollars are spent. That revenue might have gone to schools and public-welfare programs as lawmakers promised and the Lottery markets on its website, or it might have gone to private prisons and lawmaker pensions.

The general fund over the past 35 years has received $1.7 billion.  In fiscal 2015, $72 million — 9.7 percent of the lottery’s $750 million in annual revenue — went directly to programs touted to voters. Another $103 million went into the general fund. That compares with 19 percent going to designated programs in both 2005 and 1995.  Before the recession, the general fund received about $30 million a year. Over the past several years, the annual allocation has topped $100 million. This year, that trend is expected to continue.

Our Turn: Lawmakers are Raiding Parks (Again)

by

PNI 0712 hike wenima.jpg[Source: Arizona Republic,  February 29, 2016] –Wildlife’s political life seems to have come full circle since 1990 when by a 2-to-1 margin Arizona’s voters gave us the Heritage Fund, $20 million from the Lottery to be spent solely for Arizona’s parks and wildlife.

Half of the money was given in public trust to the Arizona State Parks Board, to support and manage Arizona’s park system. This money was taken by the Legislature in 2010 for budget balancing.

SERIES: Arizonans love state parks, lawmakers don’t

The other half of this money was given by the people to the Arizona Game and Fish Commission, again in public trust, to administer on behalf of Arizona’s wildlife. Twenty-four percent of this money was dedicated exclusively for acquisition of habitat for the benefit and conservation of sensitive wildlife species. Over the past 25 years, Game and Fish commissioners battled hard to protect those funds, especially the Acquisition Fund.

All past commissions believed that these funds — they amount to about $2.4 million a year — needed to be protected at all cost. After all, this fund was one of the crown jewels of the Heritage Voter Initiative. In the state parks half, there was $1.8 million available for such wonders as Kartchner Caverns, the San Rafael Ranch and the Sonoita Creek Natural Area. Such purchases are no longer possible following the legislative sweep.

RELATED: Parks experiencing record visitors

The acquisitions of Sipes White Mountain Ranch, White Water Draw, Wenima and other similar properties resulted from careful spending of Game and Fish’s funds. Now, sadly, those funds are in serious jeopardy.

In this legislative session, the commission has proposed Senate Bill 1361, which would deplete the acquisition fund by up to 50 percent to pay for operations and maintenance of the 16 properties it has acquired. Yes, operations and maintenance are important when you buy property, but it takes a good, full public process — not a legislative sweep — to help solve that problem.

In 2014, the commission made a good start by appointing the Heritage Working Group to study and make recommendations for these solutions. This group studied for months. It made recommendations, lengthy ones, which are now either being misrepresented or ignored altogether.

Among other things, the group recommended that 5 percent of the acquisition fund could be moved (with more public input) to the greater part of the Heritage Fund where operations and maintenance are in statute already. That’s 5 percent, not 50 percent, and with more public process.

MORE: Top 10 state and national parks in Arizona

After all, this is not the commission’s money — it is the people’s money. The voters created this fund and directed the commission, as public trustees, to spend it in a specific manner.

Is this concept important anymore? It is now up to the people to speak up and stop this latest – the 40th, we think – raid of the Heritage Fund. If you value the Heritage Fund and its importance to Arizona’s wildlife, please make your voices heard as the bill, now in the Senate, moves through the Legislature.

Bill McLean, Beth Woodin, and Bob Hernbrode are former members of the Arizona Game and Fish Commission. Woodin is the president of the Board of the Arizona Heritage Alliance, and Hernbrode is vice president of the Tucson Audubon Board and a biologist. (Photo: Mare Czinar/Special for The Republic)

Love Arizona parks? Then get out there and use them

by

635528131686761919-VerdeKayak-CVR[Arizona Republic Editorial board, December 8, 2014] – There’s a big difference between idealizing a faraway river and feeling the current beneath your boat. That distinction matters to Arizona’s state parks, and the Arizona State Parks Foundation understands why.

When city folks express support for the state parks, it represents a casual friendship. When people get out there and experience the real thing, it leads to a committed, long-term relationship — a relationship worth working to preserve and enrich.

“The more people we get into the parks, the more people will be actively interested in the parks,” says Bill Meek, president of the parks foundation board. “We need to get people out there experiencing what we’ve got.”

An engaged constituency is essential because politicians have not been good to the parks. Funding was stripped during the recession, and the current budget deficit may lead to more pain.

Lack of funding translates into at least $80 million in capital needs at the 31 natural, historic and archaeological sites that make up the state parks system. In addition to funding to keep the sites safe and well maintained, more than $200 million in capital projects have been requested to provide better experiences for visitors.

The problem is not a lack of public support. Over the years, Arizonans have shown continued support for parks in polls, through surveys and at the ballot box. In 1990, they approved the Heritage Fund, which targeted $10 million annually to the parks from Lottery revenues.

The problem is lack of public engagement. Consider this: Lawmakers stripped Heritage funding from the parks during the Great Recession while letting it continue to flow to the Arizona Game and Fish Department. Hunters and anglers form a strong and active constituency. Lawmakers didn’t ignore them.

The constituency for state parks is much broader and less actively engaged politically.

Enter an idea that could help raise money and public consciousness on behalf of these state treasures.

Verde River kayak tours run by the Verde River Institute and the parks foundation include a guide to interpret the flora and fauna, as well as stops at local communities and a tasting session at a winery cooperative.

The $200 fee includes a $115 donation to the parks foundation. Tours this fall brought in about $5,000, which will become seed money to develop a business plan to expand the tours, parks foundation Executive Director Cristie Statler told The Arizona Republic’s Mary Jo Pitzl.

Meek says if the tours are expanded, they could develop a funding stream that lawmakers could not sweep. He says parks systems around the country are using “social enterprise,” an idea that uses commercial strategies to benefit human or environmental needs. That’s the kind of creative thinking our parks need in these tough budget times.

But that’s not all.

Giving people a hands-on experience with resources they had not previously touched deepens their understanding and appreciation. It builds deep commitment. That makes them more likely to “take action and talk to their legislators,” says Doug Von Gausig, director of the Verde River Institute. He leads the river tours.

The more opportunities people have to experience the state parks, the more committed Arizonans will be to speak up for these amazing places.

Source: http://www.azcentral.com/story/opinion/editorial/2014/12/07/state-parks-benefit-engaged-constituency/20058401/

7 ways to pay for great state parks

by

[Source: Arizona Republic Editorial] – The ominous clouds hanging over Arizona State Parks need to start raining money. Parks managers struggle to protect valuable resources with no money from the General Fund. Unique remnants of Arizona’s heritage have lost dedicated money streams meant to protect them.

At risk are playgrounds for urban Arizonans and sources of tourism for rural residents. At stake is the chance for your children and grandchildren to travel through time from cave formations that began 200,000 years ago to prehistoric Indian ruins to a Spanish presidio to a territorial prison — and wrap it all up by waterskiing across a man-made lake.

What’s at stake is something irreplaceable and beloved. “It’s time people got their dander up and told the Legislature this is one thing that touches their lives,” says Ken Travous, former executive director of Arizona State Parks.

Here’s what people should tell lawmakers:

• Restore the State Parks share of the Heritage Fund. In 1990, voters approved $10 million a year from Lottery revenues for parks. During the recession, lawmakers took that funding. Several attempts to restore it have failed at the Legislature. It’s past time to give it back.

• Restore the authority of State Parks to spend money raised from gate fees, gift shops and other money-making enterprises. Park managers used to put increased revenue to work for the parks. Now they need legislative authorization to spend the money the parks make. Beginning in 2003, that enhancement fund was swept by lawmakers and used to supplant General Fund appropriations.

• Encourage innovation and resource development through parks’ concessions and development. Parks Director Bryan Martyn is looking at a plan to contract with a single concessionaire for all the state parks. It could result in more investment in the parks if the private contractor serving big money-makers, such as Lake Havasu, also is required to develop resources in less-visited parks. The State Parks Board needs to carefully scrutinize any contract to make sure it serves the public’s best interest.

• Recognize the need to create additional sources of permanent dedicated funding. A 2009 Morrison Institute report put the cost of operating and maintaining the parks at $40 million to $44 million a year. The current budget is half that. In addition, the parks have at least $80 million in capital needs. The idea of a surcharge or voluntary donation on vehicle registration has been floated — and rejected by lawmakers — since 2009. It is a painless way for people to add $5 or $10 every year to benefit state parks.

• Dedicated means dedicated. Protect funds that benefit the parks from legislative raids or sweeps.

• Restore the authority of the State Parks Board to hire and fire the parks director. That position became a political appointee with 2012 changes in the state personnel system. The director now serves at the pleasure of the governor. The parks board lost clout. The director lost the independence of being insulated from a governor’s whims.

• Face facts. “No state parks system in the United States pays for itself from earned revenue,” according to the Morrison Institute report, “The Price of Stewardship: The Future of Arizona’s State Parks.” Parks need more than they get from Arizona’s Legislature. They deserve more.

Arizonans demonstrated their support by establishing the Heritage Fund in 1990, and they reiterated that sentiment nearly two decades later when a Gallup Arizona poll released by the Center for the Future of Arizona found that “the state’s natural beauty and open spaces are seen by citizens as our greatest asset.”

It’s time to stop stiffing state parks.

———-

WHAT YOU CAN DO

Arizona State Parks are a resource for today and a promise for tomorrow. But short-sighted funding decisions imperil their future. You can help change that.

  • VISIT. Arizona’s state parks offer dazzling natural wonders, family recreational activities and authentic windows into Arizona’s history and prehistory. azstateparks.com
  • BE A CHAMPION. There’s an election coming up. Ask candidates for state office how they plan to support Arizona’s parks and let them know you want this to be a priority issue.
  • GET INVOLVED. More than a dozen parks have volunteer “friends” groups that provide fund-raising and other services for their chosen park. For information on joining or starting one: azstateparks.com/volunteer/v_foundation.html

Arizona State Parks Foundation is a non-profit that engages in advocacy, fund-raising, and other support. Visit their website at arizonastateparksfoundation.org  The Arizona Heritage Alliance is a non-profit that promotes and protects the Heritage Fund and its goals: azheritage.org

———-

ABOUT THIS SERIES

Arizona State Parks are a valuable resource in great peril. Stripped of funding during the recession, they struggle without state money and stagger under deferred maintenance. Yet they offer open spaces and outdoor recreation for a growing urban population and an economic engine for rural communities. Popular with the public, but lacking political support, funding solutions can help the parks deliver on their remarkable potential.